Ushma & Associates
Assistance in filing online response, appeals, pending compliance:
After an Individual file his Income-tax return, it is processed by the Income-tax Department. If there is any mistake/miscalculation noticed in the Income-tax return filed, then the same is intimated to the Assesse by sending him an Income tax notice /intimation.
There are various types of Income tax notices, issued by the Income Tax Department under various sections like section 139(9), 143(1), 143(2), 148, 156 & more. Now the response to these notices can be filed online by submitting relevant documents with an appropriate response.
Notices can be send for various reasons like Income is concealed or likely to be concealed, Preliminary Enquiry before an assessment, Income escaped assessment, Notice of Demand, Refund adjusted against the tax demand etc.
A person can file online response and can agree or disagree with notice. For that one shall be well versed with the provisions of income tax act to defend himself.
Many NRIs are getting notice under section 148A by Indian Income Tax authorities. In case they don’t reply to this notice within a specified time, they end up getting a notice under section 148 in which the assessing officer has reasons to believe that such an individual’s income chargeable to tax might have escaped assessment. Section 148A is a newly introduced section effective from 1st Apr, 2021. According to this section, when assessing officer has some information which suggest that income chargeable to tax has escaped assessment/ not disclosed by assessee then he conducts an enquiry (Show cause) and provide him an opportunity of being heard. Time period within which response shall be submitted will be provided in the notice which can be from 7 days to 30 days. If assessee doesn’t respond to this notice or Assessing officer is not satisfied with the response submitted by assessee then officer will issue a notice under section 148. Under section 148, a notice is issued to assessee requiring him to file a return of income with explanation in respect of that income which he thinks escaped assessment. Assessing officer after getting a reply from assessee, compute assessee income and pass an order accordingly under section 147.
NRIs are getting these notices because usually NRIs do inward remittance in India and then invest this sum in NRE/NRO term deposits or purchase an immovable property or purchase mutual funds or do any other investments. As they do not have any income in India in that particular financial year, they skip filing annual income tax return in India. Income tax authorities has a mechanism (risk management system) through which they get details of these high value transactions but they don’t have the information of the source of funds behind these transactions as tax return was not filed by assessee in this regard. Hence, they issue a notice under section 148A to assessee telling them they have details of particular transactions with them and they do not know source of these funds as return is not filed. They give an opportunity to assessee to provide explanation and submit relevant documents to make them understand how these transactions are done without earning income in India.