Types of Income Tax Notices in India:

1. Notice under Section 143(1):
   • Basic “intimation” sent to inform you of the income assessed by the department, based on your tax return or other available information.
   • May include queries or discrepancies that require clarification.
2. Notice under Section 148:
   • “Scrutiny notice” issued when there are discrepancies or the department needs more information about your income or deductions.
   • You must respond within 30 days.
3. Notice under Section 156:
   • “Demand notice” that informs you of the tax liability you owe after assessment.
   • Provides deadlines for payment and consequences of non-payment.
4. Show Cause Notice:
   • Issued when the department may take legal action or impose penalties due to non-compliance or tax evasion.
   • You are given the opportunity to respond and justify actions before a final decision.
5. Other Notices:
   • These could relate to issues like defective returns, missing information, or verification of PAN/Aadhaar details.

Reasons for Receiving an Income Tax Notice:

• Discrepancies between declared income and income reported by third parties like banks or employers.
• High deductions or expenses claimed without sufficient documentation.
• Non-filing of tax returns.
• Inaccurate or incomplete information in your return.
• Mismatched PAN/Aadhaar details.

What to Do When You Receive a Notice:

1. Don’t Panic: Carefully read and understand the reason for the notice.
2. Gather Documents: Collect all documents that support your claims and clarify any discrepancies.
3. Respond Within Deadline: Reply promptly, providing required explanations and documents within the stipulated timeframe.
4. Seek Professional Help: If unsure, consult with Company Mitra to assist in filing your response