Following are the most common notices issued by the Income tax department to assesses:
1. Intimation Under Section 143(1)
This is intimation cum notice for processing of your income tax return, it is electronically processed by the Central Processing Centre, Bangalore. Intimation u/s is sent to only in case where any tax or interest is payable or refundable or there is any increase/reduction in loss. The income is computed after making the following adjustments to the total income in the return:
a. If any error in the return
b. Made incorrect claim
c. Disallowance of any loss or expenditure
d. Any income left to be included in the return.
2. Notice Under Section 143(1)(a)
This notice is issued seeking a response to the errors / incorrect claims / inconsistencies which attract adjustments under section 143(1)(a). It is an intimation from the CPC seeking clarification of the mismatch between income & deductions when compared to Form 16, Form 16A or Form 26AS.
3. Notice Under Section 148
Department may have a reason to believe that you have not disclosed your income correctly and therefore, you have paid lower taxes. Alternatively, you may not have filed your return at all, even if you must have filed it as per law. This is termed as income escaping assessment. Under these circumstances, the assessing officer is entitled to assess or reassess your income, according to the case. Prior to making such an assessment or reassessment, the assessing officer should serve a notice to the assessee asking him to furnish his return of income. The notice issued for this purpose is issued under the provisions of Section 148.
4. Notice Under Section 139(9)
If the Assessing Officer considers that the return filed by the Assessee is defective, he may intimate the defect to the Assessee and give him an opportunity to rectify the defect within 15 days. Some of the cases where a notice under section 139(9) is issued are:
a. Balance Sheet and Profit & Loss Statement is not filed in a case where Assessee is required to maintain such details.
b. Return of income is filed before payment of Self-assessment Tax.
c. TDS deducted has been claimed as a refund but no income details are provided in the return.
d. Details of taxes are filled but no income details are provided in the return.
5. Rectification Under Section 154
Once the Income-tax return is filed, the department processes the return and issues an intimation. The intimation contains the details of the return submitted by the Assessee and that computed by the Income-tax department. Sometimes it may so happen that the taxpayer wrongly takes the credit for taxes, deductions, etc or the department may not provide a credit of taxes, etc. Rectification can be made for a mistake which is apparent from the record. Some of the errors for which rectification can be filed are as follows:
a. Mismatch in tax credit (TDS)
b. Advance tax mismatch
c. Deduction under Chapter VI A not allowed
6. Notice Under Section 245
This notice is sent to the Assessee intimating him that the Income-tax authorities want to adjust outstanding tax demands from the refund due. The demand may pertain to an earlier Assessment Year and when refund is claimed, the same is adjusted against the demand.
7. Notice Under Section 142(1)
This notice is issued to call documents/ details from taxpayers. The purpose of this notice is to inquire about the details of the assessee before making an assessment. The notice can be issued in both the cases where the return has been filed and where the return has not been filed and time specified to file such return has been expired.