Once the ITR is submitted and established with the aid of the taxpayer, the branch is going via every goes back in computerized/guide fashion to check if the whole thing became accurate and fits with the statistics available with them. In case they find a wrong/doubtful access or have in addition questions about any declared or undeclared earnings or deduction or exemption, they ship conversation to the taxpayer for in addition verification. this is the TAX note – the most dreaded aspect of taxpayers.
But please notice that most notices are harmless (and a few instances satisfied as for it's about tax refund), as they ask for a few more info or inform approximately mismatch of your tax returns from form sixteen/16A/26AS. that is the reason why we suggest to continually shape your ITR with shape 26AS. The critical element to recognize is aware is received beneath which section, what it way and what you want to do?
We list down the commonplace tax notices sent and how to cope with the identical.
Tax word segment 143(1A)
This year many taxpayers are receiving tax word segment 143(1A). The motive for the notice is due to discrepancy within the profits or deduction cited inside the tax return and shape 16/16A or form 26AS. The maximum not unusual reason being now not such as hobby profits in returns, not filing investment proof for tax saving or HRA to the employer and claiming the identical at the same time as filing ITR among others.
Time restriction to Serve the notice: NA
Time restricts to reply: 30 days
What to Do?
The response to the awareness may be executed online. The taxpayer wants to login to the profits tax e-filing website anrespondsnd thru e-intending. you may want to attach the applicable proofs inside the reply.
Tax be aware segment 143(1)
This is extra of intimation than observe approximately the tax return you filed. this could be of three sorts:
1. Your final tax assessment fits with that of assessing officer
2. Tax Refund – when the taxpayer is eligible for a tax refund as extra tax become paid/deducted
3. Tax Due – Tax payer desires to pay more tax
Time restriction to Serve the notice: up to end of subsequent economic yr from whilst the return turned into file. So for AY 2017-18, the awareness can be served through March 31, 2019
Time limit to respond: In the case of Tax Due, the charge must be accomplished in the next 30 days
What to Do?
In case there's fully fit, you need now not do anything. In case of a tax refund, the amount would be transferred in the following couple of days for your bank account. For Tax due case, make tax price in 30 days of receiving word.
Tax word segment 143(2)
this is the scrutiny word that follows the initial evaluation of returns. this can be of three sorts depending on the severity.
1. restrained purpose scrutiny: The tax department would love to make clear on a few factors/numbers and so taxpayer needs to confirm the equal.
2. entire scrutiny: In this situation, the tax department has determined serious discrepancies and as a result, detailed scrutiny is required.
3. guide scrutiny: that is hand-picked through evaluation officer and may be sent handiest after approval from income Tax Commissioner.
Time limit to Serve the notice: Up to 6 months from the give up of the financial year from when the return become filed. So for AY 2017-18, the attention may be served by September 30, 2018
Time limit to respond: As in step with the awareness
What to Do?
Collect all files associated with your earnings, expenditure and funding information for the yr and meet with the assessment Officer as stated within the letter. you could also ship your consultant if required. if you do no longer respond to note or not meet the assessment officer following actions may be taken:
• The officer can calculate tax liability as he appears in shape, which might also result in additional tax legal responsibility
• A penalty of Rs 10,000 for every failure underneath section 271(1)(b) and/or
Prosecution under section 276D, which may additionally increase as much as one year with or without best
Tax note segment 139(9)
be aware below segment 139(9) is sent if the ITR became defective. this could especially be due to the following motives:
• Used the incorrect ITR form
• If the ITR become filed without paying complete tax
• If the refund was claimed for TDS for which the corresponding profits changed into not mentioned in ITR
Mismatch inside the call on the ITR & PAN
that is just an indicative listing.
Time restriction to Serve the attention: NA
Time restricts to respond: 15 days. Extension possible by using writing in your assessing officer
What to Do?
If you do now not reply the go back filed is considered invalid. The taxpayer desires to download the proper ITR shape and pick out the option `In response to a note underneath section 139(9) wherein the authentic return filed became a faulty go back.’ Quote the reference range and acknowledgment quantity and fill the ITR form with rectifications as required.
Then login to the earnings tax filing website and select e-document >>`e-record in response to observe us 139(nine)’ and add it the use of the password inside the be aware.
Tax notice segment 148
Taxpayers get hold of this notice if any earnings have no longer been disclosed and have escaped evaluation.
Time restriction to Serve the attention: If the earnings are less than Rs 1 Lakh, the notice has to be despatched inside 4 years from the cease of evaluation 12 months and inside 6 years if the profits are extra than Rs 1 Lakh. So for earnings concerning FY 2016-17 (AY 2017-18), the attention can be despatched as much as March 2024.
Time restricts to reply: 30 days or as laid out in be aware
What to Do?
The taxpayer desires to report the go back of the assessment or as asked by using the assessing officer.
Tax notice segment 234(F)
this is the brand new phase brought in finances 2017 and applicable from assessment 12 months of 2018-19. in keeping with this, the taxpayer would pay a great of Rs five,000 if the tax return isn't always filed by way of a due date. In case the tax return isn't always filed even through December 31, the penalty might increase to Rs 10,000. but for earnings as much as Rs five Lakh the excellent might no longer exceed Rs 1,000.
Time limit to Serve the notice: NA
Time limit to respond: NA
What to Do?
From next Year document your returns on time!
We are hoping for a short assessment of all tax notices might help you to be higher prepared if you obtain it. Do now not panic and consult a professional in case of any problems!
