If you make a mistake on your filed Income Tax Return (ITR), the tax department can send you a notice. Basically, there are six main types of income tax notices that salaried individuals might receive:
1. Intimation Notice (Section 143(1))
This notice is sent after the tax department processes your ITR. It tells you if your calculations match theirs. If not, it informs you about refunds or additional taxes. You might get this notice even if there are no errors. It's usually sent within nine months after the financial year ends.
2. Defective ITR Notice (Section 139(9))
This notice comes when your filed ITR has mistakes. You're asked to correct them by filing a revised ITR. Examples include wrong claims for house rent allowance or not reporting certain income. This notice can be sent within nine months after the financial year.
3. Inquiry Notice (Section 142(1))
This notice asks why you didn't file your ITR when you earned above the exemption limit. You might need to provide accounts, documents, and other information. You usually have 15 days to respond.
4. Scrutiny Assessment Notice (Section 143(2))
If your ITR is selected for scrutiny, you'll get this notice. It's for a detailed assessment of your ITR to check its accuracy. You'll likely need to answer questions and provide documents. This notice can be issued within three months after the financial year.
5. Income Escaping Assessment Notice (Section 148)
If the tax department thinks you didn't report some income in the previous year's ITR, you'll get this notice. Before sending it, they'll ask for reasons why you should not be reassessed. The time frame varies based on income amount, up to three years or even ten years in some cases.
6. Adjustment Notice (Section 245)
This notice is about using your current year's refund to settle previous year's unpaid taxes. If you disagree or already paid, you can respond. There's no specific time limit for issuing this notice.
Remember that tax notices should generally be sent within specific time limits. If you receive one, make sure to respond within the mentioned time frame. Sometimes notices might arrive late, so check if the issuing time is still valid when you receive it.
The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global Services. He can also be reached at rrlglobal@yahoo.com
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