The Income Tax Act regulates how much income tax an Indian citizen pays. Over the years, it has had many amendments with respect to tax implications. Under the Finance Ministry, the department called as Income Tax Department (Income Tax Notice rules) keeps a close eye on the flow of cash in the country, encumbers income tax from people’s income. Income Tax rules are many for people from whom tax is collected. There are many instances when people feel that they don’t owe tax, but the income tax notice is received. The rules behind the income tax notice should be known.
While filling out an income tax return, proper multiplication of your income should be done. A small mistake can create problems for you. The notice can be issued by the Income Tax Department. Some people falsely enter wrong information while filling income tax and some by mistake.
The department keeps track of such people and sends them an IT Notice. If you have provided any details incorrectly, then the Income Tax Department can send for you a notice under six rules. If you have received a notice, what to do in response to it has been provided in detail in this article.
Pay income tax properly and calculate it.
No one wants to get a letter from the Income Tax Department. But alas, some are under the radar of the Income Tax Department either knowingly or unknowingly. Therefore, if paying income tax, do it accurately in calculating your tax. Your error can get the Income Tax Department all action against you. You may receive a letter.
How do you reply to notices in this regard?
Notice is generated by the Income Tax Department when an ITR is inconsistent or when tax is not paid despite having a considerable income. The department has also made provision for an online facility to reply to such a notice. One can reply online on the Income Tax Department’s website.
Such notices are divided into six sections
A notice by the Income Tax Department has six sections for non-payment of income tax and their discrepancies. The meanings of these notices issued by the Income Tax Department are also different from each other. Let us know the meanings that the six different sections hold.
Answer this Income Tax notice within 15 days
The defective returns in Section 139(9) of the Income Tax Act (ITR rules). This notice says that the ITR is defective when a notice is served under Section 139(9). Either part of the information is wrong or not given. It is because the details provided in the ITR do not match. This notice has to be answered in 15 days. If action is not taken on this, then your ITR return is rejected. Therefore, this should be answered directly and clearly stepwise.
Deal with excess and less payment
Thus, this notice is nothing but for information purposes about how much payment is in excess or less of the tax paid. The one under Section 143(1) of the Income Tax Act is strictly for informative purposes. It reports if more taxes have been paid on it (Income Tax Notice). It informs about how the returns will be in that case. It reports if the taxes have been less, stating the outstanding amount.\
This is a notice of variance in The ITR from TDS
An informational notice under the Income Tax Act is issued under section 143(1)(a). This is the notice that comes when there is a difference between the ITR and the TDS certificate of Form 16 and Form 16A. The details differ in it.
Notice of Further Information Is Also Given
Notice also goes under section 142(1) added to Income Tax. This is because a difference is made by an assessing officer wanting more information regarding ITR. This is even sent when the taxpayer is not submitting ITR (IT Notice) in the said year. Failure to submit this notice may lead to a possible fine of INR 10,000 along with legal implications.
Demand Notice is issued under section 156.
Income Tax Department sends a Demand Notice through section 156 of the Income Tax Department. With this notice, penalty, fine and tax is paid, demanded from a particular individual. You are required to deposit the tax within thirty days of the receipt of this notice (Income Tax Notice). In case you don’t deposit taxes, action will follow.
Investigation Under Section 143(2)
A notice under section 143(2) of the Income Tax Department is issued. This is not a notice, but it is actually an order. Under this, the orders are given for investigating you. This happens when you do not fill ITR (ITR rules) or fill it very less or completely wrong. These types of notices are issued when a mistake is found.
