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Is It Important To Comply With Tax Notices ?
Written by Gagandeep Arora - Printed on - Date - 10th Jan 2023
A tax notice is a written communication sent by the tax authorities to an assessee regarding any issue related to their tax return.Any notice received by the tax authority can create a panic amongst the taxpayer,but non-compliance to a tax notice can lead to a penalty and attract interest up to Rs.10,000 for maximum of the total due. So, in case you receive a notice it is advisable to contact tax experts.To avoid confusion and panic let’s study furthermore the importance of responding to tax notices.
Five Steps To Be Taken After Receiving Tax Notices
The first step after receiving a tax notice is to understand the reason behind receipt
of the notice and do not ignore it otherwise you will end up paying a hefty penalty on
the notice. Generally,notices are given by the Income tax authorities due to run-of-
the- mill aspects like the tax return filed lacking the basic information or some minor
error while filing a tax return.
1. Identify the reason for issuance of notice.
It is important to understand the reason for issuance of the notice as the reply, as
they form the basis for reply to the notice.The reason can be a major or a minor one so
it is advisable to contact a professional to understand the complexity of the notice.
2. Maintain a Record
The date and time the notice is received should be noted on the notice itself or
somewhere else so that you have the proof in case of need that you replied to the notice
on time. As the reply to these notices are time barred and usually begin from the date
of issue of the notice.
3. Be Careful And Check
It is important to note that the notice has been issued under your name and other basic
details should also be counter checked in the notice like PAN number, assessment year
mentioned and details of the issuer.
4. Check Out The Discrepancy
The new intimation format has two separate columns and if two different amounts are
reflected in these rows then that is the reason for the discrepancy. You can reply to
these notices through the onl;ine portal but in case of complicated cases it is better
to contact a professional.
We have a team of experts to help you reply to the tax notices.
5. Extension Needed
If under any circumstances, you need to extend the time to reply to the notice you can
ask for deferment but it is subject to the discretion of the tax officer.
Be Vigilant
It is important to reply to the notice within the stipulated period otherwise there can be a penalty of Rs.10,000 for up to maximum of total due. If the notices are not simple enough to handle or it seems confusing to answer then this is the right time to consult a professional.
