1. What is a notice under section 148?
The Income Tax Department issues a notice under section 148 when it believes that the taxpayer has not disclosed all the income in their tax return or has underreported the income.
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2. What is the time limit for issuing a notice under section 148?
A notice under section 148 can be issued within four years from the end of the relevant assessment year. However, if the income involved is more than Rs. 1 lakh, the notice can be issued within six years from the end of the relevant assessment year.
3. What should I do if I receive a notice under section 148?
If you receive a notice under section 148, you should first carefully read the notice and understand the reason for which it has been issued. Then, you should consult a tax professional or a chartered accountant to respond to the notice.
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4. Can I ignore a notice under section 148?
No, you should not ignore a notice under section 148. If you do not respond to the notice within the specified time period, the Income Tax Department can initiate penalty proceedings against you.
5. What are the consequences of ignoring a notice under section 148?
If you ignore a notice under section 148, the Income Tax Department can initiate penalty proceedings against you, and may also make an ex-parte assessment of your income, which can result in a higher tax liability.
6. Can I file a revised return in response to a notice under section 148?
Yes, you can file a revised return in response to a notice U/s 148 if you believe that you have not disclosed all your income in the original return.
7. How long does it take for the Income Tax Department to complete the assessment proceedings after issuing a notice under section 148?
The time taken by the Income Tax Department to complete assessment proceedings after issuing a notice U/s 148 depends on various factors such as the complexity of the case, the response of the taxpayer, and the workload of the tax authorities. However, it generally takes around 12-18 months to complete assessment proceedings.