ITR
What happens after replying to a 142(1) notice
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Facts
After your reply, the officer may ask further questions, issue a show cause notice for proposed additions, and then pass an assessment order. If your reply is accepted, the order may accept the returned income.
Provisions and law
- Sec 143(3) (now Sec 270(10))Scrutiny assessment order
- Sec 153 (now Sec 286)Time limit for completing an assessment
Analysis
Keep checking e-Proceedings and your email every week. A show cause notice usually lists proposed additions, for example ₹3 lakh of unexplained deposits, with a short time to reply. That reply is important because it is your last chance before the order. If the final order raises a demand, you have 30 days to pay or to appeal.
Conclusion
- Watch e-Proceedings for further notices or a show cause
- Reply to any show cause in full, with documents
- Read the final order and the demand notice
- Pay or appeal within 30 days
A Savvy can do this for you
Inquiry before assessment, Sec 142(1) (now 268(1))
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