Income tax

Types of income tax notices you may receive and how to respond to them

By Anshul IST (Released)


Income Tax Refund: There may be many reasons why IT may send a notice. If you get one, understand what it is and respond accordingly.

Filing of Income Tax Return (ITR) is an annual activity for all responsible citizens of India. When submitting the ITR, the tax authorities check the declarations and the taxes paid to see if all these details match. If the taxes paid are found to be less than the taxpayers owe or if the department discovers an error, it can issue a summons/notice.

By receiving the same thing, taxpayers would not know what it is or how to respond to it. So we’ll break it down here to help you understand these reviews in detail.

But, before delving deeper, it is important to know the difference between an intimation and an opinion. While the intimation highlights the outcome of the ITR’s processing and taxpayers may or may not be required to respond to it, the notices are meant to be responded to, according to the Clear-tax and investment platform.

Here are some of the important types of notices/notices taxpayers may receive:

Information under subsection 143(1) of the Income Tax Act

This is the preliminary assessment and is called summary assessment without calling the taxpayer. At this stage, no detailed examination is carried out.

So that effectively means the return has been processed.

This involves a prima facie check and correction of errors by the tax department with respect to tax calculation and tax payments to determine whether tax or interest is due or a refund is due to the taxpayer.

There can be three types of intimation in this context:

Notice without request or refund: This type of notice is sent if the department has accepted the return without making any adjustments.

Intimation with request: This type of notice is issued after making adjustments.

Intimation with a refund: This type of notice is issued if an excess of income tax has been paid by the taxpayer either in the form of TDS, TCS, withholding tax, self-assessment tax in relation to the determined tax in return of income .

Notice under subsection 142(1)

This type of notice is issued to gather certain information – whether the tax return was filed earlier or may be any required documentary evidence against the claims made. This opinion is issued before the assessment of the declaration.

Notice under section 143(2)

The is sent by the department when the Assessing Officer (AO) is not satisfied with the assessee’s documents or responses against the U/S 142(1) Income Tax Notice.

Notice under Section 148

Where the taxpayer failed to report their income correctly or paid lower taxes, the assessment agent would serve a notice on the assessee requesting that they provide the tax return.

What should taxpayers do upon receipt of these denunciations/notifications?

In case of receiving the notice, the taxpayer should check the reason for receiving it and the details of the statement filed by the assessed person and the calculation contained in the letter of intimation, said Yeeshu Sehgal, head of tax markets, AKM Global – a tax and advisory firm. – talking to

The taxpayer must review the details and the calculation and react accordingly.

“The time limit for responding to the letter of intimation is 30 days from the date of receipt of the letter of intimation by the taxpayer. Although, if the taxpayer does not respond to the letter of intimation, the declaration is processed by the tax department after making necessary adjustments under Section 143(1)(a) and without providing other opportunities,” Sehgal said.