Format of reply to income tax notice Income Tax Notice reply format
To,
The Assessing Officer,
Income Tax Department,
[Address of the Assessing Officer’s office]
Subject: Reply to Income Tax Demand Notice – [PAN Number / Notice Reference Number]
Respected Sir/Madam,
I am writing in response to the Income Tax Demand Notice dated [Notice Date] received under Section [Relevant Section] of the Income Tax Act, [Year], pertaining to the Assessment Year [Relevant Year]. I hereby submit my reply, including the grounds, statement of the case, and prayer, for your kind consideration.
Grounds for Objection:
- Incorrect Demand Raised: The demand appears to have been raised without properly considering the income details and deductions filed in my original Income Tax Return (ITR).
- Mismatch Due to System Error: The demand seems to have resulted from discrepancies in data matching due to system errors or incomplete data processing.
- TDS/TCS Credit Not Considered: The credit for Tax Deducted at Source (TDS) as claimed in the ITR has not been fully accounted for, resulting in an inflated demand.
- Adjustment of Refund Against Demand: The demand notice does not reflect the adjustment of any pending refunds against the outstanding demand, if any.
Statement of the Case:
I had duly filed my ITR for the Assessment Year [Relevant Year] on [Filing Date] declaring total income of Rs. [Declared Amount] and tax payable of Rs. [Tax Amount], which was appropriately paid. However, the demand notice claims a payable amount of Rs. [Demand Amount], which appears to be incorrect due to the following reasons:
- The TDS as reflected in Form 26AS has not been fully credited.
- Certain deductions claimed under Chapter VI-A have not been accounted for in the demand computation.
- The computation sheet enclosed with the demand notice has errors resulting in an inflated demand.
Prayer:
In light of the above, I respectfully request that the demand raised be reviewed and rectified accordingly. I also request that no coercive recovery actions be initiated until the matter is resolved, and the demand is appropriately revised.
Thank you for your attention and understanding. I trust that my concerns will be addressed promptly.
Yours sincerely,
[Your Full Name]
[Your PAN Number]
[Contact Number]
[Email Address]
[Address]
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