Skip to main content

What to Do if You Get a Tax Notice

 
What to Do if You Get a Tax Notice



SECTIONS UNDER WHICH PEOPLE GET NOTICES AND WHAT THEY MEAN

Filing income tax returns by due date is crucial, but equally important is to file these correctly. If you don't do so, expect a notice from the Income Tax Department. What should you do if you get one? Firstly, don't panic. Next, understand the section under which you have received it and how you should respond to it. Here are some of the common sections under which people get notices and what these mean:

1. SECTION 139 (9)

You will get a notice under this section in case of defective filing of tax returns. The errors can include the following: If you have used the wrong ITR form, if you haven't paid the entire tax due, if you have claimed a refund for deducted tax but have not mentioned the relevant income, if there is a mismatch in the name on the form and PAN card, if you have paid taxes but not listed income.Time limit to respond: Within 15 days from date of intimation by as sessing officer. You can seek an extension by writing to the local assessing officer. If you don't respond, the return will be considered invalid. What to do? Go to the income tax filing site (https:incometaxindiaefiling.gov.ine-Filing) and download the right ITR form under the given Assessment Year. Then select the option `In response to a notice under Section 139(9) where the original return filed was a defective return.' Fill in the reference number and acknowledgement number, and fill the form by including the required rectification. Under `e-File', select `eFile in response to notice us 139(9)' and upload the rectified XML using the password in the notice.

2. SECTION 143 (1)

More than a notice, this is an intimation about the returns filed by you.You can get three types of notices under this section:

a) It can be simply the final assessment of your returns as your tax calculation matches that of the assessing officer.

b) It can serve as a refund notice, where the assessing officer's computation shows excessive tax paid by you.

c) It can be a demand notice, wherein assessing officer finds a shortfall in your tax payment.

Time limit to respond: If tax is due, you will have to pay it within 30 days.What to do: If there is no discrepancy in the returns, you don't have to worry . If a refund is due, it will be transferred in the bank account. If it is not, request a reissue of the refund.If tax is due, you will have to pay it within 30 days.

3. SECTION 143 (1A)

"Though this provision existed earlier, the computer-assisted notices are being sent to a large number of taxpayers only this year. This is essentially a communication on proposed adjustment, which means that if there is a discrepancy in the income mentioned in the return and Form 16, or deductions given under Section 80C or Chapter VIA and Form 26AS, then verification will be sought.Time limit to respond: Within 30 days of issue of intimation (applicable from the AY 2017-18).What to do: You will have to log in to the tax filing portal and, under the `e-Proceeding' section, explain the discrepancy , besides uploading the supporting documentary proof.

4. SECTION 143 (2)

This is a scrutiny assessment notice that follows preliminary assessment of returns. This can be of three types, with the first two coming under computer-assisted scrutiny selection (CASS), while the third is a manual scrutiny notice.

a) Limited purpose scrutiny: This is not a full-fledged scrutiny and is meant to highlight only one or two points.

b) Complete scrutiny: This entails a complete, detailed scrutiny as serious discrepancies have been identified in the returns.

c) Manual Scrutiny: This notice is hand-picked by the assessment officer, but it can be sent only after an approval by the Income Tax Commissioner.

Time limit to respond: The taxpayer will have to appear in person or through a representative before the officer on the date specified in the notice.What to do: Get all the documents and proofs to support your case and do not miss the hearing. If you fail to comply with the provisions of this section:

a) It may result in `best judgment assessment', which means the officer decides the tax liability as he sees fit.

b) Penalty of `10,000 for each failure or;

c) Prosecution up to one year with or without fine.

5. SECTION 234 (F)

This is a new section that has been introduced in the Income Tax Act, according to which a fee or penalty will be levied in case returns are not filed by 31 July of the relevant assessment year.

So far, salaried taxpayers were lax about not filing returns by 31 July if taxes had been paid, but now it is mandatory to do so. Till date, a penalty of `5,000 was levied at the discretion of the assessment officer if the return was not filed.

Starting with assessment year 2018-19, a fee of `5,000 will be charged in case returns are filed after the due date but before December 31 of the relevant assessment year or `10,000 if it is filed after December 31 of the relevant assessment year.

However, for those earning less than `5 lakh a year, maximum penalty of `1,000 will be levied.






Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now