You are likely to get a notice if there is a discrepancy in the income tax calculated and paid by you while filing your income tax return (ITR) and that computed by the income tax department. Once you have verified your ITR after submitting it, the I-T department cross checks the income declared and tax paid by you with the information available with them.
While processing your ITR, if the tax department assesses that more tax is due from you than paid and declared in your return, then you would normally get a demand notice.
The intimation will be sent to you regarding the same via email and SMS under section 143(1). You will find the tax demand notice on your online account on the e-filing website. According to the current income tax laws, the time limit to respond to this is 30 days. If you do not respond to the notice within the stipulated time period, the department can take action against you.
If the person to whom the demand notice has been issued fails to pay the amount demanded within the time limit, then the assessee is liable for the following penalties:
- Interest u/s 220- Interest at the rate of 1 percent each month or part thereof is payable after the expiry of the 30 days time provided under section 156 tax notice.
- Penalty u/s 221- A penalty u/s 221 may be imposed by the assessing officer on the assessee but it should not be more than the amount demanded in the Demand Notice.
In case you have received an income tax notice, get in touch with a Tax Expert from Paridhi Corporate Advisors at info@paridhicorporate.in for assistance.
