Although it is not good for any taxpayer to get a notice from the Income Tax Department, but it is also not right to panic as soon as you get a notice. The Income Tax Department sends notices for many reasons. Let us know why notices come from the Income Tax Department and what to do if you get a notice?
Taxpayers, pay attention, if you have been sent a notice by the Income Tax Department, do not panic. Sometimes notices also come due to some mistakes of taxpayers. Let us know for what reasons a notice comes from the Income Tax Department and what should be done after it comes?
Many taxpayers assume that their work is done after filing Income Tax Return i.e. ITR, but we are telling such taxpayers that you can get a notice even after filing ITR. You should know that after the ITR is verified, its processing starts by the Income Tax Department. The Central Processing Unit validates your ITR from its own records using Form 16, Form 26AS, AIS, TIS. If there is a difference between tax and taxable income, you may receive a notice from the Income Tax Department. There are many types of notices from the Income Tax Department.
Why does Income Tax Notice come?
- If a taxpayer has not filed ITR, the Income Tax Department can issue a notice under Section 142 asking him to file the return.
- If the taxpayer’s tax return is incomplete or contains incorrect information, a notice is sent as per Section 139 (1).
- If the Income Tax Department is dissatisfied with the information and documents provided by a taxpayer, it can send a notice under Section 143 (2). Under this section, the Income Tax Department asks for some more detailed information.
- When a taxpayer owes money in the form of tax, interest, penalty or other debt, the Income Tax Department issues a notice under section 156. This is known as a demand notice.
- If a taxpayer has not filed ITR or has not responded to a notice issued under 142 or 143 (2), the Income Tax Officer can send a notice under section 144.
- When an officer issues a demand under section 245 because they believe you owe tax, they want to deduct that amount from your current year’s refund. However, any change can be made only after giving you adequate notice and an opportunity to respond within 30 days.
- If the Income Tax Department officer feels that you have failed to file your return, some income has not been included in the earlier assessment of your income or you have some income which has not been disclosed earlier, then they can send you a notice under section 147/148/149.
