For every step taken by the government there is a corresponding law/rule that supports it. When the income tax department sends you a notice under certain sections, then it is most likely you have broken a rule. If you receive a demand notice u/s 156, then you will need to respond to notice 156 and pay the outstanding amount stated by the due date.
If you had received a prior notice and the notice results in an amount payable by you, either in the form of tax, interest, penalty or fine, then a notice u/s 156 will be issued for the outstanding tax amount.
[ Read: Tax Notices under Income Tax Act 1961 ]
Receiving a scrutiny notice is never a pleasant experience and failure to respond to it correctly can result in further proceedings or penalties. To ensure any notices you receive are handled with care and attention to detail, consult your personal tax experts at H&R Block India to get instant tax notice assistance.
Upon receiving the demand notice for outstanding tax payable, the taxpayer must:
If you fail to respond to the notice received u/s 156, then you will either have to pay: