Tax Notice (2025)
Tax Notice
A tax notice is an official communication sent by the Income Tax Department (or other tax authorities like the GST Department) to a taxpayer. It could be a simple reminder, a demand for unpaid taxes, a request for documents, or a notice of scrutiny.
Tax notices can be issued to individuals, businesses, companies, freelancers, or salaried professionals — anyone who has filed (or failed to file) taxes.
Common Reasons for Receiving a Tax Notice
There are several reasons why you may receive a tax notice in India:
1. Mismatch in Income Details
If your income reported in the ITR (Income Tax Return) doesn’t match your Form 26AS or AIS (Annual Information Statement), you may receive a notice for clarification.
2. Non-Filing or Late Filing of Returns
If you have not filed your ITR or filed it after the due date, the department may issue a notice under Section 142(1) or 234F.
3. High-Value Transactions
If you have done large cash deposits, property purchases, or high-value investments, and they are not reflected in your ITR, you may get a notice.
4. Random Scrutiny or Assessment
Sometimes, cases are picked randomly for scrutiny to verify the correctness of returns filed.
5. GST Non-Compliance
If your GST returns are not filed or there is a mismatch between GSTR-1 and GSTR-3B, the GST department may issue notices or demands.
Types of Tax Notices
| Section | Purpose of Notice |
|---|---|
| Section 139(9) | Defective return filed |
| Section 142(1) | Inquiry before assessment |
| Section 143(1) | Intimation after return processing |
| Section 143(2) | Scrutiny notice |
| Section 148 | Income escaped assessment |
| Section 245 | Adjusting refund against previous dues |
| GST REG-03 | Additional documents needed for GST registration |
| GST ASMT-10 | Discrepancy in GST returns |
What Should You Do If You Receive a Tax Notice?
Step 1: Don’t Panic
Notices are common. Many are auto-generated and may only need minor clarifications.
Step 2: Read the Notice Carefully
Check the section, reason, assessment year, due date for reply, and any attached documents.
Step 3: Collect Relevant Documents
Gather your Form 16, bank statements, investment proofs, sale deeds, or any relevant financial documents.
Step 4: Consult a Professional
This is where Legal Darbar helps. Our panel of experienced CAs, tax consultants, and lawyers will:
Review your tax notice
Interpret the legal and financial implications
Draft a professional reply
Submit the response to the concerned department
Handle follow-up if required
Step 5: Respond Within Deadline
Always reply to the notice before the deadline mentioned. Ignoring a notice can lead to penalties, interest, or even prosecution.
Ignoring a Tax Notice Can Be Risky
Failure to respond to a tax notice on time can result in:
Heavy penalties and fines
Freezing of bank accounts
Cancellation of GST registration
Legal proceedings under Income Tax or GST laws
How Legal Darbar Can Help You
We at Legal Darbar are aware of the complexity of tax rules. For this reason, we offer comprehensive assistance with managing tax notices, which includes:
- Individualised advice from tax experts
- Examining and responding to notifications from the GST and IT departments
- Representation during scrutiny evaluations
- Support for correction or updated filing
- Serving as an intermediary between you and your compliance, we guarantee prompt, accurate, and legal responses to any tax-related issues.
Conclusion:
Tax notices don’t always indicate a problem; they are a typical component of the compliance procedure. They are frequently merely requests for small edits or clarification. The most crucial things are to thoroughly read the notification, take immediate action, and, if necessary, seek professional assistance.
We at Legal Darbar make it simple for you to comprehend and reply to any type of tax notification. Our team of legal and tax experts is here to assist you with clarity, confidentiality, and compliance about any matter pertaining to income tax or GST.
Avoid having your peace of mind disturbed by a tax notification. Get in touch with Legal Darbar right now, and our professionals will take care of the complexities for you.