Income Tax Notice: How to Check and Authenticate?

Introduction

Receiving an income tax notice can be an unsettling experience, even if you have filed your returns on time. It is important to understand the different types of notices and how to respond to them appropriately. In this article, we will explore the various notices issued by the income tax department and provide guidance on how to check and authenticate them.

Knowing the Difference Between an Intimation and a Notice

Before diving into the details of income tax notices, it is crucial to Knowing the Difference Between an Intimation and a Notice. An intimation is a message from the income tax division informing you of how your return was processed or the outcome of the assessment. In most cases, you may not be required to take any action upon receiving an intimation. However, there are exceptions where you might need to respond.

On the other hand, a notice requires you to take specific actions. It is important to carefully read the notice to determine the purpose and required response.

Centralized Communication Scheme (CCS)

The Central Board of Direct Taxes (CBDT) has implemented the Centralized Communication Scheme (CCS). Under this scheme, all communications from the income tax department are conducted electronically. Each communication issued by the department after October 1, 2019, bears a unique Document Identification Number (DIN). It is crucial to authenticate any notice or order received from the income tax authority to ensure its genuineness.

Authenticating Notice/Order Issued by ITD

Before responding to any communication from the income tax department, it is advisable to verify its authenticity. On the e-filing portal, you can certified any notices, orders, or letters sent by the income tax authority. Here is a step-by-step guide to authenticate the notice/order:

Step 1: Visit the income tax e-filing portal at www.incometax.gov.in and navigate to 'Authenticate Notice/Order Issued by ITD' under 'Quick Links.'

Step 2: You can authenticate using two methods:

1. For notices/orders/letters issued for AY 2011–12 and subsequent years, the PAN, document type, assessment year, issue date, and mobile number are required.

2. Document Identification Number (DIN) and mobile number (for all assessment years).

Step 3: Enter the necessary information, such as the PAN, document type, assessment year, issue date, mobile number, and the DIN depending on the method.

Step 4: After entering the details, you will receive an OTP (One-Time Password). Validate the OTP received. Once validated, the DIN of the notice/order issued, along with the date of issue, will be displayed. If the notice/order is not issued by the ITD, a message stating "No record found for the given criteria" will be displayed.

If the notice is not issued by the ITD, if will display a message – No record found for the given criteria.

Step 3(1): An additional option is to authenticate using your mobile number and DIN.

Step 3(2): Continue by entering your mobile number and DIN. An OTP will be sent to you. Use OTP to validate.

A success message similar to the one shown below will be displayed if the notice or order was issued by an income tax authority.

You can make sure the notice or order you received is legitimate and came from the income tax authority by using this authentication process.

Types of Notices/Intimations

Now, let's explore the various types of notices and intimations that the income tax department may issue:

Notice under Section 142(1)

Notice sent under Section 139(9)

Notice under Section 148

Notice sent under Section 156

Intimation under Section 143(1)

Notice under Section 143(2) for scrutiny assessment u/s 143(3)

Notice under section 131

Notice under section 245

Responding to Income Tax Notices

You must properly respond to an income tax notice as soon as you receive one. Following are some general pointers for answering tax notices:

1. Read the notice completely to understand its purpose and the necessary action.

2. Verify that the notice is intended for you by checking the basic details such as your name, PAN number, address, and assessment year.

3. Determine any mismatch in your income tax return that may have resulted in the notice being issued.

4. Respond to the notice within the specified timeline to avoid penalties and legal consequences.

5. Ensure that your response is supported by accurate and relevant information.

6. Keep track of the notice and its status by checking your income tax account online.

Remember, each type of notice may require different actions. It is advisable to consult a tax expert or seek professional assistance if you are unsure how to respond to a specific notice.

What are the primary reasons for notice?

The following are the most typical reasons why you might get an income tax notice:

1. Inconsistency in the TDS reported amount.

2. the error on your tax return.

3. not submitting all necessary documents.

4. not submitting your tax returns.

5. when you make investments in your spouse's name but fail to disclose them on your income tax returns.

6. If during the fiscal year, there were high-value transactions that weren't properly disclosed on the income tax return.

7. If the assessing officer checks your income tax return at random.

8. when stock investments that result in long-term capital gains are not properly disclosed.

9. If a taxpayer doesn't disclose any income.

10. If the income tax return is filed using the wrong form.