Income Tax Notice

Income Tax Notice

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An Income tax notice is a letter sent by the income tax department to an assessor for issues with different reasons like inaccurate income calculated or non-filing of ITR or making the assessment, or asking for various details to assess.


NOTICE U/S 142(1) :-

Notice u/s 142(1) is sent by the income tax department for two reasons.

  1. If the officer wants additional information about the income tax return.
  2. If the assessee still needs to file ITR.

Penalty/Prosecutions if not compliance with notice 142(1).

Penalty u/s 272A(1) RS 10000 and Prosecution for one year if you fail to present books and accounts.

Other prosecutions depend on the category of the case.

NOTICE U/S 139(9) :-

If AO found any defective in the return, like a wrong file of the ITR form, the recovery is incomplete, or any information missing, then AO sent not to notice the assessment,

NOTICE U/S148 :-

If AO believes that income is escaped of any assessment year, then AO sends notice to the assessment. The notice time limit depends on escaped income.

NOTICE U/S 156 :-

This is a demand notice. If any demand, like tax, penalty, or interest, is raised by the income tax department, this notNoticends by the income tax department to the assesse, time limit of this notNotice 30 days.

INTIMATION U/S 143(1) :-

The CPC system processes all returns and intimation u/s 143(1) sent by the department to all assesse. This intimation is converted to notice if any arithmetic error occurs in the income tax return.

NOTICE U/S 143(2) :-

The department chooses some cases for scrutiny, then any information, if required by the department. So the department will issue notice u/s 143(2). and based on the information Department can assess the income u/s 143(3).

NOTICE U/S 131 :-

Suppose AO believes that any critical information not given by the assessee or any complicated matter arises. In that case, AO can take the subject into investigation, and then AO issues this not notice to the assessee.

NOTICE U/S 245 :-

Suppose AO believes any assesse has a tax liability of the previous year and assesses and adjusts the tax in the current year ITR refund. AO issues this not noticed AO thinks fit. In that case, AO will be adjustment allowed to the assessment.