Got an Income Tax Notice? Don’t Panic, Here’s All You Need to Know

Don’t understand why you’ve been sent an income tax notice? This might help.

An employee counts rupee currency notes inside a private money exchange office in New Delhi. 

There are some sections of the Income Tax Act under which you can get the income tax notice.

So there is no need to panic if you receive the income tax notice. All you have to do is to understand why you’ve got the notice. There are some cases in which you will get a notice under section 139(9). These include:

• Using the wrong ITR form while filing income tax returns.
• A mismatch in the name on the form and PAN card.
• Taxes paid but income not mentioned.
• Complete tax due not paid.
• Claimed a refund for deducted tax but relevant income not mentioned.

What to do Next

You need to respond within 15 days of date of intimation by the assessing officer. Here’s what you have to do if you get the following letters:

Section 245

You will get this notice or intimation letter if you have claimed a refund in some assessment year, but there is also some outstanding tax to be paid by you.

Time to respond: In the specified duration, as per the notice by the assessing officer.

Section-143(2)

If you get a notice under section 143(2), it means your returns have been selected for scrutiny by Assessing officer. This means the tax filed return by you was incomplete. There are three levels of scrutiny – limited purpose scrutiny, complete scrutiny and manual scrutiny.

Time limit to respond: The assessee will have to appear in person before the officer on the date specified in the notice.

Section 143(1)

This is an intimation about the returns you have filed.

Time limit to respond: If tax is due then you will have to pay it in within 30 days. If there is no discrepancy then you no need to worry about this.

Section 143(1A):

The income tax notice under section 134(1) is sent only if there is any discrepancy in the income mentioned in the return, form 15, Section 80C deductions and Form 16AS, then verification will be sought.

Time limit to respond: Within 30 days of issue of intimation.

(This is an opinion piece and the views expressed above are the author’s own. The Quint neither endorses nor is responsible for the same.)