Can DIY Filers Handle Section 148? No – Use TaxBuddy
- PRITI SIRDESHMUKH
- Sep 17
- 8 min read
Section 148 notices under the Income Tax Act, 1961, demand precise financial reporting, legal compliance, and evidence-backed responses. DIY filers in India often underestimate the complexity involved, risking penalties, interest, and even legal scrutiny. Responding correctly requires a deep understanding of income reporting, deductions, documentation standards, and deadlines. TaxBuddy offers expert-led assistance, ensuring each response is legally compliant, systematically organised, and submitted on time. For taxpayers under reassessment proceedings, relying on DIY methods can be risky, whereas professional guidance simplifies the process, reduces errors, and ensures seamless compliance under Section 148.
Table of Contents
What is Section 148 and When Is It Issued?
Section 148 of the Income Tax Act empowers the Assessing Officer (AO) to reopen a completed assessment if they have reason to believe that income has escaped assessment. The notice under Section 148 is issued when the AO suspects that certain income, which should have been declared in the original return, was not reported, or has been underreported. Typically, this notice is issued for up to six years from the end of the relevant assessment year if the escaped income exceeds ₹1 lakh. In exceptional cases, where the escaped income exceeds ₹50 lakh, the AO can issue a notice for up to ten years. Upon receiving a Section 148 notice, taxpayers are required to respond within the specified timeline, typically 30 days from receipt, providing reasons, supporting documents, and any clarifications needed to justify their original return.
Why DIY Filers Struggle with Section 148
DIY filers often face difficulties responding to Section 148 notices due to the complex legal language and procedural requirements in the notice. Unlike regular ITR filing, Section 148 requires detailed explanations, supporting documentation, and a thorough understanding of the provisions under which the income is being questioned. Many filers struggle to determine whether the notice is valid, how to calculate escaped income, or how to present accurate computations. The lack of professional guidance often results in delayed responses, incorrect submissions, or missed deadlines, which can trigger penalties and further scrutiny.
Key Challenges in Responding to Section 148 Notices
Responding to a Section 148 notice involves several challenges:
Determining Notice Validity: Taxpayers need to verify whether the notice has been issued within the legal timeframe. Mistakes here can result in unnecessary compliance burdens.
Document Collection: All relevant financial records, such as bank statements, invoices, TDS certificates, and investment proofs, must be compiled to justify declared income.
Computation Errors: Calculating the escaped income accurately is crucial. Incorrect computations may lead to penalties or reassessment issues.
Legal Language Understanding: Notices are often written in complex legal terms that DIY filers may find difficult to interpret.
Timely Response: Section 148 notices require strict adherence to deadlines, and delays can escalate scrutiny or attract interest and penalties.
How TaxBuddy Simplifies Section 148 Compliance
TaxBuddy provides an expert-assisted platform for handling Section 148 notices efficiently. Users can seamlessly upload the notice and required financial documents, and TaxBuddy’s professionals guide them through each step of the response process. The platform ensures correct computation of escaped income, prepares the necessary written submissions, and helps taxpayers meet deadlines without errors. For DIY filers, switching to TaxBuddy reduces anxiety, avoids procedural mistakes, and ensures that compliance with Section 148 is smooth and timely.
Documents Required to Respond to Section 148
To respond effectively to a Section 148 notice, the following documents are typically required:
Original ITR filed for the relevant year
Form 26AS and TDS certificates
Bank statements and financial statements
Sale or purchase documents for assets, if applicable
Investment proofs such as PPF, NSC, or mutual funds
Any other supporting proofs to justify income declared or deductions claimed
Having these documents organized beforehand helps in preparing a timely and accurate response.
Can DIY Filers Switch to Expert Help After Receiving a Notice?
Yes, taxpayers who initially filed their ITR themselves can switch to expert-assisted services after receiving a Section 148 notice. TaxBuddy allows users to transfer all data and documents securely to professionals who can handle the notice, compute escaped income accurately, and prepare a detailed response on behalf of the taxpayer. Switching to expert help ensures compliance, reduces the risk of errors, and helps navigate the notice with confidence, even if the initial filing was self-prepared.
Common Mistakes DIY Filers Make with Section 148
DIY filers responding to a notice under Section 148 of the Income Tax Act frequently make mistakes that can complicate the process and potentially result in penalties, delayed assessments, or additional scrutiny from the Income Tax Department. One of the most common errors is ignoring the notice or delaying the response. Many taxpayers either do not fully understand the urgency of the notice or assume it can be addressed later. Delays can lead to missed deadlines, which can attract interest on the outstanding tax or even penalties under the Income Tax Act.
Another frequent mistake is submitting incomplete documentation. Filers often fail to provide all the supporting documents requested, such as bank statements, invoices, or proof of deductions, which can lead the assessing officer to question the validity of the income reported or the deductions claimed.
Misinterpreting the legal language of the notice is also a common pitfall. Notices under Section 148 contain legal terminology and references to specific sections of the Income Tax Act, and incorrect interpretation can result in inaccurate responses or misreporting of income.
DIY filers may also incorrectly calculate escaped income. This could involve mistakes in adding unreported income, not considering prior adjustments, or misclassifying certain receipts. Errors in calculations can attract further scrutiny, notices, or adjustments from the department.
Overlooking deadlines is another serious mistake. Even if the notice is responded to, missing the prescribed timeline for submission can trigger additional interest charges and late filing penalties, worsening the taxpayer's position.
Finally, many filers fail to claim eligible deductions or exemptions while responding. Ignoring sections such as80C, 80D, or deductions for home loan interest can unnecessarily increase the taxable income reported, resulting in higher tax liability and potential disputes.
Overall, these mistakes not only prolong the assessment process but also increase the risk of further scrutiny, additional notices, and avoidable penalties. Careful attention to deadlines, accurate calculations, complete documentation, and a proper understanding of legal language are essential to ensure a smooth and correct response under Section 148.
Benefits of Using TaxBuddy for Section 148 Notices
Using TaxBuddy to respond to Section 148 notices offers a comprehensive solution for taxpayers facing the often complex and intimidating process of dealing with notices from the Income Tax Department. One of the key advantages is expert assistance at every step. TaxBuddy provides access to experienced professionals who guide users through the preparation of their responses, ensuring that every detail is accurate and compliant with the requirements of the Income Tax Act. This guidance significantly reduces the risk of mistakes, which can otherwise lead to further scrutiny or penalties.
Another significant benefit is error-free computations. Calculating escaped income, allowed deductions, and other relevant adjustments under Section 148 can be complex, especially for those unfamiliar with tax laws. TaxBuddy ensures that all calculations are thoroughly checked and verified, minimizing the chances of errors that could complicate the notice response process.
Deadline management is another crucial feature. Responding to a Section 148 notice requires strict adherence to timelines, and missing the deadlines can have serious consequences, including additional penalties or legal complications. TaxBuddy helps manage these timelines efficiently, reminding users of submission dates and ensuring that all responses are filed promptly.
Document organisation is often a challenge when responding to tax notices. TaxBuddy assists users in collating all necessary proofs, statements, and supporting documents in an organized manner. This structured approach not only makes the submission process smoother but also strengthens the taxpayer’s response in case of scrutiny.
Finally, using TaxBuddy provides peace of mind. Taxpayers can rely on expert support throughout the process, reducing stress and uncertainty that often accompanies Section 148 notices. Instead of navigating complex legal and procedural requirements alone, users can trust that their response is accurate, timely, and well-documented.
By leveraging TaxBuddy’s services, taxpayers can simplify the entire process, avoid common mistakes, and ensure that their response to Section 148 notices is handled professionally and efficiently.
Conclusion
Section 148 notices can be complex and intimidating for taxpayers attempting DIY filing. The risks of misinterpretation, missed deadlines, and incorrect documentation make professional assistance highly valuable. Platforms like TaxBuddy simplify the process, guiding taxpayers through notice response, document preparation, and submission, ensuring compliance and accuracy. For anyone dealing with a Section 148 notice or looking for reliable support in handling reassessments, TaxBuddy provides a seamless, expert-assisted experience that reduces errors and stress.
For anyone looking for assistance in responding to Section 148 notices, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides flexible options to suit every taxpayer’s needs. Users can choose between self-filing, which allows them to complete their ITR independently using guided tools, or expert-assisted plans, where TaxBuddy professionals handle the entire filing process, ensuring accuracy and compliance. This ensures that both confident self-filers and those seeking professional support are accommodated.
Q2. Which is the best site to file ITR? The best platform depends on your filing needs. TaxBuddy is highly recommended for its AI-driven tools, easy-to-use interface, and expert-assisted plans. It ensures error-free filing, tracks TDS and income details automatically, and simplifies both regular and complex returns. Other platforms exist, but TaxBuddy combines automation, security, and personalized support.
Q3. Where to file an income tax return? ITR can be filed on official government portals or through authorized platforms like TaxBuddy. Using TaxBuddy ensures that your filings are secure, accurate, and compliant with the latest ITR forms, with added assistance for both standard and complex returns.
Q4. Can I respond to a Section 148 notice myself, or do I need a professional? You can respond to a Section 148 notice yourself if you are confident in understanding the legal requirements and preparing accurate computations. However, due to the complexities involved, using a professional or TaxBuddy’s expert-assisted service is recommended to ensure timely, accurate, and fully compliant responses.
Q5. What documents are mandatory for responding to Section 148? Essential documents include prior ITR filings, bank statements, Form 26AS, TDS certificates, proof of expenses, and any other documents supporting your declared income. TaxBuddy can guide you in organizing these documents efficiently, reducing the risk of errors or missing information.
Q6. How long do I have to respond to a Section 148 notice? The Income Tax Department typically provides a 30-day response window, though extensions may be possible upon request. Timely responses are crucial to avoid penalties or legal complications. TaxBuddy provides reminders and step-by-step guidance to help you meet these deadlines.
Q7. Can I switch to expert help after filing my ITR myself? Yes. If you have already filed your ITR but wish to switch to expert assistance for revisions, clarifications, or dealing with notices, TaxBuddy allows you to upgrade to an expert-assisted plan at any stage, ensuring your filings are fully compliant.
Q8. What penalties apply for missing the Section 148 response deadline? Failing to respond within the prescribed timeline can lead to penalties under the Income Tax Act, including fines and interest on undisclosed or escaped income. Timely filing through platforms like TaxBuddy minimizes these risks by providing alerts and professional support.
Q9. How does TaxBuddy calculate escaped income accurately? TaxBuddy uses AI-driven calculations combined with verified documentation, such as TDS, bank statements, and income details, to determine any discrepancy or escaped income. This ensures precision and reduces the chances of errors that could attract scrutiny.
Q10. Will using TaxBuddy guarantee my notice is resolved without issues? While TaxBuddy ensures accurate filing, professional assistance, and compliance guidance, resolution also depends on the Income Tax Department’s verification. TaxBuddy significantly reduces errors and enhances the likelihood of smooth resolution, but ultimate clearance depends on the department.
Q11. Can I track the status of my Section 148 response through TaxBuddy? Yes. TaxBuddy provides real-time updates and tracking features for all notices and responses, including Section 148, allowing you to monitor progress, deadlines, and department updates from a single dashboard.
Q12. Does TaxBuddy help in preparing revised or belated returns if required? Absolutely. TaxBuddy guides taxpayers through revised or belated return filings, ensuring compliance with deadlines, penalties, and proper reporting of corrections. Expert-assisted plans provide additional support to avoid discrepancies and delays in processing refunds or notices.
