Income Tax Notice Response

Why You May Receive an Income Tax Notice – And Why Timely Response Matters

The Income Tax Department of India may issue notices for a variety of reasons, ranging from simple information requests to detailed scrutiny assessments. It’s crucial not to ignore these notices, as failing to respond appropriately and on time can lead to legal consequences or financial penalties.

🔎 Common Reasons for Receiving an Income Tax Notice:

• Mismatch in tax credit (Form 26AS vs. ITR)

• Inadvertent or willful non-disclosure of income

• Non-reporting of foreign or domestic assets

• High-value transactions triggering scrutiny

• Investments made in the name of a spouse or relative

• Late or non-filing of income tax returns

📬 Types of Income Tax Notices

The Department can issue notices under various sections of the Income Tax Act, such as:

• Section 131 – Inquiry for evidence or documents

• Section 142(1) – Preliminary inquiry before assessment

• Section 143(2) – Scrutiny notice for in-depth assessment

• Section 148 – Reassessment of income believed to be underreported

• Section 245 – Adjustment of refund against outstanding demand

Each notice serves a different purpose, and understanding its intent is critical for crafting a proper response.

⚠️ Why You Shouldn’t Ignore These Notices

Not responding within the specified deadline may lead the Department to proceed based on their own information—which could result in penalties, interest, reassessment, or even prosecution in extreme cases.

How Kaydababa Helps You Respond Effectively

At Kaydababa, we specialize in helping individuals and businesses handle tax notices professionally and accurately. Our team of tax experts will:

✅ Analyze the notice and identify its purpose
✅ Assist you in gathering relevant documents and information
✅ Draft and file a well-structured and compliant reply
✅ Represent you before the department if required
✅ Monitor updates and correspondence until closure

You should not take these notices lighly and seek a proper guidence if you want to avoid any situation of creating a big liability or any severe actions taken by Department against you. Don't worry we are here to solve your problem.

Documents Required for Account Opening Resolution

Every business must comply with the GST registration company India rules and regulations. The taxpayer can get the registration to distinguish their business from others. A new GST registration company can get a unique 15-digit registration number. This unique number known commonly as the GST Identification Number or GSTIN can provide complete details about the business. The central government provides this number to a taxpayer when they apply for the unique number with the following documents:

• Copy of the Notice from the Income Tax Department
• Details of the property sold or purchase in the concerned year.
• Form 16(if any)/Copy of Income Tax Return
• Bank statement for the concerned year
• Details required particularly specified in Income Tax Notice/ as suggested by our experts.