Income Tax Consultations

Types of Income Tax Notices Income Tax Department issue?

For numerous reasons Income Tax Department issues notices to Tax Payers. Following are some of the examples:

  • Income Tax Intimation under section 143(1) – It is an intimation sent by the Income tax department after the return is filed by the taxpayer and processed by CPC.
  • Income Tax Notice under section 143(1)(a) – It is issued for seeking response if there are certain errors / inconsistencies in the Income tax return filed.
  • Income Tax Notice under section 139(9) – This Income Tax Notice is issued if the Income tax return filed is defective. For example, Income tax return is filed before payment of self assessment tax.
  • Rectification under section 154 – If the taxpayer has filed his Income tax return and there is some mistake, such as, TDS credit is not given, then rectification under section 154 is required to be filed.
  • Income Tax Notice under section 245 – This Income Tax Notice is issued to communicate the adjustment of Income tax refund against Income tax demand.
  • Income Tax Notice under section 142(1) – This Income Tax Notice is issued to seek certain documents and details from the taxpayer.
  • Income Tax Notice under section 148 – This Income Tax Notice is issued when the Assessing Officer has a valid reason to believe that income of the taxpayer has escaped assessment.
  • Income Tax Notice under section 156 – This Income Tax Notice is issued for payment of demand after Income tax assessment is completed and order is passed.
  • Income Tax Notice under section 143(2) – If Income Tax Notice under section 143(2) is issued, it means that the Income tax return has been selected for scrutiny by the Assessing Officer.

Why Income Tax Notice is issued?

Income tax notice can be issued for one of following reason:

  • Income Tax Return is not filed for any financial year by tax payer.
  • Mismatch/mistakes found in Income tax return filed by tax payer.
  • Mismatch found in comparison with TDS figures as per 26 AS.
  • TDS deducted but Income Tax Return is not filed by tax payer.

What if you Ignore Income Tax Notice?

Ignoring income tax office would be the last option which any tax payer can think of. We strongly advised not to ignore any income tax notice issued by department. Ignorance of such notice will lead to monetary penalties and prosecutions under income tax act, 1961.