Income tax Scrutiny notices

Income tax notice under Section 143 (2) or Scrutiny Notice

When is the notice served:
If you get notice under section 143(2) it means your return has been selected for detailed scrutiny by your Assessing Officer.

Time limit for the notice to be served :
This notice can be served Up to 6 months after completion of relevant assessment year.

How to reply to notice :
The notice might ask you to produce documents in support of deductions, exemptions, allowances, reliefs other claim of loss you have made and provide proof of all sources of income. So collate information like bank statements, major expenses, income and loan details,Section 143(2) enables the Assessing Officer (AO) to make a regular assessment after a detailed inquiry.

Income tax notice under Section 142 (1)

When is the notice served:
This notice is sent when income tax return has not been filed. You may be asked to produce documents in support of returns being filed for the inquiry.
Time limit for the notice to be served: There is No time bar during which the notice needs to be sent.

How to reply to notice :
Typically, a notice under Section 142(1) lists the details required by the tax authorities and the date by which they should be submitted. For instance, the tax authorities might seek details of a major repair expenditure or a stay overseas while on deputation abroad. The notice might require you to appear before the tax authorities either personally or through an authorised representative (such as a tax consultant), to provide clarifications or explanations. File your returns within time specified in the notice. If any tax money is due you are expected to clear it.

Income tax notice under Section 148

When is the notice served:
The notice is issued under section 148 If the Assessing Officer believes some income might have escaped assessment asking you to file returns for the relevant assessment year. Alternately he might ask to file returns for the purpose of reassessment.

Time limit for the notice to be served :
In case income that has escaped assessment is Rs 1 lakh or less notice under section can be sent within 4 years of the end of the relevant assessment year. In case income escaped is more than Rs 1 lakh then such notice can be sent within 6 years.

How to reply to notice :
File returns for the relevant assessment year within time mentioned in the notice and submit documents as may be required. In case it is a reassessment, you might want to take help of a tax expert.

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