Income Tax Notice​

Reasons for Receiving an Income Tax Notice

Income tax notices can be issued for several reasons, including:

• Discrepancies in Tax Returns: Mismatches between declared income and deductions versus the data available with the Income Tax Department.

• Non-Filing of Tax Returns: Reminder to file returns if not done by the due date.

• High-Value Transactions: Explanation required for transactions that don't align with reported income.

• TDS/TCS Mismatch: Discrepancies between TDS/TCS as per Form 26AS and the declared income.

• Investments/Deposits: Inquiries about the source of significant investments or deposits.

• Mismatch with AIS/TIS: Discrepancies with Annual Information Statement (AIS) or Taxpayer Information Summary (TIS).

• Property Transactions: Non-reporting or under-reporting of property transactions.

• Scrutiny of Returns: Random selection for detailed scrutiny.

• Demand for Tax: Unpaid taxes as calculated by the department.

• Refund Claims: Verification before processing a refund.

• Foreign Assets or Income: Discrepancies in foreign assets or income reporting.

Types of Income Tax Notices

• Notice under Section 142(1) – Inquiry before assessment: This notice is served to gather documents and details from taxpayers before initiating the assessment process. It may require filing a return of income, producing accounts/documents, or providing written information. Compliance is mandatory, and failure to comply may result in penalties or Best Judgement Assessment.

• Notice under Section 143(2) – Scrutiny Notice: Sent after Section 142(1) notice, indicating that the return has been selected for detailed scrutiny. Taxpayers may be asked to provide documents supporting deductions, exemptions, or other claims. Non-compliance can lead to penalties or Best Judgement Assessment.

• Notice under Section 143(1) – Letter of Intimation: This notice serves as a final assessment of returns, refund notice (if excess tax was paid), or demand notice (if there's a shortfall in tax payment). Compliance varies based on the nature of the notice.

• Notice Under Section 148A: Before issuing notice under Section 148, the assessing officer issues notice under section 148A.

• Notice under Section 148 – Income escaping assessment: If the assessing officer believes that income has escaped assessment, this notice initiates reassessment proceedings. Reasons must be provided, and non-compliance may lead to penalties.

• Notice under Section 156 – Notice of Demand: Sent when tax, interest, penalty, or any sum is payable as per an assessment order. Failure to pay within the specified time can result in interest and penalties.

• Notice under Section 139(9) – Defective Return: If a return is deemed defective (e.g., lacks required documents), the taxpayer is informed and given an opportunity to rectify the defect. Failure to do so within the specified period can render the return invalid.

• Notice under Section 245 – Set off of refunds against tax remaining payable: This notice informs taxpayers of adjustments made to their refund amount against any outstanding tax dues. It serves as an intimation rather than a demand notice.

How E Accountax Manager Works

• Consultation: Contact us to schedule an initial consultation with one of our tax experts. We'll discuss the details of the notice and provide personalized guidance on the next steps.

• Document Submission: Provide through WhatsApp or email a copy of the income tax notice and any relevant documents for review by our team.

• Response Preparation: Our consultants will carefully analyze the notice and prepare a precise response addressing the concerns raised by the Income Tax Department.

• Submission: Once the response is ready, we'll ensure timely submission to the Income Tax Department on your behalf.

Why Choose E Accountax Manager?

• Expert Consultation: Our seasoned tax consultants offer personalized guidance tailored to your specific situation, ensuring you understand the nature of the notice and the required course of action.

• Precise Response Drafting: We meticulously craft responses to income tax notices, addressing the concerns raised by the Income Tax Department with accuracy and compliance.

• Timely Submission: With our prompt service, we ensure that your response is submitted within the stipulated timeframe, minimizing any potential penalties or legal actions.

• Comprehensive Support: From notice analysis to document identification and response preparation, we provide end-to-end assistance throughout the entire process of handling income tax notices.

• PAN Card of Proposed Directors and Shareholder
• Identity proof (Either Passport, Aadhar card, Driving License or Voter ID) of Proposed Directors and Shareholder
• Colored Passport size photo of Proposed Directors and Shareholder
• Residential Proof (Either Electricity Bill, Telephone Bill or bank passbook) of Proposed Directors and Shareholder
• Proof of registered office (Either Rent/Lease agreement or NOC from owner along with electricity bill) of proposed company

Why Choose E Accountax Manager for Registering a Private Limited Company?

• Carefully Read the Notice: Take the time to understand the reason behind the notice. It will outline the specific concern or requirement from the Income Tax Department.

• Verify Your Details: Double-check the notice to ensure it pertains to you. Verify that your name, PAN number, address, and assessment year mentioned are accurate. This confirms the authenticity and relevance of the notice to your tax affairs.

• Identify the Issue: Determine the discrepancy or issue in your income tax return that prompted the notice. It could be related to income mismatches, high-value transactions, or incomplete disclosures.

• File Reply on Time: Act promptly and respond to the notice within the specified timeframe to avoid penalties or legal actions. The notice will indicate the deadline for your response.

• Provide Complete Information: Support your response with all necessary documents and clarifications to address the department’s queries comprehensively. Ensure that you provide accurate and complete information to resolve the issue effectively.

• Check Your Online Account: Verify that the notice received is also listed in your account on the Income Tax Department’s e-filing website. This helps confirm the legitimacy of the notice and enables you to track your responses and any further communication effectively.

• Seek Professional Help: If the notice involves complex tax issues or if you're unsure about how to proceed, consider consulting a tax expert from IndiaFilings for guidance and assistance. Their expertise can help navigate through the process and ensure compliance with tax regulations.