One of the most stomach-churning moments for a person is the time when they end up receiving an income tax notice. While receiving a notice from the income tax department is definitely a worrisome matter, it is not the end of the world. The 142(i) notice under the income tax act is one of them. Understanding this notice would assist people to not go into panic mode once they receive it.
This type of notice is the one where after the individual has filed the income tax return; further details are needed to be confirmed by the auditor. The conditions in which this type of notice can be sent are:
As we have stated, the purpose of this form of notice is to confirm the details of the income taxpayer and assess them further under the income tax act. It is more like a preliminary investigation in this sense. The reason for the issue of this notice can be any of the following:
Now that you have a rough idea as to why this notice is published, how do you act accordingly? Well, the good news is that the taxpayer is given a good opportunity to respond to the notice properly.
Well, regardless of the opportunities that you are given to clear this notice up, “clearing” this notice is an important task. The reason for this article is not to make you procrastinate from answering the notice; it is to motivate you to do so easily. If you still don’t respond to the notice, there is going to be a best judgment assessment. The penalties further include the following:
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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