How to Reply The Notice Issued Under Section 133(6) of the Income Tax Act 1961

The article provides a comprehensive guide on responding to the notice issued under Section 133(6) of the Income Tax Act, 1961. It explains the purpose of Section 133(6) and the powers it bestows upon the Income Tax Department, including the authority to demand information and documents, issue notices, and conduct inquiries and verifications. The article also discusses why one might receive a Section 133(6) notice, such as incomplete or inaccurate ITR, mismatched information, specific transactions under scrutiny, and routine verification. It then outlines the steps to take when you receive a notice.

So, what is Section 133(6)? Essentially, it grants the Income Tax Department the power to demand information and documents related to your tax affairs. This can include anything from bank statements and property records to details about specific transactions or sources of income. The department can also issue notices to you or any other person who might have relevant information and conduct inquiries and verifications to ensure compliance with tax laws. The notice may look like the image below.

Reasons why you might receive a Section 133(6) notice

  1. Incomplete or inaccurate ITR: If your tax return has missing or inconsistent information, the department may issue a Section 133(6) notice to gather more details.
  2. Mismatched information: If there are discrepancies between your reported income and information received from other sources, such as banks, the department may send you a notice.
  3. Specific transaction under scrutiny: The department may investigate a particular transaction or source of income and require clarification from you.
  4. Routine verification: In some cases, the notice may be a part of a routine verification process to ensure accuracy.

Steps to take when you receive a Section 133(6) notice

Section 133(6) of the Income Tax Act of 1961 allows income tax authorities to gather relevant information during any inquiry or proceeding related to taxation. A written notice can be issued to anyone requiring them to provide specific information or documents. There are penalties for not complying with the request. Seek professional help, be truthful, and respond timely to avoid fines and further scrutiny. Remember to maintain copies of all documents submitted and maintain communications with the department.
Penalty for Non-Compliance: If an individual receives a notice under this section 133(6) and fails to provide the necessary information, it may result in the invocation of penal provisions under section 272A(2)(c) of the Income Tax Act, 1961. The penalties for such failure can range from a fixed monetary penalty to a more substantial penalty based on the amount of tax sought to be evaded.

How to Provide the Information or Documents Required U/s 133(6) Notice

The recipient of a notice under section 133(6) must provide the necessary information and upload the required documents on the Income Tax Portal by following the steps below.
Step 1: Log in to the income tax website using valid credentials (PAN & Password).
Step 2: After you log in with the PAN (User ID) and the password, navigate to e-Proceedings (On your Dashboard, click Pending Actions > e-Proceedings.)
Step 3: Go to the e-Proceedings page, select Self > For your Action and click on View Notices.
Step 4: Download the notice by clicking on the ‘Notice/Letter pdf’ button and click on ‘Submit Response’ to reply.
Step 5: In the response screen, you can choose to submit a full response if you have all the required information; otherwise, you can choose to submit a partial response.
Step 6: Upon submission, you will receive a confirmation of your final submission and a Transaction ID and Acknowledgement Number.

How We Can Help

SetIndiabiz offers professional support in preparing and filing replies to Section 133(6) notices. Our team of experts provides a thorough analysis of the notice, review of relevant documents, preparation of responses, and compliance with tax laws and regulations. We offer personalised, timely, and practical solutions to help you confidently navigate the process. Contact us today to learn more about our services.

Have you ever received a notice under Section 133(6) of the Income Tax Act and felt overwhelmed and unsure what to do next? If yes, please know that you are not alone. Although this provision might seem daunting initially, understanding its purpose and the steps you must take can empower you to handle the situation more effectively. You can confidently navigate this process by staying informed, organised, and cooperative.