Different Type of income tax notices one can receive in India.

Sachin Jain — Wed, 27 Mar 2024 13:20:50 +0000

With increased access to information and technology, the income tax department has become more active in sending tax notices and intimations to taxpayers. Upon receiving these notices, it's essential not to panic immediately. Some notices are merely for informational purposes, while others require your intervention and response within a specified timeframe. Today, in this blog, we'll delve into understanding the nature of these notices. This will empower you to better comprehend the situation and take appropriate action if you find yourself as the recipient of an IT notice.

1) Notice cum intimation U/S 143(1)-

Intimation or notice u/s 143(1) of Income Tax Act. 1961, is preliminary processing of return filed by you and its a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also makes comparison of income declared by assessee and income considered by the income tax department and based on that it shows if any refund is receivable or demand is payable.

2) Notice u/s 142(1)-

The Section 142(1) of the Income-tax act 1961 gives power to Income-tax authorities to issue a notice for more information and for further clarification about where a income tax return is filed and if the same is not filed, then to furnish the required information in a prescribed manner. However if you don’t comply with this notice and don’t reply then in such case, a penalty of Rs 10,000 can be imposed u/s 271(1) (b).

Your case also can go for “Best Judgement Assessment” u/s 144, where the assessment will be carried out as per the best judgment of the Assessing Officer on the basis of all the relevant material and information available with them.

Prosecution u/s 276D for up to 1 year with or without a fine can be initiated. Search u/s 132 can also be initiated.

3) Notice u/s 143(2)-

This is also known as scrutiny notice. If notice u/s 142(1) is issued and you have submitted documents and AO (Assessing officer) was not satisfied with the produced documents or may be you have not submitted documents or AO has not received any documents and the assessing officer has reason to believe that income is understated, less taxes paid or incorrect losses claimed, then Notice under Section 143(2) is issued which means your return has been selected for detailed scrutiny by your Assessing Officer and further information may be called upon.

4) Notice u/s 139(9)-

This is also known as defective return notice. Purpose of this notice is to correct errors in return and make sure that income tax return provide complete and precise information. This notice is generally issued in case

1) ITR is incomplete

2) Mismatch or missing tax information

3) TDS credit is claimed but corresponding income is not offer to tax or less offered in comparison to 26AS

4) Wrong ITR filed etc.

5) Notice u/s 148-

Section 148 of income tax act 1961 gives authority and power to the Assessing Officer to issue notice to a taxpayer whose income has not been properly assessed. This means that if the Assessing Officer has reason to believe and doubt that a taxpayer has not disclosed complete income or has provided an inaccurate information of it, officers can commence proceedings under this section.

6)Notice u/s 156-

Notice u/s 156 is also known as Notice for income tax demand notice. This notice is issued by the Assessing Officer when any tax, interest, penalty, fine, or any other sum is payable by the assessee as a result of any order passed under the Income Tax Act. The notice specifies the amount and the due date of payment for the same, which is usually 30 days from the receipt of the notice.

7) Notice u/s 245-

This is an intimation and informational notice.The notice u/s 245 is issued by income tax department to take confirmation from assessee’s side for adjusting the pending tax to be paid by assessee for any of the previous years from the current year’s refund. This proposed adjustment intimation allows taxpayers to respond and express whether they are in agreement or disagreement with the proposed adjustment.

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