What to do when you receive an Income Tax notice?
- First and foremost – keep calm and read the communication you received end to end. Work around the legalese and understand what exactly are they trying to tell you.
- Check the basics
- Figure out the discrepancy
When can you expect to hear from the IT department?
TDS Amount Error
The most common issue with returns filed is often a mismatch in the TDS amounts. Sometimes your employer or deductor may have delayed or made a mistake filing their TDS returns.
If that is the problem with your return too, request your employer to revise the TDS amount credited to you.
Discrepancy in Return Filed by you
If the discrepancy is with the amounts declared by you in the returns you filed, try to understand the difference.
Sometimes the IT department would like to review certain documentation based on which your returns were filed. In case of such a request, furnish the said documents immediately.
Tax Returns Not Filed
In case the notice is to remind you that you have not filed your tax returns yet, do so without any delay. The IT department can remind you about unfiled returns for the previous 6 assessment years.
Visit the income tax filing site and then download the right Income tax return form under the given assessment year. And then from the given options listed select in response to a notice under section 139(9) where the original return filed was a defective return. Fill the reference and acknowledgement number and fill the form with rectifications
It is mandatory to file Income tax return for a company and firm. However, individuals, HUF, association of persons are mandatorily required to file return of income if the income exceeds the basic exemption limit of Rs 5 lakhs. This income limit is different for senior citizens and super senior citizens.
Under s. 142(3) of the Income Tax Act, 1961 scrutiny assessment is discussed which is also known as detailed assessment. In this assessment the taxpayer receives the notice only if there is some doubt about the authentication of income or has information regarding income concealment. This scrutiny is made to confirm the accuracy of various claims or deductions etc. made by the taxpayer while filing income tax returns.
If you get Income tax notice, do not panic respond to the notice and provide the documents and information sought by the department. File a rectified return and pay the tax due, if any, within the specified period. It is better to authorise a tax expert to respond to the notice.
In case, you did not respond to the notice within 30 days of receiving the intimation then the return of income will be processed automatically after making necessary adjustments as per section 143(1)(a) of Income Tax Act, 1961.No further opportunities would be provided to make adjustments after 30 days.