Income Tax Notices

1. Notice under Section 142(1)
2. Notice sent under Section 139(9)
3. Notice under Section 148
4. Notice sent under Section 156
5. Notice under Section 245
6. Notice under Section 271
7. Notice under Section 143(2)

Section 142(1) Notices by the Income Tax Department

• If you’ve filed your return: A notice under Section 142(1) may be issued when the department needs additional details or clarification to complete the assessment.
• If you haven’t filed your return: The notice serves as a reminder, asking you to submit the required information in the prescribed format.

Section 139(9) – Defective Return Notice

This notice is sent by the Income Tax Department when your Income Tax Return (ITR) has errors or missing details, making it defective. Common reasons include:

• Mismatch in TDS details: Differences between TDS reported in your ITR and Form 26AS (tax credit statement).
• Incomplete or incorrect information: Missing income or deduction data, or inaccurate entries in the return.
• Delayed filing: Submitting the ITR after the due date without acceptable justification.

Section 148 – Income Escaping Assessment

The Income Tax Department may issue a notice under Section 148 if it believes you haven’t disclosed certain income. This notice is triggered when income is suspected to have escaped assessment.

• Clear evidence of undisclosed income – The department must have solid grounds, not mere assumptions.
• Direct link to a specific assessment year – The income in question must relate to a particular financial year.
• Not based on existing disclosures – A notice can’t be issued solely on details already shared by the taxpayer.
• Based on fresh data or discrepancies – New facts or mismatches may lead to reassessment.

Section 156 – Demand Notice

This notice is issued by the Income Tax Department to inform the taxpayer of outstanding tax dues. It includes the principal tax amount along with applicable interest and penalties for non-compliance, late payment, or under-reporting.

• Outstanding Tax Dues – Issued when taxes remain unpaid as per the assessment order.
• Reassessment Liability – Triggered after reassessment if additional tax is determined.
• Tax Arrears – Can relate to unpaid taxes from earlier assessment years.
• Interest & Penalties – Includes applicable interest and penalties on the principal amount.
• Refund Adjustments – Any eligible refund may be adjusted against pending tax dues.
• Post-Assessment Communication – Serves as official notice of tax liability and payment deadline after assessment.
• Recovery Proceedings – Failure to pay on time can lead to asset or bank account attachment.

Refund Adjustment Notice (Section 245)

Also called a 'Refund Adjustment Notice,' this is issued when the Income Tax Department offsets any refund due to a taxpayer against existing tax demands.

• Outstanding Tax Demands – Triggered when unpaid taxes, interest, or penalties are pending.
• Refund Offset – The department adjusts the refund amount to recover these outstanding dues.

Notice for Levy of Penalty

Issued when the Income Tax Department plans to impose penalties for tax non-compliance.

• Tax Violations – Triggered by underreporting/concealing income, not maintaining proper books, or breaching tax laws.
• Imposition of Penalty – Penalties are levied under the Income Tax Act to discourage non-compliance and enforce tax discipline.

Notice for Scrutiny Assessment

Issued post initial return processing, this notice requires the taxpayer to appear before the assessing officer as part of a scrutiny assessment.

• Scrutiny Process – Initiated to verify the correctness and completeness of the tax return.
• Assessment Appearance – Taxpayer must attend proceedings where details of the return are reviewed for any mismatches.
• Compliance Check – Ensures adherence to tax laws and detects possible underreporting or evasion.

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