What is a Notice under Section 143 (2) of the Income Tax Act?
This is a notice sent on behalf of the Income Tax Department, once the AO (Assessing Officer) has assessed the Income tax return filed by the assessee and is not satisfied with the produced documents, details or when the assessee fails to have filed documents for assessment. Through this Notice of the IT Department - the Income Tax Return Filed by the entity/individual comes under scrutiny!
The investigative arm of the IT Department has recently issued such notice (under Section 143(2) to over 200 start ups for a scrutiny. It is imperative for all start ups to ensure that their company is legally sound and compliant, for which you will be required to connect to a lawyer and a CA.
One of the major issues owing to which the IT Department sends such a notice might be owing to “whether funds received in the form of share premium are from disclosed sources and have been correctly offered for tax”
You can connect to MyAdvo and we shall assist you with engaging the right combination of a lawyer and a CA for the required services!