Income Tax Notices
4 Points You Must Know About Income Tax Notices
1. Difference Between Income Tax Notices and Income Tax Intimations:
Every communication from the income tax department is not an Income Tax Notice. Moreover, when you get any communication, first try to ascertain whether it is a notice or simply an intimation. However, most of the intimations do not require any response from your side.
2. Timely Compliance:
It is of utmost importance that you timely reply to the notice. Moreover, these small things work in your favor in your future course of action.
3. Reply with the help of an Expert :
In the case of income tax notices, it is better to take the help of an expert. In other words, only an expert can understand the future consequences of the notice and guide you suitably.
4. E-Proceeding Tab of Income Tax Website:
It is a good practice to check the E-proceeding tab after login into the income tax website to check the progress or status of your notice. As there are chances that you may miss the email or hard copy of the communication from the income tax department.
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FAQ`s About Income Tax Notices
1. What is an income tax notice?
In a general sense, the income tax notice is a communication such as a letter or email from the Income Tax Department. Further, technically speaking, not all communications by the department are a notice. Moreover, sometimes the communication is like an intimation only with no further compliance needed.
2. What is the notice under section 143 3 of the income tax act?
The notice under section 143(3) is not a notice but an assessment order. In other words, it is the outcome of the scrutiny assessment done by the assessing officer of the income tax department.
Further, after checking all the records and supporting documents during the scrutiny, the assessing officer will issue the assessment order. Section 143 (3) of the income tax act deals with this type of order. However, you can file an appeal against that assessment order to the higher authorities as prescribed under the income tax act.
3. What is section 156 of the income tax act?
Whenever the income tax department finds that any sum of money is due from the taxpayer because of the assessment order or otherwise, it issues a demand notice. Further, section 156 of the income tax act deals with this type of notice.
Moreover, you need to pay the amount demanded within 30 days of the receipt of the notice. However, in certain situations, the department can give you even less than 30 days to pay the amount demanded.
4. What is section 143 2 of the income tax act?
The notice under section 143(2) is called a scrutiny notice. Moreover, the scrutiny notice under section 143(2) can be one of the following three types.
Limited Scrutiny
Complete Scrutiny
Manual Scrutiny
However, when a scrutiny notice is issued, it means that the Income-tax officer will do checking to satisfy himself regarding the correctness of the figures mentioned in your income-tax return. consequently, he will check your expense vouchers, books of account, bank statements, and other records and registers to verify your income. Further, after checking all the records and supporting documents, the assessing officer will issue the assessment order. Based on that order, your income will be assessed. However, if you are not happy with the assessment order, you have the option to file an appeal against that order.
5. What is section 142 1 of the income tax act?
Section 142(1) of the income tax act deals with a notice which can be issued under the two following circumstances.
Firstly, when you have not filed the return, but assessing directs you to file the same; or
Secondly, you have filed the return, but the assessing officer requires specific information or documents to assess your correct income.
6. What is section 143 1 of the income tax act?
Section 143 (1) deals with the preliminary or summary assessment. Further, the computer does this type of assessment. The computer programming checks for any arithmetical error or an apparent incorrect claim in the income tax return. The department informs the result of this preliminary checking by issuing an intimation to the taxpayer.
