In the earlier article Types of Income Tax Notice, we have discussed the different types of Notices issued by the Income Tax department. In this article, we will discuss how to respond to such Income Tax Notices.
Contents of The Article
- Notice Issued Under Section 142 (1)?
- Notice Issued Under Section 143 (2)?
- Intimation Notice Issued Under Section 143 (1)?
- Notice Issued Under Section 148?
- Notice Issued Under Section 156?
- Demand Notice Issued Under Section 245?
How To Respond To Notice Issued u/s 142 (1)
Notice u/s 142(1) shall be issued to the assessee by the assessing officer under the following circumstances.
- To file an Income Tax return if the assessee has not filed the return within the time specified.
- To produce such documents or accounts as the assessing officer may require.
- To furnish in writing the required information including the statements of all assets and liabilities as the assessing officer may require.
In case the notice is issued to file the income tax return, the assessee has to file the return of income within the time specified in the notice.
In case the notice issued requires the specific information or documents, the assessee is required to submit the same to the assessing officer within the time specified thereon.
How To Respond To Notice Issued u/s 143 (2)
A notice u/s 143(2) shall be issued by the assessing officer to ensure that the assessee has not understated the income or has not computed excessive loss or has not underpaid the taxes in any manner.
On receiving the notice of income tax under this section, the assessee is required to attend the hearing on the date and time specified in the notice. However, the assessee can appoint another person (tax advisor or auditor) to act on his behalf for the required purpose. The assessee is required to produce documents and details in support of deductions, exemption, relief’s, losses claimed and proof of all sources of income based on which he had filed his return of income.
How To Respond To Intimation Notice Issued u/s 143 (1)
The notice under this section shall be issued to the assessee as an intimation specifying the amount determined to be payable or the amount of refund due, which is computed on the total income arrived after making the specified adjustments as specified thereon.
In the case of no discrepancies found in the returns, the assessee is not required to do anything.
In case of any discrepancies found in the return, either in respect of refund due or sum payable the assessee is required to file a rectification application under section 154.
How To respond To Notice Issued u/s 148
A notice u/s 148 shall be issued to the assessee by the assessing officer as an intimation to initiate the proceedings u/s 147 if such assessing officer believes that income of such assessee had escaped assessment.
First of all, the assessee has to check the reasons for which the assessing officer has issued a notice for income escaping assessment u/s 148. In case if such reasons were not available in the notice, then the assessee can request the assessing officer to send a copy of recorded reasons.
If the assessee has satisfied with the reasons for which the notice has been issued u/s 148, he is required to file the return of income with due diligence by declaring all income and expenses early as possible, if already filed send the copy of the same to assessing officer.
If the assessee has not satisfied with the reasons for which the notice has been issued u/s 148, he can challenge the validity of the notice issued to him before the assessing officer or higher authority as the case may be. The assessment Proceedings will be halted by the court if the assessee wins the case, otherwise, the assessing officer will proceed with the reassessment.
How To Respond To Notice Issued u/s 156
Notice under this section shall be issued to the assessee specifying the sum so payable in consequence of any order issued. On receiving such demand notice, the assessee has to pay the sum do payable as specified in the notice within 30 days from the date of receipt of the notice.
How To Respond To Demand Notice Issued u/s 245
The notice under this section shall be issued to the assessee as an intimation that the assessing officer is going to set off the outstanding tax payable due from the earlier assessment year/years against the refund due to the assessee.
In case the assessee has agreed with the demand notice issued, he is not required to do anything, as the expiry of stipulated time (generally 30 days) to respond to the notice shall be considered as assessee consent and assessing officer will proceed forward.
In case the assessee has not agreed with the notice, he had to respond online within the stipulated time (generally 30 days).