{"id":8507,"date":"2021-07-03T02:55:00","date_gmt":"2021-07-02T21:25:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=8507"},"modified":"2021-07-04T04:29:57","modified_gmt":"2021-07-03T22:59:57","slug":"tax-notice","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/tax-notice\/","title":{"rendered":"Received Income Tax Notice – Here how to Respond to it"},"content":{"rendered":"\n

Once the ITR is submitted and verified<\/a> by the tax payer, the department goes through every return in automated\/manual fashion to check if everything was correct and matches with the data available with them. In case they find a wrong\/doubtful entry or have further questions about any declared or undeclared income or deduction or exemption, they send communication to the tax payer for further verification. This is the TAX NOTICE<\/strong> \u2013 the most dreaded thing for tax payers.<\/em><\/p>\n\n\n\n

However please note that most notices are harmless (and some times happy as its about tax refund<\/em>), as they ask for some more details or inform about mismatch of your tax returns from Form 16\/16A\/26AS. This is the reason why we suggest to always match your ITR with Form 26AS<\/a>. The important thing to know is notice is received under which section, what it means and what you need to do? <\/strong><\/p>\n\n\n\n

We list down the common tax notices sent and how to deal with the same.<\/strong><\/p>\n\n\n\n

Tax Notice Section 143(1)(A)<\/h2>\n\n\n\n

This year many tax payers are receiving tax Notice Section 143(1A). The reason for the notice is because of discrepancy in the income or deduction mentioned in the tax return and Form 16\/16A or Form 26AS. The most common reason being not including interest income in returns, not submitting investment proof for tax saving or HRA to employer and claiming the same while filing ITR among others.<\/p>\n\n\n\n

Time Limit to Serve the Notice:<\/strong> NA<\/p>\n\n\n\n

Time Limit to respond:<\/strong> 30 days<\/p>\n\n\n\n

What to Do?<\/strong><\/p>\n\n\n\n

The reply to the notice can be done online. The tax payer need to login to the income tax efiling website and reply through e-Proceeding. You may need to attach the relevant proofs in the reply.<\/p>\n\n\n\n

How to respond to Tax Notice Section 143(1)(A)<\/strong> – Detailed Guide<\/h4>

If you have received tax notice 143(1)(A) of income tax act, here is a detailed guide on how to reply the same on income tax portal.<\/a><\/p><\/div><\/div>\n\n\n\n

\"e-Proceeding
e-Proceeding to Reply to Notice u\/s 143(1A)<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Tax Notice Section 143(1)<\/h2>\n\n\n\n

This is more of intimation than notice about the tax return you filed. This could be of three types:<\/p>\n\n\n\n

  1. Your Final tax assessment matches with that of assessing officer<\/li>
  2. Tax Refund \u2013 When tax payer is eligible for tax refund as excess tax was paid \/ deducted<\/li>
  3. Tax Due \u2013 Tax payer needs to pay more tax<\/li><\/ol>\n\n\n\n

    Time Limit to Serve the Notice:<\/strong> Up to end of next financial year from when the return was filed. So for AY 2021-22 the notice can be served by March 31, 2023<\/p>\n\n\n\n

    Time Limit to respond:<\/strong> In case of Tax Due, the payment has to be done in next 30 days<\/p>\n\n\n\n

    What to Do?<\/strong><\/p>\n\n\n\n

    In case there is full match, you need not do anything. In case of tax refund, the amount would be transferred in next few days to your bank account. For Tax due case, make tax payment in 30 days of receiving notice.<\/p>\n\n\n\n

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    Tax Notice Section 143(2)<\/h2>\n\n\n\n

    This is the scrutiny notice that follows preliminary assessment of returns. This can be of 3 types depending on the severity.<\/p>\n\n\n\n

    1. Limited purpose scrutiny:<\/strong> The tax department would like to clarify on a few points\/numbers and so tax payer needs to verify the same.<\/li>
    2. Complete scrutiny:<\/strong> In this case the tax department has found serious discrepancies and hence a detailed scrutiny is required.<\/li>
    3. Manual scrutiny:<\/strong> This is hand-picked by assessment officer and can be sent only after approval from Income Tax Commissioner.<\/li><\/ol>\n\n\n\n

      Time Limit to Serve the Notice:<\/strong> Up to 6 months from the end of financial year from when the return was filed. So for AY 2021-22 the notice can be served by September 30, 2022<\/p>\n\n\n\n

      Time Limit to respond:<\/strong> As per the Notice<\/p>\n\n\n\n

      What to Do?<\/strong><\/p>\n\n\n\n

      Collect all documents related to your income, expenditure and investment details for the year and meet with the Assessment Officer as stated in the letter. You can also send your representative if required. In case you do not respond to notice or not meet the assessment officer following actions can be taken:<\/strong><\/p>\n\n\n\n