A daily-wage labourer from an Uttar Pradesh village has allegedly received a shocking notice from the Income Tax Department saying that he owes ₹7 crore in unpaid taxes.
Distressed and puzzled about how to respond to the communication, Govind Kumar from Rudamau village in Hardoi district claimed he received a notice on 13 January stating that he owed ₹7,15,92,786 in taxes.
Kumar, who lives with his wife Soni Devi and his elderly parents, makes ends meet through manual labour and lives in a thatched hut.
His family members have questioned how the I-T Department has deemed that he owes crores in taxes, considering his income.
According to a PTI report, I-T inspector Shubham Sharma said he had no information about any team visiting the village to serve such a notice.
What is an income tax notice, and who receives it?
An Income Tax Notice is a formal communication from the Income Tax Department sent to a taxpayer for various reasons.
Taxpayers who receive an income tax notice are not always at fault, since getting this notice can also signal something wrong with your filing. It can also signal unreported income, mismatches in data (like Form 26AS vs. ITR), or requests for clarification/documents. Income tax notices need to be addressed promptly to avoid penalties.
Types of I-T notices and how to respond
Here is a list of common income tax notices that taxpayers may receive and how to respond to them —
Notice under Section 139(9): One of the most common types of income tax notices, this is issued when an ITR is deemed defective due to issues such as missing details, incorrect tax payment details, or a mismatch in income figures. The taxpayer can rectify the information within a specified period.
Notice under Section 142(1): This income tax notice is sent when the IT Department seeks additional information or documents and should be responded to carefully.
Notice under Section 143(1): This is an intimation that the I-T Department sends when there is a mathematical error, mismatches between reported income and data available with the department, or calculation of tax refund or demand. You can either agree with the adjustment or file a rectification request.
Notice under Section 143(2): This is a more serious notice saying that your ITR will be scrutinised, but does not immediately imply any wrongdoing. It requires the taxpayer to substantiate their claim with supporting documents.
Notice under Section 148: This relates to income that the department believes has not been assessed. Reassessment notices are issued under this section after following due processes. Taxpayers must file a return again, explaining why the earlier report was correct or why the reassessment was unnecessary.
Notice under Section 156: This is a notice where tax officers determine that the taxpayer needs to pay tax, interest, penalty, or any other sum that is payable. It clearly specifies the amount and the time limit for paying the sum.
