Tag: how to handle the Income Tax Notices

TDS mismatch in my intimation under Section 143(1)

Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.

Key Causes of Intimation

The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer’s income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:

Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.

Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.

Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.

Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.

Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.

Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.

Non Filing of Tax Return: Failure to file an income tax return when the taxpayer’s income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.

Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.

Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.

Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.

It’s important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.

Time Limit for issuing intimation u/s 143(1)

No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made

Actions to be taken upon receiving an intimation under Section 143(1)

It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.

However, if there is agreements or disagreements :

If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.

However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.

In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.

What should I do if I don’t receive any intimation from the Income Tax Department within the given time frame?

If you haven’t received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it’s recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.

Where can you find your ITR Intimation

You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:

Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/

Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven’t registered, you will need to create an account.

Go to “My Account”: After logging in, go to the “My Account” tab on the dashboard.

Select “View e Filed Returns/Forms”: Under the “My Account” section, select the option “View e Filed Returns/Forms.

Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.

View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).

Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.

Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.

Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.

Intimation: Password Protected

The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be “xyzpb1234c15031999.

What precautions should be taken when reviewing an intimation under Section 143(1)?

When reviewing an intimation under Section 143(1), it’s crucial to pay close attention to the following aspects:

  • Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
  • Thoroughly review the income details to confirm that all sources of income have been accurately considered.
  • Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
  • Verify the consideration of all eligible deductions and exemptions claimed in your return.
  • Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
  • Understand whether the intimation indicates a tax refund or demand, and if there’s a demand, review the reasons behind it.
  • Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
  • Note any specified deadlines for responding to discrepancies or taking necessary actions.
  • Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.

TDS mismatch in my intimation under Section 143(1)

Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.

Key Causes of Intimation

The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer’s income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:

Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.

Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.

Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.

Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.

Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.

Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.

Non Filing of Tax Return: Failure to file an income tax return when the taxpayer’s income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.

Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.

Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.

Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.

It’s important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.

Time Limit for issuing intimation u/s 143(1)

No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made

Actions to be taken upon receiving an intimation under Section 143(1)

It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.

However, if there is agreements or disagreements :

If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.

However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.

In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.

What should I do if I don’t receive any intimation from the Income Tax Department within the given time frame?

If you haven’t received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it’s recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.

Where can you find your ITR Intimation

You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:

Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/

Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven’t registered, you will need to create an account.

Go to “My Account”: After logging in, go to the “My Account” tab on the dashboard.

Select “View e Filed Returns/Forms”: Under the “My Account” section, select the option “View e Filed Returns/Forms.

Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.

View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).

Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.

Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.

Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.

Intimation: Password Protected

The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be “xyzpb1234c15031999.”

What precautions should be taken when reviewing an intimation under Section 143(1)?

When reviewing an intimation under Section 143(1), it’s crucial to pay close attention to the following aspects:

  • Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
  • Thoroughly review the income details to confirm that all sources of income have been accurately considered.
  • Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
  • Verify the consideration of all eligible deductions and exemptions claimed in your return.
  • Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
  • Understand whether the intimation indicates a tax refund or demand, and if there’s a demand, review the reasons behind it.
  • Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
  • Note any specified deadlines for responding to discrepancies or taking necessary actions.
  • Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.

TDS mismatch in my intimation letter under Section 143(1)

Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.

Key Causes of Intimation

The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer’s income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:

Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.

Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.

Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.

Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.

Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.

Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.

Non Filing of Tax Return: Failure to file an income tax return when the taxpayer’s income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.

Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.

Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.

Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.

It’s important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.

Time Limit for issuing intimation u/s 143(1)

No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made

Actions to be taken upon receiving an intimation under Section 143(1)

It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.

However, if there is agreements or disagreements :

If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.

However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.

In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.

What should I do if I don’t receive any intimation from the Income Tax Department within the given time frame?

If you haven’t received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it’s recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.

Where can you find your ITR Intimation

You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:

Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/

Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven’t registered, you will need to create an account.

Go to “My Account”: After logging in, go to the “My Account” tab on the dashboard.

Select “View e Filed Returns/Forms”: Under the “My Account” section, select the option “View e Filed Returns/Forms.

Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.

View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).

Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.

Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.

Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.

Intimation: Password Protected

The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be “xyzpb1234c15031999.”

What precautions should be taken when reviewing an intimation under Section 143(1)?

When reviewing an intimation under Section 143(1), it’s crucial to pay close attention to the following aspects:

  • Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
  • Thoroughly review the income details to confirm that all sources of income have been accurately considered.
  • Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
  • Verify the consideration of all eligible deductions and exemptions claimed in your return.
  • Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
  • Understand whether the intimation indicates a tax refund or demand, and if there’s a demand, review the reasons behind it.
  • Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
  • Note any specified deadlines for responding to discrepancies or taking necessary actions.
  • Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.

TDS mismatch in my intimation notice under Section 143(1)

Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.

Key Causes of Intimation

The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer’s income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:

Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.

Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.

Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.

Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.

Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.

Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.

Non Filing of Tax Return: Failure to file an income tax return when the taxpayer’s income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.

Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.

Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.

Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.

It’s important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.

Time Limit for issuing intimation u/s 143(1)

No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made

Actions to be taken upon receiving an intimation under Section 143(1)

It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.

However, if there is agreements or disagreements :

If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.

However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.

In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.

What should I do if I don’t receive any intimation from the Income Tax Department within the given time frame?

If you haven’t received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it’s recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.

Where can you find your ITR Intimation

You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:

Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/

Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven’t registered, you will need to create an account.

Go to “My Account”: After logging in, go to the “My Account” tab on the dashboard.

Select “View e Filed Returns/Forms”: Under the “My Account” section, select the option “View e Filed Returns/Forms.

Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.

View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).

Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.

Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.

Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.

Intimation: Password Protected

The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be “xyzpb1234c15031999.”

What precautions should be taken when reviewing an intimation under Section 143(1)?

When reviewing an intimation under Section 143(1), it’s crucial to pay close attention to the following aspects:

  • Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
  • Thoroughly review the income details to confirm that all sources of income have been accurately considered.
  • Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
  • Verify the consideration of all eligible deductions and exemptions claimed in your return.
  • Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
  • Understand whether the intimation indicates a tax refund or demand, and if there’s a demand, review the reasons behind it.
  • Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
  • Note any specified deadlines for responding to discrepancies or taking necessary actions.
  • Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.

Income Tax notice of Rs 2 crore to a person earning Rs 10,000

Income Tax Notice: A strange case related to the Income Tax Department has come to light in Bihar. Yes, a person earning Rs 10,000 a month in Gaya district of Bihar has received an income tax notice of Rs 2 crore. After receiving the notice, the laborer and his family are very upset. Rajiv Kumar Verma, a resident of Gaya, supports his family by working as a laborer. But now he is troubled by the mistake of the Income Tax Department.

Forced to make rounds of Income Tax Department

According to the report published in News 18, Rajiv Kumar Verma has been forced to make rounds of Income Tax Department for the last four days. But his problem remains the same. Rajiv says that he cannot earn such a huge amount even by working as a labourer all his life. Rajiv Kumar told that he had made an FD of Rs 2 lakh in Gaya branch of Corporation Bank on 22 January, 2015. But he withdrew it on 16 August, 2016 before the time was over. Despite this, a notice of Rs 2 crore has been sent to his house.

Order to pay a fine of Rs 67 lakh in two days

He told that when he approached the Income Tax Department regarding this matter, he was advised to appeal. He was told that this could be a technical issue. He was also told that if it is a technical issue, it can be rectified through appeal. Rajiv has been asked to pay a fine of Rs 67 lakh within two days. He says that I do not have any kind of information related to income tax. He also said that how can a person earning Rs 10,000 a month file a return?

Reason for receiving notice from Income Tax Department

> Wrong information in data: It is possible that due to some technical error in the database of Income Tax Department, wrong transaction has been shown in the account of Rajiv Kumar Verma. Due to this, you may receive a notice from the Income Tax Department.
> Identification error: It is possible that Income Tax Department has wrongly linked Rajiv Kumar Verma with some other person whose income is very high.
> System error: Due to some error in the system of Income Tax Department, this notice may have been generated wrongly. Apart from this, there can be many other reasons like any fraud or any other technical problem etc.

What is the option

If any such person receives a notice from the Income Tax Department in a wrong manner, then he should appeal to the Income Tax Department. The department should be given information related to his income and bank account. Apart from this, such a person should submit his bank statement, PAN card and other necessary documents.

Various types of Important Notices and the reasons for Such

Notice under Section 142(1) – Inquiry before assessment:

Notice under Section 142(1) is usually served to call upon documents and details from the tax payers.

  1. This notice is basically sent after notice u/s 142(1) has already been sent. It means AO was not satisfied with the produced documents or may be AO has not received any documents
  2. If assessee do not comply with the provisions of this section
    • It may result in Best Judgement Assessment u/s 144, or
    • Penalised under Sec 271(1)(b) i.e. Rs10,000 for each failure
    • Prosecution under Sec 276D which may extend upto 1 year with or without fine.

Notice under Section 143(2) – Scrutiny Notice

  1. This notice is basically sent after notice u/s 142(1) has already been sent. It means AO was not satisfied with the produced documents or may be AO has not received any documents.
  2. This notice can be served upto 6 months after completion of relevant assessment year.
  3. The AO can reduce the income below the returned income and can assess the loss higher than the returned loss under Scrutiny Assessment as per Sec 143(3).
  4. The notice might ask you to produce documents in support of deductions, exemptions, allowances, reliefs other claim of loss you have made and provide proof of all sources of income.
  5. Section 143(2) enables the Assessing Officer to make a regular assessment after a detailed inquiry.
  6. If assessee do not comply with the provisions of this section:
    • It may result in Best Judgment Assessment u/s 144
    • Penalised under Sec 271(1)(b) i.e. Rs10,000 for each failure
    • Prosecution under Sec 276D which may extend upto 1 year with or without fine.

 Notice under Section 143(1) – Letter of Intimation

Three types of notices can be sent under section 143(1)

  1. Intimation where the notice is to be simply considered as final assessment of your returns since the AO has found the return filed by you to be matching with his computation under section 143(1).
  2. A refund notice, where the officer’s computation shows amount excessively paid by the assessee.
  3. Demand Notice where the officer’s computation shows shortfall in your tax payment. The notice will ask you to pay up the tax due within 30 days.
  4. Time limit for the notice to be served is up to 1 year after completion of relevant assessment year.

Notice under Section 148 – Income escaping assessment

  1. If AO has reasons to believe that any income chargeable to tax has escaped assessments, he may assess or reassess such income, which is chargeable to tax and has escaped assessment.
  2. To initiate proceedings under Sec 147, the AO is required to have a reason necessarily.
  3. The onus of stating the reasons is on AO.

Notice under Section 156 – Notice of Demand

  1. Where any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed, the AO shall serve upon the assessee a notice of demand, specifying the sum do payable.
  2. The tax so demanded is payable, generally within 30 days of the service of notice of demand, which may be reduced by the AO with prior approval of JCIT.
  3. In case of delay in payment of tax, the assessee shall be deemed to be in default and liable to pay simple interest u/s 220(2) @ 1% for every month or part thereof from the end of the period allowed u/s 156, further penalty u/s 221(1) may be imposed.

Notice under Section 139(9) – Defective Return

  1. What is a Defective Return? – A return shall be considered as a defective return unless it is accompanied by the required documents under the Act. e.g. Annexures, statements, proofs of tax, reports etc.
  2. If the AO considers that the return filed by the assessee is defective, he may intimate the defect to the assessee and gave him an opportunity to rectify the defect within 15 days from the date of such intimation or within such extended period as may be allowed by the AO.
  3. If the defect is not rectified within the aforesaid period, the return shall be considered as an invalid return and accordingly the assessee will be deemed to have furnished no return.

Notice under Section 245 – Set off of refunds against tax remaining payable

  1. Where any amount of refund is pending to the assessee and also any sum is payable under the Act, the AO may adjust the amount to be refunded with the sum payable by the assessee. Basically it can be related to the ‘inter adjustment of transactions’.
  2. Notice under Section 245 is more of intimation letter and less of demand notice.
  3. Under this notice, the AO intimates the effect of the adjustments made with the amount due to assessee. It indicates the adjusted amount which can be either merely intimation or demand notice of lesser amount still payable after the adjustment.

Income tax’s official domain IDs will be used for sending the Income Tax Notice

Identifying Genuine Income Tax Notices

Receiving an income tax notice can be a source of anxiety for many individuals. It’s essential to exercise caution, as not all notices may be legitimate. In some cases, fraudsters attempt to deceive people by sending counterfeit income tax notices. The Income Tax Department issues tax notices to individuals for various reasons, such as scrutiny of the taxpayer’s income tax return, outstanding tax demands, or surveys.

It is crucial to comprehend the notice process, which can aid in recognizing a fake notice purportedly from the income tax department. When you receive a tax notice, attentively read through the entire document. Scammers often rely on individuals’ lack of attention, and a thorough examination can help avoid falling victim to their tactics and prevent panic reactions.

Recently, one of our clients encountered emails and messages claiming to be from the Income Tax Department. These communications pressured the client to click a link and make an immediate tax payment to evade penalties and legal consequences. The notices used official language and alarming threats to create a sense of urgency.

Key Guidelines Followed by the Tax Department in Sending Income Tax Notices

1. Document Identification Number (DIN) in Communication: All notices are now mandated to be computer-generated with a Document Identification Number (DIN) effective from October 1, 2019. This measure was introduced to enhance transparency and accountability within the system.

2. Visibility of Notices in the e-filing ITR Portal: Most income tax notices are dispatched electronically, and the contents can be verified by viewing the actual notice in the e-filing ITR portal. This platform enables individuals to cross-check notices at different tabs to ensure authenticity.

Where to Find Income Tax Notices:

  • Under the ‘e-File’ tab, individuals can check ‘view filed return’ for intimations sent for the respective year.
  • The ‘Pending Actions’ tab contains the option ‘e-Proceeding’, where notices can be found under sub-parts such as self PAN and other PAN/TAN.
  • The ‘Compliance Portal‘ can also be accessed under the ‘Pending Actions’ tab for locating notices and intimations.

3. Income tax’s official domain IDs will be used for sending the notice:

Domain names are another aspect that the tax department will meticulously follow while sending the notices over email. “Most income tax officers send notices directly from the official id which is usually created at domain ‘@incometax.gov.in’. You will observe that said official email ids are also created in a unique way. e-Mail will start from the city (Mumbai, Delhi etc) followed by designation (ITO, DCIT, Systems, etc) followed by ward number [1(1), 2(1)] @incometax.gov.in

For example: the email ID of Joint Director (Systems) Sh. Hanuman is- bangalore.jd.systems3.cpc@incometax.gov.in

4. Direct Communication by Tax Officers: Certain notices, such as dispute resolution panel (DRP) hearing notices, are directly sent by the tax department to the taxpayer’s registered email address. It is important to note that these communications will be sent from the official Income Tax domain ID and will not contain any payment links.

Furthermore, individuals may receive SMS and email notifications when the tax department sends a notice. Additionally, in specific cases, such as DRP cases, calls may be made by the DRP secretariat office, with all communications originating from the Income Tax Department. This multilayered approach offers added assurance for taxpayers regarding the authenticity of the notices.

By familiarizing oneself with these guidelines and processes, individuals can better discern genuine income tax notices from fraudulent attempts, thereby safeguarding themselves from potential scams and unnecessary distress.

How to verify the authenticity of a tax notice?

There is a functionality on the e-filing ITR portal that can be utilised to verify any communication from the income tax department, including notices, orders, summons, and letters.

  • Visit the Income Tax e-filing portal: https://www.incometax.gov.in/iec/foportal/
  • Under “Quick Links,” click “Authenticate Notice/Order Issued by ITD.”
  • Choose one of two verification methods:
  • Using PAN: Enter your PAN, document type (notice, order, etc.), assessment year, date of issue, and your mobile number (for receiving a one-time password).
  • Using DIN: Enter the Document Identification Number (DIN) mentioned on the notice and your mobile number for OTP verification.
  • Enter the received OTP and click “Continue.”
  • The tool will instantly confirm if the notice is genuine. If not, you’ll know it’s safe to disregard it.

Receives ₹1,068 crore income tax demand order from Income Tax Department

Bank of Baroda receives ₹1,068 crore demand order from IT Dept: Bank of Baroda (BoB) has received a demand order of ₹1,067.82 crore from the Faceless Assessment Unit, Income Tax Department, pertaining to Assessment Year (AY) 2017-18.

The public sector bank, in an exchange filing, said it is under the process of filing an appeal before the Commissioner of Income Tax (appeals), National Faceless Appeal Centre (NFAC)/ writ petition before the High Court (as may deems fit) against the said order within the prescribed timelines.

“Looking to the precedence/orders of appellate authorities, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter.

“Accordingly, the bank expects the entire demand to subside. As such, there is no impact on financial operations or other activities of the bank,” the bank said.

The bank emphasised that it would avail recourse provided in Income Tax Statute against the demand raised in the order.

Notice under Section 142(1) of the Income-tax Act

After you complete the e-filing process of the income return, the income tax department conducts an assessment. In case the assessing officer (AO) realises that there is more clarification needed regarding a particular detail during the assessment, they are likely to dispatch a notice under Section 142(1) of the ITA.

Purpose of Notice under Section 142(1)

With the issue of notice under Section 142(1), the AO may call upon the assessee to:

  • File the income tax return where the return is not filed within the time limit. It may include a return in respect of his/her income or income of another person for which he/she is liable to be assessable. For example, in the case of a legal guardian or a deceased person
  • Produce accounts or documents to make an assessment
  • Provide such other information or statements as required by the officer. For example, a statement of assets and liabilities of the assessee on a particular date

Compliance under Section 142(1) is Mandatory

Even if a taxpayer thinks that the accounts/documents requested are irrelevant, compliance remains mandatory. In case an assessee does not comply with the provisions of Section 142:

  • It may result in the best judgement assessment under Section 144, where the income tax officer determines the income and taxes thereon.
  • A penalty under Section 271(1)(b), which is Rs 10,000 for each failure, or
  • Prosecution under Section 276D, which may extend up to a year and may attract a fine

If AO is satisfied with the documents or return or supporting evidence, he/she may not start with the assessment process. The return filed by you will be accepted and proceedings will be closed.

E-Assessment Scheme, 2019

The Central Board of Direct Taxes (CBDT) has notified that ‘e-Assessment Scheme, 2019’ will be termed as ‘Faceless Assessment Scheme, 2019’, and all income tax assessments (subject to certain exceptions) shall be conducted in a faceless manner. Further, the CBDT has directed that the National e-Assessment Centre (NeAC) shall pass all the assessment orders through the ‘Faceless Assessment Scheme, 2019’.

Procedure of Conducting Faceless Assessment

The following steps are adopted concerning the Faceless Assessment.

  • NeAC serves notice to an assessee. He/she (assessee) needs to reply within 15 days of receipt of the notice. The NeAC will assign the case to specific assessment units (AU) in any one regional e-assessment centre (ReAC) through an automated allocation system.
  • The AU requests the NeAC to obtain information, documents, or evidence from an assessee, conducting inquiry or verification by the verification unit (VU), or seeking technical assistance from the technical unit (TU).
  • The NeAC issues notice to an assessee and assigns the request to the VU and the TU. After receiving documents from an assessee and relevant reports from the VU and TU, the NeAC transfers the same to AU.
  • In case an assessee fails to comply with the notice, then the NeAC serves notice under Section 144 as to why an assessment should not be completed to the best of judgement.
  • An assessee needs to file a reply to the NeAC within a given time frame. If the assessee fails to file a response, then the NeAC examines the draft assessment order as per risk management strategy (RMS) and automation examination tools. Based on this, it may decide to finalise the assessment order, provide an opportunity to an assessee if modification is proposed, or assign draft assessment order to Review Unit (RU) in any one ReAC. This is done through automated allocation system for conducting a review of such an order
  • The RU conducts the review of the draft assessment order and may decide to concur with it and intimate or suggest modifications and send them to the NeAC.
  • The NeAC on receiving the concurrence of the review unit finalises the draft assessment order. The NeAC, after receiving suggestions for modifications from the RU, will assign the case to AU, other than the AU who made the draft assessment order through an automated allocation system. The AU, on its part, will consider RU’s suggestions on modifications and send a final draft assessment order to the NeAC.
  • The NeAC is likely to finalise the assessment order or if modifications are proposed, follow such a procedure accordingly.
  • In case a show-cause notice (SCN) has been served to an assessee, he/she furnishes a reply within a particular time frame. The NeAC shall in case of no response to the SCN, finalise an assessment as per the draft assessment order. In case a response to an SCN is received, the NeAC will send a response to the AU. The AU then makes a draft assessment order and sends it to the NeAC.
  • The NeAC receives the revised draft assessment order. If modification is not prejudicial to the interest of an assessee regarding the draft assessment order, it will finalise an assessment order. In case a modification is prejudicial to the interest of an assessee regarding a draft assessment order, NeAC will provide an opportunity of being heard.

The NeAC deals with a response as per a similar procedure, that is the AU will make draft assessment order and so on.

Sample of a Notice under Section 142(1) of the ITA

Process to File a Response

A response to a notice under Section 142(1) has to be furnished electronically only via the ‘e-Proceedings’ utility in the registered ‘e-Filing’ accounts of the assessee. There is no need to visit the income tax office or schedule an in-person meeting with any assessing authority in this regard. 

  • Log in to the income tax portal: www.incometax.gov.in 
  • Go to the ‘Pending Actions’ tab and select ‘E-Proceedings’
  • Click on ‘View Notices’ and hit ‘Submit Response’
  • You will be directed to a page that will prompt you to ‘Select Response type for Notice’
  • You are required to choose between ‘Partial Response’ and ‘Full Response’

Note: The attachments to be submitted can be in PDF/ Excel/Comma-Separated Values (CSV) formats.

  • Click on ‘Continue’, mark a tick on the ‘Declaration and Submit’
  • You will receive a response ‘Submitted Successfully’
  • You can download the response acknowledgement

Fiscal Year 2023-24 Tax Filing: 10 Must-Do Tips to Avoid Income Tax Notice

By Alok Agrawal

The fiscal year 2023-24 ended on 31 March 2024 and individual taxpayers are gearing up to file tax returns by the deadline of 31 July 2024. Over the past few years, the government has sought to improve the taxpayer’s experience by simplifying tax return filings through pre-filed ITR, etc.

With some useful tips listed below, taxpayers can ensure that their returns are filed accurately and they can also avoid potential queries from the income tax department, and other issues.

1) Selection of correct ITR Form: – Using the correct ITR Form is crucial for accurately reporting of income and for claiming deductions and credits. The tax department may issue a notice of “defective return” to the taxpayer in case of such an incorrect selection. So, the appropriate ITR Form must be selected based on income sources, residential status and other criteria.

2) Selection of tax regime: – The Budget 2023 mandated the simplified tax regime as the default tax regime from FY 2023-24 onwards. If a taxpayer wishes to opt for the old regime, then there is an option in the ITR Form – “Do you wish to opt out of new regime?”, wherein “Yes” is to be selected. Tax calculators are available on the income tax portal for comparison and can assist in deciding which regime is beneficial.

3) Reconciliation of income: – It is imperative to reconcile income details appearing in Form 16/16A, Form 26AS (tax credit statement), AIS (Annual Information Statement) etc., available on the income tax portal to ensure all sources of income are disclosed, else this may lead to interest and penalty.

4) Tax Collected at Source (‘TCS’):– TCS is the tax collected from the buyer on various expenses (car purchase, foreign trip, foreign remittances etc,). Details of TCS are available in Forms 26AS and AIS. Taxpayers must ensure that this credit is fully reflected as they are eligible to claim credit of TCS while filling the ITR Form.

5) Tax credit: – While filing ITR, taxpayers should ensure that taxes already deducted/paid are reported in Form ITR and only the balance tax liability is paid. As in the case of TCS, details of TDS, Advance tax and Self-assessment tax paid are also available in Forms 26AS and AIS. In order to get full credit for the relevant amounts, the taxpayer should mention details (i.e. TAN, date of deposit, Challan Sr. No etc) accurately in the relevant sections of the form.

6) Claiming Losses: – Taxpayer should claim all eligible losses incurred during the current and previous years, which can save taxes. Also, the unclaimed past losses which can be carried forward to next year, should be reported in the appropriate schedule of Form ITR.

7) Declaration of Foreign Assets: – Recently, there has been increase in notices issued to taxpayers to verify details of offshore investments. Hence, if you qualify as Resident & Ordinarily Resident (ROR) and have foreign assets, then it is essential to report such assets appropriately in the income tax return.

8) Bank Account details: – In case of tax refund arising in ITR, taxpayer should ensure that active and validated bank account details (i.e. account number, IFSC code, name of the bank etc) are accurately mentioned.

9) Adherence to deadline: – There are many consequences of not filing the return within the specified deadline such as late fees charges, penalty. Also, the simplified tax regime can’t be opted for and also capital losses can’t be carried forward, etc. So, one should always file the income tax return within timelines to avoid such implications.

10) Verification: – The final step after submitting income tax return on the portal is verification of the return within 30 days from filing the return. Verification can be done either through OTP on mobile number registered with Aadhaar or net banking or sending a signed copy of ITR-V to the CPC Bangalore office, etc. Without verification within the stipulated time, an ITR is treated as invalid.

(The author is Partner, Deloitte India)

Source FT

Income Tax notice for cash transaction

Depositing an amount exceeding ₹10 lakh in a single or combined financial year attracts attention from the Income Tax Department (ITD) in India. Any cash deposit surpassing ₹10 lakh in a financial year (April 01 to March 31) across all your savings accounts is duly reported to the ITD. The Central Board of Direct Taxes (CBDT) requires banks to report such transactions. Even if the deposit is divided among multiple accounts, any cumulative amount exceeding ₹10 lakh will still be flagged.

The misconception that cashless transactions are less traceable by the Income Tax Department has arisen due to the increasing prevalence of such transactions. Nevertheless, this belief is incorrect. This is because banks and other financial institutions must notify the Income Tax department of transactions surpassing a specified threshold. This encompasses card payments, UPI transactions, as well as cash deposits, and withdrawals beyond a designated limit.

The department employs advanced data analytics tools to detect disparities between declared income and incurred expenses. It can cross-check information from diverse sources such as bank statements, property records, investment details, and travel records to construct a comprehensive financial profile of individuals. Apart, it also can collect information from external sources such as employers, travel agencies, and stock exchanges to validate income sources and pinpoint possible discrepancies.

This degree of scrutiny proves valuable in suspected cases of tax evasion, enabling the department to initiate scrutiny assessments, issue notices, and conduct inquiries directly to accumulate evidence and recover taxes. Below is a compilation of common transactions that could trigger a tax notice, even when conducted in cash:

Depositing large amounts in cash in savings accounts

Depositing an amount exceeding ₹10 lakh in a single or combined financial year attracts attention from the Income Tax Department (ITD) in India. Any cash deposit surpassing ₹10 lakh in a financial year (April 01 to March 31) across all your savings accounts is duly reported to the ITD. The Central Board of Direct Taxes (CBDT) requires banks to report such transactions. Even if the deposit is divided among multiple accounts, any cumulative amount exceeding ₹10 lakh will still be flagged.

Surpassing the ₹10 lakh limit doesn’t inherently suggest tax evasion, but it does prompt scrutiny from the Department. Explaining the source of the deposited funds becomes necessary, particularly if it doesn’t align with your declared income. If the explanation is considered unsatisfactory or if discrepancies arise in your tax returns, you could potentially face additional inquiries or penalties.

The ITD’s evaluation is also influenced by the intended use of the deposited funds. For instance, placing business income into a personal account could lead to concerns. Your comprehensive financial profile, encompassing income sources, expenses, investments, and other significant transactions, is taken into account by the ITD. Ensuring compliance is essential; maintaining accurate records and aligning your tax returns with your income and expenses is crucial to prevent unwarranted scrutiny.

Fixed deposits made with cash

Given the recent uptick in fixed deposit (FD) rates, these have become increasingly appealing choices for investors, especially for those in search of a steady and predictable income. The existing limit for reporting cash deposits to the ITD is ₹10 lakh within a single financial year (April 01 to March 31), irrespective of the purpose, including fixed deposits. It is crucial to take note of multiple deposits across different bank accounts. Even if you divide the cash deposit into smaller amounts across various accounts, any combined sum surpassing ₹10 lakhs will be brought to the attention of authorities.

Surpassing the limit doesn’t inherently indicate tax evasion, but it does attract the ITD’s attention, necessitating an explanation for the source of the funds. This scrutiny applies to any fixed deposit exceeding ₹10 lakhs.

The ₹10 lakh limit applies to the cumulative value of your FD holdings across all accounts and financial institutions, not solely to the individual deposit amount. Similar to cash deposits, surpassing this threshold may trigger inquiries regarding the source of funds, particularly if it doesn’t align with your declared income.

Purchases of shares, mutual funds, and bonds made in cash

Investing in bonds, shares, mutual funds, and debentures with cash transactions could result in an income tax notice if the investment surpasses a threshold of ₹10 lakh. Digital transactions, on the other hand, leave behind an online trail for both investors and the ITD alike.

Surpassing a particular threshold may prompt scrutiny from the ITD, but it does not automatically indicate the issuance of a tax notice or any wrongdoing. The ITD’s emphasis lies in identifying inconsistencies between declared income and expenses rather than discouraging investment through specific thresholds.

Repaying credit card bill in cash

There is no explicit rule mandating automatic scrutiny for cash payments towards credit card bills, irrespective of the amount. However, if you make a cash payment for a monthly credit card bill exceeding ₹1 lakh, the department automatically seeks information about the source of funds.

Surpassing any high-value transaction threshold, which includes cash payments, could initiate general scrutiny by the ITD. This examination is designed to uncover possible disparities between your declared income and expenses and is not specifically focused on credit card bill payments.

Cash payments related to properties

In India, when acquiring a property valued at over ₹30 lakhs, the ITD mandates the buyer to disclose the origin of the funds utilized for the purchase. This measure is implemented to counteract tax evasion and prevent money laundering activities.

The existing threshold for compulsory declaration of the source of funds is ₹50 lakhs for property acquisitions in urban areas and ₹20 lakhs for rural areas. Nevertheless, certain states may enforce more stringent thresholds, hence it is advisable to verify the specific regulations applicable in your region.

You have the option to declare the source of funds by including it in the registration documents or by submitting Form 26QB to the ITD. Even if the property purchase value is below the threshold, the Department retains the authority to request the source of funds if there are suspicions of discrepancies in your income or other transactions. Neglecting to declare the source of funds may result in penalties, tax assessments, and potentially lead to investigations.

To address an ITD notice concerning high-value cash transactions, it is essential to possess sufficient documentation substantiating your assertion about the source of funds. This documentation may include bank statements, investment records, or inheritance papers.

If you are uncertain or have concerns regarding the declaration of the source of funds, it is advisable to seek advice from a qualified tax advisor for personalized guidance. Upholding transparency and adhering to tax regulations is essential for prudent financial management and mitigating potential legal complications.

भूलकर भी न करें ये गलतियां, आपके पास भी आ सकता है आयकर विभाग का नोटिस !

अगर आप के पास अचानक एक दिन आयकर विभाग से इनकम टैक्स का नोटिस आ जाए तो ये आपके लिए बड़ा सिरदर्द हो सकता है. इनकम टैक्स नोटिस टैक्स डिपार्टमेंट की ओर से आने वाला एक कम्युनिकेशन है कि आपके टैक्स अकाउंट में कोई गड़बड़ी सामने आई है. आयकर विभाग आपको कई कारणों से नोटिस भेज सकता है. हो सकता है कि आपने अपने इनकम टैक्स रिटर्न में कुछ गलती कर दी हो, इनकम की सही जानकारी न दी हो .आइए जानते हैं कि किन परिस्थितियों में आपको इनकम टैक्स नोटिस मिल सकता है और आपको कौन सी गलतियां करने से बचनी चाहिए.
रिटर्न में अपनी संपत्ति या आय के बारे में गलत जानकारी
हो सकता है कि आपको आयकर विभाग से ऐसा कोई नोटिस मिले जिसमें आपसे अपनी संपत्ति और आय के बारे में सही बात बताने को कहा जाएगा. अगर आपने गलती से अपने आईटीआर में अपनी संपत्ति और आय सही जानकारी नहीं दी है तो आप इस स्थिति में आ सकते हैं. इसलिए हमेशा अपने असेट और इनकम की सही जानकारी दें. इसके साथ ही अपनी बेसिक इन्फॉर्मेशन यानी एड्रेस पैन नंबर,नाम जैसे डीटेल्स भी सही भरे होने चाहिए.

असल आय और डिक्लेयर की गई आय मैच नहीं करना
अगर आयकर विभाग को लगता है कि आपने अपनी किसी संपत्ति की जानकारी विभाग से छीपा रहे है, तो भी आपको आयकर विभाग से नोटिस आ सकता है. आपके आईटीआर फॉर्म में आय, निवेश से होने वाली कमाई, संपत्ति सबकी डीटेल पूरी होनी चाहिए, क्योंकि अगर आपके प्रोफाइल में कुछ और, लेकिन आईटीआर डिक्लेरेशन में कुछ और दिखेगा तो आपको विभाग से नोटिस भेजा जा सकता.

इनकम या ट्रांजैक्शन में ज्यादा उतार-चढ़ाव
अगर आयकर विभाग इस बात को नोटिस करता है कि आपके ट्रांजैक्शन में बहुत से उतार-चढ़ाव है यानी की आपकी आय अचानक घट गई है या फिर अचानक से बढ़ गई है, तो वो इसपर आपसे जानकारी मांग सकता है. साथ ही अगर आपने कई हाई-वैल्यू ट्रांजैक्शन किए हैं, या हाई वैल्यू संपत्ति या ऐसे ही दूसरे किसी असेट में पैसे लगाए हैं लेकिन आपके टैक्स रिटर्न में इनकी पूरी जानकारी नहीं है तो भी नोटिस भेजा जा सकता है.

TDS क्लेम में कुछ गड़बड़ी की तो
अगर tax deducted at source यानी की TDS भरते वक्त यह Forms 26AS और 16 या 16A की जानकारी के मुताबिक होना चाहिए. अगर ये ठीक नहीं हुआ तो आपको आईटी एक्ट के सेक्शन 143 (1) के तहत नोटिस मिल सकता है.

पहले कभी टैक्स चोरी का केस बन रहा हो
डिपार्टमेंट जरूरत पड़ने पर पहले के टैक्स रिटर्न्स का आकलन भी कर सकता है और अगर ऐसा मामला निकलकर आता है कि आईटीआर में टैक्सेबल इनकम की सही जानकारी नहीं दी गई है तो इसपर सेक्शन 147 के तहत टैक्सपेयर को नोटिस मिल सकता है आपसे जानकारी मांगी जा सकती है.

टैक्स रिटर्न देरी से फाइल करना
क्या आप जानते है ,की टैक्स भरना और टैक्स रिटर्न फाइल करना ये दो अलग-अलग चीजें हैं. आप भले ही टैक्स के दायरे में नहीं आते हों, लेकिन आपको फिर भी अपना रिटर्न जरूर फाइल करना चाहिए. आईटी एक्ट का सेक्शन 142(1)(i) आपसे रिटर्न अनिवार्य रूप से मांग सकता है, वर्ना आपको नोटिस भेजा जा सकता है. आप पर जुर्माना भी लगाया जा सकता है.इसलिए आपको हर असेसमेंट साल में दी गई तारीख के पहले-पहले तक आपको अपना टैक्स रिटर्न फाइल कर लेना चाहिए.

आयकर विभाग का नोटिस कई स्थितियों में आ सकता है, जो निम्नलिखित हो सकती हैं:

  1. इनकम टैक्स रिटर्न (ITR) में त्रुटि: यदि आपके द्वारा दाखिल की गई इनकम टैक्स रिटर्न में कोई त्रुटि है या कोई जानकारी अवैध या अपूर्ण है, तो आयकर विभाग एक नोटिस भेज सकता है.
  2. अनुपालन की नकारात्मकता: यदि आयकर विभाग को लगता है कि आप अपनी आयकर योग्यता के नियमों और विधियों का पालन नहीं कर रहे हैं, तो वे नोटिस जारी कर सकते हैं. यह आपकी आयकर योग्यता की जांच के लिए हो सकता है या आपकी वित्तीय गतिविधियों के संबंध में संशय को स्पष्ट करने के लिए हो सकता है.
  3. परिवहन या बैंक का विशेष जांच: आयकर विभाग किसी व्यापारिक संगठन, परिवहन संस्था, बैंक या अन्य संगठन के वित्तीय प्रक्रियाओं की जांच करना चाह सकता है. इसके लिए वे एक जांच नोटिस भेज सकते हैं.
  4. विशेष संदर्भों पर जांच: जब आयकर विभाग के पास किसी व्यक्ति या संगठन के विशेष संदर्भों पर आयकर जांच करने की आवश्यकता होती है, तो वे नोटिस भेज सकते हैं. ये संदर्भ विभिन्न कारणों से हो सकते हैं, जैसे अद्यतनित जानकारी, विवादित लेन-देन, विशेष प्रतिबंध आदि.

आपको इस संदर्भ में सलाह दी जाती है कि यदि आपको किसी आयकर विभाग के नोटिस के संदर्भ में संदेह होता है, तो आपको एक कानूनी सलाहकार से संपर्क करना चाहिए और उनकी दिशा-निर्देशों का पालन करना चाहिए.

TDS mismatch in my intimation under Section 143(1)

Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.

Key Causes of Intimation

The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer’s income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:

Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.

Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.

Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.

Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.

Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.

Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.

Non Filing of Tax Return: Failure to file an income tax return when the taxpayer’s income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.

Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.

Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.

Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.

It’s important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.

Time Limit for issuing intimation u/s 143(1)

No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made

Actions to be taken upon receiving an intimation under Section 143(1)

It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.

However, if there is agreements or disagreements :

If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.

However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.

In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.

What should I do if I don’t receive any intimation from the Income Tax Department within the given time frame?

If you haven’t received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it’s recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.

Where can you find your ITR Intimation

You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:

Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/

Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven’t registered, you will need to create an account.

Go to “My Account”: After logging in, go to the “My Account” tab on the dashboard.

Select “View e Filed Returns/Forms”: Under the “My Account” section, select the option “View e Filed Returns/Forms.

Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.

View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).

Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.

Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.

Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.

Intimation: Password Protected

The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be “xyzpb1234c15031999.”

What precautions should be taken when reviewing an intimation under Section 143(1)?

When reviewing an intimation under Section 143(1), it’s crucial to pay close attention to the following aspects:

  • Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
  • Thoroughly review the income details to confirm that all sources of income have been accurately considered.
  • Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
  • Verify the consideration of all eligible deductions and exemptions claimed in your return.
  • Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
  • Understand whether the intimation indicates a tax refund or demand, and if there’s a demand, review the reasons behind it.
  • Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
  • Note any specified deadlines for responding to discrepancies or taking necessary actions.
  • Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.

What to Do if You Receive a Communication from the Income Tax Department

The income tax department is in the process of sending communications to the taxpayers for any mismatch in details provided in ITR AY 2021-22 (FY 2020-21). It also said that in cases where the ITRs have not been filed and, the department is in possession of information of “specified high-value financial transactions”.

“In some cases of Income Tax Returns (ITRs) filed for A.Y. 2021-22 (F.Y. 2020-21), a ‘mismatch’ has been identified, between the information filed in the ITR vis-à-vis information of specified financial transactions, as available with the Department. In cases where ITRs for AY 2021-22 have not been filed and, the Department is in possession of information of specified high-value financial transactions, the same also needs to be examined,” the income tax department said in a press release dated March 4.

As part of the e-Verification Scheme-2021, the department is in the process of sending communication(s) to the taxpayers for the mismatch in information pertaining to AY 2021-22 (FY 2020-21). This information is being communicated to the taxpayers through their e-mail accounts as registered with the income tax department, it said.

What To Do Now?

The income tax department said taxpayers need to view their Annual Information Statement (AIS) through the e-filing portal and file updated ITRs (ITR-U), wherever found necessary.

“Eligible non-filers can also submit updated returns (ITR-U) u/s 139(8A) of the Income-tax Act, 1961,” it said in the release.

What is Last Date for Filing Updated ITR?

Last date for filing of updated returns (ITR-U) for AY 2021-22 (i.e. for FY 2020-21) is March 31, 2024.

Income Tax Slab In 2020-21

In the financial year 2020-21, the government had given taxpayers the option to choose a new tax regime under Section 115 BAC of the I-T Act. The new I-T slabs was for individuals not availing or foregoing certain specified deductions or exemptions while computing total income for tax purpose.

Under this, annual income up to Rs 2.5 lakh was exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh needed to pay 5 per cent tax. Income between Rs 5 and 7.5 lakh was taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.

Those earning between Rs 10 and 12.5 lakh paid tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh paid at the rate of 25 per cent. Income above Rs 15 lakh was taxed at 30 per cent.

how to handle the Income Tax Notices such as Scrutiny, Discrepancy, Mistakes, Non-disclosure

Understanding and handling income tax notices: The article provides valuable insights into the different types of income tax notices, common reasons for receiving them, and how to handle them effectively.

Avoiding Income Tax Notices is easier than dealing with them. Learn more on how to handle the Notices such as Scrutiny, Discrepancy, Mistakes, Non-disclosure.

1. Possible Common Reasons for getting an IT Notice

  1. Reminder to file tax returns
  2. Scrutiny at random
  3. Discrepancy in your income tax returns
  4. Errors in TDS Amount Deducted
  5. Ignoring income received from the previous employer
  6. Demanding a proof of documentation
  7. High Value Transactions not matching with Income declared
  8. Transferring the asset in the name of spouse or children
  9. High number of Gift Transactions
  10. Not depositing the full amount of tax assessed before the due date
  11. Income Tax Return not filed or filed after the due date
  12. Non-disclosure of assets
  13. Non-disclosure of Foreign Income
  14. Investments in the name of family members

2. Various types of Important Notices and the reasons for Such

2.1. Notice under Section 142(1) – Inquiry before assessment:

Notice under Section 142(1) is usually served to call upon documents and details from the tax payers.

  1. This notice is basically sent after notice u/s 142(1) has already been sent. It means AO was not satisfied with the produced documents or may be AO has not received any documents
  2. If assessee do not comply with the provisions of this section
    • It may result in Best Judgement Assessment u/s 144, or
    • Penalised under Sec 271(1)(b) i.e. Rs10,000 for each failure
    • Prosecution under Sec 276D which may extend upto 1 year with or without fine.

2.2. Notice under Section 143(2) – Scrutiny Notice

  1. This notice is basically sent after notice u/s 142(1) has already been sent. It means AO was not satisfied with the produced documents or may be AO has not received any documents.
  2. This notice can be served upto 6 months after completion of relevant assessment year.
  3. The AO can reduce the income below the returned income and can assess the loss higher than the returned loss under Scrutiny Assessment as per Sec 143(3).
  4. The notice might ask you to produce documents in support of deductions, exemptions, allowances, reliefs other claim of loss you have made and provide proof of all sources of income.
  5. Section 143(2) enables the Assessing Officer to make a regular assessment after a detailed inquiry.
  6. If assessee do not comply with the provisions of this section:
    • It may result in Best Judgment Assessment u/s 144
    • Penalised under Sec 271(1)(b) i.e. Rs10,000 for each failure
    • Prosecution under Sec 276D which may extend upto 1 year with or without fine.

2.3. Notice under Section 143(1) – Letter of Intimation

Three types of notices can be sent under section 143(1)

  1. Intimation where the notice is to be simply considered as final assessment of your returns since the AO has found the return filed by you to be matching with his computation under section 143(1).
  2. A refund notice, where the officer’s computation shows amount excessively paid by the assessee.
  3. Demand Notice where the officer’s computation shows shortfall in your tax payment. The notice will ask you to pay up the tax due within 30 days.
  4. Time limit for the notice to be served is up to 1 year after completion of relevant assessment year.

2.4. Notice under Section 148 – Income escaping assessment

  1. If AO has reasons to believe that any income chargeable to tax has escaped assessments, he may assess or reassess such income, which is chargeable to tax and has escaped assessment.
  2. To initiate proceedings under Sec 147, the AO is required to have a reason necessarily.
  3. The onus of stating the reasons is on AO.

2.5. Notice under Section 156 – Notice of Demand

  1. Where any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed, the AO shall serve upon the assessee a notice of demand, specifying the sum do payable.
  2. The tax so demanded is payable, generally within 30 days of the service of notice of demand, which may be reduced by the AO with prior approval of JCIT.
  3. In case of delay in payment of tax, the assessee shall be deemed to be in default and liable to pay simple interest u/s 220(2) @ 1% for every month or part thereof from the end of the period allowed u/s 156, further penalty u/s 221(1) may be imposed.

2.6. Notice under Section 139(9) – Defective Return

  1. What is a Defective Return? – A return shall be considered as a defective return unless it is accompanied by the required documents under the Act. e.g. Annexures, statements, proofs of tax, reports etc.
  2. If the AO considers that the return filed by the assessee is defective, he may intimate the defect to the assessee and gave him an opportunity to rectify the defect within 15 days from the date of such intimation or within such extended period as may be allowed by the AO.
  3. If the defect is not rectified within the aforesaid period, the return shall be considered as an invalid return and accordingly the assessee will be deemed to have furnished no return.

2.7. Notice under Section 245 – Set off of refunds against tax remaining payable

  1. Where any amount of refund is pending to the assessee and also any sum is payable under the Act, the AO may adjust the amount to be refunded with the sum payable by the assessee. Basically it can be related to the ‘inter adjustment of transactions’.
  2. Notice under Section 245 is more of intimation letter and less of demand notice.
  3. Under this notice, the AO intimates the effect of the adjustments made with the amount due to assessee. It indicates the adjusted amount which can be either merely intimation or demand notice of lesser amount still payable after the adjustment.