Income Tax Alert: Received An Income Tax Notice? You Can Submit Reply Online; Here’s How

Income Tax Alert: Gone are the days when taxpayers were left with only one choice to go to Income Tax Department offices after receiving an Income Tax notice. IT notices are no longer handled only through visits to tax offices, and taxpayers can submit their replies, upload documents and track proceedings through the e-filing portal.

The facility to submit income tax notices online allows salaried individuals, businesses, professionals and tax deductors to reduce paperwork and manage tax-related work within the deadline.

What are Income Tax e-Proceedings?

Income Tax e-Proceedings is an online service available on the Income Tax Department's e-filing portal. It helps registered users to view and respond to communications issued by tax authorities linked to their pending demands, refund adjustments, rectification matters or assessment proceedings.

Once a taxpayer submits a response, the portal generated an acknowledgment, which gives the taxpayer proof of submission. Once you have submitted the response you can track the progress of the case online.

Notices available through this service may include defective return notices under Section 139(9), intimations under Section 245 and prima facie adjustment notices under Section 143(1)(a). It may also cover rectification notices under Section 154 and other communications issued by an Assessing Officer or another income tax authority.

How To Respond To An Income Tax Notice Online?

-To respond to a notice, the taxpayer must first log into the Income Tax e-filing portal using the registered credentials.
-Once you have logged in, navigate to the home page, go to the dashboard and open the pending actions.
-Check the options and select e-Proceedings option.
-Now choose the "self" option and view notices issued in your name. If an authorised representative is handling the case for the taxpayer, then they can choose the relevant option.
-For taxpayers, once they have checked the tax notice issued in their name, click on it, and carefully check what the department is asking for.
-Some notices may require only a confirmation or explanation. Others may need supporting documents, revised calculations or clarification on entries in the income tax return. A rushed or incomplete reply may lead to further queries.
-Prepare a response and then upload the required documents through the portal.
-These may include computation statements, bank details, investment proofs, Form 16, Form 26AS-related explanations or other records, depending on the nature of the notice. Only relevant and legible documents should be submitted.
-Once the reply and attachments are ready, the taxpayer must accept the declaration and submit the response. The portal then generates a transaction ID and acknowledgement number. A confirmation is also sent to the registered email address. This acknowledgement should be saved for future reference.