What is Income Tax Notice Handling ?

Income Tax Notice Handling refers to the process of understanding, responding to, and resolving notices or letters issued by the Income Tax Department. These notices are typically sent for various reasons such as mismatched income declarations, outstanding taxes, scrutiny, or compliance verification. 🔍 Why Do You Get an Income Tax Notice? Here are some common reasons: Mismatch in income or tax credits (e.g., TDS not matching with Form 26AS). Late or non-filing of Income Tax Return (ITR). High-value transactions not reported properly. Scrutiny assessments (selected randomly or due to red flags). Underreporting or misreporting of income. Non-disclosure of foreign assets or bank accounts. Tax evasion or suspicious transactions. Rectification, refund, or adjustment issues. 🧾 Types of Income Tax Notices Notice under Section 139(9) – Defective return. Notice under Section 143(1) – Intimation after processing of return. Notice under Section 143(2) – Scrutiny notice. Notice under Section 148 – Reassessment of income. Notice under Section 245 – Adjustment of refund against demand. Notice under Section 156 – Demand notice. ⚙️ Handling an Income Tax Notice – Step-by-Step Read the Notice Carefully Understand the section under which it is issued. Note the issue raised and the deadline for response. Verify the Details Check your PAN, assessment year, and any mentioned income or transaction. Compare With Your ITR and Form 26AS Match the data with your filed return and tax credit statements. Prepare a Response If it's a mismatch, provide clarification or revised documents. If it's an error, file a rectification request or revised return. Respond Within the Deadline Use the Income Tax e-Filing portal to submit your response. Seek Professional Help For complex notices (like under Sections 143(2), 148, etc.), consult a chartered accountant or tax advisor. 🛡️ Tips to Avoid Notices File your return accurately and on time. Report all income and transactions. Reconcile Form 26AS and AIS with your return. Avoid claiming false deductions or exemptions.