income tax notice
Now the process of filing Income Tax Return (ITR) has become much easier and people can file returns online sitting at home. However, this process may still seem a bit difficult for people filing taxes for the first time. Many times a notice comes from the Income Tax Department after or before filing the return. In such a situation, there is no need to panic, rather it is important to provide correct information and timely response.
What is income tax notice?
Income tax notice is an official information, which the tax department sends to a taxpayer. This notice can be sent for many reasons. Receiving a notice does not necessarily mean that you have committed any mistake. Many times notices are sent only to ask for correction in documents or additional information.
For what reasons does income tax notice come?
- Not filing ITR
- Use of wrong ITR form
- Giving wrong information about TDS
- Mistakes or concealment of information in returns
- not declaring any income
- Misreporting of capital gains
- Not reporting big transactions
- not submitting required documents
- Not providing correct investment information
First check the notice
If you have received a notice from the Income Tax Department, then first of all you should verify it. For this, the notice can be verified by visiting the Income Tax e-filing portal. This process requires PAN card, tax documents, DIN number and mobile number.
How many types of income tax notices are there?
- Section 142(1): For information or investigation before assessment
- Section 143(1): Intimation letter i.e. notice giving information
- Section 143(2): Notice for scrutiny or examination of return
- Section 148: Notice relating to omitted income or assessment
- Section 245: Notice related to tax demand or arrears
What to do after receiving income tax notice?
If you have received a notice, then first read it carefully and understand what information the department is asking for. After this prepare the necessary documents. These may include bank statement, Form 16, investment certificate, ID proof, transaction details and other records. After this, login to the Income Tax portal and go to Pending Action and select e-Proceedings option. A notice will appear here, which can be replied online.
You can also give your clarification by uploading the necessary documents. After submitting the answer, download its receipt, so that it can be used in future if needed. Also keep an eye on further updates coming on email and portal. If you have a Chartered Accountant (CA) or a financial advisor, you can show the notice to them also. They can help handle the entire process.
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