Income Tax Notice – Important to Verify Notice/Order Issued by the Income Tax Authority
Before responding to any communication claiming to be from the income tax department, it’s crucial to ensure its authenticity. Income Tax Notice – Important to Verify Notice/Order Issued by the Income Tax Authority is not just a precaution—it’s a taxpayer’s responsibility.
Here is a step-by-step guide to verify whether the notice/order you received is genuine and what steps to take after verification.
How to Authenticate an Income Tax Notice Online
Follow these steps on the income tax e-filing portal:
Step 1:
Visit https://www.incometax.gov.in and click on ‘Authenticate notice/order issued by ITD’ under ‘Quick Links’.
Step 2:
You can verify using one of the following:
- PAN, Document Type, Assessment Year, Issue Date, and Mobile Number
- DIN (Document Identification Number) and Mobile Number
Note: PAN-based authentication is available only for AY 2011-12 and later.
Step 3:
Enter the required details and request OTP.
Step 4:
Enter OTP and submit. If the notice is genuine, you’ll see the DIN and issue date.
Otherwise, it will display: “No record found for the given criteria.”
Types of Income Tax Notices and Their Meaning
1. Notice under Section 133(6):
Issued under the E-Verification Scheme, 2021 due to mismatches between AIS and filed ITR. Respond via the Compliance Portal on the e-filing site.
2. Notice under Section 142(1):
Sent when:
- You’ve filed a return, but more info is needed.
- You haven’t filed a return, but were required to.
Non-compliance penalty: ?10,000 or prosecution up to 1 year.
3. Intimation under Section 143(1):
Issued after CPC processes the return, highlighting:
- Refunds
- Demand due to mismatch
- Adjustments in total income or deductions
4. Notice under Section 143(2):
Issued for scrutiny assessments. Indicates suspicion of:
- Understated income
- Excessive claims
- Insufficient tax payments
You must respond within 3 months post assessment year.
5. Notice under Section 148:
Re-opening of assessments due to income escaping notice. Time limits:
- Up to 3 years (normal cases)
- 3 to 10 years (if income above ?50 lakh is unreported)
6. Notice under Section 245:
Used to adjust tax refunds against past dues. Must be responded to within 30 days.
What to Do After Receiving a Notice?
- Verify details such as name, PAN, AY, and document type.
- Identify mismatch or demand reason.
- Respond within the specified time.
- Maintain documentation for all claims and responses.
- Cross-check the notice with your online income tax account.
Common Reasons for Receiving an Income Tax Notice
- TDS mismatch
- Data inconsistency
- Missing income or documents
- Non-filing of ITR
- Unreported high-value transactions
- Use of incorrect ITR form
- Incorrect long-term capital gains disclosures
- Investments in spouse’s name not declared
- AIS vs ITR mismatch
- Random scrutiny selection
Conclusion
Income Tax Notice – Important to Verify Notice/Order Issued by the Income Tax Authority is a crucial step in protecting yourself from fraud and avoiding penalties. Always authenticate any document received and respond accurately through the official portal. With enhanced digitization and cross-verification, being proactive and accurate in tax compliance has never been more important.
CA Study Shop provides classes & books for CA CS CMA Students. We have partnered with more than 100 top faculties of country and provide excellent customer support which is evident from our 4.9/5 star rating on Google. Student can connect with us via any mode here.
Best of luck!
Stay Connected for more authentic updates.
Jai Hind,Vande Mataram
Team CA Study
