AMA: All About Income Tax Notices

AskMeAnything
#1

Update: If you have traded in crypto, equity or F&O, then we are here to tell you that the Taxman is watching you.

The Income Tax Department is sending notices to taxpayers who have traded in crypto but have not reported those trades while filing ITR

If you receive such a notice from the ITD, make sure to respond to it with valid reasons and documents within the stipulated time.

Similarly, ITD is now sending out communications through SMS/Emails to taxpayers where they suspect capital market participation or any other high-value transactions, but it’s not reflected in the ITR

Read more about these notices and communication here

If the Income Tax Department realises any discrepancy in your Income Tax Return, they may issue an IT Notice. Not to worry, it might just be regarding an error or mismatch.

The ITD may send you the below SMS if you have high turnover and you haven’t filed the ITR or missed reporting all the financial activities of your ITR. Next, you need to:

  1. File a Belated Return / Revised Return before 31st March 2021
  2. Submit a response with the e-compliance portal.

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Shoot all your questions regarding Income Tax Notices and we promise to answer them all!

Understand more about Income Tax Notices here.

Did you recently receive an Income Tax Notice? Don’t worry!
Simply upload your notice and We’ll help you respond to it :slight_smile:

Read more on how to deal with Income Tax Notices

Email from IT: Proposed adjustments u/s 143(1)(a) of Income Tax Act, 1961
#2

Hey @TeamQuicko

What is the time limit in which I need to respond to the notice under section 139(9)?

#3

How can I respond to the notice received online?

#4

What will be the consequences in case I do not respond within the stipulated time period?

#5

How much time it will take to process the refund once response to notice u/s 139(9) is filed?

#6

Hey @HarshitShah

It is very common to receive a notice from the Income Tax Department. The notice sent to you might be a routine inquiry or a request for clarification. There is no need to worry when you get a notice from the Income Tax Department. You will have 15 days time in which you will need to respond to the notice/file revised ITR.

Hope this helps!

#7

Hey @SonalYadav

You can login to your account on the Income Tax e-filing website by entering your credentials i.e. User ID (PAN), password, and captcha code.

Next, you need to click on the ‘e-file’ tab and select ‘Response to outstanding Tax Demand’ option.

Hope this helps!

#8

Hey @ViraajAhuja47

In case of any defects in the Income Tax Return, Assessing Office can issue notice u/s 139(9). If you have filed a return within 15 days of issue of notice, then it will generally take 60 days to process the return once it is sent for processing.

Hope this helps! :slight_smile:

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#9

Hey @HarishMehta

It is mentioned in the notice that in case one does not respond in the stipulated time, the return will be processed by restricting the credit for the TDS proportionately.

To give an example: There are 2 incomes mentioned in Form 26AS as below:

Salary from A - 100000 & TDS deducted - 10000
Salary from B - 200000 & TDS deducted - 20000

In case you have not reported either of the above income in ITR then you may receive a notice for the mismatch.

Thus, in the above example if you don’t respond in the time, then ITD will add the income of both of the above but will not give the credit of TDS not mentioned in ITR and process the return.

Hence, it is always advisable to respond to the Income Tax Notice in the given time period.

Hope this helps!

#10

Hey @TeamQuicko

When is a notice under section 144(1) issued?

#11

Hi @Shweta_Saini ,

Notice u/s 144(1) is issued in the following cases:

-When ITR is not filed within due date by a taxpayer
-When a taxpayer fails to provide a response to an inquiry of AO (Assessing Officer) for filed ITR,
-When a taxpayer fails to provide a response to assessment notice for filing ITR.

Here, AO can assess the total income or loss of a taxpayer based on the information gathered by them. AO usually gives the taxpayer an opportunity to present their case and provide necessary documents. Hence response to 144(1) can be given after looking at the cause of the notice and with supporting documents.

#12

Attention XXXXX4061X, Your PAN has been flagged for not filing of ITR for A.Y-2020-21. Please file your ITR or submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal (My Account) - ITD

Please help i want to avoid any problems

#13

Hey @SreeSSXP

Since you had high value transactions and ITR has not been filed for AY 2020-21, ITD has flagged your PAN. Thus, you have to file ITR before March 31, 2021 and respond to the transactions on IT Portal.

You can reach out to us on help@quicko.com or alternatively get in touch with us at +91-7575831310 so someone from our team can get in touch with you for process, pricing and discounts?

#14

Hi @TeamQuicko I have received this high transaction sms and I have responded on compliance portal. However I have raised a grievance as the TDS amount is showing double (one total one and the other individual one).
Do I still need to file revised ITR or wait for reply from income tax department?

#15

Hi @Chisel_vidz,

You may have received the SMS from the Income Tax Department if you had high-value transaction during the financial year

You may file a revised return rather than waiting for ITD to respond since today (31st March 2021) is the last day to file a revised return for AY 2020-21.

You can logon to Quicko and file a revised return yourself or get in touch with an expert.

#16

Hi,

I filed IT return for last financial error in the month of 10-Jan-2021 via Quicko. I made a loss in trading and I have shown the same in IT return for carrying forward.

Today I got a mail from IT stating it cannot be carry forwarded as I filed late. The IT filing last date was extended due to covid and I remember filing before the last date. This is my first IT filing and I’m not sure what to do. Kindly advice.

Snapshot of email attached below

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{7DCD7C62-F7EF-4E48-9299-39D2A785A95E}913×441 19.9 KB

#17

Hey @pushpasooraj, please share your contact details with us at help@quicko.com so we can better help you.

1 Like
#19

I received Income Tax Notice for Cash Transactions. What should I do if the cash transactions do not belong to me?

#20

Hi @emmy

You can select the response ‘The Account does not relate to this PAN’ and click on submit. IT Department will take it into consideration and will verify the same.

#21

The Income Tax Department is processing the FY 2019-20 Income Tax Returns and many taxpayers have started receiving notices for the same. Here is an example of the income tax return received by a taxpayer:

image
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It is important to understand the type of notice the taxpayer has received in order to provide the right response:

Still got queries related to the income tax notices? Ask Away -