When Can a Revised Return Be Filed Under the Income Tax Act? A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the IRead more
When Can a Revised Return Be Filed Under the Income Tax Act?
A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the Income Tax Act.
📌 Conditions for Filing a Revised Return
1️⃣ Errors in the Original Return:
Incorrect income details or deductions claimed.
Omission of income that should have been reported.
Wrong tax computation or TDS mismatch.
2️⃣ Updated Information:
If new information becomes available after filing.
3️⃣ Defective Return Correction:
If a return is marked defective under Section 139(9) and needs rectification.
4️⃣ Change in Tax Regime or Filing Status:
If a taxpayer wishes to switch between Old and New Tax Regimes.
📅 Time Limit for Filing a Revised Return
A revised return must be filed before the earlier of: ✅ December 31 of the assessment year (for FY 2023-24, the last date is 31st December 2024). ✅ Completion of assessment by the Income Tax Department.
Example: If you filed your original return for FY 2023-24 on 30th July 2024, you can revise it until 31st December 2024, unless the tax department completes your assessment earlier.
🚀 How to File a Revised Return?
1️⃣ Log in to the Income Tax e-Filing Portal. 2️⃣ Select ‘File Income Tax Return’ and choose the correct Assessment Year. 3️⃣ Choose ‘Revised Return’ under Section 139(5). 4️⃣ Enter the acknowledgment number of the original return. 5️⃣ Make the required corrections and submit the revised return.
⚠️ Important Points to Remember
A return can be revised multiple times within the due date.
Filing a revised return does not attract penalties, but if income was underreported in the original return, interest or penalties may apply.
The revised return replaces the original return, so ensure all details are correctly updated.
If you’ve made a mistake in your ITR, file a revised return as soon as possible to avoid any tax complications. 🚀
Defective Return Under Income Tax Act (Section 139(9)) A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to cRead more
Defective Return Under Income Tax Act (Section 139(9))
A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to correct and resubmit it.
📌 When is a Return Considered Defective?
A return is treated as defective if it has any of the following errors or omissions:
1️⃣ Mandatory Details Missing
Personal details such as Name, PAN, or Address are incomplete or incorrect.
Bank account details are missing or invalid.
2️⃣ Incomplete or Inconsistent Information
Balance sheet or profit & loss account details missing in cases where audit is applicable.
Income details and TDS/TCS claims do not match with Form 26AS.
3️⃣ Tax Computation & Payment Issues
Taxes due are not paid fully before filing the return.
Self-assessment tax (SAT) or advance tax is not deposited.
4️⃣ Incorrect ITR Form Used
Filing an incorrect ITR form based on the income source.
5️⃣ Missing Attachments (For Audit Cases)
If the taxpayer is required to maintain books of accounts but fails to attach the details.
Failure to submit the audit report under Section 44AB when applicable.
📢 What Happens If a Return is Defective?
If the Income Tax Department detects a defective return, they issue a Notice under Section 139(9), giving the taxpayer 15 days to rectify and resubmit the correct return.
🚀 If the defect is not rectified within the given time, the return may be treated as invalid, and the taxpayer may face penalties or further notices.
To avoid a defective return, always ensure that the ITR form is properly filled, taxes are paid, and supporting documents are submitted where required.
Transactions Where Quoting PAN is Mandatory As per Rule 114B of the Income Tax Rules, 1962, quoting Permanent Account Number (PAN) is mandatory for certain financial transactions to curb tax evasion and ensure financial transparency. 📌 List of Transactions Requiring PAN 1️⃣ Banking & Financial TRead more
Transactions Where Quoting PAN is Mandatory
As per Rule 114B of the Income Tax Rules, 1962, quoting Permanent Account Number (PAN) is mandatory for certain financial transactions to curb tax evasion and ensure financial transparency.
📌 List of Transactions Requiring PAN
1️⃣ Banking & Financial Transactions
Cash deposits exceeding ₹50,000 in a single day in a bank/post office.
Fixed deposit of ₹50,000 or more in a bank/post office/NBFC.
Opening a bank account, except for Jan Dhan accounts.
Applying for a credit/debit card.
2️⃣ Real Estate Transactions
Sale or purchase of immovable property worth ₹10 lakh or more.
Renting property where monthly rent is ₹50,000 or more (Section 194-IB).
3️⃣ Vehicle Purchases
Buying/selling a vehicle (excluding two-wheelers) requires PAN.
4️⃣ Stock Market & Investments
Opening a Demat account.
Buying/selling securities or mutual funds exceeding ₹50,000 per transaction.
Buying/selling bonds or debentures exceeding ₹50,000.
5️⃣ Foreign Exchange Transactions
Foreign travel or forex purchase exceeding ₹50,000.
6️⃣ Cash & Business Transactions
Cash payments of ₹50,000 or more to a hotel or restaurant.
Purchases of jewelry, bullion, or other goods/services exceeding ₹2 lakh.
Cash payment of ₹50,000 or more for insurance premiums.
Payment to mutual funds, RBI bonds, or company shares exceeding ₹50,000.
7️⃣ Loans & Borrowings
Applying for a loan of ₹50,000 or more from a bank, NBFC, or financial institution.
🚀 Additional Points to Note
✅ If a person does not have a PAN, they must submit Form 60 instead. ✅ Businesses must quote PAN on invoices exceeding ₹2 lakh.
Quoting PAN is crucial for tax compliance and avoiding higher TDS deductions under Section 206AA. Always ensure you provide your PAN in high-value transactions to avoid legal and financial issues. 🚀
Is Aadhaar Number Mandatory Under the Income Tax Act? Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs. 📌 Key Provisions Related to Aadhaar Under Income Tax Act 1️⃣ MandaRead more
Is Aadhaar Number Mandatory Under the Income Tax Act?
Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs.
📌 Key Provisions Related to Aadhaar Under Income Tax Act
1️⃣ Mandatory Quoting of Aadhaar (Section 139AA)
As per Section 139AA, quoting Aadhaar number or Aadhaar Enrolment ID is mandatory while:
Filing Income Tax Returns (ITR)
Applying for a new PAN
2️⃣ Linking PAN with Aadhaar
As per CBDT notification, PAN will become inoperative if not linked with Aadhaar within the prescribed deadline.
To check or link, visit the Income Tax e-filing portal.
3️⃣ TDS and TCS Applicability (Section 206AA & 206CC)
If a taxpayer does not provide PAN or Aadhaar, TDS/TCS is deducted at a higher rate of 20% under Section 206AA & 206CC.
4️⃣ Aadhaar for Verification & e-KYC
Aadhaar is required for e-verification of ITR and e-KYC of financial transactions like opening bank accounts, investing in securities, etc.
5️⃣ Filing ITR Without Aadhaar
If an individual does not have an Aadhaar number, they must quote the Aadhaar Enrolment ID while filing their return.
6️⃣ Penalty for Non-Linking
If PAN becomes inoperative due to non-linking with Aadhaar, transactions requiring PAN (e.g., bank accounts, Demat, property sales) may get restricted.
📢 Final Thoughts
Aadhaar is mandatory for filing ITR, linking with PAN, and certain tax-related transactions. Ensure your PAN is linked to Aadhaar to avoid penalties and non-compliance issues. 🚀
Self-Assessment Under Income Tax Act – Section 140A Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return. 📌 Key Aspects of Self-Assessment Tax 1️⃣Read more
Self-Assessment Under Income Tax Act – Section 140A
Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return.
📌 Key Aspects of Self-Assessment Tax
1️⃣ Applicable Section
Self-assessment tax is governed by Section 140A of the Income Tax Act, 1961.
2️⃣ Who Needs to Pay It?
If, after considering TDS, Advance Tax, and tax credits, there is any outstanding tax liability, the taxpayer must pay it as self-assessment tax before filing the ITR.
3️⃣ How to Calculate Self-Assessment Tax?
Total Tax Liability (as per taxable income)
Less: TDS Deducted
Less: Advance Tax Paid
Add: Interest under Sections 234A, 234B, 234C (if applicable)
Balance Amount = Self-Assessment Tax Payable
4️⃣ Time of Payment
Self-assessment tax must be paid before filing the ITR.
If tax remains unpaid, the ITR will not be processed.
5️⃣ How to Pay Self-Assessment Tax?
Pay online through Challan ITNS 280 at the Income Tax e-filing portal.
Banks also accept payments for self-assessment tax.
6️⃣ Interest and Penalty
If self-assessment tax is not paid on time, interest may be charged under Section 234A, 234B, and 234C.
Late filing of the ITR can also lead to penalty under Section 234F.
7️⃣ Acknowledgment
After payment, a challan receipt is generated, which should be mentioned in the ITR while filing.
📢 Final Thoughts
Self-assessment ensures that a taxpayer clears any pending tax before filing returns. Timely payment avoids interest and penalties, ensuring a smooth tax filing process. 🚀
Summary Assessment Under Income Tax Act – Section 143(1) Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return. 📌 KRead more
Summary Assessment Under Income Tax Act – Section 143(1)
Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return.
📌 Key Features of Summary Assessment
1️⃣ Automated Processing
The return is processed electronically using the Centralized Processing Center (CPC).
No manual verification is done at this stage.
2️⃣ Matching with Departmental Records
The system automatically compares the ITR details with Form 26AS, AIS, and TDS records.
Any discrepancies in tax payments, deductions, or income are flagged.
3️⃣ Possible Adjustments The tax department may make adjustments for:
Arithmetic errors in tax computation.
Incorrect tax claims or deductions.
Mismatches in TDS/TCS or tax credits.
4️⃣ No Scrutiny Involved
Summary assessment is not a detailed scrutiny.
If further verification is needed, the department issues a notice under Section 143(2) for scrutiny.
5️⃣ Time Limit for Summary Assessment
A summary assessment order must be issued within 9 months from the end of the financial year in which the return was filed.
6️⃣ Outcome of Summary Assessment After processing, the taxpayer receives an Intimation under Section 143(1), which may show: ✅ No changes in tax liability. ✅ Refund due (if excess tax is paid). ✅ Additional tax payable (if tax is underpaid).
📢 Final Thoughts
Summary assessment is a quick, computerized check of tax returns without human intervention. However, if discrepancies exist, taxpayers may receive demand notices, refund approvals, or scrutiny notices for further examination. Always ensure accurate reporting to avoid unnecessary issues! 🚀
When Can a Notice Under Section 143(1) NOT Be Issued? A notice under Section 143(1) of the Income Tax Act is an intimation issued by the Income Tax Department after processing the Income Tax Return (ITR). However, in certain cases, this notice cannot be issued. These situations include: 📌 1. If theRead more
When Can a Notice Under Section 143(1) NOT Be Issued?
A notice under Section 143(1) of the Income Tax Act is an intimation issued by the Income Tax Department after processing the Income Tax Return (ITR). However, in certain cases, this notice cannot be issued. These situations include:
📌 1. If the Return is Not Filed
A Section 143(1) notice is generated only if a taxpayer has filed an ITR.
If the return is not filed, a notice under Section 142(1) or 148 (for non-filing or reassessment) may be issued instead.
📌 2. If a Scrutiny Assessment Has Already Been Initiated (Section 143(2))
If a detailed scrutiny notice (Section 143(2)) has already been issued, then an intimation under Section 143(1) cannot be issued later.
The scrutiny process involves a deeper examination of financial records beyond the automated processing of 143(1).
📌 3. If More Than 9 Months Have Passed from the End of the Financial Year
As per the Income Tax Act, a Section 143(1) notice must be issued within 9 months from the end of the financial year in which the ITR was filed.
If this time limit expires, the notice cannot be issued.
📌 4. If No Adjustments Are Required in the Return
The notice under Section 143(1) is issued only when:
There is a mismatch in the return filed and tax computation by the department.
There are arithmetical errors, incorrect claims, or tax credit mismatches.
If no such adjustments are required, no notice is issued, and the return is processed smoothly.
📌 5. If the Return is Already Processed & Refund Issued
Once the return is processed and a refund (if applicable) is issued, a Section 143(1) notice will not be sent again unless there is an error detected later.
📌 6. If the Return is Invalid or Defective (Section 139(9))
If the return is declared defective or invalid under Section 139(9) and is not corrected within the given time, a Section 143(1) notice cannot be issued.
📢 Final Thoughts
A Section 143(1) intimation is an automated processing summary, but it has limitations. If you receive a scrutiny notice (143(2)), missed the time limit, or have not filed a return, then a 143(1) notice cannot be issued. Always verify your tax filings to avoid unnecessary notices. 🚀
Reassessment Under Income Tax Act – Meaning, Provisions & Process 📌 What is Reassessment? Reassessment refers to the process where the Assessing Officer (AO) re-examines an already completed assessment if they believe that income has escaped assessment. This is done under Section 147 of the IncoRead more
Reassessment Under Income Tax Act – Meaning, Provisions & Process
📌 What is Reassessment?
Reassessment refers to the process where the Assessing Officer (AO) re-examines an already completed assessment if they believe that income has escaped assessment. This is done under Section 147 of the Income Tax Act, 1961.
🔹 Key Provisions of Reassessment (Section 147)
1️⃣ Reason to Believe:
The AO must have a valid reason to believe that some income was not assessed or was under-reported.
Mere change of opinion is not a valid ground for reassessment.
2️⃣ Time Limits for Reassessment Notices (Section 148):
If the escaped income is ₹50 lakh or less → Notice can be issued within 3 years from the end of the relevant assessment year.
If the escaped income is more than ₹50 lakh → Notice can be issued within 10 years from the end of the relevant assessment year.
3️⃣ Approval Requirement:
The AO needs prior approval from the specified authority before issuing a reassessment notice.
🔹 Process of Reassessment Under Section 147 & 148
✅ Step 1: Notice under Section 148 is issued to the taxpayer. ✅ Step 2: The taxpayer is required to file an Income Tax Return (ITR) in response to the notice. ✅ Step 3: The AO examines the response and issues a show-cause notice explaining why reassessment should not be done. ✅ Step 4: If valid reasons exist, reassessment proceedings begin, and a fresh assessment order is passed. ✅ Step 5: Taxpayer can challenge the reassessment if they find it unjustified.
🔹 When is Reassessment Not Allowed?
🚫 If the same issue was examined in the original assessment and no new information is available. 🚫 If more than 3 or 10 years have passed (depending on income threshold). 🚫 If AO does not have concrete evidence of income escaping assessment.
⚖️ Legal Safeguards for Taxpayers
Taxpayers have the right to challenge reassessment before the Commissioner of Income Tax (Appeals) or the Income Tax Tribunal.
If reassessment is without proper justification, courts can quash the notice.
📢 Final Thoughts
Reassessment is a tool for tax authorities to bring escaped income into the tax net, but it must be conducted lawfully. If you receive a notice under Section 148, consult a tax expert before responding.
Time Limits for Issuing Notices Under the Income Tax Act The Income Tax Act prescribes specific time limits for issuing different types of notices. Below is a summary of key provisions and their respective deadlines. 1. Notice for Scrutiny Assessment – Section 143(2) 📌 Purpose: Issued when a returnRead more
Time Limits for Issuing Notices Under the Income Tax Act
The Income Tax Act prescribes specific time limits for issuing different types of notices. Below is a summary of key provisions and their respective deadlines.
1. Notice for Scrutiny Assessment – Section 143(2)
📌 Purpose: Issued when a return is selected for detailed scrutiny. 📅 Time Limit: Within 3 months from the end of the financial year in which the return is filed. 🔹 Example: If a return for AY 2023-24 was filed on July 15, 2023, notice under Section 143(2) can be issued until June 30, 2024.
2. Notice for Income Escaping Assessment – Section 148
📌 Purpose: Issued when the Assessing Officer believes income has escaped assessment. 📅 Time Limits:
Within 3 years from the end of the relevant assessment year (for income escaping ₹50 lakh or less).
Within 10 years from the end of the relevant assessment year (if escaped income is more than ₹50 lakh).
🔹 Example: If income for AY 2019-20 escaped assessment, notice can be issued up to March 31, 2023 (for income ≤ ₹50 lakh) or March 31, 2030 (for income > ₹50 lakh).
3. Notice for Defective Return – Section 139(9)
📌 Purpose: Issued when a return is found defective due to missing details or incorrect disclosures. 📅 Time Limit: No fixed deadline, but usually issued within 6 months from return filing. 🔹 The taxpayer must rectify the defect within 15 days (or as allowed by the AO).
4. Notice for Best Judgment Assessment – Section 144
📌 Purpose: Issued when a taxpayer fails to file a return or does not respond to notices. 📅 Time Limit: Within 3 months before the end of the assessment year.
5. Notice for Inquiry Before Assessment – Section 142(1)
📌 Purpose: Issued when additional documents or explanations are required before completing an assessment. 📅 Time Limit: No prescribed limit, but usually issued before assessment completion.
6. Notice for Penalty – Section 274
📌 Purpose: Issued before imposing a penalty for non-compliance or misreporting of income. 📅 Time Limit: Generally within 6 months from the end of the financial year in which the assessment order is passed.
Final Thoughts
Timely compliance with notices is crucial to avoid penalties and interest. If you receive an Income Tax notice, verify its validity and time limits before responding. 🚀
How to Identify and Rectify Mistakes in an Income Tax Notice? Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act. 1. Common MistakeRead more
How to Identify and Rectify Mistakes in an Income Tax Notice?
Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act.
1. Common Mistakes in an Income Tax Notice
🔹 Mismatch in Income Details – The income mentioned in the notice may not match your ITR filing. 🔹 Incorrect Tax Calculation – Errors in tax liability computation, deductions, or rebates. 🔹 TDS Mismatch – TDS credit not given as per Form 26AS. 🔹 Incorrect Demand Raised – Wrong tax demand due to an automated system error. 🔹 Penalty or Late Fee Error – Unjustified penalties applied. 🔹 Arithmetical or Clerical Mistakes – Typing errors in PAN, name, or assessment year.
2. How to Verify the Mistake?
✔ Check Your ITR Acknowledgment – Compare details with the notice. ✔ Download Form 26AS & AIS – Cross-check TDS/TCS details and reported income. ✔ Refer to Intimation u/s 143(1) – Verify whether the calculations are correct. ✔ Match Deductions & Exemptions – Ensure all eligible deductions (e.g., 80C, 80D, 80G) are considered.
3. How to Rectify the Mistake?
✅ Step 1: Login to the Income Tax e-Filing Portal (https://www.incometax.gov.in) ✅ Step 2: Go to ‘Rectification Request’ under ‘Services’ section. ✅ Step 3: Select ‘Section 154 – Rectification’ and enter the details. ✅ Step 4: Upload Supporting Documents (ITR acknowledgment, Form 26AS, Tax Challans, etc.). ✅ Step 5: Submit the Request and Track Status
📌 If the mistake is on the department’s end, the rectified order will be issued within a few weeks.
4. What If the Error is Not Rectified?
🔴 If the mistake is not rectified, you can:
File a Grievance through the e-filing portal.
Submit a written application to the Jurisdictional Assessing Officer (AO).
File an Appeal before the CIT(A) under Section 246A (if demand is incorrect).
When a revised return of Income Tax can be filed under Income Tax Act?
When Can a Revised Return Be Filed Under the Income Tax Act? A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the IRead more
When Can a Revised Return Be Filed Under the Income Tax Act?
A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the Income Tax Act.
📌 Conditions for Filing a Revised Return
1️⃣ Errors in the Original Return:
2️⃣ Updated Information:
3️⃣ Defective Return Correction:
4️⃣ Change in Tax Regime or Filing Status:
📅 Time Limit for Filing a Revised Return
A revised return must be filed before the earlier of:
✅ December 31 of the assessment year (for FY 2023-24, the last date is 31st December 2024).
✅ Completion of assessment by the Income Tax Department.
Example: If you filed your original return for FY 2023-24 on 30th July 2024, you can revise it until 31st December 2024, unless the tax department completes your assessment earlier.
🚀 How to File a Revised Return?
1️⃣ Log in to the Income Tax e-Filing Portal.
2️⃣ Select ‘File Income Tax Return’ and choose the correct Assessment Year.
3️⃣ Choose ‘Revised Return’ under Section 139(5).
4️⃣ Enter the acknowledgment number of the original return.
5️⃣ Make the required corrections and submit the revised return.
⚠️ Important Points to Remember
If you’ve made a mistake in your ITR, file a revised return as soon as possible to avoid any tax complications. 🚀
See lessWhat is a defective return of Income Tax Act?
Defective Return Under Income Tax Act (Section 139(9)) A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to cRead more
Defective Return Under Income Tax Act (Section 139(9))
A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to correct and resubmit it.
📌 When is a Return Considered Defective?
A return is treated as defective if it has any of the following errors or omissions:
1️⃣ Mandatory Details Missing
2️⃣ Incomplete or Inconsistent Information
3️⃣ Tax Computation & Payment Issues
4️⃣ Incorrect ITR Form Used
5️⃣ Missing Attachments (For Audit Cases)
📢 What Happens If a Return is Defective?
If the Income Tax Department detects a defective return, they issue a Notice under Section 139(9), giving the taxpayer 15 days to rectify and resubmit the correct return.
🚀 If the defect is not rectified within the given time, the return may be treated as invalid, and the taxpayer may face penalties or further notices.
To avoid a defective return, always ensure that the ITR form is properly filled, taxes are paid, and supporting documents are submitted where required.
See lessIn what transaction PAN is mandatory to quote?
Transactions Where Quoting PAN is Mandatory As per Rule 114B of the Income Tax Rules, 1962, quoting Permanent Account Number (PAN) is mandatory for certain financial transactions to curb tax evasion and ensure financial transparency. 📌 List of Transactions Requiring PAN 1️⃣ Banking & Financial TRead more
Transactions Where Quoting PAN is Mandatory
As per Rule 114B of the Income Tax Rules, 1962, quoting Permanent Account Number (PAN) is mandatory for certain financial transactions to curb tax evasion and ensure financial transparency.
📌 List of Transactions Requiring PAN
1️⃣ Banking & Financial Transactions
2️⃣ Real Estate Transactions
3️⃣ Vehicle Purchases
4️⃣ Stock Market & Investments
5️⃣ Foreign Exchange Transactions
6️⃣ Cash & Business Transactions
7️⃣ Loans & Borrowings
🚀 Additional Points to Note
✅ If a person does not have a PAN, they must submit Form 60 instead.
✅ Businesses must quote PAN on invoices exceeding ₹2 lakh.
Quoting PAN is crucial for tax compliance and avoiding higher TDS deductions under Section 206AA. Always ensure you provide your PAN in high-value transactions to avoid legal and financial issues. 🚀
Read:What are the financial transactions covered in annual information return?
See lessIs Adhar number is required to be quote as per Income Tax Act?
Is Aadhaar Number Mandatory Under the Income Tax Act? Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs. 📌 Key Provisions Related to Aadhaar Under Income Tax Act 1️⃣ MandaRead more
Is Aadhaar Number Mandatory Under the Income Tax Act?
Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs.
📌 Key Provisions Related to Aadhaar Under Income Tax Act
1️⃣ Mandatory Quoting of Aadhaar (Section 139AA)
2️⃣ Linking PAN with Aadhaar
3️⃣ TDS and TCS Applicability (Section 206AA & 206CC)
4️⃣ Aadhaar for Verification & e-KYC
5️⃣ Filing ITR Without Aadhaar
6️⃣ Penalty for Non-Linking
📢 Final Thoughts
Aadhaar is mandatory for filing ITR, linking with PAN, and certain tax-related transactions. Ensure your PAN is linked to Aadhaar to avoid penalties and non-compliance issues. 🚀
See lessWhat is self-assessment under income tax act?
Self-Assessment Under Income Tax Act – Section 140A Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return. 📌 Key Aspects of Self-Assessment Tax 1️⃣Read more
Self-Assessment Under Income Tax Act – Section 140A
Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return.
📌 Key Aspects of Self-Assessment Tax
1️⃣ Applicable Section
2️⃣ Who Needs to Pay It?
3️⃣ How to Calculate Self-Assessment Tax?
4️⃣ Time of Payment
5️⃣ How to Pay Self-Assessment Tax?
6️⃣ Interest and Penalty
7️⃣ Acknowledgment
📢 Final Thoughts
Self-assessment ensures that a taxpayer clears any pending tax before filing returns. Timely payment avoids interest and penalties, ensuring a smooth tax filing process. 🚀
Read:What are the time limits of issuing of Notices under Income Tax Act?
See lessWhat is summary assessment under Income Tax Act?
Summary Assessment Under Income Tax Act – Section 143(1) Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return. 📌 KRead more
Summary Assessment Under Income Tax Act – Section 143(1)
Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return.
📌 Key Features of Summary Assessment
1️⃣ Automated Processing
2️⃣ Matching with Departmental Records
3️⃣ Possible Adjustments
The tax department may make adjustments for:
4️⃣ No Scrutiny Involved
5️⃣ Time Limit for Summary Assessment
6️⃣ Outcome of Summary Assessment
After processing, the taxpayer receives an Intimation under Section 143(1), which may show:
✅ No changes in tax liability.
✅ Refund due (if excess tax is paid).
✅ Additional tax payable (if tax is underpaid).
📢 Final Thoughts
Summary assessment is a quick, computerized check of tax returns without human intervention. However, if discrepancies exist, taxpayers may receive demand notices, refund approvals, or scrutiny notices for further examination. Always ensure accurate reporting to avoid unnecessary issues! 🚀
Read:What are the time limits of issuing of Notices under Income Tax Act?
See lessWhen notice of section 143(1) can not be issued under Income Tax Act?
When Can a Notice Under Section 143(1) NOT Be Issued? A notice under Section 143(1) of the Income Tax Act is an intimation issued by the Income Tax Department after processing the Income Tax Return (ITR). However, in certain cases, this notice cannot be issued. These situations include: 📌 1. If theRead more
When Can a Notice Under Section 143(1) NOT Be Issued?
A notice under Section 143(1) of the Income Tax Act is an intimation issued by the Income Tax Department after processing the Income Tax Return (ITR). However, in certain cases, this notice cannot be issued. These situations include:
📌 1. If the Return is Not Filed
📌 2. If a Scrutiny Assessment Has Already Been Initiated (Section 143(2))
📌 3. If More Than 9 Months Have Passed from the End of the Financial Year
📌 4. If No Adjustments Are Required in the Return
📌 5. If the Return is Already Processed & Refund Issued
📌 6. If the Return is Invalid or Defective (Section 139(9))
📢 Final Thoughts
A Section 143(1) intimation is an automated processing summary, but it has limitations. If you receive a scrutiny notice (143(2)), missed the time limit, or have not filed a return, then a 143(1) notice cannot be issued. Always verify your tax filings to avoid unnecessary notices. 🚀
Read:What are the time limits of issuing of Notices under Income Tax Act?
See lessWhat is reassessment under Income Tax Act?
Reassessment Under Income Tax Act – Meaning, Provisions & Process 📌 What is Reassessment? Reassessment refers to the process where the Assessing Officer (AO) re-examines an already completed assessment if they believe that income has escaped assessment. This is done under Section 147 of the IncoRead more
Reassessment Under Income Tax Act – Meaning, Provisions & Process
📌 What is Reassessment?
Reassessment refers to the process where the Assessing Officer (AO) re-examines an already completed assessment if they believe that income has escaped assessment. This is done under Section 147 of the Income Tax Act, 1961.
🔹 Key Provisions of Reassessment (Section 147)
1️⃣ Reason to Believe:
2️⃣ Time Limits for Reassessment Notices (Section 148):
3️⃣ Approval Requirement:
🔹 Process of Reassessment Under Section 147 & 148
✅ Step 1: Notice under Section 148 is issued to the taxpayer.
✅ Step 2: The taxpayer is required to file an Income Tax Return (ITR) in response to the notice.
✅ Step 3: The AO examines the response and issues a show-cause notice explaining why reassessment should not be done.
✅ Step 4: If valid reasons exist, reassessment proceedings begin, and a fresh assessment order is passed.
✅ Step 5: Taxpayer can challenge the reassessment if they find it unjustified.
🔹 When is Reassessment Not Allowed?
🚫 If the same issue was examined in the original assessment and no new information is available.
🚫 If more than 3 or 10 years have passed (depending on income threshold).
🚫 If AO does not have concrete evidence of income escaping assessment.
⚖️ Legal Safeguards for Taxpayers
📢 Final Thoughts
Reassessment is a tool for tax authorities to bring escaped income into the tax net, but it must be conducted lawfully. If you receive a notice under Section 148, consult a tax expert before responding.
Read: What are the time limits of issuing of Notices under Income Tax Act?
See lessWhat are the time limits of issuing of Notices under Income Tax Act?
Time Limits for Issuing Notices Under the Income Tax Act The Income Tax Act prescribes specific time limits for issuing different types of notices. Below is a summary of key provisions and their respective deadlines. 1. Notice for Scrutiny Assessment – Section 143(2) 📌 Purpose: Issued when a returnRead more
Time Limits for Issuing Notices Under the Income Tax Act
The Income Tax Act prescribes specific time limits for issuing different types of notices. Below is a summary of key provisions and their respective deadlines.
1. Notice for Scrutiny Assessment – Section 143(2)
📌 Purpose: Issued when a return is selected for detailed scrutiny.
📅 Time Limit: Within 3 months from the end of the financial year in which the return is filed.
🔹 Example: If a return for AY 2023-24 was filed on July 15, 2023, notice under Section 143(2) can be issued until June 30, 2024.
2. Notice for Income Escaping Assessment – Section 148
📌 Purpose: Issued when the Assessing Officer believes income has escaped assessment.
📅 Time Limits:
🔹 Example: If income for AY 2019-20 escaped assessment, notice can be issued up to March 31, 2023 (for income ≤ ₹50 lakh) or March 31, 2030 (for income > ₹50 lakh).
3. Notice for Defective Return – Section 139(9)
📌 Purpose: Issued when a return is found defective due to missing details or incorrect disclosures.
📅 Time Limit: No fixed deadline, but usually issued within 6 months from return filing.
🔹 The taxpayer must rectify the defect within 15 days (or as allowed by the AO).
4. Notice for Best Judgment Assessment – Section 144
📌 Purpose: Issued when a taxpayer fails to file a return or does not respond to notices.
📅 Time Limit: Within 3 months before the end of the assessment year.
5. Notice for Inquiry Before Assessment – Section 142(1)
📌 Purpose: Issued when additional documents or explanations are required before completing an assessment.
📅 Time Limit: No prescribed limit, but usually issued before assessment completion.
6. Notice for Penalty – Section 274
📌 Purpose: Issued before imposing a penalty for non-compliance or misreporting of income.
📅 Time Limit: Generally within 6 months from the end of the financial year in which the assessment order is passed.
Final Thoughts
Timely compliance with notices is crucial to avoid penalties and interest. If you receive an Income Tax notice, verify its validity and time limits before responding. 🚀
See lessHow vam point out mistake in an income tax notice which can rectified?
How to Identify and Rectify Mistakes in an Income Tax Notice? Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act. 1. Common MistakeRead more
How to Identify and Rectify Mistakes in an Income Tax Notice?
Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act.
1. Common Mistakes in an Income Tax Notice
🔹 Mismatch in Income Details – The income mentioned in the notice may not match your ITR filing.
🔹 Incorrect Tax Calculation – Errors in tax liability computation, deductions, or rebates.
🔹 TDS Mismatch – TDS credit not given as per Form 26AS.
🔹 Incorrect Demand Raised – Wrong tax demand due to an automated system error.
🔹 Penalty or Late Fee Error – Unjustified penalties applied.
🔹 Arithmetical or Clerical Mistakes – Typing errors in PAN, name, or assessment year.
2. How to Verify the Mistake?
✔ Check Your ITR Acknowledgment – Compare details with the notice.
✔ Download Form 26AS & AIS – Cross-check TDS/TCS details and reported income.
✔ Refer to Intimation u/s 143(1) – Verify whether the calculations are correct.
✔ Match Deductions & Exemptions – Ensure all eligible deductions (e.g., 80C, 80D, 80G) are considered.
3. How to Rectify the Mistake?
✅ Step 1: Login to the Income Tax e-Filing Portal (https://www.incometax.gov.in)
✅ Step 2: Go to ‘Rectification Request’ under ‘Services’ section.
✅ Step 3: Select ‘Section 154 – Rectification’ and enter the details.
✅ Step 4: Upload Supporting Documents (ITR acknowledgment, Form 26AS, Tax Challans, etc.).
✅ Step 5: Submit the Request and Track Status
📌 If the mistake is on the department’s end, the rectified order will be issued within a few weeks.
4. What If the Error is Not Rectified?
🔴 If the mistake is not rectified, you can:
- File a Grievance through the e-filing portal.
- Submit a written application to the Jurisdictional Assessing Officer (AO).
- File an Appeal before the CIT(A) under Section 246A (if demand is incorrect).
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