Notice u/s 142(1) refers to a formal communication issued by the Income Tax Department under Section 142(1) of the Income Tax Act, 1961. This notice is sent to taxpayers when the tax authorities require additional information or documents related to a filed income tax return or when the return has not been filed at all. The purpose of this notice is to ensure proper verification and assessment of the taxpayer’s income and tax liability.
When a taxpayer receives a Notice u/s 142(1), it means the Income Tax Officer needs further details to proceed with the assessment process. This may include asking for explanations, relevant records, or clarifications about specific transactions or income sources. Responding accurately and within the given timeframe is essential to avoid penalties or further legal actions.
For small business owners and first-time entrepreneurs, receiving this notice is an opportunity to cooperate with the tax authorities by submitting the requested information promptly. It is a normal part of the compliance process and helps maintain transparency in tax filings.
To handle a Notice u/s 142(1) effectively, taxpayers should review the notice carefully, gather the required documents, and respond either online or by visiting the tax office. If needed, professional help from tax consultants can be sought to ensure proper compliance.
For more guidance on managing income tax notices and related compliance, you can visit FinTax24’s Income Tax Solutions, which offers expert support tailored to your needs.