Income Tax Notice – Online Verification and Authenticity

Introduction

An income tax notice serves as a formal communication from the tax authorities regarding an individual or entity’s tax affairs. These notices are issued by the Income Tax Department (ITD) and can be sent for various reasons, such as discrepancies in tax filings, outstanding tax payments, requests for additional information, or audits. Receiving an income tax notice can often be a source of concern or confusion, but understanding the nature of the notice and how to respond appropriately is crucial. In this introduction, we will explore the common reasons for receiving income tax notices, the importance of addressing them promptly, and the potential implications of non-compliance. Understanding income tax notices is essential for individuals and businesses to navigate the tax system effectively and ensure compliance with tax laws and regulations.

What are the Reasons for Receiving a Notice?  

There can be numerous reasons for receiving an income tax notice. The most common ones are listed below:

• If a taxpayer fails to file his Income Tax Return received by the income tax department (ITD) by the due date. The communicated notice is termed as ITD notice.

• If there are any discrepancies in the income reported by taxpayer and his employer (for salaried individuals)

• In case of errors, omissions, or inconsistencies in your income tax return, such as missing income sources, deductions, or credits.

• If the Income Tax Department suspects any underreporting of income to evade taxes.

• If taxpayer fails to pay the full amount of taxes owed based on his income and deductions.

• If there are any discrepancies in the TDS or TCS details reported by taxpayer and the details available with the tax department.

• If taxpayer has done any high-value financial transactions, like large cash deposits, property purchases, or foreign remittances, which are subject to scrutiny.

• If the tax department decides to assess or reassess taxpayer’s income under Section 143(2) or Section 148.

What to do After Receiving a Notice?  

• Once taxpayer has received an income tax notice, he must first –

• Read it carefully to determine the reason why it was sent.

• Check if it has the correct name, PAN number, and address.

• Determine if there is any mismatch in the income tax return, which has resulted in a notice.

• Respond to the ITD notice within the specified time.

• Provide adequate information and documentation while filing the response.

• Also, check IT notice i.e, income tax notices online on the Income Tax Portal.

How to Authenticate Income Tax Notice?  

Taxpayer can authenticate using PAN, document type, assessment year, issue date and mobile number (for notice/order/letter issued for AY 2011-12 and subsequent years only)

Here are the steps to authenticate IT notice  i.e.; income tax notice online on the income tax portal –

Step 1: Visit www.incometax.gov.in

Step 2: On the Home page, under the ‘Our Services’ option, select ‘Authenticate’.

Step 3: A new webpage will open on your computer screen. You will be given two options to authenticate the documents you received. You can certify the document either by PAN, year of assessment, notification section, month and year of issue or by DIN. In both cases, you will need to enter your mobile number. If you selected the first option, i.e., PAN, by assessment year, then select that option and enter the required details along with the mobile number. On the other hand, if you choose the second option, you need to enter the DIN mentioned on the notice and mobile number.

Step 4: One-time password (OTP) will be sent to your mobile number. The OTP received will only be valid for 15 minutes.

Step 5: After entering OTP, click on ‘Continue’. Once the OTP is authenticated, if the notice or order issued to you is genuine, it will appear on the website. The website will show you the message: “Yes, the notice is valid and issued by the Income Tax Authority”. However, if the notice issued to you is not true, the website will say, “No such record was found for the document number / given criteria”. This facility will help the taxpayers to face the problem of fake notices. This tool provided by the e-filing portal can be used to verify the authenticity of documents or communications received from the department or any order issued by the tax authorities.