Income Tax Notice Response in India

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Income Tax Notice Response in India

Professional handling of all Income Tax Department notices — 143(1), 143(2), 148, 245, defective returns, and penalty proceedings

An income tax notice is not something to ignore or panic about — but it must be taken seriously and responded to correctly, within the stipulated time. The Income Tax Department is now using AI and data analytics to identify mismatches between AIS, GST data, and ITR — meaning even genuine taxpayers are increasingly receiving routine notices. AAA Global LLP handles all types of income tax notices with calm, professional, documented responses — prepared by CA Ankush Garg with 11 years of experience in tax assessments and notice handling.

Notice Types We Handle

Section 143(1) — Intimation The most common notice — issued after processing your ITR. May carry a demand or a refund. We verify the computation and respond or raise a rectification request if the demand is incorrect.
Section 143(2) — Scrutiny A formal notice for detailed examination of your return. Requires production of documents and books of accounts. We compile all required evidence and draft detailed written responses.
Section 148 / 148A — Reassessment Department believes income has escaped assessment in a prior year. High-stakes — the department can go back 3–10 years. We challenge the reopening notice itself (148A) and prepare a comprehensive response.
Section 139(9) — Defective return (Sugam) Your ITR has been marked defective — wrong form, missing schedule, or inconsistency. Must be corrected within 15 days. We identify and correct the defect and refile.
Section 245 — Refund adjusted adjusted Your refund has been adjusted against an outstanding demand. We verify whether the demand is valid and raise a rectification or appeal if the adjustment is incorrect.
Section 271 — Penalty Penalty proceedings for concealment of income or furnishing inaccurate particulars. We prepare a penalty reply establishing bona fide reasons and seeking waiver of penalty.

TDS Returns We File

Form 24Q Quarterly TDS return for salary payments (Section 192) — for all employers
Form 26Q Quarterly TDS return for all payments other than salary — contractors, rent, professional fees, interest
Form 27Q Quarterly TDS return for payments to non-residents — Section 195, 196A, 196B, etc..
Form 27EQ Quarterly TCS return for Tax Collected at Source — car dealers, liquor dealers, etc.

TDS Due Dates

Monthly TDS payment 7th of the following month (30th April for March month TDS)
Q1 return (April–June) July 31
Q2 return (July–September) October 31
Q3 return (October–December) ) January 31
Q4 return (January–March) May 31
Form 16 issuance June 15 (to employees) June 15 (to employees)
Form 16A issuance 15 days from due date of TDS return
Late filing fee Rs. 200/day under Section 234E — capped at TDS amount

Frequently Asked Questions

01 What is the penalty for not deducting TDS?

If you fail to deduct TDS where required, the expense is disallowed under Section 40(a)(ia) — meaning you cannot claim the payment as a tax-deductible expense. Additionally, interest at 1% per month (from when TDS should have been deducted to when it is actually deducted) and penalties apply.

02 What is a Lower Deduction Certificate (Form 13)?

If your actual tax liability is lower than the TDS rate being deducted, you can apply for a Lower Deduction Certificate (Form 13) from the Income Tax Officer. Once issued, the payer must deduct TDS at the lower rate specified. We file Form 13 applications for clients with regular bulk receipts.

03 Is TDS applicable on GST component of an invoice?

No — TDS under the Income Tax Act is not applicable on the GST component of an invoice. TDS is calculated only on the base amount (excluding GST). Ensure invoices clearly separate the base amount and GST.

5.0 - 28 Google Reviews