How to handle income tax notices after ITR filing? — explained with six tips

Even after filing your tax returns on time, receiving a notice or intimation from the income tax department can be confusing and unsettling. It's essential to address these notices promptly and accurately. Start by carefully reading the notice to understand its purpose. Typical issues may include reported income discrepancies, TDS information mismatches, or incomplete details.

Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, recommends: "To manage an income tax notice, log into the e-filing portal and navigate to the 'e-Proceedings' section. This is where you can view and respond to the notice electronically. Prepare all necessary documents, including Form 16, bank statements, and proof of investments."

According to Manikandan S, Tax Expert at Cleartax: "It’s essential to differentiate between an intimation and a notice. An intimation provides information on the processing of your return, and may not require action, whereas a notice demands a response. With the new Centralized Communication Scheme (CCS) from the CBDT, all communications will soon be electronic. Verify the notice’s authenticity on the e-filing portal before taking any action."

ITR filing: Received notice from the income tax department? Here is how to address it

• Carefully review the notice to understand its content.
• Check that the notice is correctly addressed to you, with accurate personal details and assessment year.
• Determine the cause of the notice, such as discrepancies in your tax return.
• Respond within the specified timeframe to avoid penalties.
• Support your response with relevant documentation.
• Ensure the notice is visible in your online tax account.

"Admit genuine errors and file a revised return if possible. For minor discrepancies, provide a detailed explanation with supporting evidence. For more complex issues or large tax demands, consult a tax professional. Avoiding the notice could result in further penalties or legal issues. Respond ideally within 7-10 days, though the usual deadline is 30 days," said Siddharth Maurya

"Keep a detailed record of all communications with the tax department. Most issues can be resolved promptly with accurate and timely responses, ensuring a smoother tax compliance process," added Maurya.

July 31 ITR filing deadline

July 31 was the final deadline for filing income tax returns. By this date, over 7.28 crore ITRs for the assessment year 2024-25 had been filed.

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Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.