Notice Under Section142(1) Income Tax Act 1961

 

Key Points about Notice Under Section142(1).Purpose: The notice is typically issued when the income tax department requires further information or clarification from taxpayers regarding their filed returns, or in cases where no return has been filed.

2. Types of Notices:

• Section142(1): This is often the initial notice requesting the taxpayer to file a return or to provide additional information/documents required for assessment.
• Section142(2): This notice can be issued when the assessing officer wants to assess the income and tax and is essentially more formal in nature.

3. Compliance: Taxpayers are required to comply with the notice by submitting the requested information or documents within the specified time frame.

4. Penalties: Failure to respond to the notice could lead to penalties, interest, or the assessment being completed based on the available information, which may not work in favor of the taxpayer.

5. Mode of Communication: Such notices are usually sent via registered post or may be delivered electronically.

6. Legal Framework: Section142 is part of the assessment procedure under the Income Tax Act in India and outlines the authorities and responsibilities in the income assessment process.

Conclusion Receiving a notice under Section142 should be taken seriously. It is advisable to promptly respond with the necessary documents or information to avoid any complications with tax assessments. It may also be beneficial to consult a tax professional for guidance.

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