Guidance after receiving Income Tax Notice
Gunjan Singh / 2020-02-05 04:29:06


As per section 142(1), tax department issues the Income-tax  Notice to the taxpayers and they needs to submit the required documents and details. However, the Assessing officer must have a genuine reason for issuing the notice to the taxpayers. It can be issued when the taxpayer has failed to pay the assessment. 

After the Income-tax Notice is issued the taxpayers should give a proper reply to the tax department, with the required documents and information. Further, the taxpayer must pay the assessment failed within the time limit given by the Assessing officer.

Basic things to be checked in the notice
Is it your name mentioned on the notice issued?
Does your PAN details are correct?
Assessment year of the unpaid tax
Name and Designation of the Officer issuing the notice.
Document Identification Number.

Reasons for receiving an the Income-tax Notice 

1. Delay in Income Tax Return FilingWhen the taxpayers fails to file the return on time, the tax department will issue the notice at the end of the assessment year.

2. Mis-stating LTCG from Equity:  While filing an Income-tax Notice, the taxpayer must keep in mind that he is stating the realized LTCG (Long Term Capital Gains). Otherwise, they might have to bear the notice.

3. Mis-match of TDS with Form 26AS:  The taxpayer must be careful about TDS. The TDS mentioned in the Form 26AS should be same as in Form 16 or 16A.  The mismatch can be the cause of getting the notice.

4. Missing statement of any Revenue earned: The authorities of Revenue Department can possess all the information regarding the payers income from various sources like banks, tenants, employers of the payers. So, if any of the income is found missing in the ITR, the Officer will issue the Income-tax Notice. 

5. Hiding Investments done for Spouse: When the payer has made any investment in the name of the spouse and forgets to show it in the ITR, then the payer will be liable to the Income-tax Notice.

6. Listing a Faulty Return: When any taxpayer files a imperfect or faulty  return then he will be issued an Income-tax Notice for sure. This notice must be responded within 15 days.

There can be many other reasons that results in getting an Income-tax Notice. However, you should keep calm and respond to it on stipulated time.

Dealing with the Income-tax Notice 

Some points to be kept in mind after receiving an Income-tax Notice. The important points are mentioned below:

1. Read every details of the Income-tax Notice carefully and proceed further according to the legal points mentioned in it.

2. Check the basic points in the Income-tax Notice. We have already discussed them above.

3. Look for the variations in the form. In the new imitation you will find two different columns: Amount Declared by You  and Amount Calculated by the IT Department.  Check if the two columns have different amount. If it varies then it will be your discrepancy source.

4. If you are personally asked to be present for checking the return filings, either represent yourself in front of them or else, hire a tax export to handle this. 
If your Income Tax Return Filing does not have any problem then attend the court hearing yourself with all the documents and proofs. 

If you need any further help regarding GST registration online, or New GST return filing feel free to contact us 8766393412.

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