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What is Income Tax Notice ?
We often get petrified when we see an income tax notice in our name. But, since all these notices have a reason for its issuance, one should not really be scared. Some notices give us information like (an intimation under section 143(1), some warrant information from the end (inquiry under 142(1) and some communicate that an audit is required by the tax department with respect to the income position {like scrutiny notice issued under section 143(2)}. The article will give a brief information about the different notices that are issued under the income tax act, 1961.
Notice under section 143(1) – intimation
Most common notice that is received by the individuals/firms/companies after filing their income tax return is basically an acknowledgment of the return by the department and the figures declared in return of income.
The time limit of issue of notice is anytime within one year from the end of the financial year in which the return is made.
Notice under section 139(9) – for defective return
If a taxpayer has filed a return with a defect, it calls for issuing of notice under section 139(9) which mentions the kind of defect.
Examples of defects are: leaving your ITR with a tax payable status or missing an information in the ITR etc.
An assesse is expected to make good the defect within 15 days of the intention of the defect in the return and its failure to correct the defect would treated as an invalid return.
Notice under section 142(1) – inquiry notice before assessment
This notice is used for calling of information from the taxpayer’s end.
The types of information that may be called by the issuance of this notice are:
Return of income in case it is not filed earlier.
Asking of information, documents and accounts.
Notice under section 143(2) – notice for the commencement of the scrutiny proceedings
This notice is issued when there is a need for detailed assessment/audit of the information submitting in the return , which may include attending before the assessing officer and clarifying facts , making written submissions for providing details and producing evidences to substantiate the income/profits/gains/losses.
This can be issued anytime within a period of six months from the end of financial year in which the return is finished.
Notice of demand (section 156)
TThis is issued when a tax amount (including any interest, penalty, fine etc) is determined as payable. This is generally accompanied along with an intimation issued under section 143(1) or along with the assessment order issued on completion of the scrutiny proceedings.
The amount that is stated is required to be paid by the assesse within 30 days of receipt of the notice.
Notice to commence proceedings (section 148)
This is issued to reopen a case which has already been assessed earlier, in case the assessing officer has a reason to believe that any income chargeable to tax had escaped assessment.
Before making such an assessment/ reassessment, the assessing officer is also required to serve a notice under section 148 and the AO should have a valid reason to reopen the case and must record his reasons for issuing such notice.
Notice under section 245- intimation to set off demands and refunds
This notice is used to intimate that a balance is either pending to be received/ refunded to the assesse when the department sets off the payable against the receivables. It may be accompanied by a notice of demand under section 156 if the net result is an amount payable by the assesse.
One should neither get petrified and nor ignore a notice from the IT department as it can prove to be very expensive. Generally fines as high as Rs 10000 can be imposed on the assesses who do not respond to these notices. One should deal with them with calm mind as all notices do not bring bad news.

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What is Income Tax Notice ?

Notice under section 143(1) – intimation

Notice under section 139(9) – for defective return

Notice under section 142(1) – inquiry notice before assessment

This notice is used for calling of information from the taxpayer’s end.
The types of information that may be called by the issuance of this notice are:
Return of income in case it is not filed earlier.
Asking of information, documents and accounts.

Notice under section 143(2) – notice for the commencement of the scrutiny proceedings

Notice of demand (section 156)

Notice to commence proceedings (section 148)

Notice under section 245- intimation to set off demands and refunds

E-file on our app

HELP CENTRE

What is Income Tax Notice ?

Notice under section 143(1) – intimation

Notice under section 139(9) – for defective return

Notice under section 142(1) – inquiry notice before assessment

This notice is used for calling of information from the taxpayer’s end. The types of information that may be called by the issuance of this notice are: Return of income in case it is not filed earlier. Asking of information, documents and accounts.

Notice under section 143(2) – notice for the commencement of the scrutiny proceedings

Notice of demand (section 156)

Notice to commence proceedings (section 148)

Notice under section 245- intimation to set off demands and refunds

This notice is used for calling of information from the taxpayer’s end.
The types of information that may be called by the issuance of this notice are:
Return of income in case it is not filed earlier.
Asking of information, documents and accounts.