Income Tax Notice: If you are a new taxpayer then you need to know some things before filing return. There is a process to file tax return.
If you are a new taxpayer then you need to know some things before filing return. There is a process to file tax return. Refund is issued only after completing this process. After filing the income tax return, its verification is done. After verification, when it is submitted, the Income Tax Department investigates.
What is Letter of Intimation in ITR?
In tax parlance, it is called letter of intimation. This notice tells whether the return filed by you is true or false. Such a notice can also come if you have entered the interest information wrongly or there has been a minor mistake while filing the return. This notice tells you to rectify the mistakes made in the return.
Why can income tax notice come?
- If your liability is exceeding the tax paid during the income tax return.
- If the tax that you have filed during the return is reducing your liability or you have filed the return correctly.
- Experts agree that such notices often come to every taxpayer. If you do not receive such notice, you can assume that your return has not been processed.
Do not delay in replying to income tax notice
According to tax experts, the tax notice under 143(1) is called notice of demand. That is, if you have any tax liability due, then you should pay it within 20 days of receiving this message. If you delay it, after the lapse of 30 days, you will have to pay interest at the rate of one percent monthly.
How to check income tax refund status?
- If you go to the Income Tax Department website, you will find ITR Status written at number 9 in the column on the left side of the homepage.
- On clicking on it, a new page will open where you will have to enter PAN number, ITR acknowledgment number and captcha code. Keep in mind that after submitting the ITR, the Income Tax Department sends the acknowledgment number to your registered mail id.
- After submitting all these details, the status of ITR processing will be known. If the return is not processed, the return is submitted and verified and processed, on which the return processed and refund paid will be written.
- If you log on to the Income Tax website, then on the dashboard below it will be written Income Tax Return Filing and View Return / Forms.
- On clicking the second option, a new page will open in which your PAN number will be uploaded on top and assessment year and income tax return will be selected at the bottom.
- Then after submitting the return status will be shown. If the return is not processed, the status will be written as Successfully Verified.
- If ITR is written as Processed, then understand that your ITR has been processed.
Demand notice (under section 156)
Income tax notice is issued under section 156 against arrears, interest, penalty etc. Such information is usually sent after the assessment of the income tax return. The notice issued by the Assessing Officer, directs the amount payable and asks the taxpayer to deposit the outstanding amount in time to avoid any penalty.