Income Tax Notice: How to Check, Authenticate, & Respond to ITR Notices?
Got an income tax notice?
Don’t stress—TaxBuddy is here to help.
We simplify the process of handling income tax notices so you can stay worry-free.
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Are you filing an IT return because of the following reasons?

Before worrying about a notice, check if filing is mandatory for you. File an ITR if:
Your income exceeds the basic exemption limit.
You deposited over Rs. 1 crore in a current account.
You deposited over Rs. 50 lakh in a savings account.
TDS/TCS exceeds Rs. 25,000.
Business turnover is above Rs. 60 lakh.
Professional income is over Rs. 10 lakh.
You spent over Rs. 1 lakh on electricity.
You spent more than Rs. 2 lakh on foreign travel.
Stay compliant and avoid penalties by filing your Income Tax Return (ITR) on time.
Common Reasons for Receiving an Income Tax Notice
The Income Tax Department may issue a notice for several reasons. Understanding these can help you stay proactive:
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Non-filing of ITR: Missing the due date may lead to a reminder or penalty notice.
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Undisclosed income: Any income from salary, rent, business, or freelance work that isn’t reported can prompt scrutiny.
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Errors or mismatches: Discrepancies between your ITR and Form 26AS, AIS, or TIS may raise red flags.
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TDS/TCS mismatch: If taxes deducted or collected don’t align with reported income, clarification may be required.
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High-value transactions: Large deposits, property purchases, or luxury expenses without matching income declarations can attract scrutiny.
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Unreported capital gains/losses: Failing to disclose gains/losses from stocks, mutual funds, or real estate may result in a notice.
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Investing in a spouse or family member’s name: If not declared properly, such investments can raise suspicion.
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Use of incorrect ITR form: Filing your return using an inappropriate form may result in an intimation or defective notice.
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Discrepancies from previous years: Past omissions or underreporting can trigger reassessment notices.
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Non-payment of self-assessment tax: If dues are not paid before filing, you may receive a demand notice under Section 156.
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Large refund claims: High-value refund requests may be verified by the department before processing.
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Foreign income or assets not reported: Income from or assets held outside India must be disclosed under FEMA regulations.
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Property transactions not reported: Undervaluation or omission of property sale/purchase details can prompt a notice.
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Potential audit under Section 143(1): If your ITR is selected for scrutiny, additional documents may be requested.
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Mismatch with AIS/TIS data: Variations between what you reported and what the department records (via banks, employers, etc.) may need clarification.
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Any reason deemed appropriate by the Assessing Officer: Notices can be issued based on AI-based risk profiling or data mismatches.
Pro Tip: Keep your documents organized, reconcile with Form 26AS & AIS, and always use the correct ITR form to minimize chances of receiving a notice.
Income Tax Notices and Their Types
Getting a notice from the Income Tax Department can be stressful—but it's more common than you think. Whether you're salaried, self-employed, or a business owner, understanding the ITR Notices types can help you respond confidently and avoid panic.
Here’s a breakdown of various notices you may receive:
BASIC NOTICES
Get Expert Guidance
Transaction & Compliance-Based Notices
Tip: Every notice has a specific purpose and time limit. Consult a tax expert to avoid errors or penalties.
Information & Scrutiny Notices
Information and scrutiny notices arise from previous filings and require verification of such claims in tax returns. These include:
Information Requests
Sent when the department needs clarification on certain disclosures or transactions reported in earlier returns. You will be asked to submit additional details or documents.
Limited Scrutiny
Applies when specific aspects of your return (like capital gains, rental income, or deductions) are flagged for verification. Only the highlighted items need supporting evidence.
Full Scrutiny
A comprehensive review of your return. All sources of income, deductions, and financial transactions are examined. Complete documentation is usually required.
APPEAL & EX-PARTE ORDER NOTICES
When there's a disagreement with a tax-related decision made by the authorities, taxpayers have the right to appeal under the Income Tax Act. Understanding the appeal process and its notices can help you take timely action.
Reasons You May File an Appeal:
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Ex-parte orders passed without your representation
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Incorrect penalties or tax demands raised by the department
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Apparent errors not addressed through rectification
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Genuine deductions or claims disallowed by the CPC
The appeal process starts with CIT(A) — Commissioner of Income Tax (Appeals). If the outcome is not satisfactory, you may further appeal to:
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Income Tax Appellate Tribunal (ITAT)
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High Court
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Supreme Court (in rare or precedent-setting cases)
Notices include:
Appellate Notices
Issued when an appeal has been filed. It contains hearing dates or additional document requirements.
Ex-Parte Orders
If you fail to respond to a notice or attend proceedings, an order may be passed without your input.
Seeking Rectification
If a decision contains an apparent mistake, you may receive or initiate a rectification request to correct it under Section 154.
Tip: Always check the “e-Proceedings” tab on your income tax portal for updates. Ignoring notices can lead to unfavorable orders.
PRICING
Appeal Cases
Starting From
₹25,399
*Exclusive of Taxes
SUITED FOR
For 1st & 2nd Appeal
Appeals that can be conducted through online tax portals, without requiring a physical visit
ITAT Appeals will be charged separately, depending upon location & availability of tax consultant
For cases where you cannot proceed with simple Rectification, Revise Return, Feedback
Rectification / Revised / Defective
₹2,499
*Exclusive of Taxes
SUITED FOR
Applicable to rectifying defects, revisions, adjustments, HVT Notice, adjustments, Form 67 defects,26AS-AIS/TIS Mismatch etc.
Major overhauls or replacements beyond basic rectification
If the ITR plan fee is higher than the Notice fee, the higher of the two fees will be applicable
Full payment upfront
We aim to complete the service within 4 business days from the date of receiving the notice with all related documents
This pricing plan covers a two-time rectification / revise / defective service for each eligible customer.
Routine Notice
₹899
*Exclusive of Taxes
SUITED FOR
For providing a simple response and cross checking your filed ITR.
Applicable for Risk Management Notices, Refund Re-issue, Simple Response to outstanding demands, E-Campaign Response etc.
For revise filing due to omission of income or taken incorrect deductions, plan will change accordingly
For Agree/Disagree Responses.
Scrutiny Cases
Starting From
₹21,199
*Exclusive of Taxes
SUITED FOR
Comprehensive services for scrutiny cases, including document review, preparation of responses.
NOTE: Scrutiny is done by the tax department on a random basis. The filing of income tax returns (ITR) OR the type of sources of income OR type of ITR Form are not related to this process.
Scrutiny Cases (ITR Filed By TaxBuddy)
Starting From
₹12,699
*Exclusive of Taxes
SUITED FOR
Special rate for scrutiny cases where Taxbuddy has already filed the Income Tax Return (ITR) on behalf of the client for that particular A.Y. only.
NOTE: Scrutiny is done by the tax department on a random basis. The filing of income tax returns (ITR) OR the type of sources of income OR type of ITR Form are not related to this process.
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Our team is ready to assist with all types of Income Tax Notices, from filing appeals with the CIT(A) to representation in higher courts. With our deep tax law expertise, we're committed to securing the best outcomes for you.
How to Authenticate Income Tax Notice or Orders Issued by ITD?
Before responding to a tax notice, it is essential to verify its authenticity. Follow these steps to authenticate an income tax notice online:
Step 1: Access the IT Portal
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Visit the Income Tax e-Filing Portal
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Click on “Authenticate Notice/Order Issued by ITD” under the “Quick Links” section.

Step 2: Choose an Authentication Method
You can authenticate your income tax notice using either of these methods:

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PAN, Assessment Year, Document Type, Issue Date, and Mobile Number
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Enter the required details, including your PAN and assessment year.
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Enter the OTP received on your registered mobile number.
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If the notice is valid, the DIN (Document Identification Number) and issue date will be displayed.
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If no notice is found, a message stating “No record found for the given criteria” will appear.



B. Authenticate Using DIN and Mobile Number
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Enter the DIN (Document Identification Number) and registered mobile number.
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Receive and enter the OTP for verification.
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If the notice is valid, a confirmation message will appear.


Step 3: Validate and Respond
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If the notice is genuine, download and review it carefully.
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If it seems fraudulent, do not respond and report it immediately.
Need help interpreting or replying to your notice? Let TaxBuddy's experts handle it with ease!
How to Handle an Income Tax Notice: Steps to Take After Receiving an Income Tax Department Notice
Got an ITR notice? Don’t panic. Follow these steps to handle it smartly:
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Read the Notice Carefully – Understand the section, reason, and what the department expects from you.
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Verify Personal Details – Check if your PAN, name, address, and AY are correctly mentioned.
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Identify the Issue – Cross-check your ITR to identify any mismatch or discrepancy.
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Respond Before Deadline – Timely response can save you from penalties or prosecution.
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Seek Expert Help – Tax notices can be technical. Let professionals draft and file a proper response.
Documents Required to Reply to an Income Tax Notice
The documents required to respond to an income tax notice depend on the type of notice. Generally, you will need the following documents:
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Copy of the Income Tax Notice
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TDS Certificates (Form 16 - Part A)
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Income Proof (Salary Slips, Form 16 - Part B, etc.)
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Investment Proof (Insurance, ELSS, PPF, etc.)
Time Limit for Issuing Notices for ITR Filed Before the Finance Act, 2021
Prior to Finance Act, 2021: Notice Timelines Under Section 148
1. Up to Four Years from the End of the Relevant Assessment Year (AY)
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A notice under Section 148 can be issued up to four years from the end of the relevant AY.
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Only an officer of the rank of Assistant Commissioner or Deputy Commissioner can issue such a notice.
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The Assessing Officer (AO) can issue the notice only with the approval of the Joint Commissioner, after recording valid reasons.
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Example: For AY 2017-18, the notice could be issued until 31st March 2022.
2. Beyond Four Years but Up to Six Years from the End of the Relevant AY
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The Chief Commissioner or Commissioner must be satisfied that income has escaped assessment.
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The escaped income must exceed ₹1,00,000.
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Example: For AY 2017-18, the notice could be issued until 31st March 2024.
3. Beyond Six Years but Up to Sixteen Years from the End of the Relevant AY
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If income related to an asset (including financial interest in an entity) located outside India has escaped assessment, a notice under Section 148 can be issued.
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Example: For AY 2017-18, the notice could be issued until 31st March 2034.
Amendments Introduced by the Finance Act, 2021
From 1st April 2021, the reassessment timelines have been modified. The new time limits for issuing notices are:
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Up to Three Years from the End of the Relevant FY: A notice can be issued if income has escaped assessment.
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Beyond Three Years but Up to Ten Years: A notice can only be issued if the escaped income is ₹50 lakh or more.
Updated Notice Timelines After the Amendment
Sr No | Financial Year | Notice up to Three Years | Notice Beyond Three Years (Up to Ten Years) |
---|---|---|---|
1 | 2020-21 | 31.03.2025 | 31.03.2032 |
2 | 2019-20 | 31.03.2024 | 31.03.2031 |
3 | 2018-19 | 31.03.2023 | 31.03.2030 |
4 | 2017-18 | 31.03.2022 | 31.03.2029 |
5 | 2016-17 | 31.03.2021 | 31.03.2028 |
6 | 2015-16 | Not Applicable | 31.03.2027 (Only in Specific Cases) |
Note:
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For AY 2015-16, the Assessing Officer cannot issue a notice under normal circumstances.
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For AY 2016-17, the notice had to be issued before 31st March 2021.
This amendment significantly reduces the reassessment window while maintaining extended timelines for cases involving high-value escaped income.
Common Mistakes Leading to Income Tax Notices
Understanding common pitfalls can help in avoiding future notices:
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Incorrect Personal Information: Errors in PAN, name, or address can lead to discrepancies.
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Mismatched Income Reporting: Differences between reported income and Form 26AS can trigger notices.
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Improper Claim of Deductions: Claiming ineligible deductions or not providing proper documentation.
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Delayed Tax Payments: Late payment of advance tax or self-assessment tax can attract penalties.
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Non-Reporting of Exempt Income: Even if income is exempt, non-reporting can raise red flags.
Steps to Prevent Receiving Income Tax Notices
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Timely and Accurate Filing – Always file your ITR before the due date with correct figures.
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Match with Form 26AS/AIS – Ensure consistency with tax statements available on the portal.
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Organize Financial Documents – Maintain all proof of investments, income, and deductions.
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Respond Promptly to Department Notices – Address preliminary notices or alerts immediately.
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Consult Experts When Needed – Complex matters require professional insight for effective handling.
TaxBuddy is here to help you prevent, manage, and respond to tax notices, accurately and on time!
Frequently asked questions
Q
What is an Income Tax Notice?
A
An Income Tax Notice is an official communication from the Income Tax Department issued to a taxpayer for reasons such as discrepancies in the ITR filed, requests for additional documents, or requiring the taxpayer’s presence. Notices are issued under various sections of the Income Tax Act, each specifying the purpose and the required taxpayer response.
While receiving a notice can feel alarming, it often just requires a timely and accurate response.
Q
How do I check my tax notice?
A
Notices are usually sent to the registered email of the taxpayer. Some notices are also available through the income tax portal. You can authenticate a notice using the “Authenticate Notice/Order Issued by ITD” option on the official website. Knowing your DIN (Document Identification Number) is essential.
Q
Does a salaried person get an income tax notice?
A
Yes, salaried individuals may receive tax notices, especially in cases of income mismatch, omission, or errors in Form 26AS, AIS, or TIS.
Q
What to do if I get income tax notice?
A
Stay calm. Read the notice, identify the reason, and gather any required information or documentation. Respond within the deadline to avoid penalties. Rectify errors or furnish missing details as needed.
Q
What happens if you don't respond to the tax notice?
A
Not responding to the income tax notice may have different consequences according to the type of notice. Such consequences include penalties of up to Rs. 10,000 and imprisonment for up to one year.
Q
What happens if I don't respond to the notice within 30 days?
A
Failing to respond to the notice within 30 days can get you in trouble. The IT department will adjust the outstanding demand without giving you an opportunity to respond.
Q
How do you reply to notice?
A
Replying to an income tax notice is easy as you can do it online by visiting the official website of the income tax department. Log in to the official income tax website, go to the compliance section, and submit your response under the relevant notice.
Q
What is an intimation letter from income tax?
A
An intimation order/notice is issued by the income tax department under section 143(1) after the successful processing of your return. It includes the details of the information submitted at the time of tax filing and a corresponding column of the details available with the tax department. This intimation is sent within a year from the end of the financial year.
Q
What does the code EXC 001 mean?
A
EXC-001 refers to monthly cash transactions exceeding ₹10 lakh, which fall outside the permissible limits under the IT Act.
Q
Do I get notices for current account transactions?
A
Yes, transactions above Rs. 50 lakh in a current account within a financial year can trigger a tax notice if not properly disclosed.
Q
What is the communication of the proposed adjustment u/s 143(1)(a)?
A
It refers to any information by the IT department regarding adjustment against refund claimed in your income tax return, such as incorrect claim, arithmetical error, or disallowance of loss claimed. Such adjustment could relate to the outstanding demands of previous assessment years.
Q
How can you rectify the discrepancy in u/s 143(1)?
A
If any demand raised in the discrepancy in notice u/s 143(1) is correct, you should pay it. Conversely, you should file rectification u/s 154 (1) or a revised return if a mistake is apparent from the record. For a revision, click ‘e-file’ and choose ‘file income tax return’. For rectification, click ‘services’ and select the ‘rectification’ option from the menu.
Q
How do I pay my tax on demand?
A
Paying online is an easy way to clear your tax on demand. Log in to the e-filing portal, go to “Response to Outstanding Demand,” and pay directly using online banking or debit card.
Q
How do you correct outstanding tax demand?
A
Once again, you can do it by logging in to the official efiling website, going to the pending actions section, and selecting Response to Outstanding Tax Demand.
Q
How long after filing tax returns can you expect an assessment notice?
A
You can get a scrutiny assessment notice u/s 143(2) only up to six months from the end of the financial year.
Q
How do I get my CPC income tax return?
A
You get an ITRV (acknowledgment) on your registered mail ID soon after filing the ITR. You can also download it from your account on the official website.
Q
How to download the demand notice from the Income Tax portal?
A
You can download the demand notice from the Income Tax portal by logging into your account, going to 'e-Proceedings' or 'My Account,' and then selecting 'View Tax Credit Statement (Form 26AS).’ You can find and download the notice from here.
Q
What is Section 156 of the Income Tax Act?
A
Section 156 of the Income-tax Act specifies the provision for demand notice issued by the Income-tax Department on completion of the assessment indicating that a taxpayer is liable to pay some extra amount of income tax. The notice will specify the amount payable and the due date.
Q
How to Draft a Reply to an Income Tax Notice?
A
An answer to the notice of income tax would contain the following: details of the taxpayer, reference to the notice in question, explanation or justification with clarity on the issue raised, and supporting documents. One should seek a tax expert for correctness.
Q
What to Do if You Get an Income Tax Notice for Not Filing a Return?
A
In case of an income tax notice for failure to file an income tax return, if not already filed, the filing of the return shall be done within the time allowed on that behalf in the said notice. Afterwards, reply to the notice and explain the same along with proof of filing, if applicable.
Q
What is the Time Limit for Scrutiny Assessment under Income Tax?
A
Normally, the time limit for completing the scrutiny assessment is 12 months from the end of the financial year in which the return was filed. Extension may apply in specific cases.
Q
What is the Time Limit for Issuing an Income Tax Notice?
A
The notice under the income tax that is imposed usually depends on the kind of notice that has to be given. The assessment or reassessment notice should unbelievably be issued within four years from the end of the corresponding assessment year generally.
Q
What Triggers a High-Value Transaction Notice of Income Tax?
A
High-value transactions, as big as purchasing substantial properties or making significant bank deposits, investments, and so on, can trigger an income tax notice. These are generally noticed for the source of funds.
Q
How to Respond to an Income Tax Notice on Property Purchase?
A
Reply to the notice of the income tax on the purchase of the property, with full details of the transaction, that is, sale deed, proof of payment, and source of funds, and enclosed all necessary relevant supporting documents, with regard thereto.
Q
What is the Correct Format of an Income Tax Scrutiny Reply Letter?
A
The format for reply to the letter of income tax scrutiny shall include the subject line, which mentions the notice, then the details of the taxpayer, the summary of the issue under consideration, and thereafter, the detailed explanation for the same with attached documents. The form shall be in formal tone, in clear terms.
Q
What You Need To Know About Income Tax Scrutiny?
A
Scrutiny involves a detailed assessment of your ITR by the tax department to verify income, deductions, and taxes paid. Timely responses and documentation are important.
Terms & Conditions
Confidentiality: TaxBuddy agrees to maintain the confidentiality of all information provided by the client in relation to their tax notices and appeals, ensuring that sensitive financial and personal data remains secure.
Expertise: TaxBuddy commits to providing expert assistance and representation in handling tax notices and appeals, utilizing its knowledge and experience in tax law.
Timely Handling: TaxBuddy will ensure that all tax notices and appeals are handled within the prescribed time limits to avoid adverse consequences.
Transparent Pricing: TaxBuddy will provide the client with a clear breakdown of fees and charges for its services in handling tax notices and appeals, ensuring transparency in pricing.
Progress Updates: TaxBuddy will regularly update the client on the progress of their tax notices and appeals, keeping them informed about any developments in their case.
Client-Centered Approach: TaxBuddy will tailor its services to meet the specific needs and goals of the client in handling tax notices and appeals, with a client-centered approach to ensure the best possible outcome.
Negotiation and Settlement: TaxBuddy may engage in negotiations with relevant authorities to seek a resolution that is favorable to the client in handling tax notices and appeals, potentially avoiding lengthy legal proceedings.
Legal Representation: If necessary, TaxBuddy will provide legal representation during the handling of tax notices and appeals, presenting the client’s case effectively to the authorities.
Responsiveness: TaxBuddy will be responsive to the client’s queries and concerns in handling tax notices and appeals, providing dedicated support throughout the process.
Professionalism: With their expertise and professionalism, TaxBuddy aims to secure the best possible result for the client in handling tax notices and appeals, whether it’s a resolution, reduction in liabilities, or another favorable outcome.
Fee: TaxBuddy may require an upfront fee from the client to secure its services for handling tax notices and appeals, and this fee may not be refundable.
Engagement Duration: TaxBuddy may specify a minimum engagement duration for handling tax notices and appeals, and the client may be bound by this commitment.
Discretionary Handling: TaxBuddy may have the discretion to determine whether to handle a notice or appeal on behalf of the client, based on the merits of the case and its professional judgment.
Third-Party Costs: If third-party experts or services are required during the handling of tax notices and appeals (e.g., expert witnesses or consultants), the client may be responsible for these additional costs.
Conflict of Interest: TaxBuddy may represent multiple clients in handling tax notices and appeals, and in some cases, there may be conflicts of interest that require TaxBuddy to prioritize one client over another.
Limited Liability: TaxBuddy’s liability for errors, omissions, or inaccuracies in handling tax notices and appeals will be limited to the extent permitted by applicable laws and regulations. The client acknowledges that outcomes are subject to various factors, and TaxBuddy cannot guarantee specific results.
Termination for Non-Payment: TaxBuddy may reserve the right to terminate its services for handling tax notices and appeals if the client fails to make timely payments as per the agreed-upon payment terms.
Scope of Engagement: TaxBuddy may specify the exact scope of its engagement for handling tax notices and appeals, and any services outside of this scope may incur additional charges.
No Guaranteed Outcomes: TaxBuddy may explicitly state that there are no guarantees of specific outcomes in handling tax notices and appeals, and final decisions rest with the relevant authorities or legal entities.
Changes to Terms: TaxBuddy may have the discretion to make changes to the terms and conditions of the engagement for handling tax notices and appeals, with notice provided to the client.
Record Retention: TaxBuddy may retain records related to the client’s case for a specified duration, even after the engagement for handling tax notices and appeals is concluded.
Withdrawal of Services: TaxBuddy may withdraw its services for handling tax notices if it believes that the client’s case lacks merit or if the client fails to cooperate with reasonable requests during the handling process.