Received a notice from the department? Read this first

Every year, several of our clients forward us a notice from the income tax or GST department in a panic. Most of these notices are routine: a request for information, an intimation that a return has been processed, or a question about a mismatch. Here is how to read one calmly.

First, check that it is genuine. Real notices carry a document identification number, which you can verify on the income tax portal, and they appear in the portal under pending actions as well as in email. Be wary of calls or messages asking for payment to a personal account; the department does not work that way.

Second, find three things on the notice: what it is asking for, the relevant financial year, and the date by which you must respond. Many notices give 15 or 30 days. An intimation after processing may simply confirm your return, adjust a refund against past dues, or point out a difference between your return and the data in your Annual Information Statement.

Third, do not ignore it and do not reply in a hurry. A wrong or incomplete response often creates a second notice. Forward it to your manager with the return it refers to. We read it, tell you what it means and what we would need to reply, and quote a fee before doing anything. We cannot promise any particular outcome, because that depends on the department, but we can make sure the reply is complete and on time.