Income tax notice: Types and application

The income tax notice is one of the most known things which can be sent to the taxpayer for various purposes. There can be errors in the tax file, not filing the tax properly, or any other instances. There is nothing to worry about in the income tax notice because it may include a lot of crucial factors you should know about the tax. 

Before replying to the tax notice, as a taxpayer, you should go through the notice and understand the details of the same. This article consists of detailed information about income tax notices. So, go through this article to find out the information you need.

Income tax notice: Types

Depending on the cause of the notice, the income tax department can send different notices to the taxpayers. Here is a complete list of all notices taxpayers can receive.

• Notice under section 143(1)

This is one of the most typically received income tax assessments. The Income Tax Department is sending this notice to receive responses to errors or discrepancies in income tax returns introduced. If an individual wants to fix their statement after accepting this notice, they must do so within 15 days. Otherwise, the tax return will be processed after making the required adjustments summarised in the 143(1) tax bill.

• Notice under section 142(1)

This notice is sent to the taxpayer when the tax return has already been filed, and details and records are needed from the taxpayer to satisfy the process. This notice may also be sent to the taxpayer to ask for further documentation or information.

• Notice under section 139(1)

The income tax notice under Section 139(1) can be sent if the income tax return filed does not comprise all vital information. If a tax notice under Section 139(1) is issued, you have to fix the defect in the return within 15 days.

• Notice under section 143(2)

Income tax assessments under Section 143(2) are allocated when tax officials are dissatisfied with the records and information furnished by the taxpayer and need to provide further details.

• Notice under section 156

This income tax notice is issued by the Income Tax Department when a taxpayer is obligated to pay taxes, interest, penalties, or other amounts. These demand tax notices will stipulate the sum which is unpaid and due from the taxpayer.

• Notice under section 245

Notice under Section 245 may be issued if an officer has reason to think that last year’s taxes have not been produced and wishes to offset this year’s refund for this claim. However, adjustments to claims and refunds could only be made if the person was duly informed and had the option to be heard. If the person does not respond within the set time limit, the assessor may consider this approval and proceed with the inspection. Therefore, it is mandatory to respond to notifications as soon as possible.

• Notice under section 148

This one is known as income escaping assessment, where the assessment officer may believe that you have not mentioned your income properly. In this case, the assessment officer may want to reassess your income. But before reassessing, it is possible that the officer is asking for furnishing the return of income. 

Documents for accepting the income tax notice

When you receive an income tax notice from the ITD, you have to furnish a few documents, which are as follows:

• The income tax notice copy
• Proof of income
• Salary receipts
• TDS certificate
• Investment document, if any

What to do after receiving the income tax notice?

After receiving the income tax notice, you have to do a few things. 

• Check out the cause of the notice. Go through the notice so that you can understand the reason properly.
• Check all the information furnished by you previously and find out the errors, if any.
• Verify all the information mentioned in the notice.
• Do not miss the deadline for the notice for responding.

FAQs