Income Tax News: The Income-tax act of 1961’s Section 142(1) gives income tax authorities the authority to send out notices requesting further information or clarification regarding the location of filed returns, or in the event that no file returns have been submitted, to provide the necessary information in a format specified by law.
Notices for Filed Returns under Section 139(1)
Notification under Section 142(1) may be sent in two situations: first, when you file your income tax return under Section 139 (1); second, when you do not file your income tax return under Section 139 (1) and the deadline for filing one has passed. The production of accounts or information pertaining to a period of three years prior to the preceding year, however, shall only be required by the Assessing Officer.
Purpose of Notice
Filing of Income Tax Return: If you haven’t submitted your return by the deadline or before the conclusion of the applicable assessment year, you may get a Notice under Section 142(1) requesting that you do so.
Generating particular reports and documentation: Your Assessing Officer (AO) may, by means of Notice u/s 142(1), request that you produce certain accounts and documents after you have filed your income tax return. For instance, you may be asked to present your purchase and sales records, documentation of any deductions you have taken, etc.
Any further data, observations, or workings that the AO deems necessary: The assessing officer may ask you to provide any information, comments, or workings on certain points that he requests in writing and in the necessary format; these items may or may not be included in the books of accounts. As an illustration, an inventory of your possessions and debts.
Fee for Failure to Comply with Section 142(1) Tax Notice
In the event that you disregard Notice u/s 142(1), then:
- You could be subject to a penalty of Rs 10,000 under § 271(1)(b).
- Your case may be covered by “Best Judgement Assessment” under Section 144, in which the Assessing Officer’s best judgement based on all the pertinent information he gathered will be used to conduct the assessment.
- A year may pass between a prosecution under section 276D and a fine or no fine at all.
- Moreover, a search may be authorised under Section 132 with a warrant.
How to reply to the notice under U.S. 142(1)?
You can use the Income Tax portal’s online “e-Proceedings” feature to reply to a notification under Section 142(1) of the Income Tax Act. The actions to take are as follows:
- Open the Income Tax E-filing Portal and log in.
- After choosing the “Pending Actions” Tab, choose “E-proceedings.”
- Click on the “View Notices” menu item.
- Click “Submit Response” to open a new window.
- Click “Select Response type for Notice” now.
- To submit your response, select “Partial Response” or “Full Response.”
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