FAQs on Tax Notices
What are the consequences of not responding to Notice 142(1)?
There are severe consequences of not complying with the demands of Notice 142(1). You may be charged a penalty of ₹10,000 u/s271(1)(b) The Assessing officer, on the basis of all the relevant information and proofs gathered by him, will give a “Best ...
How do I respond to Notice 142(1)?
If the notice is issued with respect to not filing the returns, then the Assessee has to file the returns within a stipulated period of time given in the notice, and a copy of it must be submitted to the AO along with the relevant proofs and ...
Why was I issued a Tax Notice 142(1)?
Tax Notice 142(1) is an Inquiry before Assessment. You may have received a Notice 142(1) for the following reasons: You did not file your returns before the end of the Assessment Year. You have filed your returns, but the Assessing officer is asking ...
What will happen if my current year refund amount is less than the outstanding balance of the previous years?
If your refund amount is less than the outstanding tax liability, the balance amount will still reflect as outstanding, and will be adjusted with future years’ refunds.
How should I deal with Intimation Notice 245?
If you have reason to believe that you do not have any outstanding balance, and you have cleared all your tax liability in the previous years, you must find out who is your Assessing Officer and approach him within 30 days of the receipt of the ...
Why did I get an Intimation Notice 245?
You may not be aware of any outstanding tax liabilities for the previous years, while filing tax returns for the current year. If you have previous tax liabilities, the I-T Dept. will adjust them with any refunds arising in the current year, and will ...
What will be the consequence if I do not respond, or pay the additional amount demanded u/s 156?
Failure to respond to the 156 Tax Notice Demand will attract the following penalties Interest up to 1% on the demanded amount after 30 days expiry time (u/s 220). Penalty less than the tax demanded u/s 156, amount being determined by the Assessing ...
What is the time limit for responding to Demand Notice 156?
You must pay the demanded amount within 30 days’ time. Failure to do so will attract penalties.
How can I pay the demanded amount u/s 156 online?
You can pay the demanded amount u/s 156 by logging into the Income Tax e-Filing website and following the steps below: 1. Click on “e-File” and select “Respond to Outstanding Tax Demand”. Below screen will appear. 2. “Submit” the response and then ...
By when should I pay the additional amount demanded in the Notice u/s 156?
You must pay the amount demanded in the notice u/s 156 within 30 days from receiving the notice.
Why did I get a Tax Notice u/s 156?
A Demand Notice u/s 156 is sent to you by the I-T Dept. for demanding payment for any additional tax liability, interest or penalty that may be levied on you. This demand is raised by your assessing officer in respect of any assessment order for ...
By when should I receive final assessment order u/s 143(3)?
You will receive the final order u/s 143(3) within 21 months of the assessment year in which taxes were filed.
What is Assessment order 143(3)?
Assessment order 143(3) is issued by the Assessing Officer after the Scrutiny Assessment u/s143(2) is complete and all the evidences required have been submitted. Based on the evidences, the AO will issue an order for tax payable or refundable, to ...
What will happen if I ignore the Tax Notice 143 (2)?
There are serious consequences of not responding to Tax Notice 143(2). Some are listed below: Penalty on failure to respond - ₹10,000 u/s 272A Best Judgement Assessment can be carried out by AO, resulting in increased taxable income Contesting the ...
How should I respond to Scrutiny u/ 143 (2)?
Once you receive a Scrutiny Assessment 143 (2), you are expected to submit all the necessary proofs and documents online in the e-Filing portal, as demanded and which can prove the accuracy of your returns. After considering all the evidence, the AO ...
Within how much time should I receive Scrutiny u/s 143 (2)?
You will receive the Scrutiny u/s 143 (2) within six months from the filing of returns.
Why did I get a notice u/s 143 (2)?
You received a Notice u/s 143 (2) to inform you that a Scrutiny Assessment will be carried out by an assigned Assessing officer (AO) to ascertain whether your claims for deductions, exemptions, etc. are factually and legally correct. The AO has to ...
How do I respond to Tax Notice 143 (1)?
On receiving an intimation u/s 143 (1), you must firstly ensure that all your details are correctly mentioned. If there are any mistakes, you must file a revised return on the government’s e-Filing website, and pay the balance amount. However, if ...
Within how much time should I receive an intimation u/s 143 (1)?
You will receive the intimation u/s 143 (1) within a year from the filing of returns. If you don’t receive any intimation within this time, it means that the returns are not required to be revised or modified.
What is an Assessment Intimation u/s 143 (1)?
Assessment Intimation u/s 143 (1) is issued by the I-T Dept. if the Assessee has either overpaid or underpaid his tax. If he has paid more tax, then the notice will intimate him of the refund amount. If he has paidless than the liable amount, then ...
How should I respond to Tax Notice 139 (9)?
In case of defective notice 139 (9), the I-T Dept gives you a chance to rectify your returns within a stipulated time. Failure to do so will render your I-T returns as invalid. To respond, log in to the government’s e-filing website and follow the ...
Why did I get a Tax notice 139 (9)?
Tax Notice 139(9) is received when there is a defect in filing your returns, either due to not furnishing some necessary information, or if there are any documents missing. Some of the specific reasons are: If you have not filed your return in the ...
I got a Tax notice from the I-T Dept. Why was I notified?
There are several reasons why you could be notified by the Income Tax Dept. It could be an intimation of assessment of your returns. You could have a balance due. You have not submitted the required documents/proofs. You are eligible for a larger or ...
What will happen if there is any discrepancy in the income tax return?
If the AO comes across any discrepancies or omissions while conducting enquiry, he would make his own assessment of the filer’s taxable income after considering all the relevant details of his income and expenditure. Depending on the magnitude of ...
How does the AO carry out his scrutiny?
The AO can conduct enquiries as he deems fit from the assessee and third parties.
Who is an Assessing Officer (AO)?
Assessing Officer or AO is an individual officer appointed by Income Tax Department, who has jurisdiction to make an assessment of an assessee or tax payer.
Who is an assessee?
Assessee is the person who has filed the returns, on whom the tax scrutiny may be carried out.
What is Tax scrutiny?
Tax scrutiny refers to assessing the income tax return by the IT Dept. and notifying the assessee to show evidence of the income and expenses declared, deductions & exemptions, losses, or any other claims that can reduce the assessee’s tax liability.