Types of notices under the Income Tax Act | Fusion - WeRIndia

Types of notices under the Income Tax Act

Types of notices under the Income Tax Act

Taxpayers receive notification from the Income Tax Department after the completion of their income tax return processing. Sometimes the IT department asks for clarification from taxpayers if there is a discrepancy in their ITR.

Apart from general notifications stating the completion of the ITR process, taxpayers receive various types of notices from the department.

The IT department sends different types of notices to taxpayers, which are mentioned as follows:

Intimation under Section 143(1): The tax department sends an intimation under Section 143(1) after the successful processing of the ITR by CPC. It reveals the following conditions: If filed ITR is perfect, the taxpayers receive this intimation. Also, if there is an additional tax liability or refund, the tax department sends this intimation to taxpayers.

In addition, taxpayers receive this intimation if the loss amount mentioned in the ITR should be increased or decreased. So, if you receive the intimation, please check it carefully to avoid further consequences. If your ITR is perfect, then it is good. On the other hand, if you have any additional tax liability or discrepancy in the loss amount mentioned in your returns, you have to act accordingly.

Notice under Section 143(2) for scrutiny assessment under Section 143(3): If you receive the notice, it indicates that the tax department wants to scrutinize the ITR filed by you.

Generally, the assessing officer sends this notice to taxpayers within six months from the end of the financial year. The taxpayer must reply to the questions raised by the tax department and submit all supporting documents.

Notices under Section 142(1): The notices are sent by the assessing officer to a taxpayer under two situations. If the assessing officers need additional information and documents related to the ITR filed by a taxpayer, they send this notice. Also, if a taxpayer has not filed a return, where it is essential to be filed, then the officer sends this notice to the taxpayer.

The taxpayer must respond to the notice in the stipulated time, or else they have to pay a penalty of ₹10,000. They will have to bear legal consequences like imprisonment for up to one year. Sometimes, it can result in both a penalty and imprisonment.

Know about the remaining notices in the next article.

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