income tax return

Respond to Income Tax Notice, or Face Recurring Penalties

Paying your income tax is part of your duty as a taxpayer, and the failure to comply with the requirements can have consequences. If the tax authority is not satisfied with the accuracy of your income tax return submitted, they may serve you an income tax notice. The government is very strict in terms of income tax returns, so you may get an income tax notice for even minor mistakes you made while filing your income tax return. But income tax notice doesn’t always mean that you have to face a problem. Read this post carefully and take the necessary action.

Reasons You May Get Income Tax Notice

There are a lot of reasons why you may get an income tax notice. Here are some of the reasons you may get a notice from the Income Tax Department:

1.  Non-Filing of Income Tax Return

If you have performed transactions and not filed income tax returns or you have filed for an income tax return for a year and didn’t file for tax return the following year, then you could be sent a notice for non-filing of an income tax return. If your company deducts your tax and fails to file the income tax return, you can also get a notification.

If the Income Tax Department sends you a mail through the post, you are required to respond to the authority and give the reasons why you didn’t file for an income tax return. And if you receive the income tax notice through the mail, you can reply to it online.

2.  Delayed Income Tax Return Filing

If you delay filing your income tax return, you will get a notice. This is usually within a year of the end of the evaluation you delay filing the return. You can reply to the notice under the “Return Under Preparation.

Income tax notice3.  Non-Disclosure of Income

Income Tax Department might send you a notice for non-disclosure of income if you didn’t show any income in your income tax return. If the income tax department gets information about your income, such as those from shares and securities, they may suspect you of hiding part of your income sources and send you an income tax notice.

4.   Tax Credit Mismatch

If there is no match between the tax credit in Form 26AS and the income tax return, you’ll most likely receive a notice for a mismatch. When this happens, you’ll need to double-check your tax credit details in your income tax return with that in Form 26AS, and if there is an error in the form, you need to remedy it.

Penalty for Non-Compliance of Income Tax Notice

Failing to pay your taxes on time can lead to tax liens on your wages or bank account. In some cases, the Internal Revenue Service can seize your property and other assets. And if a criminal investigation is commenced, it can also lead to jail time. While these may sound serious, most tax discrepancies occur as the results of an honest mistake on the part of the taxpayer, and they can easily be sorted. Having an awareness of the nuances of income tax notice and the right way to handle them can save you valuable money, effort, and time


If you do not respond to the income tax notice you receive from the income tax department, it could cost you a lot of money, time, and peace of mind. And in some cases, it could lead to imprisonment. Fortunately, we have offered the solution to some of the most important and common types of income tax notices.