The Income Tax Department can send notices under several sections of the Income Tax Act if any discrepancy is found in your Income Tax Returns (ITR). With the new stringent regime and quick turnaround time in the department, many people have been getting notices. The I-T Department could send you notices either by post or email. These notices could be for scrutiny, non-filing, delayed filing or filing of defective ITR, non-disclosure of income, tax credit mismatch in the ITR, or non-payment of Self-Assessment Tax. Let us look at each kind of notice in detail and find out how to reply to each kind.
Types of notice:
Notice for Non-Filing of Income Tax Return
If you have filed ITR for one year and not filed in the following year, or you have performed high-value transactions and not filed an ITR, then you could get a notice from the I-T Department for non-filing of ITR. If you are a salaried individual with tax being deducted by the company, and you have failed to file the ITR, then you could get a notice from the I-T Department.
Notice for Delayed ITR Filing
If you have not filed the Income Tax Return by July 31, you will get a notice on non-filing of ITR. You could get this notice within a year of the end of the assessment year for which return has not been filed. File your ITR as soon as possible and attach the ITR-V, or reply with ‘Return under preparation’.
Notice for Non-Disclosure of Income
You can get a notice from the I-T Department for non-disclosure of income if you have not shown any income in your ITR. If TDS has been deducted and you have no income to show for it, or if the I-T Department has received information about income such as bank interest or income from shares and securities through the AIR, they will suspect you of hiding income sources and send you a notice.
Notice for Tax Credit Mismatch
If the tax credit in the ITR and Form 26AS do not match, you are likely to receive a notice for tax credit mismatch. In this case, cross-check the tax credit details in your TDS and ITR with that in Form 26AS. Revise your ITR accordingly and file a revised version or a rectification. If there is any error in Form 26AS, you need to rectify it in the form first.
Notice for Non-Payment of Self-Assessment Tax
If you have filed a return even when tax is due from you to the government, then the ITR you filed will be considered a defective return. In this case, make the tax payment as required and file a revised return.
Notice Under Section 142
This is a notice sent before the I-T Department begins scrutiny of your tax payment. As a preliminary investigation, the department asks the taxpayer to produce details on income, investments, tax paid, assets and liabilities.
Notice Under Section 143(2)
This is a scrutiny notice that is usually served after a notice under Section 142(1) is sent out. You could receive this notice up to 6 months after the end of the assessment year.
Notice Under Section 245
You are served a notice under Section 245 if you have claimed refund on the tax paid, but there are previous dues n your name. Through this notice, the department lets you know the refund you have claimed, the pending demands from the previous years.
Notice Under Section 139(9)
If there is an error in the ITR filed by you or any relevant income/investment proof has not been attached, the department will send you a notice under Section 139(9). You need to reply to this notice within 15 days or the return will be considered as not filed. If any rectification needs to be done, file a rectification request for the return or a revised return within the deadline.