- Date : 21/08/2023
- Read: 3 mins
Find out why you should stay calm after getting an IT notice and what must be done to avoid penalties!
When someone gets a notice from the Income Tax (IT) department, absolute fear is first felt. If you recently received an income tax notice, let us tell you how to handle it without panicking.
Firstly, you must understand an IT notice does not always mean that IT officers are hunting you for some criminal offence. Let's find out how to act accordingly and what to avoid for a trouble-free experience.
- IT notices news can bring fear to anyone
- Understanding the reason should be the topmost priority
- Taxpayers can always seek help from a tax professional
- A timely response is critical to avoid penalties
Respond rationally with a proper understanding
First, to check its authenticity, you should look for your correct name, assessment year, Permanent Account Number (PAN) and Document Identification Number (DIN) in the notice. You can also cross-check the DIN on the department's website to confirm the authenticity of the notice.
The next step is to understand the cause with a cool head. After that, please be ready with all the documents required to submit (if mentioned) and look for the time mentioned in the notice. If needed, you can also fill out Form 13 to get an extension for submission.
What can be the reasons for an IT notice?
The watchdog of the Indian tax system can issue notices for many reasons. Let's discuss some of them!
1. The most common income tax notice received is for the filing discrepancy of the income tax return (ITR). Under section 143(1), this notice grants 15 days to revise the return.
2. The department can also issue a notice to collect additional documents from you after filing an ITR under section 142(1).
3. If you have filled in any incorrect information or included something important, you can get a notice under section 139(1). It also grants a 15-day time period for rectification.
4. The IT officer may issue a notice under section 148 if you have not accurately disclosed your income or failed to file your return.
What if I failed to respond within time?
A timely response is one of the priorities for a smooth experience. Failing to do so or deliberately ignoring an IT notice can sometimes invite penalties and even criminal prosecution.
The bottom line is handling IT notices can be easy if you approach them carefully. If any further issues arise, you can always seek the help of a tax consultant.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.