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How To Handle Notices From Income Tax Department

Adhil Shetty
Image source: katemangostar/Freepik

Receiving a notice from the Income Tax Department can make you anxious but if you are aware of the types of notices and how you can deal with them, you won’t have to worry. Listed below are the types of notices you may receive and how you can handle them.

  • Late filing of ITR– You may receive a notice from the Income Tax Department if you have missed out on filing your ITR within the stipulated time-period. Just ensure that you adhere to the deadline for filing your taxes to avoid penalties from the Income Tax department.
  • Mismatch between TDS and Form 26AS– If the Income Tax Department finds any discrepancy between your TDS and Form 26AS, they may serve you with a notice under Section 143(1A) of the Income Tax Act. In such cases, you just need to visit the ITR filing portal and file the response explaining the reason for the discrepancy.
  • Missing out on including an income in your ITR– You may receive a notice under Section 143(1) of the Income Tax Act from the Income Tax Department if you have not disclosed one of your incomes. If there is no discrepancy from your end, you can pay the deficit tax amount within the recommended time-frame or respond with a valid proof.
  • Scrutiny of your file – If you receive a notice under Section 143 (2) from the Income Tax Department, just respond to them with the ITR-related documents and proofs.
  • Wrong ITR filing – If you have filed your ITR incorrectly, you will be served a notice under Section 139 (9) from the Income Tax Department. In such cases, you will just need to file the revised return within the stipulated time period as any delay in filing the revised return can result in the invalidation of the original ITR.

Have a question on personal finance? Ping me on Twitter at @adhilshetty with the hashtag #AskAdhil. The writer is CEO, BankBazaar.com, an online marketplace for loans and credit cards.