Income Tax Notice

Have you been served a notice by the Income Tax Department? If yes, do not worry because there is no need to get panic. We at Compliance Calendar LLP have a full-fledged team of experienced Chartered Accountants who can help you in replying to the income tax notice and further assist you as and when required.

Overview:

If the Income Tax Department is not satisfied with your particulars in the Income Tax Returns (ITR) or if they have a question/ doubt for you, they can send you a notice, letter or in serious cases even summon you.

According to our team of tax experts who are mostly Chartered Accountants, you should not get very much panic if you get served a notice from the income tax department seeking details of a transaction or source/proof of some income.

Income Tax Department might have found certain discrepancies in data, errors in calculations, wrong entry of certain data, etc. In such cases, the Income Tax Department issues a notice otherwise known as Intimation Order. Sometimes, even a minor error in tax return can cause you receive a notice from the tax department.

Further, considering the spike in the number of notices being served on income tax assessees, it becomes prudent that you should consult a qualified Chartered Accountant who can look after your notice and guide you professionally as to how the same can be replied and resolved even if it includes Liaisoning with the Income Tax Department.

Income Tax Notice is a means of communication of the Income Tax Department regarding any queries or assessment needed. It should always be taken seriously by taxpayers. Let us help you in resolving the same for you.

Get in touch with a Chartered Accountant at Compliance Calendar LLP.

Documents Required

  • The notice/ intimation served to you at the first place.
  • The copy of last income tax return filed with the Income Tax Department and their computation (including of previous years if it becomes necessary).
  • Copy of documents regarding income and investments claimed in the return.
  • Proof of all deductions claimed while filing Income Tax Return.
  • Depending on the nature of notice, we may require some other information and documents as well.

Legal Procedure

As the number of people filing the ITR increasing, the quantum of the notices is equally progressing. That's why the scope for non-disclosure of income, high-value transactions and non-filing/defective filing of returns has become very common.

  • You should respond to notice within the stipulated time period failing which can even worsen the situation. If you agree to the errors mentioned, then you can file for rectification and if you feel you have received the intimation erroneously you can file a grievance.
  • It is very much required that you should reply to the notice within the stipulated time. Generally, 30 days are given for reply by post, online or in person. We as a team of tax expert can help you if your feel much complexities involved.
  • If there is Outstanding Tax Demand Status, the Taxpayer can submit the response online to the outstanding demand by either choosing to Agree or Disagree with the demand.

Features & Benefits

An income tax notice can come under the following sections chiefly:

  • Under Section 142(1) when your return is selected for scrutiny. You will be given a notice where many questions and documents are asked by the assessing officer.
  • Under Section 142(2A) when you can be given notice for the requirements of special audit of your accounts.
  • UnderSection 131 when you do not attend any proceeding by the Investigation wing officer and this notice can be issued.
  • Under Section 133(6) when you may be asked further information.


It is required that as soon as you receive any notice from the Income Tax Department, you should be quick to understand its nature. We can help you ease the situation as we have had ample experience in our day-to-day practice with our years of practicing in taxation fields. Consequences of not complying with these notices can get you penalties and even imprisonment of various severities.

Get in Touch

Let us help you in making it hassle free experience to reply to an Income Tax Notice for you. Fill in the details below and one of our Chartered Accountant will get back to you within 24 hours.

Have Queries? Talk to us!

  

Frequently Asked Questions

An Income Tax Notice is an official communication issued by the Income Tax Department to taxpayers for various reasons. These notices can arise from discrepancies in the Income Tax Return (ITR) filed, requests for additional documentation, or a summons for the taxpayer's personal appearance. Each notice is based on specific sections of the Income Tax Act, clearly stating its purpose and the response expected from the taxpayer.

Receiving an Income Tax Notice may not necessarily be a cause for alarm. However, it does require a prompt and accurate response to address any issues raised by the department.

Income Tax Notices are generally sent to the taxpayer’s registered email address. Additionally, they can be checked on the Income Tax Department's official notification portal. However, this portal may only show some types of notices. For others, you may need to contact the Income Tax Department directly. To ensure the authenticity of the notice, you can verify it using the “Authenticate notice/order issued by ITD” feature on the Income Tax website. It's also essential to know your Document Identification Number (DIN) to facilitate communication.

Yes, salaried professionals can receive Income Tax Notices. Common triggers include discrepancies with Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Summary (TIS), as well as omissions of income.

Receiving an Income Tax Notice can be stressful, but it’s crucial to remain calm. First, identify the reason for the notice. If it’s due to missing information, you should provide the required details. Conversely, if the notice highlights errors, you need to rectify them. Always respond within the specified timeframe to avoid potential penalties.

Not responding to an Income Tax Notice can lead to serious repercussions, which vary depending on the notice type. Possible consequences include penalties of up to INR 10,000 and, in severe cases, imprisonment for up to one year.

Failing to respond to a notice within 30 days can result in complications. The Income Tax Department may proceed to adjust any outstanding demands without allowing you the opportunity to address the notice.

Replying to an Income Tax Notice is straightforward. You can do this online by visiting the official Income Tax Department website. Log in to your account, navigate to the compliance section, and follow the prompts to respond to the notice.

An Intimation Letter, also known as an intimation order, is issued by the Income Tax Department under Section 143(1) after your return has been successfully processed. This letter details the information you submitted during your tax filing and provides a comparison with the information available to the department. Intimations are typically sent within one year from the end of the financial year.

The code EXC 001 indicates transactions that exceed the permissible limits set by the Income Tax Act. Specifically, it pertains to monthly cash transactions that exceed INR 10 lakh.

Yes, you can receive Income Tax Notices for current account transactions. For instance, if your current bank account transactions exceed Rs 50 lakhs in a financial year and you fail to disclose this information, you may receive a notice regarding it.

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