Demand notice

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2016 Dear Sir,
Thanks! in advance.
One of my client received a notice US 148 in march 2014 relating to escaping income ay 2007-08. Before submitting reply in march 2014 we asked to ITO to produce PAN no. and other details of my client they have? But ITO not able to given us Pan no and said (orally) about banking transaction(clue of escape income). We denied of having bank account their. And same name(of my client) found in his village and that person have account in that branch which was found by ITO. Then ITO(orally) said us no need to appear.
Now, my client received demand under DTDRS Scheme 2016 of Rs. 6,16,845.(escaping income ay 2007-08)

Please advise what we should do as soon as possible?
regards
vikas

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2017 DEAR EXPERTS PLEASE REPLY

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 Dealing with a demand notice under the DTDRS Scheme 2016 requires careful consideration and action to resolve the issue. Here are the steps your client should take:

1. **Verify the Demand Notice**: Ensure that the demand notice received is legitimate and pertains to the correct assessment year (AY 2007-08 in this case). Check the details mentioned in the notice for accuracy.

2. **Understand the Demand**: Review the basis on which the demand has been raised, particularly concerning the alleged escaping income for AY 2007-08. Understand the components of the demand, which may include tax, interest, and penalties.

3. **Gather Documentation**: Gather all relevant documents related to the assessment year in question. This includes income details, bank statements, investment proofs, and any other relevant financial records that can substantiate the income reported.

4. **Respond to the Demand Notice**: Prepare a detailed response addressing the demand notice. If you have any objections or clarifications regarding the demand, outline them clearly in your response. Provide supporting documents to substantiate your claims.

5. **Consider Legal Assistance**: If necessary, seek legal assistance to handle the matter professionally. A tax consultant or a lawyer specializing in income tax matters can provide valuable advice and representation.

6. **Contact the Income Tax Department**: Communicate with the Income Tax Officer (ITO) or the designated authority mentioned in the demand notice. Seek clarification on any ambiguities in the notice and provide the necessary information requested.

7. **Appeal or Rectification**: Depending on the response received from the Income Tax Department, you may need to file an appeal against the demand or apply for rectification if there are genuine errors or discrepancies.

8. **Deadline Compliance**: Ensure that all responses, submissions, or appeals are made within the stipulated timelines mentioned in the demand notice to avoid further complications.

Given the complexity and seriousness of the demand notice, it's crucial to address it promptly and accurately. Engaging with the Income Tax Department transparently and with comprehensive documentation will facilitate a smoother resolution of the issue. If in doubt, consulting a tax professional or legal advisor is highly recommended.

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