Income Tax Notice: How do I know if I have an Income Tax Notice, Relevant Documents & Types…

Income tax notices are official communications from the tax department regarding your tax returns or other tax-related matters. Receiving a notice can be unsettling and cause anxiety for many taxpayers, especially if they are unsure of how to respond or even if they have received a notice in the first place.

In this article, we will guide you through the process of identifying whether you have received an income tax notice and what steps you can take to address it. Whether you have received a notice for the first time or have received one before, it's important to understand what it means and how to proceed in order to avoid any potential penalties or legal consequences. So, let's get started and learn how to determine if you have an income tax notice.

Once a taxpayer submits their Income Tax Return (ITR) to the department, it undergoes processing. Subsequently, the taxpayer may receive a notice from the department, which could either be an Intimation or scrutiny. There are various types of tax notices that can be issued for different reasons. Let’s look at the types of income tax notices.

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Types of Income Tax Notices

There are various types of income tax notices which are delivered to taxpayers by the income tax department. The Income Tax Department delivers these notices for various reasons such as not filing the income tax returns, any fault, documents missing while filing the returns, or other instances where the tax department demands any other documents or information. So, let’s discuss these notices in detail below.

Notice under section 139(9) - Defective Return

Making mistakes are a common thing that everyone does therefore notice under section 139(1) is served when a taxpayer makes any mistake like filing the necessary details In such cases, your return is considered as a ‘defective return’ and the income tax department will issue a notice of defective return as per Section 139(9) to cross-check the errors. If the mistakes are not modified on time, these mistakes can lead to unpleasant repercussions.

Notice under 142(1) - Inquiry

This notice is served when an assessing officer (AO) finds that there is more modification/clarification needed regarding a particular detail during the assessment, they are likely to send this notice under Section 142(1) of the income tax act.

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Notice under section 143(1) - Intimation (no notice)

This is the most commonly received income tax notice. This income tax notice is sent regarding the issues of the errors/ faulty claims/ inconsistencies in a filed income tax return. An individual can revise the returns after acquiring this notice within 15 days. The tax returns will be processed after making the essential modifications noted in the 143(1) tax notice.

Notice under section 143(2) - Scrutiny

When the income tax department finds discrepancies, minor or major, in your income tax returns, a notice will be issued under Section 143(2). The distinctions can be under-reporting income or over-reporting failures. This notice is issued by the IT department to ensure that you do have not an underpaid tax.

Notice under Section 148 (Income escaping assessment)

Under Section 148 of the Income Tax Act 1961, the Assessing Officer is authorized to issue a notice to a taxpayer whose income has not been properly assessed. In other words, if the Assessing Officer has reason to suspect that a taxpayer has either not disclosed their entire income or has reported it incorrectly, they can initiate proceedings under this section. If the escaped assessment is under Rs. 50,00,000, a taxpayer may receive a notice under Section 148 within three years from the end of the relevant assessment year. However, if the escaped income amounts to Rs. 50,00,000 or more, the notice can be issued up to ten years from the end of the relevant assessment year.

Notice under Section 156 - Demand Notice

The notice under Section 156 is the notice of demand allocated by the Income Tax Department when any tax, interest, penalty, or any other sum is payable in the significance of any order passed. The Section 156 tax notice of demand will prescribe the sum which is payable.

Notice Under Section 245 

If the assessing officer finds any reason that tax has not been paid for the last years and he wants to set off the current year's refund against that demand, a notice under Section 245 can be allocated. However, the modifications of demand and refund can be done only when the taxpayer has been furnished with appropriate notice and an opportunity to be attended.

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How To Check Income Tax Notice Online

The process involves logging in to your account and utilizing three distinct methods to verify whether you have received an income tax notice, as well as how to verify if you have received a demand notice.

Go to the official e-filing portal and login into your dashboard account using your PAN/user ID/PAN

Secondly, select the e-file option from the menu bar & go to the option “view filed returns” available under income tax returns

You will be then able to see if any notice for your returns are there under the tab of “view file returns”.

2. Select “Pending Actions” On the menu bar & click on Worklist

• Any notices delivered to you will be visible here.

3.Select “Pending Actions” under menu bar & click on e-Proceedings

• You will be able to see any notice in case you are sent under e-Proceedings.

4. Select the “Pending Actions” option available in the menu bar & click on Response to Outstanding Demand

• If there is Any demand under your account then you can see that here.

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Relevant Documents to Reply to Income Tax Notice

The basic documents are as follows to reply to an income tax notice would be:

• TDS certificates, Form 16 (Part A)
• The Income Tax Notice copy
• Income source evidence such as (Part B) of Form-16, Salary receipts, etc
• Investment Proof if they are applicable

It is recommended to cross-check the notice from the Tax experts only. Thus, when you the uploaded Income-tax notice copy, the tax experts will review the same and come up with the best probable solution. You can contact us at help@myitronline.com in case you have any queries.

Also, Read: "FILE YOUR ITR FREE FOR LIFETIME with Myitronline".

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