Notices from the Income Tax Department can reach any tax payer, be it salaried, self-employed, or retired. The notices are issued for different purposes—mismatch in your return, under-reporting of income, tax arrears, or simple need of explanation. They are some regular notices, but there are others for which immediate action is required. The idea is to know what kind of notice it is, why it has been issued, and reply within the given time frame.
Intimation under Section 143(1)
This is the most frequent communication of taxpayers. When your return is processed, the department verifies your information in their records. Intimation will display one of the three messages: your return has been received as filed, there is a refund due to you, or there is a further tax demand. In case there is any adjustment noted, cross-check the same. If true, pay the dues promptly; otherwise, submit a rectification application online.
Erroneous notice of return under Section 139(9)
You are served with a defective return notice when your filed return is defective or incomplete. This happens when you file using the incorrect ITR form, leave mandatory fields blank, or fail to annex mandatory details. You have 15 days from the department to correct the defect and re-file. If you fail to do so within the recommended time, your return will be regarded as null and void, and this may attract charges and loss of refunds.
Notice of examination under Section 143(2)
Scrutiny notice is when your return is brought to notice for strict scrutiny. It can be due to discrepancies, questionable claims, or random scrutiny. You may be asked to provide supporting documents like bank statements, evidence of investments, or books of accounts. Since scrutiny can be a serious problem if not dealt with, it is better to respond early on and, if necessary, consult a tax practitioner.
Notice of demand under Section 156
If you are found in arrears of tax, interest, or penalty by the department, they will issue a demand notice. The notice will bear the exact amount and date for payment. In case of a valid demand, pay immediately through the e-filing portal. If you are not compliant, you can appeal within 30 days. Delay in paying a demand notice could attract recovery proceedings, such as attachment of assets or bank accounts.
How to handle notices in a proper manner
The key is not to panic. Every notice will specifically state the section of the Income Tax Act under which it has been issued and for what purpose. Cross-check the information with your submitted ITR and Form 26AS (or AIS) to spot mismatches. Responsively reply within the specified time frame—most likely through the web portal—so that the department has the responsibility of your compliance. Keeping the records of account properly and taking the guidance of a chartered accountant, whenever needed, will help and protect.
FAQs
Need income tax notices always be serious?
No. A few of them, like Section 143(1) intimations, are only routine intimations. Only certain notices, like scrutiny or demand notices, require detailed responses and documents.
What happens if I don't respond to a notice?
Neglect of notices can attract penalties, tax notice notices, and even court cases. Even if you disagree, you will be asked to return an answer within the prescribed time.
Do I need expert assistance for notice processing?
Regular notices like intimations under Section 143(1) can be processed singly through the e-filing portal. Expert assistance is, however, advisable in the event of scrutiny or demand notices to avoid errors.
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