A notice of income tax assessment template is a legal notice issued by different government agencies or departments to an individual or an organization to assess their monthly or annual income. The purpose of issuing this notice to a business, is to confirm whether its paid tax is according to declared profit. It is also known as notice of tax assessment and in abbreviated form (NOTA). Basically, it is a statement issued by the revenue authorities to a taxpayer, itemizing the amount of income tax that they owe on their taxable income. The notice will state the amount of income tax that has been received by the state during the previous year. Generally, it shows an analysis of the income that you earned during the year. In addition, it also explains how much is payable by you or how much is refundable by the department. The notice of income tax assessment includes the amount of actual tax paid, tax credit (if any given), tax refund (if given) and total advance income tax that is already paid.
Importance of Notice of Income Tax Assessment:
The notice of income tax assessment format is one of the essential document which is issued when the income tax department wishes to inspect a business or an organization. There can be many reasons for issuing this notice, like when an individual declares less tax as compared to his/her income, when his/her tax amount is not matching with the expenses he/she has incurred, when a company made the big investment, when an individual purchased an asset and when an income tax department realizes, there is concealment of facts from a company or an individual. Normally, a notice of income tax assessment is given by the federal government when the fiscal year is closed and a company has declared its profit after paying tax. Since it is a very crucial document, the receiver of this notice is required to keep it in a secure place.
Notice of Income Tax Assessment What Do You Need to Do:
A notice of income tax assessment does not mean an individual or a company has cheated the income tax department. Sometimes, there are a number of factors mentioned in the annual return which required an explanation. To justify these factors, the officials of the income tax department visit the company and inspect their books of accounts. During their visit, the account officers are required to fully cooperate with them and explain these factors with supporting documents. As far as an individual’s case is concerned, this notice indicates that the total assets which he/she has declared are not matched with income. Therefore, he/she is required to provide supporting documents that can match with his/her expenses or assets. Moreover, it also explains the following information, like how the numbers on the form were calculated, how to communicate with your assessor and your rights to appeal as a taxpayer.
