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

Editorial Team
Updated
January 13, 2024

In the article below ‘a Comprehensive Guide on Responding to a Notice issued under Section 133(6) of the Income Tax Act, 1961’, you will know what is the purpose of Section 133 (6) and what powers it provides to the Income Tax Department. The provision gives ITD the authority to demand information and documents from the taxpayers, issue notices to them, and also conduct inquiries and verifications. It also explains why one can receive a notice under Section 133(6) of the Income Tax Act, such as incomplete or inaccurate ITR, mismatched information, specific transactions under scrutiny, and routine verification. Along with that this guide also covers the steps you need to take after receiving an income tax notice 133(6).

BRIEF SUMMARY

Introduction

Not aware of Section 133(6) of the Income Tax Act? Let’s explain it to you! Section 133(6) of Income Tax Act is a kind of provision that grants power to the Income Tax Department to demand information or documents related to any tax affair (s). This may include documents from bank statements, records of properties, to details of any specific transactions or sources of income. The department has also the authority to issue notices to any person who might have relevant information and conduct inquiries and verifications to ensure compliance with tax laws. The notice issued to an individual/entity under Section 133 (6) may look like the image shown below;

Reasons Why You Might Receive a Notice Under Section 133(6)

There may be several reasons behind receiving an income tax Section 133 (6) notice. Some of the major reasons are described as below;

Incomplete or inaccurate ITR: If your tax return form has missing, incomplete or inconsistent information, the department may issue a Section 133 (6) notice demanding more details from the applicant.

Mismatched information: In case, discrepancies are found between your income you have mentioned in the ITR form and information received from other sources, such as banks, the department may send you a notice.

Specific transaction under scrutiny: The department may conduct enquiries to investigate any particular transaction or source of income and also demand any relevant clarification from the taxpayer.

Routine verification: In some cases, sending notice may be a part of a routine verification process to ensure accuracy of the information a taxpayer has submitted.

Apart from these reasons, a few more factors may be responsible for getting a notice under section 133(6) of the Income Tax Act.

Steps to Take On Receiving a Notice Under Section 133(6) of Income Tax Act

Section 133(6) of Income Tax Act of 1961 gives power to the income tax authorities to gather and verify relevant information during any filing or proceeding of the taxation. Due to which, this government body possesses the right to issue a written notice to anyone asking them to give specific information or documents. If you fail to respond to the notices with the required information within the given time, you may need to face legal penalties & consequences. It’s advisable to ask for professional assistance, be true, and respond within time limit to the notice as it will help you stay away from any kind of legal action, penalties, or further scrutiny.

Penalty for Non-Compliance: If any person receives a notice under this section but doesn’t provide the necessary information, it may be taken as the invocation of penal provisions under section 272A (2)(c) of the Income Tax Act, 1961. The penalties levied for non-compliance to this provision may be a fixed monetary penalty to a more substantial penalty depending 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) of Income Tax Act must provide the required 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: When you log in with the User ID (PAN) and the password, go to e-Proceedings (on your Dashboard, click Pending Actions followed by e-Proceedings).

Step 3: On ‘e-Proceedings’ Page, select Self>For your Action and then click on ‘View Notices’.

Step 4: Click on the ‘Notice/Letter PDF’ to download the notice. Afterward click on ‘Submit Response’ to reply.

Step 5: You can either choose to submit a full response in the condition where you have all the necessary information or can also opt for submitting a partial response.

Step 6: On final submission, you will receive a confirmation of your submission and a Transactional ID and Acknowledgement Number.

Play Video about Income Tax Notice Under Section 133

Taking professional guidance to reply to a notice u/s 133(6) of income tax act can be the best way to avoid penalty or legal liabilities.

How can Setindiabiz help?

Setindiabiz offers fully professional assistance in preparation and filing replies to the notices received under Section 133(6). Our team of experts provides a comprehensive analysis of the notice, reviewing relevant documentation, preparation of replies and thus ensuring compliance with tax laws and regulations. We have a team of experts with legal & semi-legal background, due to which we offer personalized, timely, and legal solutions to help you reply notice u/s 133 (6) of the Income Tax Act.

If you receive a notice under Section 133(6) of the Income Tax Act but don’t know how to properly respond to it? Don’t panic, you are not alone! Though this Income Tax provision might seem challenging, understanding some key aspects including purposes and the steps involved in replying to notice, can help you reply to this notice received under section 133 (6) of the Income Tax Act.
Learning about this provision can help you easily follow the stepwise process of replying to an income tax notice 133(6).

Conclusion

FAQs

Q1: Is it necessary to authenticate the notice/order by Income Tax Authorities?

From 1st October 2019 onwards, any notice or communication sent by the Income Tax Department under the Section 133 (6) of Income Tax Act will consist of a unique Document Identification Number (DIN). You can authenticate the order, notice, or letter issued by the income tax department using ‘Authenticate Notice/Order Issued by ITD’ feature on the e-Filing portal of the Income Tax Department.

Q2: Do I need to log in to the ‘e-Filing Portal’ to authenticate the notice issued to me by the Income Tax Department?

There is no need to log in to e-Filing Portal to authenticate any notice or letter issued by the Income Tax Department under section 133 (6). Just click on the ‘Authenticate Notice/Order issued by ITD’ link present on e-Filing Portal and follow the given instructions which will help you in the authentication of the notice or order.

Q3: Should I provide the same mobile number given while registration to authenticate ITD's notice to me?

There is no such obligation to enter the mobile number used for registering on the e-filing portal to authenticate a notice, letter or any communication issued by the Income Tax Department. While authenticating a notice, you can have any valid mobile number to receive OTP sent by the system.

Q4: What may be the reasons behind receiving a legal notice from ITD under Section 133 (6)?

Some of the most common causes for receiving a notice under Section 133 (6) of Income Tax Act are listed below;

Any inaccuracy in your tax return
Inconsistency in the TDS amount reported
Not submitting all required documents/papers
Failure to file your tax returns
Taxpayer fails to declare his income
In case, you make investments in your spouse’s name but didn’t file them on your ITR returns
Any high-value transaction which was not disclosed on the income tax return
When long-term capital gains from investing in the stock market are not disclosed clearly
An incorrect ITR form was taken into use to file ITR

Q5: What is DIN in any notice issued by the ITR?

DIN is generally a ‘Document Identification Number’. This unique number has 20 digits and it is generated by the computer system. It is helpful in ensuring proper identification and tracking on the communication between the Income Tax Department and the taxpayer.

Partner Program

Exclusive Offer For

Become Our Partner