Income Tax Notice

Income Tax in India is a Direct Tax Law governed by Income Tax Act 1961 along with rules notification and circulars issued till date, this is regulated by the Central Board of Direct Taxes (CBDT) through Jurisdiction Officers and Commissioners located throughout the country.

Considering the proper determination and payment of taxes, Income Tax Act provide self-assessment and declaration opportunity to every tax payer, however, for governing and administrating the revenue law there exist certain Income Tax notice which are issued by proper jurisdiction officer within specified timelines to call for and make an assessment of income and its applicable taxes thereon.

Let’s discuss in details what are the Income tax notice can be issued by Income tax department:

1. Intimation under section 143(1)
2. Notice under section 143(2)
3. Notice under section 142(1)
4. Notice under section 148
5. Notice under section 245

Intimation under section 143(1)

This is the first and foremost intimation that is received by the tax payer; this is electronically processed by Centralised Processing Centre (CPC). The income is computed considering the following factors:

• Arithmetical error if persist in the return
• Any incorrect amount mention in exemption column as apparent from the return
• Disallowance of any incorrectly claimed loss or expenditure
• Any income which has not been included in the return

Considering the above mentioned factors, return filed online is processed electronically and intimation under section 143(1) is served mentioning the differential liability to be paid or refund if determined or loss to be assessed.

In case if the return filed is accurately processed, then the intimation issued contains the same particulars as filed by the tax payer and the intimation served would determine that the return is actually processed at Centralised Processing Centre.

Notice under Section 143(2)

Income Tax Notice under section 143(2) is issued by the Jurisdictional Assessing Officer to scrutinize the details as mentioned in the return. This is detailed scrutiny of the particulars of return filed by the assessee. Under this section a detailed questionnaire is issued by the Jurisdiction Officer and the tax payer needs to reply in accordance with the questionnaire along-with supporting documentary evidence.

This notice can be issued within six months from the completion of assessment year to which return pertains. The tax payer is required to submit response to detailed questionnaire and may seek assistance of our team, We at ReturnFilings.Com will provide complete assistance in drafting and providing detailed response in reply to the notice.

Notice under section 142(1)

After filing Income tax return, if the assessing officer require additional information then income tax notice under section 142(1) is issued, in case of non-filing of return a notice under section 142(1) is issued mentioning to file the return before the date as mentioned in the notice.

Non response to this notice would attract penalty of INR 10,000 or prosecution upto one year or with both.

The tax payer is required to submit response to this notice and may seek assistance of our team, We at ReturnFilings.Com will provide complete assistance in drafting and providing detailed response in reply to the notice.

Notice under section 148

After filing of Income Tax Return, if the assessing officer has reason to believe that any income is not disclosed or you have paid lower taxes then he may issue income tax notice under section 148. This is also termed as income escaping assessment.

Notice under section 148 can be issued by Assistant Commissioner or Deputy Commissioner within 4 years from the end of relevant assessment year.

Notice under section 148 can be issued by Chief Commissioner or Commissioner within 6 year from the end of relevant assessment year if escaped income is more than INR 1 Lakhs.

The tax payer is required to submit response to this notice and may seek assistance of our team, We at ReturnFilings.Com will provide complete assistance in drafting and providing detailed response in reply to the notice.

Notice under section 245

If the assessing officer has reason to believe that tax has not been paid for the previous years and he wants to set off the current year refund against that demand, a income tax notice under Section 245 can be issued. However, the adjustment of demand and refund could be done only if you have been provided a proper notice and an opportunity to be heard.

The tax payer is required to submit response to this notice and may seek assistance of our team, We at ReturnFilings.Com will provide complete assistance in drafting and providing detailed response in reply to the notice.

With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your compliance for response to income tax notice and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need for Income tax notice.