Income Tax News: Section 142(1) of the Income Tax Act 1961 empowers the Income Tax authorities to send a notice seeking additional information or clarification regarding the return filed or in a situation where no return has been filed. This notice requests necessary information in the format specified by law.
Notice for Return Filed Under Section 139(1)
Notification under section 142(1) can be sent in two situations. First, when you file your income tax return under section 139(1). Second, when you do not file your income tax return under Section 139(1) and the filing deadline has passed. However, the production of accounts or information relating to the period of three years preceding the previous year will be required only by the Assessing Officer.
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Income Tax News: Purpose of Notice
Filing Income Tax Returns: If you have not filed your return by the deadline or before the closing of the applicable assessment year, you may receive a notice under section 142(1), requesting you to do so.
Preparation of special reports and documents: Your Assessing Officer (AO), through notice under section 142(1), may request that you furnish certain accounts and documents after filing your income tax return. For example, you may be asked to submit records of your purchases and sales, documentation of any deductions you have taken, etc.
If You Ignore the Notice Under Section 142(1)
- You can be fined Rs 10,000 under section 271(1)(b).
- Your case may be covered under “Best Judgment Assessment” under Section 144, wherein the Assessing Officer will use his best judgment based on all the relevant information collected to make the assessment.
- It may take a year between prosecution under Section 276D and the imposition of a fine or no fine.
- In addition, the search can be authorized with a warrant under Section 132.
How Do You Respond to Notice Under 142(1)?
You can use the online “e-Proceedings” facility of the Income Tax Portal to reply to the notification under section 142(1) of the Income Tax Act.
- Open the Income Tax e-filing portal and log in.
- After selecting the “Pending Actions” tab, choose “e-Proceedings.”
- Click on the “View Notice” menu item.
- Click on “Submit Feedback” to open a new window.
- Now click on “Select response type for notice”.
- To submit your response, select “Partial Response” or “Complete Response”.
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