Tax Notice

Notice of Income Tax

The Income Tax Agency issues notifications for a variety of reasons, including failure to file income tax returns, errors in filing returns, and other situations where the tax department requires more papers or information.

The message that is received is neither terrifying nor disturbing. However, the taxpayer must first comprehend the notification, its purpose, and the requestor’s command in the notice before taking action to comply.

SRCC provides a comprehensive range of services to assist households and companies in staying compliant. If you receive an income tax notice, contact an SRCC Tax Expert to better comprehend the notification and select a plan of action.

Service of Income Tax Notice

The Income Tax Act of 1961 established a legal framework for serving a notice, summons, order, or other communication on a person by delivering or transmitting a copy to the subject in any manner permitted by the Act. The numerous methods of serving the Income Tax Notice are shown below.

The Notice’s Recipient: Income tax notices are sent directly to the individual, but if the notice is for a child, it is sent to the guardian. Incorrect assesses descriptions are typically correctable, but in situations where the assessor’s position is intertwined with his or her identity, the name on the face of the return may become significant.

Service by Registered Mail: The income tax notice can be served by registered mail. The service must be started by correctly addressing, pre-paying, and mailing a letter containing the document through registered mail, according to Section 27 of the General Clauses Act 1897. This delivery can be made to the address, an employee, an agency, or anybody else who has been given permission to receive it.

If a defendant refuses to sign the acknowledgement or the officer is unable to locate the defendant, the office must affix a copy of the summons, notice, or requisition order to the outside door or any other visible portion of the defendant’s house or place of business.

HUFs and Partnership Firms: If an officer discovers the entire partition of a HUF, the assessing officer may record it and issue notifications on the HUF’s manager. If the individual in question has died, notices about the firm’s or association’s income may be served on former partners or members of the organisation who are subject to taxation.

Closed Business: If a business is closed, the assessing officer must issue a notification to the individual whose income is being assessed. A notification will be sent to any members of the firm or association of individuals who have been a part of the firm throughout the period of termination. The notification will be served on the chief officer or the Director in the case of a corporation.

Documents required to reply to an Income Tax Notice

What papers are needed to respond to a Notice of Assessment?

The Documents must differ depending on the type of Income Tax Notice issued to the taxpayer. The following are the fundamental papers required to respond to an income tax notice:

1)A copy of the Income Tax Notice.

2)Proof of income, such as Form 16 (Part B), salary receipts, and so on.

3)If appropriate, TDS certificates and Form 16 (Part A) Investment Proof.

However, it is usually preferable to study the notification only with the help of tax professionals. As a result, once the copy of the income-tax notice is submitted, tax specialists will analyse it and come up with the best possible solution.

Checklist for Income Tax Notice
  1. The taxpayer has 30 days from the day the notice is delivered to respond to the intimation notice issued under Section 143 (1) of the Income Tax Act, 1961.
  2. If the taxpayer does not react within the time frame specified, the Income Tax Returns will be completed with the required changes made without giving the taxpayer the opportunity to respond.
  3. After receiving the notification, the taxpayer should double-check the name, address, and PAN number listed on the notice.
  4. It’s also a good idea to double-check the assessment year given and the e-filing acknowledgement number.
  5. Only when the taxpayer committed an error in the original ITR filing may a revised return be filed. If the taxpayer chooses to modify the return, he or she must file it within 15 days.
  6. A rectification return can only be submitted if the taxpayer discovers a flaw or error in the order received by the Internal Revenue Service.
  7. The cause for the notice’s issuance may be seen on page 2 of the notice. It also indicates the difference between the income reported on Form 16/16A/ 26AS and the income reported on the returns.
  8. If the intimation notice requires the taxpayers to pay an extra tax amount, it must be considered as a demand notice under section 156.
  9. The taxpayer has 30 days from the date of receipt of the notice of demand to reply or face a penalty of! percent of the interest each month from the date of receipt of the notice of demand, plus a penalty assessed by the assessing officer.

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