If You Receive Notice From The Income Tax Department
Any encounter with the Income Tax Department is usually dealt with stress and panic. The notice from the Income Tax Department becomes nerve-racking because most of the people do not understand what it entails or what would be the next pertinent step/response. We advise instead of stressing, plan your next move vigilantly- find out the reason by reading the notice with due assiduousness otherwise you might end up paying a hefty penalty apart from your taxes.
Here’s some information to help you figure out what you should do-
- Check the basics with utmost attention: The basic details on the notice can save as well as land you in problem. Carefully record the time and date of receipt of the notice to ensure you complete the process in time. Check on whose name the notice was issued, the PAN number, address and for which assessment year is it meant.
- Check validity and Issuer details: Check the validity of the notice and time of issuance. To prevent any kind of cheating or fraud, verify details of the mentioned officer-in-charge, his/her designation, signature, stamp or digital signature, office address with details of ward & circle no., document identification no., etc.
- Identify the reason behind issuing a notice: The reason behind the issuance of the notice could be minor or major. It is important to identify the reason behind the issuance of the notice before submitting any response.
Some common sections under which Income Tax Department can send you notice are follows-Section 131 (1A):
If the Income Tax Department suspects that you have hidden any part of your income from the authorities.Section 142 (1):
When you fail to file you income tax returns for an assessment year on time.Section 143 (1):
If the calculation of computation of Income Tax by the Income Tax Department does not tally with the calculations in your Income Tax Return.Section 143 (3) & 147:
When the Income Tax Department wants to further examine your case in detail as per the submitted Income Tax Return for any reason.
It is essential to patiently study and understand the problem to figure out under which Section does the notice fall to create a strong response. If there is any difficulty in doing the same, consult an expert.Prepare and Submit your response on time:
Carefully examine the information/documents needed as per the reason of issue of the notice. Prepare the cover letter with a set of all the documents and submit it on time to the Income Tax Department. Always make two sets of documents and get the second one stamped by the tax department in order to maintain the records and proof for submission. In case the documents are to be submitted online through the e-portal, take the screenshot of the acknowledgement message. In case you need more time to collect the information, file a request letter seeking more time with a fitting reason.
Consult an expert: If the severity of the notice is high, an expert should be consulted. He/she can help you understand the reasons and consequences of issued notice better. They can also help you file a strong response in the designated time.