7 Indian Income Tax Notices You must know

Whenever we receive an Income Tax notice, we tend to get worried and look for help. Income Tax notice is nothing but a letter seeking clarification on something. If you are a salaried person then not only filing the ITR but also replying to such notices can be done by yourself but if it is a company then things might get complicated and you might need professional assistance. Some are simple income tax notice for not filing the return while some are complex notices for verification of claims.

This post talks about different kinds of Indian Income Tax notices. Read about these Income Tax notice formats for better understanding and to be able to reply to it with ease.

Section 131(1A)

If the department feels that you are concealing your income then you will receive this notice which intimates you that an enquiry on this matter will be initiated and the Assessing Officer will have the authority to impound your books of accounts and other related documents.

Section 139(9)

In this type, the ITR filed is defective for which complete error description is shared along with the probable solution shared by AO for rectification. Duration of 15 days is given to respond from date of intimation or else the ITR gets rejected. You can agree or disagree and respond to the same. For this, you must know all the IT rules to follow.

Section 142(1)

If the return is not filed on time or the AO wants to go through the papers that verify the claims made in ITR, the notice for preliminary enquiry is made. The duration to serve the income tax notice 142(1) is before the end of relevant year of assessment. In case the assessee has not filed the return then time limit is not valid in that scenario.

Section 143(2)

In case the AO is not convinced or the assessee has failed to provide documents against the above mentioned notice then notice u/s 143(2) is send. In this case, AO may ask the assessee to personally attend his office or produce required documents for detailed scrutiny. The duration to serve this notice is before expiry of 6 months from financial year end in which return has been furnished.

Use the template for Income Tax Notice Reply Letter Format Under Section 221(1) to create a personalized format.

Section 148

This type of notice is issued when even after the assessment, AO feels that some part of your income has not been assessed. In this case, the assessee may be asked for filing ITR for relevant assessment or reassessment or re-computation. The duration to serve the notice is 4 years counting from end of relevant assessment year if the amount for income escaped assessment is Rs. 1 lakh. The duration is 6 years if the amount is above Rs. 1 Lakh.

Section 156

This notice is served in case there is any kind of tax or fine or penalty is due from taxpayer. This notice is served mostly after the assessment of the return. The taxpayer is suppose to deposit the dues within duration of 30 days from ITR notice. There is no limit for serving this kind of notice.

Section 245

This type of notice is issued when some kind of tax refund is adjusted against tax demand due from the end of the taxpayer. This is more like an intimation from the department and therefore, it doesn’t have any time limit to serve.

Therefore, always read the notice and understand the section under which it has been issued to have complete clarity on what action you are required to take.

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