A daily-wage labourer from a village in Uttar Pradesh’s Hardoi district has reportedly received an income tax notice demanding over ₹7 crore, triggering confusion and distress for the family and raising questions about how such cases arise.
Labourer Claims He Received ₹7.15 Crore Tax Demand
Govind Kumar, a resident of Rudamau village, alleged that he received a notice from the Income Tax Department on January 13, stating that he owed ₹7,15,92,786 in unpaid taxes.
Kumar, who earns his livelihood through manual labour, lives with his wife Soni Devi and his elderly parents in a thatched hut. Family members have questioned how authorities could conclude that someone with such limited means owed taxes running into crores.
According to a PTI report, an income tax inspector said he had no information about any department team visiting the village to serve such a notice.
What Is an Income Tax Notice?
An income tax notice is a formal communication sent by the Income Tax Department to a taxpayer for various reasons. Importantly, receiving a notice does not automatically imply wrongdoing. Notices may be issued due to:
- Errors or omissions in filing returns
- Mismatches between reported income and official records (such as Form 26AS)
- Unreported income
- Requests for clarification or supporting documents
Taxpayers are advised to respond promptly to avoid penalties or further action.
Common Types of Income Tax Notices and How to Respond
Here are some of the most common income tax notices issued under the Income-tax Act and what taxpayers should do in response:
Notice under Section 139(9): Defective Return
Issued when an income tax return (ITR) is considered defective due to missing details, incorrect tax payment information, or income mismatches.
Response: Rectify and refile the return within the specified time.
Notice under Section 142(1): Request for Information
Sent when the department seeks additional details or documents.
Response: Submit the requested information carefully and within the deadline.
Notice under Section 143(1): Intimation
Issued for arithmetic errors, data mismatches, or calculation of tax demand or refund.
Response: Accept the adjustment or file a rectification request if there is an error.
Notice under Section 143(2): Scrutiny Notice
Indicates that the return has been selected for detailed scrutiny. This does not imply guilt.
Response: Provide supporting documents to substantiate income and claims.
Notice under Section 148: Reassessment
Issued when the department believes income has escaped assessment.
Response: File a return again and explain why reassessment is not warranted, if applicable.
Notice under Section 156: Demand Notice
Sent when tax, interest, or penalty has been determined as payable.
Response: Pay the amount within the specified period or file an appeal if the demand is incorrect.
Importance of Verifying Notices
Experts advise taxpayers to verify the authenticity of any notice by logging into the official income tax e-filing portal. In cases involving identity misuse or errors, affected individuals should approach tax authorities with supporting documents and seek correction.
Conclusion
The case highlights how data errors, identity misuse, or procedural issues can sometimes lead to alarming tax notices. While investigations may clarify the facts, taxpayers are reminded to stay vigilant, regularly check their tax records, and respond appropriately to any communication from the Income Tax Department.
Source: LiveMint