Tax Notice

Tax Notice

Filing your income tax returns on time is crucial, but receiving a notification or notice from the Income Tax Department (ITD) afterward can be concerning. Understanding these communications is essential. First, differentiate between an 'intimation' and a 'notice.' An intimation provides details about your return processing or assessment outcome, usually requiring no immediate action. A notice, on the other hand, demands your response and compliance. The Central Board of Direct Taxes (CBDT) has implemented the Centralized Communication Scheme (CCS) to streamline electronic communication. Since October 1, 2019, all correspondence from the ITD includes a unique Document Identification Number (DIN). Let’s explore the various types of income tax notices and intimations to help you navigate them with confidence.

You might be surprised to receive an intimation or notice from the Income Tax Department (ITD) even if you have filed your income tax returns within the due date. Understanding these communications and knowing how to respond can be confusing. Don’t worry—we’ll simplify it for you. First and foremost, it’s crucial to distinguish between an intimation and a notice. The difference is subtle but significant. An intimation provides an update on your return processing or assessment conclusion, usually not requiring action (except in certain cases). On the other hand, a notice demands a response and necessary action. Recently, the Central Board of Direct Taxes (CBDT) introduced the Centralized Communication Scheme (CCS) to transition all tax-related communications to an electronic format. As of October 1, 2019, every correspondence from the ITD carries a unique Document Identification Number (DIN). Let’s explore the different types of income tax notices and intimations, along with how to verify their authenticity."

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