It is very important to fill the Income Tax Return. So a slight mistake in the form can lead you to get the income tax notice. Getting an income tax notice is not a big deal, and also, do not get panic if you receive one.
There can many reasons behind you getting income tax notice, so instead of getting panic, you should find the reasons you are getting the notice. Remember that do not ignore the income tax notice or put it off to a future date.
It would be best if you took immediate action on the notice, or you can consult income tax filing for companies they will adequately help you to respond back for the income tax notice.
Before going forward, we will first see what income tax notice is and its main reasons for receiving an income tax notice and how to tackle it.
What is Income Tax Notice?
Income Tax Notice is nothing but an intimation email to a taxpayer from the Income Tax Department. The e-returns is processed by the Central Processing Centre (CPC). You can receive a tax notice for various reasons, some alarming, and some merely informing.
Why you receive Income Tax Notice?
The following are some common reasons why you will receive the Income Tax Notice from the Income Tax Department.
You have not filled your Income Tax Return.
Sudden fall in incomex
Non-Declaration of Exempted Income
Large Value Transactions
Large value deposits
Types of Income-tax notices and how to deal with them
1) Notice 131(1A)
This notice is an issue by the income tax department under Section 131(1A). If the Assessing Officer (AO) found that one has hidden income while filing the income tax return, then the AO has full right to send you income tax notice u/s 131(1A). The AO tracks your expenditure and income based on your PAN / Aadhar link to your account.
How to deal with the notice 131(1A)?
The first thing you have to do is reply to the income tax notice within the mentioned deadline and ask for a suitable personal hearing date. At the time of the individual hearing, you will need to carry physical documents with you, which will specify your justification to AO. So that AO can dismiss the notice, or he will ask you to pay the due or penalty.
2) Notice 139(9)
The income tax department generally issues this notice for defective return or standard technical error, and this notice is an issue under Section 139(9). These include wrong form usage, TDS details wrongly uploaded, TIN mismatch, variance with Section 26AS, etc.
How to deal with the notice 139(9)?
These issues can be resolved online only just by filling the revised income tax form with correct information. You just need to log into your Income Tax login using PAN and password and make the changes and re-file the returns. Once the error is resolved at the income tax department’s end they will cancel the notice.
3) Notice 143(1)
This notice is nothing but a Demand notice for additional tax or incorrect information and is issued under Section 143(1) of the Income Tax Act. In this notice, you will need to check at the end of the notice. If the notice says that no amount is claimed, it would be just an intimation of refund or processing of returns.
How to deal with the notice 143(1)?
You don’t have to take any action on this notice as it is issued if some income source is dropped out or if the information is not equaling with the master record of the IT department. This notice can again be corrected online, and even the penalty/interest, if any, can be paid online itself. You must respond to such notices within 30 days of the date of the information.
4) Notice 148
The Income Tax department can revive any of your preceding cases up to 6 years old for reassessment, where it has spots to understand that some assets head was moved out.
How to deal with the notice 148?
While dealing with this notice, you have to keep some things in mind you can re-file your returns, and also you can decide whether you want to dispute the notice or not. Ensure that you will not receive any punishment or penalty in this.
5) Notice 156
This notice is generally issued under Section 156 of the Income Tax Act. It pertains to any outstanding tax on account of under-investment, unprecedented interest for late tax payment, or any penalty dues.
How to deal with the notice 156?
If you receive notice under section 156, you have to take immediate action and clear your pending dues.
These are some notices which are issued by the IT department and the solutions over it.