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Understanding Income Tax Notices: Types and Response

Income tax notices can be intimidating, but they are issued to address issues like discrepancies, missing information, or tax underreporting. Common types include requests for additional documents, assessments, scrutiny, or reassessments. Reasons for receiving notices may include underreported income, discrepancies in returns, or unpaid taxes. It’s important to respond promptly by reading the notice carefully, gathering required documents, and seeking professional help if needed. Ignoring a notice can led to penalties, interest, audits, or legal action. To avoid complications, stay organized with your finances, respond on time, and consult an expert for complex cases.

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