A tax notice is a letter from the Internal Revenue Service (IRS) that alerts a taxpayer about an issues with their tax return and tax paid to the department. A tax notice can be sent to you for many reasons it may be for informing you about a correction on a return, a balance due, or an overpaid of tax.
Legal Window will provide you all the necessary services and legal advice related income Tax notices and also guide for other compliances related reply for these notices. You may get in touch with our team on 072407-51000 or email firstname.lastname@example.org.
Pan Card and password of your income tax portal is required now a days to check and reply any type of income tax notice, Documents required can only be called as per the demand and type of notice.
1. Complete the Questionnaire
We will provide a questionnaire which is required to be filled by you in which we will sought the basic details and documents pertaining to the Filing of Reply of Income Tax Notice.
2. Review of the documents
All the documents provided to us and the questionnaire will help us to process further for preparation of reply of ITR Notice
3. Filing of Reply with the Government
We will file further send you the provisional return for your verification and will file your TDS return before the due date and protect you from any penalty after its duly confirmed and validated from your side.
We will further inform you about the same and send you the copy of reply via mail.
Types of Notice or Assessments
Types of notices or assessments are given below: (Show in boxes or make some image
Defective Income Tax Return: Section 139(9).
Income is concealed or likely to be concealed: Section 131(1A).
Preliminary Enquiry before an assessment: Section 142(1).
Notice of demand: Section 156.
Refund adjusted against the tax demand: Section 245
Follow up of the notice u/s 142(1): Section 143(2).
Summary assessment without calling the taxpayer: Section 143(1).
Scrutiny assessment: Section 143(3).
Best judgment assessment: Section 144
Income escaped assessment: Section 148 & 147.
What is the next step you should do when you receive an Income Tax notice?
Reason for Income Tax notices
Mismatch of TDS claimed in form 26AS
Non disclosure of income
Misreporting of capital gain form securities
Return not filed or delayed filed
Non disclosure of investment income (taxable under clubbing section)
Filling defective return
Transaction with high value
Return picked under Scrutiny by the department
Taking more refund claim
Investment in the name of spouse
FAQ's on Income Tax Reply Notices
Intimation u/s 143(1) is sent to a taxpayer who filed income tax return. 143(1) intimation contains the details of income filed by the taxpayer and the computation done by the income tax department. Intimation U/s 143(1) is also sent if any tax or interest is found payable or refundable or any arithmetical calculation is wrong or there is any increase or reduction found in the tax paid by the taxpayer.
If taxpayer didn’t reply to the scrutiny assessment than it may result in Best Judgment Assessment u/s 144, or penalty u/s 271(1) (b) i.e. of Rs.10, 000 for each failure.
In case, no response is received within 30 days of the issue of this intimation, the return of income will be processed after making necessary adjustment(s) U/s 143(1)(a) of Income Tax Act, without providing you any further opportunities under this matter.
Non-payment of tax demand attracts penalty and prosecution under various provisions of the Income Tax Act, 1961 and interest @ 1% p.m. or part of the month on the amount of default.
Tax payer will get a notice of preliminary enquiry in case the return is not filed on time, then tax payer will furnish a return of income in respect of which is assessable.
Notice under section 143(2) is issued to you by the Department when your Income Tax Return is selected for scrutiny assessment or detailed assessment u/s 143(3)
Within 30 days of receiving notice from income tax department you need to file a reply or any prescribed timeline given in the notice.
The ITO has the right to demand tax debt and take money from you without proving its debt in court. Department also has the power to demand and take security deposits for future debts even before they exist.
Intimation u/s 143(1) is intimation and not an assessment order. It is an automated response and there is no human intervention involved.
This notice will serve the Income Tax Department, when the tax payer has any dues like tax, interest, penalty, fine or any other sum is payable to the department. Generally, the notice is served after the assessment of ITR. The taxpayer can deposit the amount payable within 30 days from the date of the income tax notice that he has received or if any mistakes in original return then tax payer can revise the return and submit the revised acknowledgement. There is no time limit prescribed by the act to serve this notice. And also refer Income tax notice under section 143(1).