Income Tax Notices & Assessments

Getting a notice by the Income Tax Department may be a frightening experience to both individuals and businesses. Nonetheless, with the proper professional advice, notices can be resolved in a systematic, effective, and without the needless interference with financial activities. We offer systematic assistance to our clients at Badami and Kamath in the process of overcoming income tax notices and assessment proceedings, making sure that each response is factual, compliant with the law and is delivered on time.

Understanding the Nature of Income Tax Notices

All notices do not indicate a grave aberration. There are all sorts of reasons why the Income Tax Department sends communications such as verification of income being reported as usual, discrepancy between the reported income and credits of TDS, non-filing of returns, disclosures that are not complete or they are selected to help assess scrutiny. The key initial step towards developing a response is to understand the exact nature and scope of a notice.

At Badami & Kamath, we will start with an in-depth examination of the notice we have received, and the section to which it has been issued and the information we are seeking and the statutory deadline within which it must be provided. Such cautious study will see to it that our clients are never answering affirmations, but the facts.

Our Support under Notice and Assessment Proceedings.

Our company helps our clients with the entire range of income tax notices and assessment issues, such as:

• Intimations and Demand Notices in Section 143(1), 156 and so on.
• Section 143(2) Scrutiny Assessment Notes which mandate elaborate documentation and justification.
• Reassessment Notices under Section 148 whereby it is claimed that income has escaped assessment.
• Show Cause Notices that involve the legal and factual clarification.
• Penalty Proceedings and response to proposed disallowances.

In both scenarios we draft prepared, well documented and legally consistent responses which respond to the concerns of the department clearly and accurately.

Documentation and Reconciliation

The response to any income tax notice can be well supported based on proper documentation and comprehensive reconciliation. We also help clients to prepare the required financial documentation, address inconsistencies between returns and underlying records, and report in a manner that is sensible and verifiable. Such an ordered way of doing things goes a long way in minimizing the chances of escalation or subsequent action.

Representation During Assessments

In cases where the proceedings are brought to levels of formal assessment or hearing, our staff offers professional representation and continuous liaison with the assessing officer. We make sure that submissions are made in a consistent manner, on time and with the appropriate legal provisions, and to the maximum exposure is minimal and that the interests of the client are safeguarded in the whole process.

The importance of Timely Action.

Late or poor responsiveness in relation to the payments of the income tax notices may lead to ex-parte assessments, imposition of penalties and negative orders that are hard to appeal. By seeking the help of the professional as early as possible, one will be able to make sure that the issue will receive the attention and the urgency it deserves.

At Badami and Kamath, we consider each notice as an issue that needs a quick and systematic treatment. We will strive to address every issue in a professional, transparent and as least disruptive way that does not undermine the financial and business continuity of the client.