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Income tax: After filing the ITR, i.e., Income Tax Return, if any mistake is found, then the Income Tax Department issues a notice. The notice sent by the Income Tax Department is an opportunity to correct the mistake. Yes, based on your mistake, the Income Tax Department has started proceedings against you. Therefore, in such a situation, you need to understand which notice (Income Tax Notice) the Income Tax Department can issue in those circumstances. If you know this, then it is easy to respond to the Income Tax notice.

However, the Income Tax Department can issue many types of notices to taxpayers (Income Tax Rule). But not all of those notices apply to individuals. Here in this news today, we will tell you in detail about some such Income Tax Notices, which can only be received by the salary class. When some mistakes are found in their ITR. Let's know -

CIBIL Score: This CIBIL score is necessary to take a loan from any bank; loan takers should know important things

1. Section 143(1)(a) Tax Notice

This tax notice is called Intimation Notice (Intimation Under Section 143(1) of the Income Tax Act), and it is sent when the tax department has successfully processed the ITR submitted by the taxpayer. This intimation notice will tell whether the calculations submitted in the ITR have been accepted by the Income Tax Department or not. If there is any difference between your calculation filed in the return and the calculation done by the tax department, then the reason for this will also be mentioned in the intimation notice.

Reasons for receiving 143(1) mismatch intimation notice -

Such intimations can be issued in case of ITR filed under section 139(1)/139(5) as well as ITR filed in response to a notice issued under section 142(1). A taxpayer may receive a mismatch intimation notice due to reasons such as difference between the ITR filed by the taxpayer and the income calculated as per section 143(1), arithmetical errors, any wrong claim, wrong calculation of interest under section 234A/B/C, mismatch of tax return details when compared with Form 26AS, etc.

Within how many days to respond to this notice -

You need to take action only if there is a difference between your income tax return calculation and the tax department's calculation. If the intimation notice is issued for a refund or there is no mismatch between your ITR calculation and the tax department's, you do not need to respond to the intimation. Taxpayers are required to file their response within 30 days from the date of issuance of an intimation under section 143(1)(a).

2. Section 139 (9) Defective ITR Notice

The Income Tax Department may send you this notice under section 139 (9) due to incomplete or incorrect information provided by you in the ITR file. Income tax returns can be considered incorrect for several reasons.

These reasons may include the following for filing a notice for incorrect filing of ITR (Defective Return Notice): Claiming HRA in ITR, but there being no HRA component in the salary breakup, claiming TDS on income while filing ITR, but not providing the necessary information about the income. For example, not declaring interest on FD in ITR but claiming TDS deducted on such FD.

After receiving a wrong ITR notice, the person has to respond to it within a stipulated time limit. You will have 15 days from the date of receipt of the notice to correct the incorrect information in the return filed as per the time limit mentioned in the notice. However, you can request an extension.

3. Section 142(1) Tax Notice

This tax notice is also known as an inquiry before assessment or reassessment notice. If no ITR has been filed under section 139(1), a notice can be issued to the person under section 142(1) to file an income tax return.

The Income Tax Department issues this notice to find out why you did not file your income tax return despite having proof of income above the basic exemption limit. You have to answer all the questions asked by the Income Tax Department. There is no time limit for issuing such a notice.

4. Section 143 (2):

Section 143 (2) is known as the scrutiny assessment notice. This notice is issued by the Income Tax Department when the tax department wants to make a detailed assessment of the ITR filed and wants to verify the veracity of all the claims (income and deductions) made by you.

A notice under section 143(2) can be issued to the taxpayer to conduct a scrutiny assessment under section 143(3). Scrutiny Assessment is a detailed assessment done to verify the authenticity of various claims, deductions, etc. made by the taxpayer in the ITR submitted. If such a notice is received from the Income Tax Department, then it has to be responded to within 15 days. However, the time limit to respond to such a notice is given in the notice itself.

5. Section 148
When there is income that is not shown in the Income Tax Return (ITR), the Income Tax Department issues a notice under Section 148. This notice indicates that the taxpayer's income escaped assessment in the previous year. The tax department issues a notice under Section 148 before issuing a show cause notice under Section 148A (b) to ask why the case should not be selected for reassessment.

If the tax department does not receive any response from the taxpayer even after issuing a show cause notice under 148A (b), then the Income Tax Department passes its order under Section 148A (d) stating whether the case is fit for reassessment or not.

Till when such notice can be issued -

A notice under section 148 can be issued within 3 years and 3 months from the end of the relevant assessment year, if the income escaped assessment does not exceed Rs 50 lakh. However, if the income escaped assessment is more than Rs 50 lakh, reassessment for the relevant assessment year can be done within 5 years and 3 months. The taxpayer has to respond to the notice within the time limit given in the notice, which is usually 30 days.

6. Section 245:

Under this section, the Income Tax Department can set off the income tax refund from the current year against any outstanding tax of the previous year. This adjustment is done only if there is income tax due or a tax refund due in the current year. If you have any outstanding tax from last year that you have not settled or paid, then you may get this notice. There is no time limit (Income Tax Notice Time) for sending this notice.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.