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Income Tax Notice Reply

Received an Income Notice recently? Do not panic. We have got your back.

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    Income Tax Notice Reply

    The Income Tax Department can issue a Notice to us for various purposes. Some of them are listed below:

    1. Income-tax notice under section 139(9) – This Income-tax notice is issued if the Income-tax return filed is defective. For example, the Income-tax return is filed before payment of self-assessment tax.
    2. Income-tax notice under section 142(1) – This Income-tax notice is issued to seek certain documents and details from the taxpayer.
    3. Income-tax Intimation under section 143(1) – It is an intimation sent by the Income-tax department after the return is filed by the taxpayer and processed by CPC.
    4. Income-tax notice under section 143(1)(a) – It is issued for seeking response if there are certain errors/inconsistencies in the Income-tax return filed.
    5. Income-tax Notice under section 143(2) – If Income-tax notice under section 143(2) is issued, it means that the Income-tax return has been selected for scrutiny by the Assessing Officer.
    6. Income-tax notice under section 148 – This Income-tax notice is issued when the Assessing Officer has a valid reason to believe that the income of the taxpayer has escaped assessment.
    7. Rectification under section 154 – If the taxpayer has filed his Income-tax return and there is some mistake, such as TDS credit is not given, then rectification under section 154 is required to be filed.
    8. Income-tax notice under section 156 – This Income-tax notice is issued for payment of demand after Income-tax assessment is completed and order is passed.
    9. Income-tax notice under section 245 – This Income-tax notice is issued to communicate the adjustment of Income-tax refund against Income-tax demand.
    Ignoring an Income Tax Notice or not replying to it on time or in a proper manner may result in heavy Penalty and Prosecution under the Income Tax Act.

    How to reply to an Income Tax Notice?

    Now we can easily reply to an Income Tax notice online just by login in to the Income Tax portal.

    Steps to be followed for the same:
    1. Login to incometaxindiaefiling.gov.in using your Login credentials
    2. Navigate to the “e-file” tab and Click on “ Response to Outstanding Tax Demand”
    3. An outstanding tax demand will appear on the screen highlighting the outstanding demand and the notice served.
    4. Click on “Submit” option under the “Response” column
    5. Now choose your appropriate response from the 4 options listed as below:
      • Demand is correct
      • Demand is partially correct
      • Disagree with demand
      • Demand is not correct but agree for adjustment
    6. If you agree with the demand and select Option A, you will be redirected to the bank’s page where you will be asked to make the payment for the demand as shown
    7. If you choose Option B, you will be asked to enter what amounts of demand you believe to be correct and additional provide reasons to justify why you feel the demand to be partially correct.
    8. If you disagree with demand and select Option C, you will again be asked to provide reasons along with documents to support your reasons.
    9. If you select ‘Demand is not correct but agree for adjustment’, then you will have to mention the reasons for your disagreement. The reasons are same as those mentioned above.
    10. Enter the appropriate details and click on “Submit” button
    11. Once the information is successfully sent to the department, then a Transaction ID will be generated.
    You can check your response by clicking ‘View’ in the response column. You can click on the ‘Transaction ID’ to check the response sent by you to the department.