Income Tax Notice: How many types of tax notices are there? what do they mean

income tax notice

It is necessary for all eligible and responsible citizens of the country to pay income tax. For this, every year the Income Tax Department sets a date before which you have to file the income tax return. But, many times the tax department sends you a notice after filing the return or in case the return is not filed. Often people get nervous after seeing the income tax notice. But there is no need to do this. Because, the tax department can also send a notice to you asking for information. Let us tell you in this news how many types of tax notices there are and what they mean.

Before knowing how many types of income tax notices are there, it is important to know for what reasons the tax department can issue you a tax notice. If the information about your income, bank transactions, investments or tax deductions is not correct as per the data, then you may get a tax notice. Apart from this, if you do not file ITR on time and make big transactions, you may be issued income tax notice. Due to all these reasons, the Income Tax Department sends a total of 8 types of notices.

1. Section 143(1) notice- This automatic letter comes after your return is processed on the computer. It tells whether the department has calculated your income and tax and whether it matches yours or not. If any mistake is found, extra tax is demanded or a refund is given. This is just an initial checking.
2. Section 148 notice- This is the most dangerous notice. This means that the department suspects that you have hidden any income or given wrong information. They send a notice to reopen the old case and re-investigate it.
3. Section 245 notice- If your refund is being made this year, but tax of any previous year is outstanding, then the department will adjust your refund against that outstanding tax. This notice comes just to inform you that we have deducted your refund.
4. Section 156 notice- This is a demand notice. Meaning, after completion of the investigation, the amount of tax, interest or penalty incurred is demanded. It is written. Deposit this much money in 30 days otherwise more interest will be charged.
5. Section 139(9) notice- If any mistake or deficiency is found in your return, it is called defective return. A notice comes that these are the mistakes, correct them within this number of days and file a new return otherwise it will not be valid.
6. Section 143(2) notice- This is called scrutiny notice. After 143(1), if the department has further doubts or you do not respond, then they send it. This means that your case will be thoroughly investigated, documents will be asked for, sometimes you will even be called personally.
7. Section 133(6) notice- These notices are usually sent to non-filers or those who have high income but have not filed returns. Sometimes your details are also asked from a third person (bank, builder etc.).