Types of tax notice

Types of Tax Notice
Brought to you by:
Call us :+91-88208-20811
Mail us: info@taxmantra.com
Visit Us: www.taxmantra.com

Here’s a quick List :
 Notice Under Section 142 to File return under
139(1)
 Notice Under Section 143(3) for Scrutiny
Assessment
 Notice Under Section 148 for Income
Escaping Assessment
 Readjustment Under Section 245
Call us :+91-88208-20811

Notice Under Section 142
When an assessee who is otherwise required to
file returns u/s139(1) fails to file returns, Notice
is issued to him to file returns as under 139(1)
Call us :+91-88208-20811

Notice Under Section 143(3)
Call us :+91-88208-20811
When the I-T department has reason to believe
that Scrutiny Assessment needs to be carried
out to double check the authenticity of returns
filed under 143(1),the department decides to
Carry-out Scrutiny Assessment i.e. Detailed
Checking.
Selection is made by the CASS (Computer Assisted
Scrutiny System) as well as manual
Parameters.
The details are given in the next slides

General Parameters for Issuing
143(3)
 Addition of more than Rs.10 Lakh in the earlier year and
confirmed by appellate authorities.
 Cases where Seizure has been carried out
 Cases where reassessment proceedings u/s 148 have been
initiated
 Cases where survey proceedings have been initiated
 Addition of more than Rs.10 Lakh in the earlier year under the
provisions of Transfer Pricing
 Cases where transactions with Associated Enterprises
involving provisions of Transfer Pricing exceed Rs.15 Crores
 After seeking Prior Approval of the Chief Commissioner of
Income Tax or Director General of Income Tax, A.O may serve
notice on having sufficient reason to believe
Call us :+91-88208-20811

Specific Parameters for Issuing
143(3)
1. Cash deposits in Bank during the Financial Year exceeding Rs.10 Lakhs
2. Buying or Selling Property, sales consideration exceeding Rs.30 Lakhs
*(However it could be exempted in cases where profit net of tax,i.e. actual
profit less tax on capital gain, is less than 1/8th of investment (non-
network) [Network being assesses in areas where the IT department is
having Network Station]
3. Agricultural Income exceeding Rs.10 Lakhs
4. Sales turnover exceeding Rs.20 Crores
5. Gross Receipts in Profession exceeding Rs.40 Lakhs and net profit less than
30% of Gross Receipts
6. Cases where fresh capital gain during the year exceeds Rs.30 Lakh
7. Exemption claimed under Section 54 and 54 F (For capital Gains on sale of
Residential Property/Other than residential property and invest proceeds in
Residential Property), exceed Rs.20 Lakhs
Call us :+91-88208-20811

8. Cash deposits in Bank during the Financial Year exceeding Rs.10 Lakhs
9. Credit Card payments during the Financial Year exceeding Rs.2 Lakhs
10. Pay more than Rs.2Lakh into Mutual Funds during the Financial Year
11. Investments exceeding Rs.5 Lakhs in Bonds/Fixed Deposits and/or Rs.1 Lakh in
Stocks/ETFs
12. Loss under the head House Property
13. Income from Short Term Capital Gain i.e. on assets held less than 3 years/Shares
held for less than 12 months
14. Refund Claim by Non Resident, exceeding Rs.5 Lakhs
15. Cases where sundry creditors exceed Rs.30 Lakhs and 30% of Total Sales
16. Commission paid by assessee exceeds Rs.10 Lakh
143(3)
Call us :+91-88208-20811

17. Deductions/Exemptions claimed for the first time under 10 (23A to
10(23G),10A,10AA,80IA to 80JJA,80JJAA,80LA
18. Brought forward losses or current year’s carried forward losses exceed Rs.25
Lakhs
19. Contractors following Contract Completion Method/Net Profit is less than 5% of
Turnover.
20.Share Brokers having Gross Receipts exceeding Rs.2 crores
21.Real Estate Developers having sales exceeding Rs.5 crores
22. Assesses claiming Deductions in excess of RS.25 Lakhs under Chapter VI–A.
23. Cases where fresh capital introduced during the year exceeds Rs.50 Lakhs.
24. Cases where exemption u/s 10A,10AA,10B,10BA exceed Rs.25 Lakhs.
143(3)
Call us :+91-88208-20811

Notice under Section 147
When an assessing officer has reason
to believe that the any income of an
assessee has escaped assessment ,i.e.
not been disclosed and the tax on which
has also not been paid, he may proceed
to issue such assessee with a Show
Cause Notice.
Call us :+91-88208-20811

Readjustment Contrary to245
This is a mystery adjustment, wherein an
assessee’s refund is adjusted against demand
and that too without intimating to him the
same.
Find out more :
http://taxmantra.com/strict-guidelines-issued-
to-end-depts-tds-credit-refund-adjustment-
harassment-by-delhi-high-court/
Call us :+91-88208-20811

Call us :+91-88208-20811

Types of tax notice

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Similar to Types of tax notice

Similar to Types of tax notice (20)

Recently uploaded

Recently uploaded (20)

Types of tax notice