When a tax notice keeps you awake

AS INDIA'S TAX compliance landscape becomes increasingly digitised and data-driven, individual taxpayers are receiving income tax notices from tax authorities.

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Here are some types of tax notices issued to individual taxpayers, their causes, and actionable steps to address them.

Intimation under Section 143(1) This is issued after processing the income tax return. It may confirm acceptance, indicate a refund, or raise a demand due to discrepancies in income, deductions, or TDS claims. These notices must be issued within nine months from the end of the financial year in which the return was filed. If the processed return matches with the filed return, no further action is needed. For refunds, taxpayers should ensure their bank account is pre-validated. If a demand is raised, it must be paid within 30 days to avoid interest, or if the demand appears incorrect, a rectification request can be filed.