Income Tax Notice: How to Check Its Authenticity?

Received an Income Tax Notice? What’s the first thought that comes to your mind? Is it something like, if the notice is real or a scam? 

Don’t worry, you are sailing in the same boat, as most of us do! 

Every year, thousands of taxpayers in India receive income tax demand notices via SMS, email, or even physical letters by post. While a few are genuine and need immediate response, most of them are just phishing attempts in disguise, attempting to steal your personal details. 

It’s crucial to understand the authenticity of the income tax notice, and the best part is, we have got you covered. Doesn’t matter if you are a freelancer, a business entity, or a salaried employee; this guide is a must-read for you. 

Let’s quickly scroll through the blog to understand how to check the income tax notice, verify and authenticate it. 

What to do if You Get an Income Tax Notice? 

You might receive the IT notice through emails, SMS or even physical letters.

1. Scrutinise the basic information in the IT notice you have received to check if it actually belongs to you. It should include an accurate PAN number, address, name, and other crucial details. Along with your personal information, examine the assessment year mentioned. 
2. Use the Income Tax e-filing portal to validate the authenticity of the Income Tax notice. 
3. Read the entire notice carefully to understand its purpose. 
4. Identify if there are any discrepancies or mismatches in the notice shared. 
5. To avoid strict actions and penalties, the income tax demand notice response should be given within the stipulated time. 
6. The IT notice acknowledgement should be supported by proof and accurate information. 
7. Don’t forget to check the notice in the IT account through the online process.

Why Verifying an IT Notice Matters? 

The IT Department’s 1st October 2019 circular mandates that all income tax notices include a unique DIN. Authenticating the IT notice is crucial to understand if it is a genuine attempt or a fraudulent attempt to access your personal details. 

How to Check Income Tax Notice Online?

1. Visit the Official Income Tax Portal – https://www.incometax.gov.in/iec/foportal/ 
2. Go to the Quick Links area and choose ‘Authenticate Notice/Order Issued by ITD’.
3. You will see the authentication screen displayed, click on the 1st option that says authenticate via PAN, document type, assessment year, etc. 

1. Add the details that are mentioned on the income tax notice you have received.

1. Click enter. If the income tax notice is genuine, you will find the details on the screen in the following way. If not, the notice might be fraudulent. 

How to Authenticate IT Notice By DIN Number? 

1. Log in to the Income Tax Website-  https://www.incometax.gov.in/iec/foportal/
2. Open the ‘Authenticate Notice/Order Issued by ITD’ link found under Quick Links. Scroll the bar on the left under quick links to make the authenticate notice visible.

1. You will find two options on the screen: choose to authenticate using DIN and phone number.

1. Provide the DIN from the notice and your registered mobile number. 

1. Click continue to proceed ahead
2. Use the SMS OTP you received to confirm the number. 
3. If the notice is issued by the IT department, you will see a successful message displayed on the screen. 

Different Types of Income Tax Notices You Can Receive 

IT Notice Under Section 142 (1)

It is the most popular notice received by the taxpayers generally after the returns are processed to ensure fair assessment. Receiving this income tax demand notice indicates that: 

• You have filed the returns, but the investigating officer requires more information. 
• You haven’t submitted your returns, and the assessing officer is directing you to file them. 

IT Notice Under Section 133 (6) 

This Income Tax Notice is generally issued to request an explanation from the assessee. The notice may have been issued to you for below reasons. 

• You have not filed the income tax return, even when your income exceeds the exemption limit.
• For salaried employees, the income tax notice identifies if the salary, interest income, and capital gains are not properly mentioned. 
• If the IT officials identify higher expenditure by comparing it with income declared in the ITR form. 

IT Notice Under Section 143(1) 

Under 143(1), it’s just a notification and not a notice. Once you have filed the returns, they are processed online, and the income is calculated post adjustments like numeric errors, wrong claims, etc. Once all the returns are processed, the central processing centre issues the intimation for the following reasons. 

• Tax liability isn’t paid 
• The refund amount has been identified
• Refund or demand isn’t determined, but the loss amount is either increased or decreased. 

IT Notice Under 143(2) 

This Income Tax Notice is generally issued if the investigating officer isn’t satisfied with the answers or explanation you provided. Here’s why you have received this notice: 

• Showcased your income to be less than the actual 
• Claimed more loss 
• Taxes are paid less 

IT Notice Under 148 

The investigating officer believes that you have misreported income, indicating low tax liability, which is not justified. Also, you haven’t filed returns at all, and you needed to file them, so you have received the income tax demand notice. 

IT Notice Under Section 245 

If you have not paid the tax liabilities and your refund is due, the investigating officers can delay your refund based on the extent of the liability. However, this process can be seamlessly carried only if the taxpayer is notified about the same through a notice. 

Once you have received the income tax notice, you just have 30 days to respond. It is advisable to respond asap, or else the income tax officers can proceed with the assessment. 

Income tax Demand Notice Response: 5 Tips 

• Don’t panic or ignore the notice; first, verify if it is genuine. 
• Read the notice thoroughly, especially the legal quotes. 
• Identify the reasons for receiving the notice.
• Take advice from your tax advisor or a CA. 
• Collate all your required documents and plan to respond smartly. 

Let’s Conclude 

An Income Tax Notice in your inbox or letter box can feel overwhelming, but you need to stay aware in such scenarios. The important step here is to check if the notice is genuine or is just another scam. The article explains everything, from verifying and authenticating the income tax demand notice to the types of notice you can receive. 

Smart Hack: The best way to handle income tax notices is to keep your financial records up-to-date and file timely returns. 

If you have received an income tax demand notice, verify it before responding. Check out the process above and bookmark it for future reference. 

FAQs on Income Tax Notice 

1. How to Check Income Tax Notice Online? 

• Go to the e-filing website and open the portal – https://eportal.incometax.gov.in/iec/foservices/#/login 
• Log in or sign up to your account through PAN Number/ Aadhar Number/ User ID
• Navigate to menu bar > e-file Returns  > view Filed Returns 
• Under the view filed returns, you can see all the notices for filed returns. 
• Now, navigate to Pending Actions > Worklist, and notices sent to you will be visible in the worklist. 

2. Can I ignore an Income Tax Demand Notice? 

No, ignoring an IT notice can have severe consequences like penalties, IT refund being delayed, etc. 

3. How to identify the Genuine Income Tax Notice? 

To check if the income tax demand notice is genuine, the best way is to look for a DIN number. Check if the PAMN, contact number, name, and other details are accurate. Also, see if the officers have asked for any explanation and have mentioned the reasons for sending the notice. If all of this is good to go, you can follow the instructions given above in the blog to verify the notice. 

4. What is the DIN number in the income tax notice? 

DIN stands for Document Identification Number, which is mentioned on every income tax notice issued by the IT department. It ensures authenticity and transparency, eliminating fraudulent attempts. 

5. Do I need to enter the complete DIN number or only the last few digits to verify the income tax notice? 

Entering a complete DIN number to authenticate the notice is mandatory. 

6. Which Mobile Number and mail ID should be entered for the authentication of the income tax notice? 

The active mobile number and email address should be entered as OTP will be sent for authentication.