People often get worried when they receive a notice from the Income Tax Department. But many times, such notices are sent because of some mistakes made by the taxpayer. These can include claiming a wrong refund, choosing the wrong ITR form, not updating the correct bank account, or doing high-value transactions.
However, the Income Tax Department gives you an opportunity to explain your side. Through the notice, they allow you to clarify any mismatch or error. Let us tell you what steps you should take when you get a notice from the Income Tax Department.
How Does the Income Tax Department Send a Notice?
Once your Income Tax Return (ITR) is verified, the Income Tax Department begins processing it. During this process, the Central Processing Unit (CPU) checks the ITR against records such as Form 16, Form 26AS, AIS, TIS, etc. After processing, the Income Tax Department sends notices under Section 143(1) to taxpayers.
What to Do When You Receive an Income Tax Notice?
Receiving an Income Tax notice can happen for various reasons. If you’ve received a notice for additional tax dues, don’t panic. Carefully read the notice to understand why it was issued. The notice will specify:
- The additional tax amount you owe
- The assessment year
- The section under which the notice was issued (e.g., Section 143(1), 147, 156, etc.)
- You can also review the ITR you filed to see if there are any errors.
How to Correct Your ITR?
If you believe the information in the notice is incorrect, you can revise your ITR online. You can also file a reply if needed. If the matter seems complicated or you’re unsure about the notice, consider consulting a Chartered Accountant (CA) or a tax expert for advice.