One of the labourer, Bhausaheb Ahire, residing in Maharashtra recently received the Income-tax department’s demand notice to pay income tax of Rs. 1,05,83,564 for the assessment year 2017-18.
As per the notice issued by the department, it said that Ahire had an undisclosed amount of Rs 21,00,000 and Rs 56,81,000 as other deposits in his bank account.
While reading the notice, Ahire said, “Ï am a labourer who gets work only once or twice a week. I earn my livelihood that way. I have not seen even Rs 1 lakh in my life, how can I pay Rs 1.95 crore? This is a fraudulence. Action should be taken.”
It seems, the I-T department sent a wrong notice to Ahire. Like Ahire ‘s case, there are possibilities that such an incident may happen to anyone. So, instead of being panic from such notices, you should be aware how to respond to wrong income tax notices.
How to respond to wrong income tax notices?
If any individual has received a wrong income tax notice from the income tax department, he can follow the following steps for Responding to the outstanding demand:
Step 1: Log in to ‘e-Filing’ Portal with your PAN as username and password
Step 2: Go to the ‘e-file’ tab and click on ‘Response to Outstanding Demand’.
Step 3: Click on the ‘Submit’ button under the response column.
Step 4: Four options will reflect there to respond and you can choose any of the listed responses:
- Demand is correct
- Demand is partially correct
- Disagree with the Demand
- Demand is not correct but agree for adjustment
Step 5: As the notice is containing the wrong income tax demand notice, he will have to choose ‘Disagree with the demand’.
Step 6: Post the selection of the response, select the appropriate reason(s) from the drop-down list and fill all the applicable fields, upload the necessary supporting documents and ‘Submit’ the response to the income tax department.
Once you submit the response, a success message along with a Transaction ID will be displayed. Transaction Id can be used to check for further actions.
Make sure to respond to such notices within the stipulated time. It may lead you to further income tax departmental inquiries.
Respond from Income Tax Department
The income tax officer might agree to your reply or might ask you to be present in person for checking the details reported by you in your income tax return. To deal with the person in the case, you can handle yourself or hire a tax expert to represent you as an authorized representative.