All About Tax Notice Under Section 142(1) for Taxpayers

The income tax department issues the notices beneath distinct provisions of the income tax act to the taxpayers with the intention to ensure effective tax complaints. Under section 142 of the income tax act, the notices would be covered.

At What Type the Notice is Being Sent to the Taxpayer:

Below mentioned are the cases when Section 142(1) tax notice is normally served.

• In which the return gets furnished within the mentioned time.
• If needed call for details and documents from the assessee if required.
• When various essential data is missing from the assesses return.

How to Deal Notice Under Section 142(1)

Post obtaining the notice the assessee from the income tax department should file the needed documents beneath the inquiry. The assessee has been provided with an opportunity to be heard regarding any material which would be required as per the same inquiry. For the case of non-filing of the return in the mentioned time duration, reasonable evidence for the late should be submitted as well as the needed documents.

Non-compliance Penalty for Section 142(1) Tax Notice

Section 142(1) covers penalties towards non-filing of the needed documents in the mentioned time duration, income tax notice might provide the outcome under the best judgment assessment u/s 144. Further, the penalty consists of:

1. Fine up to Rs 10,000 for each failure u/s 271(1)(b) or.
2. Imprisonment which may extend up to 1 year with or without a fine.