Reply To Notices

Reply to Notices:

Now a days people are getting different types of notices/intimations from the Income Tax department by different modes such as delivery by post or by an e-mail. Below information to know about different types of notices and how to understand it.

Notice for scrutiny assessments u/s 143(2) r/w section 142(1)

These notices are generally received if you undertake a high value transaction or show some point in the return of income which is unusual from the previous year. Generally, these notices are made out on the basis of a Computer aided scrutiny selection system where the assesse meets the criteria as defined for issuing notice of assessment.

The Taxpayer when he receives such a notice in order to draft a proper reply to the same. Need to contact us immediately for Expert guidance.

Notice for non-filing of income tax return

This type of notice is generally received when a person fails to file the income tax return for a particular year(s) when he had filed the same for the previous years. This notice is also given to people who enter into high value transactions but have failed to file the return. Also in case of salaried individuals, many employees do not file returns in a belief that entire tax is deducted from their salary hence they do not have file the return. This leads to service of a notice from the ITD.

Notice for non-disclosure of income:

If you have not shown any income in the ITR such as Bank Interest, Income from shares or Mutual funds then you will get a notice from the IT Dep’t. for that. This generally arises due to income not being shown on which tds is deducted or Income for which information is supplied to the ITD in AIR. Therefore always match the return of income with the form 26AS relating to tax credits and ensure that all incomes are shown as in form 26AS. If the incomes are not shown as in form 26AS, then file a revise return for the same if the time for filing the revised return is not yet over. (Time limit for filing revise return is one year from the end of the relevant assessment year to which the original return relates). If the time limit for filing the revise return has already expired then file a revised computation along with a suitable reply to the notice. Taxes if any that remain to be paid due to the revised computation should be paid along with applicable interest and a copy of the Challan should also be attached with the reply.

Notice for belated filing of return

If you have not filed the IT Return by the due date, then you could receive a notice for filing the same. The ITD selects a date upto which it analysis as to who has filed the return and who has not done so and sends a notice to the non-filers. If you have also received then do not worry Then we will prepare your return we will File ASAP.

Notice for Tax Credit Mismatch in the ITR

This intimation is generally given by the Income Tax Dep’t. when there is mismatch in the TDS claimed in the ITR & TDS actually showing in the Form 26AS. You need to identify the exact reason for mismatch in TDS and file a rectification/ revise return accordingly. You may need to get the TDS corrected in the form 26AS first before filing any rectification/revision.

Notice u/s 245 for adjustment of refund with any demand due

whenever you claim a refund in the ITR, the Income Tax Dep’t. can adjust this refund against any demand pending for the earlier assessment years. Before adjusting the refund, the ITD gives an intimation of the amount of refund & demands determined and provide a period of 30 days to reply to the said intimation failing which the refund will be adjusted with pending demands. Whenever you receive such a notice, the first thing to do is to examine the demands for the earlier years. Once the reasons for the demands are identified, then take steps to rectify such demands by filing rectifications/revisions/payment of demand etc. Once the above steps are taken, then suitably reply to the ITD that you have taken steps for corrections of the demands and that the demands are incorrect and so the refund amount should not be adjusted against such incorrect demands. Make sure to reply within 30 days of the receipt of the notice.

Notice u/s 139(9) for filing defective return

This notice is generally received when there is a mistake or a defect in the return filed. The assessed has 15 days to reply to such notice. If the assessed does not reply within 15 days the return will be deemed as not filed. Whenever you get such a notice, first check what is the issue. Once you know the problem/mistake then correct such mistake and file the response to notice under section 139(9) by generating the xml file again and uploading in e-file tab in the income tax login under the heading e-file in response to notice u/s 139(9). Here the filer has to select the assessment year and the form number.

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Notice for non-payment of Self Assessment Tax:

Currently, the return with tax payable is not allowed and will be deemed as a defective return. Therefore do not file a return with tax payable. However, if you happen to do so then you will receive a notice for defective return. When you receive such a notice then immediately pay the tax payable and file the return again in response to notice under section 139(9).