Income Tax Notice: No need to be afraid or nervous every time! Understand what each notice means..

People get nervous on hearing about getting a notice from the Income Tax Department. They start getting nervous. But there is no need to panic because every notice does not mean legal action or a fine. Every notice has a different meaning. There is a specific purpose. If you have made a mistake somewhere, then through a notice, you are informed about that mistake, so that you can correct it within a certain time limit. If you have also received a notice from the Income Tax Department, then first understand the meaning of this notice.

Information under section 143 (1)
This is the most common notice, which is sent to almost every taxpayer after the ITR is processed. It can be of 3 types. No demand, no refund means the department has accepted your ITR as correct. You do not need to do anything. If you have paid more tax, then this notice informs you about the refund you will get. On the other hand, if you have made any mistake in the ITR, like giving wrong information about income or any calculation being wrong, then the department demands the remaining tax from you through this notice. If tax has been demanded, read the notice carefully. If you agree, then pay it within 30 days. If you disagree, you can request online for correction.

Notice under section 139(9)
This notice comes when there is some deficiency in the ITR filed by you, such as choosing the wrong ITR form, not filling in the necessary information (such as balance sheet or P&L account), TDS claim, and information given in Form 26AS not matching. This notice has to be answered within 15 days. You have to correct the mistake mentioned and file a revised return. If you do not do this, your ITR can be considered invalid.

Notice under section 142(1)
This notice is sent when the Assessing Officer (AO) needs some additional documents or information before assessing your ITR. This notice can also be sent to those who have not filed ITR. Submit all the documents and information asked in the notice within the stipulated time. Ignoring this notice can lead to a fine of Rs 10,000 or 'best judgment assessment'.

Notice under section 143(2)
This notice is sent if your case has been selected for scrutiny. This means that the income tax officer wants to conduct a detailed investigation of the income, expenses and deductions declared by you. Take this notice seriously. You may have to appear before the Assessing Officer in person or through your representative (such as a CA) and produce all the evidence and documents asked for.

Notice under section 148
This is a serious notice. This is issued when the Assessing Officer feels that you have concealed some of your income in a particular year, which should have been taxed. This notice can be sent only when the department has reliable information about your hidden income. In such a case, you have to file ITR again for the assessment year mentioned in the notice and provide the information sought. If you want, you can also ask the AO for a copy of the reasons for issuing the notice.

Notice under section 156
This notice is sent when the Income Tax Department demands any tax, interest, or penalty from you. This demand is usually decided after assessment. The amount mentioned in the notice has to be paid within the stipulated time (usually 30 days).

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