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The Central Board of Direct Taxes (CBDT) issues income tax notices to taxpayers in case there is a discrepancy between the income tax calculated by the individual taxpayer while filing tax and the tax on income determined for CBDT I-T Department. If the tax return of a taxpayer’s income is not in line with the assessment of an Income Tax officer, the taxpayer will be given the Reply to income tax notice online.
A tax demand notice for income is issued if the taxpayer has paid less tax than the amount that the assessed tax is liable to pay. We will look at the response process to the income tax demand notice.
6 Tax Types of Income Notices
1. Non-disclosure of income
The notice is sent out to the officer who is responsible for the review of the file and believes that the document submitted by the assessee was not accurate or is not correct.
Don’t panic! The notice is actually a thorough and complete one. The Assessment Officer actually offers various things in the notice. What will he provide? Here are some of the things he’ll give:
- Solutions you could potentially use to fix these mistakes
- The correct descriptions of the errors that he discovers
What kind of problems are you likely to encounter? There is a variety, but the most frequent kinds include:
- Make a mistake on your income tax return, etc.
- Some information is missing
- Incomplete returns
If you are notified in this regard, you’ll be given 15 days to reply to this email. If you fail to reply to the income tax notice within the time frame of 15 days, your dossier will be reviewed and rejected.
When you reply to the income tax notice in the mail, it isn’t necessary to head over and agree with what the Assessment Officer says. There is no need to accept everything discussed.
You can counter the officer’s argument and explain your reasons you don’t agree with the officer. But, keep an eye on the fact that any arguments you offer must follow the rules. Therefore, it is crucial to be aware of the income Tax rules well.
Your income tax notice reply should be written in clear and concise language that directly addresses the notice’s concerns.
2. Incomplete filing of an Income Tax Return (ITR)
- Anyone whose total income (without deductions) exceeds the limit exempted (₹2.50 lakhs for those under the age of 60) must file an annual income tax return within the time specified
- If you’re a resident Indirect taxes in India, own an asset in another country, or have an authorized signer in a foreign bank account, you must file a tax return regardless of the amount you earn
- Even if your employer has already taken TDS from your paycheck, you must submit your tax return to avoid receiving a notice
3. Notice of Demand
Notice u/s 156 will be sent by the department of taxation soliciting payment to the department regarding any tax or tax liability you may be liable to or penalties or interest to be due.
You are issued a Notice of Demand under section 155.6 when the Assessing Official (A.O.) demands a penalty, tax, interest or another sum you need to pay in connection with any of the orders made pursuant to the Income Tax Notice Online.
A notice of payment by 143(1), 200A (1) and 200A (1), and 206CB (1) is deemed to be a Notice of Demand by 155.6.
The amount you have to pay under this notice will be due within 30 days of the reception of this notice. However, the A.O., in certain cases with prior approval from the Joint Commission of Income Tax (JCIT), will require you to deposit an amount in less than thirty days.
When you receive an income tax notice, it’s important to craft a timely and effective income tax notice reply.
4. Tax Evasion
Tax evasion is considered a criminal activity that can lead individuals or businesses into legal and financial difficulties. This unlawful practice entails concealing or rejecting income without sufficient evidence of excessive tax deductions, failure to report cash transactions, and other similar acts. It is a severe violation that can result in criminal prosecution and substantial fines.
5. Refunds that are set off against tax to be paid
If the officer thinks that tax has not been paid for prior years and wants to offset the tax refund from the current year against the demand, a notification under section 245 may be issued.
However, the demand and refund modification are possible to make only if the person receives the notice in a timely manner and has a chance for a hearing. The recipient has to reply to income tax notice 30 days from the day of receipt of the notice.
If the individual does not respond within the specified timeline, the assessing officer can consider this as consent and proceed with the assessment. Therefore, it is advisable to reply to income tax notice at the earliest
6. Response options to an Outstanding Demand Notice
Four choices allow taxpayers to take action against a notice of demand that they have not paid. The following are the options available:
- Do not agree with the demand.
- The demand is partly correct.
- Demand is right.
- Demand is not accurate. However, we agree on an adjustment.
What Should We Do in Response to Every Kind of Notification?
Step
Go to the e-filing portal — income tax filing.gov.in — and log in using relevant credentials.
Step
Click on the tab ‘E-Proceedings. A timeline of all actions regarding the assessments will be present, displaying the assessment year and present status.
Step
Click’Links’ to the relevant procedure where the notification was sent. The dashboard will appear filled with all messages relating to the proceedings.
Step
Click ‘Submit’ under the ‘Response’ tab for every notification or email that demands an answer.
Step
Under the response type, choose ‘full response’ or ‘partial response’, depending on the need.
Step
Write a brief (not more than 4000 words) description of your response to the incident in the textbox in the area next to the ‘Response/Remarks.’ Mention the cover letter along with any other documents uploaded, if relevant.
Step
Upload a copy of the cover letter and any other relevant documents that serve as evidence, such as annexes.
Step
Go through the checkbox to confirm that you’ve confirmed that the information you’ve provided is accurate and complete.
Step
A pop-up window will allow you to verify your identity using EVC (Electronic Verification)/DSC (Digital Signature Certificate). Click ‘Yes’ to verify through these methods. If you want to submit your application without verification, click ‘No’.
Do You Need to File an ITR Mandatory?
The Supreme Court of India has decided that all taxpayers must submit their Income Tax Returns, and if they fail to do so, it can result in the possibility of prosecution. According to Section 139 of the Income Tax Act, 1961, you must submit your I.T. Tax Returns on your own.
If the annual total of a person’s turnover, sales, or gross earnings from their business is greater than amount of ₹60 lakhs, then they must prepare the income tax returns.
Make sure to keep a copy of your income tax notice reply for your own records, in case any further follow-up is necessary.
Individuals must complete an itr 3 filing in case the number of their professional earnings in the previous year was greater than the amount of ₹10 lakhs.
Conclusion – Reply to Income Tax Notice Online
The Income Tax Department of India has a website that is dedicated to providing information and services related to income tax. The site can be accessed by anyone with an internet connection.
With a well-crafted income tax notice reply, you can effectively navigate the sometimes complex and stressful world of tax compliance.
There are many ways in which you can to income tax notices reply online. One of the ways is by filing the return electronically, while the other is by filing it manually. Apart from that, this article has informed many other ways which will help you in many ways.