What should you do when you get Income Tax (IT) notice u/s 143?
Have you received Income Tax Notice U/S 143 (3) or u/s 142 (2) and wondering what to do? Have you got IT Notice about a query or ambiguous income or due to the high volume of large transactions in your account. While you need not panic, you should not ignore it. You should ensure you respond appropriately. What should we do in case we get IT notice u/s 143? What are the things which we should keep in mind and check before responding to such IT notice?
Why do you get an Income Tax Notice?
There are various reasons why you may get an Income Tax Notice. It could be regarding Income Tax dues or regarding any ambiguous income or suspected money transfers in your account. It could be due to the huge volume of transactions and IT Dept is not able to link with the IT Return submitted by you. The query could be anything. IT Department can send scrutiny notice u/s 143 (3). Sometimes it may be a serious notice, hence you should not ignore such notice from Income Tax Department. IT Department can penalize up to Rs 10,000 if you do not respond IT notice within due date indicated in the letter.
Also Read: How to file Online Income Tax Return (ITR) in India?
What should you do when you get Income Tax (IT) notice u/s 143?
- Read and try to understand what is IT notice is about.
- First check whether the PAN number and address are correct and they pertain to you. Check the document reference number and financial year + assessment year and see that this pertains to you by checking with the IT return acknowledgement which you would have received during ITR filing.
- Check who is the Assessing Officer (AO) and circle/ward, etc. This gives a clear idea that IT notice is genuine and not fake one.
- What are the claims of IT Department in the notice. By what date you need to respond to such IT Notice?
- Keep track of the date when you received and speedpost cover through which you got it. In case there is a delay in getting such letter in your hands and due date of response is already over, this serves as evidence for your delay in responding such query.
How should you respond when you get an Income Tax Notice?
Don’t panic. If the IT computations which you are done are correct, you just need to respond and you need not worry.
- Take the complete IT computation details which you would have computed while calculating IT earlier. If you are employee, Form 16 / 16A would provide complete details as these computations are already done by your company.
- If you have received IT notice u/s 143 (2), you need to collect all income proofs, loan details and bank transaction statement details. Collect as much detail as possible.
- Prepare covering letter indicating all annexures being attached with that letter.
- If any IT dues are pending or IT payment cheque is rejected for some reason, you can indicate this in covering letter about the same.
- Submit the file to the Assessing Officer (AO).
- Take the acknowledgment copy from AO.
Also Read: How to Check Income Tax Refund Online in India?
Should you consult Tax Consultant regarding IT Notice?
If you are clear about all income details, receipt proofs and IT paid is correct, you can directly approach AO. However, if you are not sure of the treatment of a particular receipt or income not shown in any ITR, you should not complicate by meeting directly to AO. You should consult professionals like tax consultant or Chartered Accountant and seek the help. Based on the suggestions from them, you need to write an appropriate covering note with details. Such professionals would help you to respond appropriately instead of you complicating the things. It could be that you missed an income and have to pay Income Tax. They can help you resolve such IT notice faster and accurate manner.
Should not there by any time limit from IT department for sending such notice under section 143 (3)?
Assessment under section 143 (3) shall be made within a period of two years from the end of the relevant assessment year. For e.g. For the financial year 2013-14 i.e. assessment year 2014-15 shall be completed till 31-3-2017. Hence Income Tax Department has every right to send such notices to you till such date.
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Suresh
What should you do when you get Income Tax (IT) notice u/s 143
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Dear Sir/Madam
I have recieved U/S 143(1) notice, the issue is – I had claimed for income tax return of Rs.60 but department calculates it to be Rs. 58. Can I ignore this or should I file the returns again. What will happen if I ignore?
Thank you,
Hi Suresh, I received 143(1) intimation from IT department for AY2014-15 which was showing tax dues of Rs. 10/-. Do I really need to pay 10 rupees & file a revised return or can I ignore it considering the quantum of dues?
For the financial year 2013-2014 I was made a IT return as a consultant and paid rupees 1000 tax. But it was made only for my daughter’s admission at school.
My incomes are from house rent and some fixed deposits interests. Though house is my mother in law’s name.
My incomes are not exceeding 2.5 lakh per year.
But as I have done once ITR….now every year I need to fill it? Though I’m not a consultant nor my incomes cross the limits.
I have 3 life insurance policies. …One flat registered on my wife’s name. …
What should I do?
Hi Suresh,
What would be the action taken by the IT Department if I am unable to justify the income tax query. I had received a tax payable notice of 25000 last month as I did not file my income tax returns online correctly. I missed to enter my tax investments while adding the details in the excel file. Thus considering a zero investment, I was asked to pay 25000 as tax payable. I had however submitted all investments proof in my office with the income tax proof submission department in my office.
I filed a revised return to rectify my error and after doing so, I realized that I had made another blunder 🙁 I should have filed the 2013-2014 returns but I had accidentally submitted the 2014-2015 excel form which I had downloaded from the online website. Thus in my 2014-2015 form, all details entered in them are for 2013-2014 and it shows that tax refundable to me is for 15000.
Thus earlier I was asked to pay 25000 tax and now I am stating 15000 as returns. What problem do you foresee? What probable action is possible on this and how much I may have to pay for this?
Please guide!!!!!!
Regards,
Philips P
Hello Sir, I received 143 notification. However, I check my efile status and it shows processed. Do I have to do anything on this.
Nagaraj, 143 is received after it is processsed only. What is written in 143 notice ?