The CBDT issues income tax notices to taxpayers if there is any discrepancy found between the income tax calculated by the taxpayer and that calculated by the Income Tax department.
Intimation about such Tax demand notices is sent through SMS and e-mail.
The Central Board of Direct Taxes (CBDT) issues income tax notices to taxpayers if there is any discrepancy found between income tax calculated by the taxpayer at the time of tax filing and the income tax calculated by the I-T Department.
Intimation about such tax demand notices are sent through SMS and e-mail. Taxpayers are required to respond to any notice within 30 days, according to Daphne Anand, CTO of IndiaFilings.
Here are the steps to respond to I-T notices online, as suggested by Sandeep Sehgal, Director - Tax and Regulatory, AKM Global, a consulting firm:
Step 1: Go to the e-filing portal -- incometaxindiaefiling.gov.in -- and login using relevant credentials.
Step 2: Go to the 'E-Proceedings' Tab. A dashboard of all proceedings concerning the assessee would appear reflecting the relevant assessment year and the current status.
Step 3: Click on the relevant proceeding name under which the notice is received. A dashboard of all communications with respect to such proceedings would appear.
Step 4: Click on submit under the “Response” tab for the respective notice/communication that needs to be responded to.
Step 5: Under response type, select “full response” or “partial response” as need be.
Step 6: In the textbox appearing against “Response/Remarks” add a brief (not exceeding 4,000 characters) about the response to the case and mention the covering letter or any documents if uploaded.
Step 7: Upload a copy of the covering letter and all relevant documents serving as evidence as annexures.
Step 8: Check the box for confirming declaration that all information submitted is complete and accurate.
Step 9: A pop-up box would appear providing an option for verification using EVC (Electronic Verification)/DSC (Digital Signature Certificate). Click on "Yes" to verify through these means. To submit without such verification, click on "No".
According to Anand, the taxpayer needs to select one of the following responses in the 'Response' section:
If the demand is correct
If the taxpayer agrees with the computation of IT department, he/she can select this response and click on ‘Submit’. In this case, the taxpayer needs to pay the income tax due immediately.
If the demand is partially correct
The taxpayer needs to enter the 'Amount which is correct' based on his/her calculation and the 'amount which is incorrect' will be auto-filled. The taxpayer then needs to select the appropriate reason from the list of options that is provided on the portal and fill all the applicable fields, upload the required supporting documents and 'Submit' the response.
If the taxpayer disagrees with demand
The taxpayer needs to select the appropriate reason from the list of options that are provided in the portal and fill all the applicable fields, upload the required supporting documents and 'Submit' the response.
If the demand is not correct but agrees for adjustment
The taxpayer needs to mention the reasons for disagreement and ‘Submit’ the response.
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