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Intimation Notice u/s 245 of Income Tax Act
Reply to Intimation Notice under section 245 of Incone Tax Act with Ebizfiling at INR 2999/- only.
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Intimation Under Seaction 245 of Income Tax Act
All you need to know
What is Section 245 notice?
A Section 245 notice is a formal message sent by the Income Tax Department in India under Section 245 of the Income Tax Act. It allows taxpayers to ask the department for clarity on how a planned transaction or arrangement will be taxed. The notice lets the taxpayer know that the department will review the situation to ensure the transaction complies with tax laws and to prevent tax evasion. This is especially useful for complicated transactions where the taxpayer wants to understand their tax responsibilities before moving forward.
Time Limit to respond intimation u/s 245 of income tax act
Under Section 245 of the Income Tax Act, a taxpayer has 30 days to reply to the notice after receiving it. If they don’t respond within this time, the Income Tax Department may make decisions based on the information they already have. It’s important for taxpayers to send any needed details or documents within this period to make sure their situation is properly reviewed.
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Charges to reply notice under section 245 of Incone Tax Act
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Explanation for the notice issued under Section 245 of the Income Tax Act
A notice under Section 245 of the Income Tax Act, 1961, is issued when a taxpayer wants to ask the Income Tax Department about the tax effects of a planned transaction or arrangement. This helps the taxpayer understand their tax responsibilities and avoid disputes with tax authorities. The notice includes details about the proposed transaction and the specific questions the taxpayer has, so the tax department can give a clear and binding answer on how the tax will be handled.
Results of not replying to a notice under Section 245
Missing the deadline to respond to an Intimation under Section 245 can lead to:
Ignoring the Notice
Not responding may be seen as ignoring the tax authority’s request, which could lead to penalties or more checks on your tax situation.
Ex Parte Ruling
The tax authority might make a decision using only the information they have, which means they won’t consider your side. This could lead to a decision that is not good for you.
Penalties
In some cases, non-response could attract penalties as specified under the Income Tax Act, depending on the nature of the notice.
Future Implications
Ignoring such notices might affect the taxpayer’s credibility and standing with the tax authorities, leading to increased scrutiny in future transactions or assessments.
Appeals
If an unfavorable ruling is issued due to non-response, the taxpayer may still have the option to appeal the decision, but this can be a lengthy and complicated process.
