Income tax notice: If you are a new taxpayer then there may be many more situations for you where there may be confusion. The biggest tension is about income tax notice. If anything goes wrong, notice is sure.
There is a lot of confusion regarding income tax. First regarding investment and then regarding trying to save tax. At the same time, from filing the return till getting the refund, many times you have to do your tax calculation. If you are a new taxpayer then there may be many other situations for you where there may be confusion. The biggest tension is about income tax notice. If anything goes wrong, notice is sure. But, what if the mistake is not from your side and still the notice comes? This can also happen. But, don’t panic. Let us know what to do in such a situation.
What is Letter of Intimation in ITR?
In tax language it is called Letter of Intimation. This notice tells whether the return filed by you is correct or incorrect. While filing the return, if you have filled the interest information wrongly or if any minor mistake has been made, then such notice can also come. This notice states that whatever mistakes have been made in the return, they should be corrected.
What could be the meaning of Income tax notice?
> If your liability is more than the tax paid during the income tax return.
> If your liability is less than the tax you have paid during the return or you have filed the return correctly.
> Experts believe that such notices often come to every taxpayer. If you do not receive such a notice, you can assume that your return has not been processed.
Do not delay in responding to income tax notice
Sends a mail regarding this on behalf of the Income Tax Department. According to tax experts, the tax notice under Section 143(1) is called ‘Notice of Demand’. That means, if you have any outstanding tax liability, you should pay it within 20 days of receiving this message. If you delay in this, after 30 days have passed, you will have to pay monthly interest at the rate of one percent.
What should be done?
(1) If you go to the website of the Income Tax Department, you will find ITR Status written at number 9 in the left column on the homepage.
(2) If you click on it, a new page will open where you will have to fill PAN number, ITR acknowledgment number and captcha code. Keep in mind that after submitting the ITR, the Income Tax Department sends the acknowledgment number to your registered mail ID.
(3) After submitting all these details, the status of ITR processing will be known. If the return has not been processed then it will be written as Return Submitted and verified and if it has been processed then it will be written as Return Processed and Refund Paid.
(4) If you log in to the Income Tax website, you will find Filing of Income Tax Return and View Returns/Forms written on the dashboard below.
(5) If you click on the second option, a new page will open in which your PAN number will be uploaded and below the assessment year and income tax return will have to be selected.
(6) Then after submitting, the return status will be visible. If the return has not been processed then the status will be written as Successfully verified.
(7) If ITR Processed is written then understand that your ITR has been processed.
Demand Notice (under Section 156)
An income tax notice under section 156 is issued against the outstanding dues, interest, penalty etc. Such notices are generally sent after post assessment of the income tax return. Notice, the assessment officer issues it which gives instructions for the due amount and asks the taxpayer to deposit the outstanding amount on time to avoid any penalty.
