Income Tax Notice Management

You may receive a tax notice for various reasons such as errors or inconsistencies in your tax return, unreported income, mismatched information with third-party sources, non-compliance with tax laws, or a request for additional information or clarification, among others.

It is very important to carefully review the tax notice and understand the specific issues or concerns raised by the tax authorities. Consult a tax professional if you need help in understanding the tax notice. They can also help you in drafting a well-documented response, with supporting documents, to address the concerns raised and submit it within the specified deadline mentioned in the notice.

We would advise that you never ignore a tax notice. Notices from tax authorities should be taken seriously, as they may lead to penalties, fines, or further legal actions if not addressed appropriately. So, if you need help, reach out to us and we will help you respond to the notice within the given timeframe and provide the necessary information or clarification.

If you find the content of the tax notice unclear or confusing, it is recommended to seek assistance from a tax professional. They can help you interpret the notice, understand the issue raised, and guide you on the appropriate response.

Yes, in certain situations, you can negotiate or appeal a tax notice if you believe there has been an error or if you have additional information to support your case. Consult a tax professional to assess the merits of your situation and guide you through the negotiation or appeal process.

The possible outcomes of responding to a tax notice vary depending on the nature of the issue and the accuracy of your response. The tax authorities may accept your explanation and close the matter, request further information or clarification, impose penalties or fines, or initiate a tax audit or investigation. Properly addressing the notice can help resolve the issue or minimize any potential penalties.

The timeframe for responding to a tax notice is typically mentioned in the notice itself. It is important to adhere to the specified deadline. If you require more time, you may request an extension from the tax authorities, providing a valid reason for the extension request.

To minimize the chances of receiving tax notices, ensure that your tax returns are accurate and complete, report all income, maintain proper records and documentation, comply with tax laws and regulations, and seek professional guidance if needed. Taking these precautions can help reduce the likelihood of receiving notices from the tax authorities.

While you can handle tax notices on your own, seeking professional help from a tax advisor, accountant, or tax attorney can provide you with expertise and guidance throughout the process. They can help you understand the notice, prepare an appropriate response, and navigate any negotiations or appeals effectively.

Once you have filed your ITR, you may receive a notice from the department saying - defective return u/s 139(9). This happens when some information is missing or there is a mistake, implying that the return filed is defective. Our team of experts will help you understand the issue raised in the notice and advise you on the right course of action.

Under Section 143(1) the Income Tax department completes the assessment based on the return filed by you. It is an Income Tax intimation telling you how the CPC, Bangalore has processed your income tax return. You will receive an intimation under Section 143(1) if:

• you have paid excess tax then it mentions tax refund. Refund is only initiated if the amount is over INR 100.
• the tax paid by you has fallen short, then it mentions the amount and a challan to make the payment.
• Or, a simple acknowledgment if the ITR filed by you is consistent as per the Assessing Officer.