Tax Planning

Income Tax Notice Handling

Replies to intimations and notices, with the supporting records compiled and filed.

Governed by the period stated in the notice, commonly 15 to 30 days — send it to us as soon as it arrives

Most income tax communications are not accusations. A large proportion are intimations comparing the return you filed with the department's own computation, or requests for clarification where reported figures do not match the information the department holds.

What matters is responding within the period stated, with the records that support your position. Our advocate handles matters requiring representation, working with the accounting side of the practice to reconstruct the position from your records.

Read what is actually being asked

An intimation raising a demand may simply reflect a credit for tax deducted at source that was not matched, and can be resolved by correcting the details rather than by paying. A notice seeking information is not a proposal to assess. A notice proposing an adjustment requires a substantive reply.

Identifying the provision under which a communication has been issued determines both what response is required and how long you have to make it.

Faceless proceedings

Most assessment and appeal proceedings are now conducted electronically, without a personal hearing as a matter of course. Everything turns on the written submission and the documents uploaded with it.

That makes the quality and completeness of the first submission considerably more important than it once was, since there may be no opportunity to explain in person what a document was meant to show.

Who needs this

  • Taxpayers who have received an intimation raising a demand
  • Taxpayers asked to clarify a mismatch with Form 26AS or the Annual Information Statement
  • Taxpayers whose return has been selected for scrutiny
  • Taxpayers who have received a notice about a year they did not file

Eligibility and conditions

  • A notice, intimation or order from the department
  • Access to records for the year concerned
  • Authorisation for us to act, where representation is required

What this covers

  • Notice reviewed

    The provision, the period allowed and what is actually being asked.

  • Position reconstructed

    Records for the year compiled and reconciled.

  • Submission drafted

    A reply addressing the specific point, with documents annexed.

  • Filed within time

    Submission made within the period allowed.

  • Rectification

    Where an intimation is wrong, a rectification application filed.

  • Representation

    Appearance where the matter requires it.

How the process works

  1. Send us the notice

    Complete, with the assessment year and PAN.

  2. Review

    What is asked, under which provision, and by when.

  3. Compile records

    Documents for the year assembled and reconciled.

  4. Draft and confirm

    Submission drafted and reviewed with you.

  5. File and follow through

    Submission filed, with representation if required.

Documents required

  • The notice or intimation

    Complete, with all annexures.

  • Return filed for the year

    With the acknowledgement and computation.

  • Form 26AS and AIS

    For the assessment year concerned.

  • Bank statements

    For the financial year in question.

  • Supporting documents

    For the specific items queried.

  • Prior correspondence

    Any earlier submissions in the same matter.

The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.

Frequently asked questions

What happens if I miss the income tax return due date?

A belated return can generally still be filed within the period allowed, with a late fee. More significantly, filing late restricts the ability to carry forward certain losses to future years.

Where the belated window has also closed, an updated return may be available for a limited period on payment of additional tax. Tell us the assessment year and we will confirm which route is open to you.

Articles on this topic

Received a notice?

Send us the notice and the assessment year, and we will explain what is being asked and what the reply involves.