How to Verify and Authenticate an Income Tax Notice?

Getting a notice from the Income Tax Department (ITD) usually creates anxiety among various taxpayers. However, not all the notices are reasons for concern; some may simply be intimation of the messages, requests for clarification or updates on returns filed. What’s most important is verifying whether the notice you’ve received is authentic, credible, and officially issued by the Income Tax Department.

In the age of an increasing number of various digital frauds and phishing emails, verifying the authenticity and credibility of an income tax notice has become crucial. Fortunately, the government has introduced a streamlined system using the Document Identification Number (DIN) to help taxpayers authenticate every notice or communication.

This blog will provide a comprehensive guide on how to verify and authenticate an income tax notice online through the Income Tax Department’s portal, along with crucial tips on identifying genuine notices and responding effectively.

Understanding Income Tax Notices

Before diving into the process of verification, it’s very important to understand what a notice from the Income Tax Department actually means. A notice is an official communication issued by the department to inform, request clarification or demand compliance from a taxpayer under various sections of the Income Tax Act, 1961.

Common types of income tax notices include:

• Notice under Section 142(1): Request for additional documents or details before assessment.
• Notice under Section 143(1): Intimation regarding arithmetic errors or mismatches after return processing.
• Notice under Section 143(2): Issued when your return is selected for detailed scrutiny.
• Notice under Section 156: Demand notice for tax, interest or penalty payable.
• Notice under Section 245: Adjustment of refund against pending tax liability.

Knowing the type and purpose of the notice helps you to determine the level of its urgency and the nature of your response.

Why Verification is Crucial?

With increased digital correspondence, fraudulent notices and phishing scams have become common. Many fraudsters send various types of fake income tax notices via email or WhatsApp to extract personal or financial information. Therefore, verifying the level of authenticity of every communication is essential for two main reasons:

1. Preventing Fraud: Various Fake emails or messages claiming to be from the Income Tax Department often include malicious links or requests for confidential data. Genuine ITD communications only originate from “@incometax.gov.in” domains.
2. Legal Validity: Since 1st October 2019, every such notice, order, or letter issued by the ITD must include a unique Document Identification Number (DIN). As per the prescribed CBDT guidelines, any notice without a valid DIN is invalid and deemed non est (non-existent). Therefore, checking and verifying for a valid DIN ensures the document is officially issued.

How to Verify and Authenticate an Income Tax Notice Online?

The Income Tax Department has provided a simple and accessible facility on its official portal to verify any type of notice, order or communication. Here’s a step-by-step guide: –

Step 1: Visit the Official Portal

Go to the official Income Tax e-Filing portal. On the homepage, scroll down to find the option “Authenticate Notice / Order Issued by ITD” under the ‘Quick Links’ section.

Step 2: Choose Authentication Method

You can verify the notice using either of the following methods: –

1. Using Document Identification Number (DIN):
   • Enter the unique DIN mentioned at the top of the notice.
   • Provide your mobile number to receive an OTP (One-Time Password).

2. Using PAN and Other Details:
   • Enter your PAN, select Document Type (notice/order/letter), Assessment Year, Date of Issue and your mobile number.
   • An OTP will be sent to your mobile number for verification.

Step 3: Enter OTP and Submit

After receiving the generated OTP, enter it on the portal and click on the option “Continue”. The system will verify and examine your details against the Income Tax Department’s database.

Step 4: Check the Result

• If the notice is true and genuine, then you will see a message confirming the document’s validity, including various details such as the issue date, document type and also the name of the issuing officer.
• If the notice is not found, then the system will show “No record found for the given details.” In such types of cases, always recheck the entered details; if the result remains the same, then treat that notice as suspicious and do not respond to it.

How to Identify a Genuine Notice Manually?

Even before using the portal, you can perform a preliminary check to ensure that the notice looks authentic. Here’s what to look for:

1. Check for DIN: Every genuine notice post-2019 must have a 20-digit alphanumeric DIN printed on the top right corner of the document.
2. Sender’s Email Address:
   Authentic communications are only sent from official domains such as
   • @incometax.gov.in
   • @cpc.incometax.gov.in
     Any notice from a Gmail, Yahoo, or non-governmental domain is fake.
3. Look for Official Formatting: Genuine notices include the Income Tax Department’s logo, office address, date of issue and officer’s name and designation.
4. Verify Your Details: Ensure your PAN, name, assessment year and address are correctly mentioned.
5. Cross-check Purpose: The notice will always refer to a specific section of the Income Tax Act and state the reason, mismatch in TDS, non-filing of return or discrepancy in reported income.

What to do After Verification?

Once the notice is confirmed as authentic, it’s crucial to act promptly and correctly. Here’s what to do next:

1. Read the Notice Carefully: Understand what information or action is being requested. Some notices merely require clarification, while others demand tax payment or document submission.
2. Check the Deadline: Every notice specifies a response period. Delays in response may attract penalties or lead to ex parte assessment.
3. Gather Relevant Documents: Collect necessary proofs such as ITR copies, Form 16/26AS, bank statements and investment documents to support your response.
4. Respond via the e-Filing Portal: Log in to your e-Filing account, go to the ‘Pending Actions’ or ‘e-Proceedings’ section and submit your reply or documents online.
5. Seek Expert Assistance: If the notice involves complex issues like high-value transactions, reassessment or scrutiny, consult a Chartered Accountant or tax consultant for a professional response.

Conclusion

To receive an Income Tax notice is not an unusual thing; it can be a simple query, just a reminder to rectify minor discrepancies, or an error. What’s important is to verify and authenticate it before taking any action. The official “Authenticate Notice / Order” feature on the official Income Tax portal empowers various taxpayers to quickly and safely confirm the legitimacy of every communication.

By understanding the notice, checking the DIN, verifying details through the e-Filing portal and responding to the income tax notice appropriately, you can ensure compliance and protect yourself from fraud. Remember, prompt verification and timely action are key to maintaining a smooth and transparent tax relationship with the authorities.