{"id":2439,"date":"2020-01-24T12:51:40","date_gmt":"2020-01-24T12:51:40","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=2439"},"modified":"2024-07-02T14:36:52","modified_gmt":"2024-07-02T09:06:52","slug":"assessment-of-income-tax-notice","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/","title":{"rendered":"An Overall Assessment of Income Tax Notice"},"content":{"rendered":"\n<p class=\"has-drop-cap\">It\ncan be shocking to receive an Income Tax Notice from the Income Tax Department\neven after filing of Income Tax Return before the due date. An encounter with\nthe Income Tax Department is usually filled with stress. You can be confused\nregarding why you got the notice and how to respond to it. But receiving Income\nTax Notice may not always bring bad news. Sometimes it can surprise you with\nthe news of extra cash being refunded to you. However, when you receive an\nIncome Tax Notice, you need to act on it.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#What_is_Income_Tax_Notice\" >What is Income Tax\nNotice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#Why_is_Income_Tax_Notice_Issued\" >Why is Income Tax\nNotice Issued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#Types_of_Income_Tax_Notice\" >Types of Income Tax Notice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#How_to_check_the_status_of_Income_Tax_Notice_Issued\" >How to check the status of Income Tax Notice\nIssued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#Documents_required_to_reply_an_Income_Tax_Notice\" >Documents required to reply an Income Tax Notice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#Avail_Income_Tax_Notice_Assistance_Service_in_Corpbiz\" >Avail Income Tax Notice\nAssistance Service in Corpbiz!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Income_Tax_Notice\"><\/span>What is Income Tax\nNotice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the taxpayer files their Income Tax Return, it is processed by the Income Tax Department. If any mistake or discrepancy or error is noticed in the Income Tax Return filed, then the same is intimated to the assessee or taxpayer. The Central Board of Direct Taxes or CBDT introduced a new scheme known as Centralized Communication Scheme (CCS). According to this scheme, all communications will take place in electronic mode. The various Income Notice issued by the Income Tax Department is mentioned in the article.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_Income_Tax_Notice_Issued\"><\/span>Why is Income Tax\nNotice Issued?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>File\nyour Income Tax Return in an appropriate manner to avoid any Notice of\ndefective Return. Tax notices can be received for many reasons. <\/p>\n\n\n\n<p>Some of the common reasons for issuance of Income Tax Notice are mentioned below:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"597\" height=\"396\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-42.png\" alt=\"Income Tax Notice\" class=\"wp-image-2440\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-42.png 597w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-42-300x199.png 300w\" sizes=\"(max-width: 597px) 100vw, 597px\" \/><\/figure><\/div>\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/file-the-rectification-of-the-itr-filing-online\/\">How to rectify ITR Filing online?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Income_Tax_Notice\"><\/span>Types of Income Tax Notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"628\" height=\"391\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-43.png\" alt=\"Types of Income Tax Notice\" class=\"wp-image-2441\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-43.png 628w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-43-300x187.png 300w\" sizes=\"(max-width: 628px) 100vw, 628px\" \/><\/figure><\/div>\n\n\n<p><em>The Income Tax Department issues Income Tax Notice for various purposes mentioned under the Income Tax Act, 1961<\/em><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">[1]<\/a><\/sup><em>. These are explained in detail :<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Notice under Section 142(1)<\/h3>\n\n\n\n<p>A notice under Section\n142(1) is issued under the following two circumstances:<\/p>\n\n\n\n<ul>\n<li>If after the <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>filing Income Tax Returns<\/strong><\/a> the assessing officer requires additional information and documents; Or<\/li>\n\n\n\n<li>In case of non-filing of return, the assessing officer may intimate the taxpayer to file it.<\/li>\n\n\n\n<li>For example, the statement of assets and liabilities of the taxpayer on a particular date.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Notice under Section 143(1)<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>It is also known as\nLetter of Intimation. The Income Tax Department provides 30 days to file the\ndues indicated in the notice. The Income Tax Department can issue notices to\nthe taxpayer under Section 143(1) in the circumstances listed below:<\/p>\n\n\n\n<ul>\n<li>Any\narithmetical error in the return filed like excessive or less amount paid.<\/li>\n\n\n\n<li>An\nincorrect claim is apparent from the information filled. <\/li>\n\n\n\n<li>Any\nextra income not included in the return filed.<\/li>\n\n\n\n<li>Rejection\nof any loss or expenditure claimed incorrectly.<\/li>\n\n\n\n<li>The\ntime limit set to intimate the assessee is one year from the end of the\nfinancial year in which the return is made.<\/li>\n\n\n\n<li>As\nper the notice, the tax due should be paid within 30 days.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Notice under Section 143(2)<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>Notice under Section\n143(2) is considered as <strong>scrutiny<\/strong> <strong>notice<\/strong>. The notice under this section is sent after the\nnotice under Section 142(1). Whether the return is accepted or not by the\nassessing officer is specified by this notice. Via this notice, the assessing\nofficer intends to be assured of the following points:<\/p>\n\n\n\n<ul>\n<li>Understated\nincome<\/li>\n\n\n\n<li>Claimed\nexcessive loss<\/li>\n\n\n\n<li>Not\npaid less tax. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Notice under Section 148<\/h3>\n\n\n\n<p>This\nnotice is termed as Income Escaping Assessment. The reason for issuing notice\nunder this section is mentioned below:<\/p>\n\n\n\n<ul>\n<li>When\nan assessing officer after assessment feels that the income is not disclosed\nproperly.<\/li>\n\n\n\n<li>Before making any such assessment or reassessment, the assessing\nofficer must serve a notice to the assessee asking him\/her to furnish his\nreturn of income.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Notice under section 156<\/h3>\n\n\n\n<p>Notice under Section\n156 is said to be Notice of Demand. The assessing officer shall serve notice of\ndemand in the following consequence:<\/p>\n\n\n\n<ul>\n<li>In\nthe case where any tax, interest, penalty, fine or any other sum is payable by\nthe assessee.<\/li>\n\n\n\n<li>The\ntax demanded is payable within 30 days of the service of notice. It can be\nreduced with prior approval of&nbsp; JCIT.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Notice under Section 139(9)<\/h3>\n\n\n\n<p>It\nis also known as Defective Return Notice. The Income Tax officer issues this\nnotice in case of the income tax return filed is defective. For example, if the\nIncome Tax Return is filed before the self-assessment tax.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Notice under Section 245<\/h3>\n\n\n\n<p>This notice is sent to a set of refunds against tax remaining payable. Income Tax Notice prescribed in Section 245 is more of intimation letter and less of demand notice. Communication is made regarding the adjustment of Income-tax refund against Income tax refund through this notice.  Penalty for non-compliance of Income Tax Notice <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>S.No<\/strong>\n  <\/td><td>\n  <strong>Types\n  of Notice<\/strong>\n  <\/td><td>\n  <strong>Penalty<\/strong>\n  <\/td><\/tr><tr><td>\n  1.\n  <\/td><td>\n  Notice under Section 142(1)\n  &nbsp;\n  <\/td><td>\n <ul>\n<li>It may result in Best Judgement Assessment u\/s 144.<\/li>\n<li>10,000 for each failure as per section 271(1)(b).<\/li>\n<li>Prosecution as prescribed under Sec 276D which may extend up to 1 year and with fine.<\/li>\n<li>Prosecution as prescribed under Sec 276D which may extend upto 1 year and with fine.<\/li>\n<\/ul>\n  \n  \n  \n  &nbsp;\n  <\/td><\/tr><tr><td>\n  2.\n  <\/td><td>\n  <strong>Notice under Section 143(2)<\/strong>\n  &nbsp;\n  <\/td><td>\n  <ul>\n<li>It may result in Best Judgement Assessment u\/s 144.<\/li>\n<li>10,000 for each failure as per section 271(1)(b).<\/li>\n<li>Prosecution as prescribed under Sec 276D which may extend upto 1 year and with fine.<\/li>\n<\/ul>\n  \n  \n  &nbsp;\n  <\/td><\/tr><tr><td>\n  3.\n  <\/td><td>\n  Notice\n  under Section 156\n  &nbsp;\n  <\/td><td>\n <ul>\n<li>The assesee when in default will be liable to pay simple interest as specified in Section 220(2)@1% for every month or part thereof.<\/li>\n<li>From the end of the deadline, the further penalty under Section 221(1) will be imposed.<\/li>\n<\/ul>\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_check_the_status_of_Income_Tax_Notice_Issued\"><\/span>How to check the status of Income Tax Notice\nIssued?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Here is the stepwise method to check whether the Income Tax Notice is issued<\/em><\/strong>:<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  S.\n  No\n  <\/td><td>\n  Steps\n  <\/td><\/tr><tr><td>\n  1.\n  <\/td><td>\n  Login\n  or Signup on the portal.\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  2.\n  <\/td><td>\n  Go\n  to &#8220;My Account&#8221; from the top of the menu and select &#8216;View e-Filed\n  Returns or forms from the drop-down options.\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  3.\n  <\/td><td>\n  Click\n  on &#8220;Acc. No&#8221; for the concerned assessment year.\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  4.\n  <\/td><td>   If there are any of the following   messages, the return is subject to correction. <ul>\n<li>A Pending response to the proposal of adjustment u\/s 143(1)(a)-<\/li>\n<li>ITR filed is defective or incomplete.<\/li>\n<li>ITR processing completed and demand is determined.<\/li>\n<\/ul>&nbsp;  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_to_reply_an_Income_Tax_Notice\"><\/span>Documents required to reply an Income Tax Notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ndocuments required vary with the types of Income Tax Notice. However, the basic\ndocuments that are needed to reply an Income Tax Notice are;<\/p>\n\n\n\n<ul>\n<li>Copy of Income Tax Notice<\/li>\n\n\n\n<li>Source of proof of income such as Form-16, Salary Receipts, etc.,<\/li>\n\n\n\n<li>TDS Certificates<\/li>\n\n\n\n<li>If applicable, the investment proofs.<\/li>\n\n\n\n<li>Any other document demanded by the assessing officer.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avail_Income_Tax_Notice_Assistance_Service_in_Corpbiz\"><\/span>Avail Income Tax Notice\nAssistance Service in Corpbiz!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is better to take assistance for replying to Income Tax Notice. Therefore, once you have uploaded the Income Tax notice copy, our Tax Experts comprising of well qualified CAs will review the same and provide you with the best solution available. Based on this, our professionals will ask you to provide the necessary documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> Income Tax Department issues Income Tax Notices in case of non-compliance with the income tax law. The reason can be anything from error in filing original return, none or short payment of tax, non-filing of tax or late filing, among others. It is not possible to follow up with all the requisite procedures in today&#8217;s busy life. So contact <strong><a href=\"https:\/\/corpbiz.io\">Corpbiz<\/a><\/strong> for further assistance. We will allocate you a dedicated tax expert who shall help you sail through the process.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/tax-residency-certificate-and-how-to-get\/\">An overview on Tax Residency Certificate &#038; Double Taxation Avoidance Agreement: How To Get It?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It can be shocking to receive an Income Tax Notice from the Income Tax Department even after filing of Income Tax Return before the due date. An encounter with the Income Tax Department is usually filled with stress. You can be confused regarding why you got the notice and how to respond to it. But [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":2442,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,152],"tags":[275],"acf":{"service_id":"47"},"authorName":"Deepti Shikha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/Deepti-Shikha.jpg","authorDescription":"Deepti is a Law graduate with an avid interest in reading and very proficient in summarizing legal cases. She has enough experience in handling legal affairs of the company. In the initial days of her career, she has worked as a legal researcher and has 3+ years of experience.","postViews":48238,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2439"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=2439"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2439\/revisions"}],"predecessor-version":[{"id":65066,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2439\/revisions\/65066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/2442"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=2439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=2439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=2439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}