How to File ITR After Receiving a Tax Notice: A Detailed Guide
- Nimisha Panda
- May 14
- 10 min read
Receiving a tax notice from the Income Tax Department can be overwhelming, especially if it’s your first time dealing with one. However, it's crucial not to panic. Addressing a tax notice promptly and accurately is essential to avoid penalties and further complications. The notice may indicate issues such as discrepancies in your filed return, non-filing of returns, or a demand for additional taxes. Whatever the case, it’s important to follow the correct steps to respond.
Let us explore how to file your Income Tax Return (ITR) after receiving a tax notice. This article covers everything from identifying the type of notice you have received to gathering necessary documents, choosing the right ITR form, and ensuring you take the necessary actions to avoid any penalties.
Table of Contents
How to File ITR After Receiving a Tax Notice
Filing your ITR after receiving a tax notice involves several key steps. First, carefully review the notice to understand its type and the issue raised, whether it's a demand for additional tax, discrepancies, or a request for further information. Next, gather all necessary documents such as Form 16, bank statements, and investment proofs, ensuring they match the details in the notice. If your return was filed incorrectly, you can file a revised return, or if you haven't filed yet, you can submit a belated return before the deadline. Respond to the notice through the Income Tax e-filing portal, uploading the required documents and acknowledgment. After filing, verify your return using Aadhaar OTP, net banking, or ITR-V, and track the status of your refund or notice resolution.
Understand the Tax Notice
The first step after receiving a tax notice is to carefully examine the details. Understanding the purpose of the notice will guide you in taking the right actions. Different types of notices have different requirements, and addressing them accurately is essential.
Identify the Type of Notice
Tax notices can fall into several categories, such as:
Intimation u/s 143(1): This notice may be sent when the department finds discrepancies in your filed return, such as mismatched details between the return and your Form 26AS.
Notice u/s 139(9): This notice indicates that your return is defective, usually due to missing or incorrect information.
Notice u/s 142(1): This is a scrutiny notice, meaning the Income Tax Department requires further information or documents to verify the details of your return.
Understanding the specific notice type will help you understand the exact actions you need to take.
Check the Details
Once you know the type of notice, you need to check the details carefully:
Assessment Year: Ensure the notice is for the correct assessment year.
Discrepancy or Demand: The notice may indicate an outstanding tax demand or discrepancies in the filed return. Check for any specific instructions or details about the discrepancies.
Authenticate the Notice
Before proceeding, verify the authenticity of the notice to avoid falling for phishing scams. You can authenticate the notice by checking the official Income Tax Department portal or using a trusted tax filing app. Ensure that the PAN, notice number, and assessment year match the official records.
Gather Required Documents
Before filing or revising your ITR, you will need several key documents. These will help you accurately file your return or correct any errors that were flagged in the tax notice.
Form 16
If you are a salaried individual, Form 16 is a critical document as it summarizes your income and the tax deducted at source (TDS). Make sure this document is updated and accurate.
Bank Statements and Interest Certificates
These documents will help verify your income from interest, including savings and fixed deposit interest. Ensure that all income from bank accounts is correctly declared in your ITR.
Investment Proofs
To claim deductions under sections like 80C, 80D, and 80G, gather your investment proofs. These may include receipts for life insurance, provident fund, National Savings Certificates, or donations to charitable organizations.
Previous Year’s ITR Acknowledgment
Having a copy of your previous year’s ITR acknowledgment is helpful for cross-checking any figures and ensuring consistency with your new filing.
Notice Received from the Income Tax Department
Of course, keep a copy of the tax notice you’ve received for reference. It will contain important details regarding the required action and deadlines.
Review Your Previous ITR Filing
Once you’ve gathered your documents, the next step is to review your previous ITR filing to see if there were any mistakes or missing information.
Check if the Return Was Filed for the Relevant Assessment Year
Sometimes, a tax notice may be issued because you missed filing your return for a specific year. Confirm whether you’ve already filed the return for the year mentioned in the notice. If you haven’t, you may need to file a belated return.
Identify Discrepancies or Missing Information
The notice will usually highlight any discrepancies found in your filed return. Carefully compare the information provided in your return with the details mentioned in the notice. Common issues include mismatched income or deductions, unreported income, or errors in personal information.
Filing a Belated Return if Necessary
If you have not filed your ITR yet, you can file a belated return under Section 139(4). However, keep in mind that belated returns are subject to penalties, and the late filing window usually closes by December 31 of the assessment year.
Choose the Correct ITR Form
Choosing the correct ITR form is crucial for ensuring that your tax return is filed correctly.
Overview of ITR Forms
ITR-1 (SAHAJ): For salaried individuals with income up to ₹50 lakh, simple income sources (like salary, interest, and one house property), and no capital gains.
ITR-2: For individuals with income from multiple sources or capital gains.
ITR-4 (SUGAM): For individuals with income from business or profession (up to ₹50 lakh).
Other Forms (ITR-5, ITR-6, ITR-7): For firms, companies, and trusts.
Select the Appropriate Form Based on Income Type and Category
Select the form based on your income sources (salary, business, capital gains, etc.) and your taxpayer category (individual, Hindu Undivided Family, etc.).
File or Revise Your ITR
If your return was filed incorrectly or missed entirely, now is the time to file or revise it.
Filing a Belated Return After the Due Date
If you have not filed your return by the due date, you can still file it as a belated return. However, keep in mind that late filing penalties may apply.
Filing a Revised Return to Correct Mistakes
If you’ve already filed your return but it contains errors, you can file a revised return to correct them. A revised return should be filed before December 31 of the relevant assessment year.
Respond to the Notice Through the Income Tax Portal
Once your return is filed, it’s time to respond to the notice. You can do this through the Income Tax e-filing portal.
Upload Your Response or Revised Return
Log in to the Income Tax portal, upload your revised return or the required documents, and submit your response. Ensure that the details in your response match the corrections made in your filing.
Attach Necessary Documents and Acknowledgment
If the notice requests supporting documents, attach them in the designated section. Keep a copy of your acknowledgment for your records.
Verify Your Return
Once your return is filed, you must verify it to ensure it’s processed.
Verify Your Return Using Aadhaar OTP, Net Banking, or ITR-V
You can verify your return electronically using Aadhaar OTP, net banking, or by sending the signed ITR-V to the CPC, Bengaluru.
Follow Up and Track Status
After filing, keep track of your return status to ensure everything is processed properly.
Track the Status of Your Refund and Notice Resolution
You can track the status of your refund and the resolution of the tax notice via the Income Tax portal or mobile apps. Ensure you respond promptly to any additional queries.
Addressing Specific Questions Related to Filing ITR After Receiving a Notice
Q1: Can I file a belated ITR after receiving a tax notice?
Yes, you can file a belated return under Section 139(4), but penalties may apply if the return is filed after the due date.
Q2: What if the notice mentions discrepancies in bank account details?
Ensure your bank account details in the ITR match those in your PAN and Form 26AS. Update them if necessary.
Q3: How to respond if the notice asks for additional documents?
Upload the requested documents on the Income Tax portal. Ensure all documents are accurate and properly formatted.
Q4: What are the penalties for late filing after receiving a notice?
Penalties can range from ₹1,000 to ₹5,000 depending on your income and the filing delay.
Q5: Can I file ITR using a mobile app after receiving a tax notice?
Yes, many apps like TaxBuddy offer a mobile platform for filing ITR, resolving notices, and e-verifying your return.
Conclusion
Filing your ITR after receiving a tax notice can feel overwhelming, but with TaxBuddy, the process becomes straightforward and stress-free. TaxBuddy offers expert support to help you resolve any discrepancies or issues raised in the notice, ensuring your return is filed accurately and on time. With features like real-time tracking and mobile e-verification, you can manage your tax filing conveniently from anywhere. If you’re seeking a hassle-free experience with professional assistance, it is highly recommended to download the TaxBuddy mobile app for a secure, streamlined, and efficient tax filing process.
FAQs
Q1: What should I do immediately after receiving a tax notice?
When you receive a tax notice, the first step is to carefully read the document and understand what it pertains to. Check the type of notice to determine whether it relates to discrepancies, missing filings, or a demand for additional taxes. It is essential to verify the authenticity of the notice using the official Income Tax Department portal or trusted apps. After verifying the notice, gather all relevant documents such as your Form 16, bank statements, investment proofs, and previous year’s ITR acknowledgment. This will help you address the issue efficiently and ensure your response is accurate.
Q2: Can I file a revised ITR if I have already submitted my return?
Yes, if you have already filed your return but there are mistakes or omissions, you can file a revised ITR. The Income Tax Act allows taxpayers to file a revised return under Section 139(5), which can be done before the deadline of December 31 of the assessment year. This provides an opportunity to correct any errors or discrepancies in the originally filed return. It's important to ensure that the revised return is filed with all the necessary corrections and in a timely manner to avoid penalties.
Q3: How long do I have to respond to a tax notice?
You typically have 30 days from the date of the notice to respond. However, this timeline may vary depending on the type of notice you receive. For example, if the notice specifies a shorter response period, you must adhere to that timeline to avoid additional penalties or legal consequences. Always read the notice carefully to ensure you’re responding within the allotted time.
Q4: Is it mandatory to verify the ITR after filing?
Yes, once your ITR is filed, it is mandatory to verify it for processing. The verification process can be done electronically using Aadhaar OTP, net banking, or by sending the signed ITR-V to the Centralized Processing Centre (CPC) in Bengaluru. Without verification, the Income Tax Department will not process your return or resolve any associated issues, such as those raised in the notice.
Q5: Does TaxBuddy provide assistance for handling tax notices?
Yes, TaxBuddy offers expert assistance for handling income tax notices. Their team can help you understand the notice, provide advice on how to respond, and even assist in filing a revised return if necessary. TaxBuddy’s expert review service ensures that your response is accurate, timely, and complete, reducing the risk of penalties or further scrutiny.
Q6: How can I confirm if a tax notice is legitimate?
To confirm if a tax notice is legitimate, you should verify it on the official Income Tax Department portal. You can check the PAN, assessment year, and notice number to ensure they match the records on the official site. If you are unsure or suspect it could be a phishing attempt, always cross-check using trusted sources or consult a tax professional to avoid falling victim to scams.
Q7: What happens if I don’t respond to a tax notice?
Failure to respond to a tax notice can result in several consequences, including penalties, additional interest charges, and further scrutiny of your tax filings. In extreme cases, non-compliance could lead to legal action, such as the imposition of fines or even prosecution. It's crucial to respond to the notice within the specified time frame to avoid such issues.
Q8: Can I submit documents for verification after filing my return?
Yes, if the Income Tax Department requires additional documentation for verification, you can submit these documents after filing your return. The e-filing portal allows you to upload the necessary supporting documents such as proof of deductions, bank statements, and investment proofs. Ensure the documents are correctly scanned and in the requested format.
Q9: What are the consequences of submitting incorrect documents?
Submitting incorrect or incomplete documents can lead to delays in processing your return and may invite additional queries from the tax department. If the discrepancies are not resolved, your return could be reassessed, and you may face penalties. Always double-check the accuracy of the documents you submit to avoid such complications.
Q10: Can I pay the taxes due after receiving a notice?
Yes, if the tax notice includes a demand for additional taxes, you can make the payment through the official Income Tax Department portal. The payment can be made online, and once the payment is processed, it will reflect in your account. Be sure to keep the payment receipt for future reference and to upload it with your response to the notice.
Q11: Will I receive a refund after filing the return post-notice?
If your return is processed successfully and you are eligible for a refund, it will be issued after the verification and processing stages. Refunds are typically issued by the Income Tax Department once your return is verified and accepted. You can track the status of your refund via the Income Tax portal or through the TaxBuddy app.
Q12: How can I track my refund status after filing my return?
You can track the status of your refund through the Income Tax portal or by using the TaxBuddy app. Once your return is processed and verified, you’ll be able to monitor the status of your refund. Both platforms provide real-time updates, ensuring you stay informed throughout the process.
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