1. Section 139(9): Defective Income Tax Return

In this case, Assessing Officer is of the opinion that ITR filed by the assessee is defective. The best part is that a proper error description is shared and the AO also suggest a probable solution to rectify the same. The assessee is given an opportunity to respond within 15 days from the date of intimation or before it is assessed. If you don’t respond within 15 days then your return will be rejected by the AO. The defect u/s 139(9) can be the wrong ITR filed, missing information, incomplete return etc.

You may agree or disagree with the observation of the Assessing Officer. In the majority of the cases, without going into the merits, the assessee accept/agree on the defect. This is one of the common mistakes by the assessee. If you do not agree with the error description then you can reply to the income tax notice and share the reasons for the same. The only catch is you should know all the rules.

2. Notice Under Section 143(2)

The object of this notification is to inform the asset that his or her return has been selected for scrutiny. It is worth noting that the clause in which it would be scrutinized varies from the one under which the notification was given. The evaluating officer wants to ensure that you have not done any of the following by a rigorous examination:

You may have understated the salary,

 claimed an undue deficit, 

or paid fewer taxes.

The taxpayer is expected to respond to the questionnaire given along with the documentation required by the income tax department via this notice. The assessing officer is required to serve this notification within six months of the end of the appraisal year of which it applies. For example, Rohit filed his return for the fiscal year 2018-19 on May 20, 2018. In this case, a notice under Section 143(2) may be given to Rohit within 6 months of the completion of the AY to which it relates, i.e. on September 30th, 2019. Are you uncertain what to do with a notice of income tax? Enable us to assist you by using our Note Upload Tool. You may also get the assistance of a Tax Expert.

3. Notice Under Section 148

An assessment officer may have cause to suspect that you did not adequately report your salary and, as a result, pay fewer taxes. Alternatively, you could not have filed your return at all, even though you are required by statute to do so. This is known as income evasion appraisal. Under all cases, the assessing officer has the authority to evaluate or reassess the salary depending on the facts of the situation. Prior to making such an appraisal or reassessment, the assessing officer should serve a notice on the excess demanding that he provide his income tax return. The notification given for this reason is issued in compliance with Section 148.

4. Notice Under Section 245

If the assessing officer has cause to assume that tax was not paid in previous years and wishes to offset the current year refund against that demand, he will issue a notice under Section 245. However, the change of claim and refund will only be made if you were granted sufficient notice and an opportunity to be heard. The deadline for responding to the notice is 30 days from the date of receipt. If you do not answer within the specified time frame, the assessing officer will interpret your silence as consent and continue with the assessment. As a result, it is best to refer to the note as soon as possible.

5. Notice Under Section 142(1)

A notification under section 142(1) can be given in two situations: if you have filed your return but the assessing officer needs additional details and documentation; or if you have not filed your return but the assessing officer requires additional information and documents.

If you have not filed a tax return but the assessing officer requires you to do so.

The knowledge is required so that the officer can make an accurate decision. Failure to respond to this notification has implications.

For any such mistake, a fine of Rs 10,000 can be imposed.

Prosecution that could last up to a year