File your IT Return to report your income –
Email from IT Department
If you have reached to this post that means that you have recently received an email to File your IT Return to report your income. In recent times, the IT department has become excellent in communicating directly with the tax payers via email and SMS but this has also brought its share of confusion. I am going to cover the message you have received and also talk about few other types of notices that income tax department may send to you.
First with respect to the email – File your IT Return to report your income email, this is one variant but there are others as well which I have covered in this post which you can refer it here. It is basically telling you that IT department (or rather their data analytics software tool) has found that from your 26AS statement that there are TDS deductions on money you had received by you during F.Y. 2016-17. You could have received this money from any sources such as – Salary, Business Income, Rent or Interest.
Further, they are asking you to file your Income Tax Return (also called ITR) by 31st July 2017. This date is now extended to 5th August 2017. In your ITR, you will need to ascertain if there are any taxes due or any refunds due in case of excess tax paid.
One more thing is that they are asking you to link your PAN (Permanent Account Number) with your Aadhaar number on their e-filing website.
You need to put your PAN number in the first field, Aadhaar number in the second field, Your Name as per Aadhaar in the third field and Captcha code to verify that you are a human. In case you have only Birth Year in your Aadhaar card then you need to tick the box accordingly.
Now let us talk about some additional tax notices that you may get
Other Income Tax Notices:
Generally, when people receive Income Tax notices, they often get worried but many of these notices are issued for a specific reason. Some notices are meant to give you information – for example – Intimation under section 143(1), whereas some notices warrant information for inquiry under 142(1) and while only a few notices communicate that you are under an audit.
Following is the list of Income Tax notices one may receive:
Notice u/s 143(1) – Intimation
Intimation u/s 143(1) is sent for 3 reasons –
- Final Assessment – Notice to be considered as the final assessment of your income tax.
- Refund Notice – Where the assessing officer’s calculation shows that you have paid excess tax.
- Demand Notice – Where the assessing officer’s calculation shows that you have not paid the right amount of Tax i.e. there is a deficit in the amount you paid.
TIME LIMIT TO SERVE NOTICE: Before the expiry of one year from the end of financial year in which the return has been filed.
TIME LIMIT TO RESPOND: If the tax is due, you will have to pay it within 30 days.
What to do next:
No discrepancy – Nothing to do
Refund is due – Automatically transferred to your account
Tax is due – Pay within 30 days.
Notice u/s 143(1A) – Notice on Proposed Adjustments
This Section i.e. 143(1A) always existed but it was not extensively used by IT Department. But now, they send out notices when there is the smallest mismatch between Form 16, Form 16A and Form 26AS versus the Income Tax Return you have filed.
Deductions u/s 80TTA which exempts bank interest income up to Rs 10,000 in the savings account and which usually is not listed in Form 16 are also being considered and people are receiving notices. The problem is we still do NOT know what proof tax department would require for this deduction. I am hoping that they would come out with clarification regarding this soon.
TIME LIMIT TO RESPOND: Respond within 30 days.
What to do next:
Login into the tax filing portal and under the ‘e-Proceeding’ section, Explain the difference and provide supporting documents. Simply upload your supporting documents.
Notice u/s 139(9) – Defective Income Tax Return
Defective Return is the type of return for which a person receives a notice u/s 139(9) if the IT Department has found any discrepancies or mistakes or any missing information in ITR. Once you file your income tax return, the details provided by you in the ITR are cross-verified and processed. The department compares the details provided by you with the information that is available to them such as 26 AS etc.
TIME LIMIT TO RESPOND: Correct the defect within 15 days.
What to do next:
An assessee is expected to correct the defect within 15 days and if it were not to correct the defect, it would be treated as an invalid return.
Notice u/s 142(1) – Inquiry Notice Before Assessment
Section 142(1) tax notice is the notice that is usually served, in a case where the return has been filed, to call for further details and documents from the assessee and to take a particular case under assessment. This notice can also be sent to require him to file his return where he has not yet furnished it.
This notice is generally issued when information is missing from the taxpayer’s end and an inquiry is sought to be made. The taxpayer is given a reasonable opportunity of being heard for any material that may have been gathered on the basis of such inquiry.
Notice u/s 143(2) – Scrutiny Assessment Notice
It applies to a case where the return has either been filed by the assessee himself (Self Assessment) or in response to a notice u/s 142(1). This notice is served by the Assessing Officer in order to ensure that the assessee has not understated the income, computed excessive loss or underpaid the tax.
It may require him to:
- Be in physical attendance or represent before the Assessing Officer (AO) to clarify facts; or
- Make written submissions for providing details; or
- Produce evidence to substantiate the income/profits/gains/losses.
This notice is issued within a period of 6 months from the end of financial year in which the return is filed.
Notice u/s 156 – Demand Notice
Section 156 tax notice is the notice of demand issued by the Income Tax Department when any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed. The section 156 tax notice of demand will specify the sum which is payable.
This demand notice is generally accompanied by an intimation notice under section 143(1) or along with the assessment order that is issued on completion of the scrutiny proceedings. Notice of Demand u/s 156 is issued in respect of every assessment order for addition to income.
The amount stated in the notice to be paid within 30 days by the assessee.
Notice u/s 148 – Commence Proceedings
This notice is issued to re-open a case that has already been assessed earlier by an officer. The case is re-opened if the officer believes that any chargeable income is not mentioned in the return earlier i.e. if the assessing officer believes that some income has escaped assessment or calculation.
TIME LIMIT TO SERVE NOTICE:
Income Escaped is less than 1 Lakh – Within 4 (Four) years of the end of the assessment year.
Income Escaped is more than 1 Lakh – Within 6 (Six) years of the end of the assessment year.
TIME LIMIT TO RESPOND: Furnish the return within 30 days or as specified in the notice.
What to do next:
File the return for the specified assessment year, as directed by the assessing officer.
In case you still have questions or concerns then please contact us here.