Types of notices under the Income Tax Act – 2

November 5, 2022 Finance Talk Valli Sarvani No comments

In the previous article, you read some types of notices under the Income Tax Act. Read the article to know about the remaining types of notices.

Notice under Section 139(9): The income tax department sends this notice if the ITR filed by a taxpayer is found to be defective. If a taxpayer uses the wrong ITR form or misses some information, this notice will be issued by the assessing officer (AO).

The notice highlights the defect along with the solution. Taxpayers have to respond within 15 days. Otherwise, the ITR will be rejected.

Notice under Section 131: This notice indicates that the AO wants to investigate the income of the taxpayer as he believes that the income mentioned in the ITR is not accurate. The AO sends this notice as he believes that the taxpayer has concealed his income or part of it.

Notice under Section 156: This notice is also known as a notice of demand. This is because, it demands the taxpayer to pay a penalty, fine, or tax to the income tax department. If any amount is due to the IT department, it will send this notice to the taxpayers. He/she has to pay the due amount within 30 days.

Notice under Section 245: If taxpayers miss the payment of tax in the previous year, where they had a tax liability, then this notice will be issued to them. The income tax refund of the current year is used to pay off the tax liability of the previous year.

The AO sends this notice informing that the tax refund of the current year will be used to pay off the past year’s tax liability. The taxpayer will have to respond to the notice within 30 days. Otherwise, it is treated as his consent to adjust the tax refund with the past tax liability. If there is any additional refund amount after adjustment, it will be issued to taxpayers.

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