What is Respond to Tax Notice Overview
Once you submit the Income Tax Returns, the next and the final step of the e-filing process is verification. The Income Tax Department (IT Department) checks the income declarations and tax paid to see if all these details match. Only then the IT Department will accept the tax return filed as per Section 143(1).
If the taxes paid are found to be less than what you owe, they will issue you a demand notice.
Process for Respond to Tax Notice
The income tax department performs a preliminary review of all returns submitted and informs taxpayers of the results of such preliminary assessment
This evaluation includes mainly mathematical mistakes, internal contradictions, tax estimation, and tax payment verification
Under Section 143(1), such communication to the taxpayer regarding the preliminary assessment is called an intimation
The preliminary assessment is done by the Central Processing Unit (CPU), which is completely computerized and it doesn’t involve human intervention
Once the return is filed by the taxpayer, the total income or loss will be computed by the computerized system and provides a comparison of the evaluation process
The intimation notice under section 143(1) consists of two columns namely
As provided by the taxpayer in the return of the income
As computed under section 143(1)
Here, this two-column shows the calculation done by both the taxpayer and IT department computing the total income and liabilities. And eventually, it shows who was liable
Documents Required For Respond to Tax Notice
Benefits Of Respond to Tax Notice