Understanding The Legal Implications Of Income Tax Act Section 142 (1)
The Income tax notice under Section 142(1) sometimes results in people becoming anxious. Taxpayers shouldn’t worry because the Income Tax Department may send out the letter for a number of different reasons. If an income tax return isn’t submitted on time, isn’t reported precisely, or has other errors in the tax calculation. The assesses may receive a notification requesting an explanation or more information.
Are you searching for rent flat in Wadala?
An assessing officer (AO) of the Income Tax Department is authorized by Section 142(1) of the Income Tax Act to serve a notice to taxpayers asking specific documents and information in order to thoroughly examine a case. A preliminary examination for any variation found by an AO typically begins when a taxpayer receives a notice under Section 142 (1) of the Income Tax Act. It is possible to request more data or evidence from the assesses. Before or after their tax return is assessed, the taxpayer may get the notice.
What does the Income Tax Act’s Section 142(1) mean?
A citizen who is discovered to have engaged in misconduct due to tax evasion is susceptible to receiving a notification from the Income Tax Department, according to Section 142 (1) of the Income Tax Act. It is often served either before or after an AO has examined a person’s income tax portfolio. To aid in his or her investigation and thorough examination of the accounts. The income tax officer may request supporting documentation from the taxpayer. He or she may also remind the assesses to submit the income tax return before to the assessment year’s deadline.
When is the notice issued pursuant to Section 142(1)?
If a taxpayer files tax under Section 139(1) but lacks or has insufficient supporting documentation in accordance with IT regulations. A notice under Section 142 (1) is typically issued. This warning is also given if the taxpayer fails to submit their section 139 income tax return by the deadline and the tax filing year has already passed. Prior to the conclusion of the current assessment year, the AO issues the notice.
Notice’s objective
A taxpayer receives the notice required by Section 142 (1) for the following reasons:
- A request for important documents, including cashbooks, purchase records, and proofs of any deductions, may be made by an AO pursuant to Section 142(1). This is often done prior to the AO beginning his evaluation of the accounts.
- If the assesses has not already done so. A notice issued under this section may request that they file their income tax return for a specific year. Typically, the notice is delivered prior to the end of an evaluation year.
- If the person is deemed to be responsible for the same. The notice may instruct the assesses to file the income tax return on behalf of their legal guardian or deceased partner.
- The AO may ask the assesses for any facts, notes, points, or other details in writing that are not contained in the books of account. The documents typically comprise an asset and liability declaration as of a specific date.
Penalty for failing to comply with a tax notice under Section 142(1)
A criminal offence exists when Section 142 (1) is broken. Even if an assesses thinks the information or documents the department is requesting are unrelated, they must nonetheless reply to the notice. The following is the consequence for breaking Section 142 (1):
- The AO will make revisions based on the information at hand and close the assessment. If a person who receives a notice under Section 142(1) does not respond within the allotted period.
- The assesses only remaining option to contest the AO’s decision would be to file an appeal under Section 246 of the Income Tax Act for failing to respond to the notice and provide the requested proof in a timely manner.
- The AO has the authority to treat ignorance of a response as a willful failure to respond. And under Section 272A, may impose a fine of Rs 10,000 per failing. If the taxpayer disregards a notice issued under Section 142 (1), Section 143 (2), or an instruction issued under Section 142, the penalty shall be applied (2A)
You’re looking for Projects in Matunga we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/matunga/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
