Types of income tax notices and penalties for various offences
Section 131(1A) & Section 133A
An individual can receive a tax notice for a variety of reasons. Here is what the notices under different sections mean.
If you’ve got a notice under section 131(1a), it means the assessing officer has reason to suspect that income has been concealed.
You can get a notice under Section 133A for survey or scrutiny of accounts.
Section 142 & Section 143(1)
If you haven’t filed your income tax return you can get a notice under section 142 of the I-T act. For scrutiny of accounts and documents in support of the return filed by taxpayer.
Notice under section 143(1) is sent for adjustment or additional tax demand if an error or incorrect information is detected in the return filed by the taxpayer.
Notice under section 143(2) is sent for regular assessment after detailed inquiry by assessing officer.
For reassessment if the assessing officer believes some income has escaped assessment, you can get a notice under section 148 of the I-T act.
Notice under section 156 is sent for dues (tax, interest, penalty, fine or any other sum) payable by the assessee.
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Fraudulently claiming tax refunds by misreporting income or showing false losses which reduce taxable income can attract heavy penalties. Section 270A of the Income Tax Act was amended in the last budget post demonetisation to ensure that misreporting and under-reporting of income was heavily penalised.
Late filing of returns
If you file your ITR after the due date but before 31 December 2018, a penalty of Rs 5,000 will be levied. For returns filed after 31 December 2018, the penalty will be Rs 10,000. For those whose total income does not exceed Rs 5 lakh, the maximum penalty for delay will be Rs 1,000.
Under-reporting and misreporting
Under-reporting of income
50% of the tax payable on the under-reported income will have to be paid as penalty.
200% of the tax payable on the misreported income will have to be paid as penalty.