If you haven’t disclosed and paid taxes on your entire income and plan on doing it now, here are some of the notices the Income Tax department might send you. If they suspect that something is amiss, they might want to investigate further to clear things up.
Not sure what the notices are? We’ll tell you. We’ll also help you decode the various sections of the Income Tax Act to understand them better. Let’s begin.
In case the Income Tax Assessing Officer has a suspicion that you are concealing income, a notice under Section 131(1A) will come to you to inquire about and investigate the matter.
Check This: What To Do When You Receive An Income Tax Notice
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Have you not filed your return on time? Left a few important documents out? You could get a notice under Section 142(1) requesting a preliminary enquiry before your returns are assessed. This notice can come to you at the end of a specific Assessment Year.
Check This: How to reply to different Income Tax Notices
A notice under Section 143(1) is a letter of intimation. Nothing to worry about, really. This notice will tell you if you have remitted the correct amount in taxes or whether it is more than the amount required or less than what was due.
- Notice of intimation: This shows how much you have paid after the assessment is complete.
- Notice of refund: The tax calculation reveals that you have paid excess tax. You’ll get a tax refund.
- Notice of demand: The calculation reveals that you have paid less tax than the due. You will need to pay the tax due within 30 days of receiving the notice.
This notice can be served within 1 year from the end of the financial year in which the return was filed.
Hold it right there
A notice under Section 143(2) serves as a follow-up to Section 143(1). If you got this notice, it means the tax department is not convinced with your response to the notice under Section 143(1). Perhaps the tax department has not received the required documents with your tax refund papers. This notice can be served before the end of six months from the end of the financial year in which the return was filed.
Not being assessed under the section for Self Assessment?
Directions under [Section 144A]
Are your returns being assessed under any section other than Self Assessment? Expect closer scrutiny of your files by the tax department.
What Is Self Assessment Tax?
You can submit your Income Tax return only once you have paid your all your tax dues. In some cases, you may find a sum of tax that needs to be paid when you are filing your return. This amount must be paid online. Only then can the ITR be e-filed. In case your Income Tax return is being assessed under any other section/s apart from Self Assessment and you are detected depositing any unaccounted money, this could land you in trouble.
Let’s say you are paying the tax after receiving a demand from the Income Tax Department, this is when your files may be scrutinised under a section other than Self Assessment.
A notice under Section 148 may sneak up on you in case the Income Tax Department feels that some of your income may have slipped past assessment. If this happens, you can refile your return for the assessment year in question or request a reassessment. In case the unnoticed income amount adds up to within Rs. 1,00,000 or is less than that, the notice can be sent within 4 years of the end of the assessment year in question. In case the amount is more than Rs. 1,00,000 a notice can be sent to the taxpayer within 6 years.
SOS! Raid! Every Man For Himself!
Assessment under [Section 153A]
If the Income Tax department finds that you have deposited any unaccounted money, they may deem it fit to put you on the radar. Beware! The taxman has his eye on you. You will not receive an advance notice. The IT Department will raid your premises to sniff out any illegal financial activities.
Pay your dues
A notice under Section 156 is a notice of demand requesting you to pay a penalty fee or any tax due. This notice is generally sent after an assessment. You will get a period of 30 days from the date of receipt of the notice to pay the required dues.
Check This: When can the taxman send a demand notice?
Get back what’s yours
If you have claimed a refund for a certain assessment year but there are also some outstanding tax dues against your name, you may receive a notice under Section 245. The Income Tax Department will be at liberty to adjust your tax dues from the refund amount due to be paid to you.
Check This: Income Tax Refund
Now there’s your guide to the various sections of the Income Tax Act under which you can receive notices. We hope it helps you understand things a little better. If you’re looking for a financial product like a Home Loan which will help you save on tax, you don’t have to look too far.