If there’s a mismatch or mistake in your Income Tax Return, the Income Tax Department may send you a notice under certain sections of the Income Tax Act. This notice can come by email or post, and it’s important to respond quickly to avoid fines or further checks.
These notices can be about things like:
- Errors in your return
- Missing or late return filing
- Differences between your return and tax records (like Form 26AS)
- Undeclared income
- Not paying full self-assessment tax
Taking timely action can help you fix the issue and avoid trouble.
How to View and Respond to an Income Tax Notice
If you get a notice from the Income Tax Department, here’s how to respond:
Steps to Respond Online:
- Go to the official Income Tax e-Filing Portal
- Log in using your PAN.
- Go to the ‘e-File’ menu and look for notices or communications.
- Click on “Provide Response” to view and reply.
- Choose your response:
- I agree with the demand
- I disagree with the demand
- The demand is partly correct
- I don’t agree but allow adjustment
- Submit your response and check regularly for follow-ups.
Income Tax Notice for Credit Card Use
When You Might Get a Notice:
- You bought something over ₹10 lakh with your credit card.
- You paid a bill of ₹1 lakh or more using cash or any method.
How the Tax Department Tracks These:
- Banks and financial institutions report big transactions using Form 61A.
- Since June 1, 2020, your Form 26AS also shows these details.
How to Avoid Credit Card-Related Notices:
- Don’t spend too much on your credit card unless your income supports it.
- File your ITR accurately and on time.
- Keep total card expenses under ₹2 lakh/year if possible.
- Match your ITR with Form 26AS.
- Disclose high-value expenses in your return if needed.
Common Income Tax Notices and How to Respond
1. Notice for Not Filing ITR
If you skipped filing your return—especially after previous years’ filings or big transactions—you may get a notice. Respond by explaining why. For example, if your income was below taxable limits, mention that.
Triggered by:
- Depositing over ₹10 lakh in a savings account
- Paying ₹1 lakh on a credit card
- Buying/selling property over ₹30 lakh
- Large mutual fund investments
Even if it is non-taxable, the IT department expects an ITR. File now if the deadline is open.
How to Respond Online:
- Log in to the portal
- Go to the Compliance section
- Choose your reason:
- Return already filed
- Under preparation
- No taxable income
- Other
2. Notice for Late Filing
If you miss the July 31 deadline, you may get a notice. File your return quickly and mention “Return under preparation” if needed.
3. Notice for Missing Income
If you forget to include income like bank interest or capital gains, and it shows up in Form 26AS, you’ll get a notice.
Tip: Always match your ITR with Form 26AS. If something is missing, file a revised return.
4. Mismatch in Tax Credits
If your ITR and Form 26AS don’t match (like TDS differences), the department may flag it. Correct the ITR or ask for correction in Form 26AS.
5. Not Paying Self-Assessment Tax
If you file without paying tax due, it’s a “defective return.” Pay the amount and submit a revised return.
6. Suspected Tax Evasion
If you earn income through someone else’s name (like a spouse) and don’t report it, you may get a scrutiny notice (Section 143(2)).
7. Refund Adjusted Against Dues (Section 245)
If you’re expecting a refund but have past tax dues, the department may adjust it and send a notice. Reply quickly if you don’t agree with it.
8. Demand Notice (Section 156)
This is a formal request to pay tax, interest, or penalty. Pay the amount by the deadline.
9. Preliminary Notice (Section 142(1))
This is sent before a detailed review. They may ask for:
- Income and tax details
- Investments
- Assets and liabilities
Even if you think it doesn’t apply to you, you must respond.
10. Scrutiny Notice (Section 143(2))
This is a detailed review of your ITR. Provide all documents related to your income, deductions, capital gains, etc. It’s best to talk to a tax expert first.
11. Adjustment Notice (Section 245)
If you have a refund due but also pending dues, this notice tells you they’ll adjust the two. Respond if you disagree.
12. Defective Return Notice (Section 139(9))
If your return is missing information or documents, the IT Department will give you 15 days to fix it. Respond on time to keep the return valid.
Final Tips:
- Don’t panic if you receive a notice.
- Always reply on time and honestly.
- Keep all documents ready.
- Compare your ITR with Form 26AS.
- If unsure, consult a tax expert.
Need help? We offer expert ITR filing services to make sure everything’s done right and on time.
FAQs
1. What should I do if I receive a notice from the Income Tax Department?
If you receive a notice, log in to the Income Tax e-filing portal, check the reason for the notice, and respond promptly. Read the notice carefully and follow the instructions. If unsure, consult a tax professional.
2. Why did I get a notice even after filing my ITR?
You may get a notice due to reasons like a mismatch in income details, tax credits not reflecting correctly, missing documents, or undisclosed income. Always match your ITR with Form 26AS and AIS before filing.
3. What happens if I ignore a tax notice?
Ignoring a tax notice can lead to penalties, interest, scrutiny assessments, or even legal action. It’s important to respond within the specified time to avoid further complications.
4. How can I check for any mismatch in my ITR?
You can check for mismatches by comparing your filed ITR with Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary) on the e-filing portal. Look for income, TDS, or other discrepancies.
5. Can I revise my ITR if I find an error after filing?
Yes, you can file a revised return before the end of the assessment year or before the notice is issued (whichever is earlier). Correct the error and submit the updated return online.
