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Income tax appeal: 5 things you need to know

As a taxpayer, you have been vested with the power to file an income tax appeal should you not be satisfied with the assessment made by the Assessing officer during a particular financial year.

Once you receive the demand notice, the process of filing an income tax appeal should be set in motion. Remember that this needs to be done before the Commissioner of Income Tax (Appeals), whose designation is specified in the notice. Here are a few things to keep in mind when you file an income tax appeal:

1. Check the order you are appealing for:Make sure that the demand notice or order that you have been served falls under the various orders listed under Section 246A of the Income Tax (IT) Act. These include Section 154, 155, 144, 150, 171, 153A, 158C, 143(3), 237, 147 amongst others. You should also be filing an income tax appeal if you have been served a demand notice when you have no tax liability.

2. Duration within which to appeal:It is essential to be proactive and make an appeal for evaluation or penalty within 30 days of receiving the demand notice from the IT department. However, if you are someone who has not deducted tax at source, you need to be quicker. It is required that you appeal within 30 days of paying tax deducted at source (TDS) due from your end.

3. Process of registering your appeal:Use form 35 to submit your application for the assessment of tax. A day and venue will be scheduled by the Commissioner of Income Tax (Appeals) for the hearing, and a notice will be sent to you informing the same. You can appear in person or appoint a representative. The Commissioner has the right to make inquiries and even postpone the appeal before he/she finally asks for submission of the report by the Assessing Officer.

4. Documents to be submitted: Apart from form 35, you would require an original copy of the demand notice, a copy of your IT assessment order and challan. All of these need to be submitted to file an income tax appeal. Form 35 needs to be duly signed by the individual, making an appeal or a representative of the company, firm, association, party or authority filing an income tax appeal.

5. Charges for appealing:The fees that you need to pay for appealing depends on the total income declared by the Assessing Officer in the demand notice issued to you. A nominal fee of ₹ 250 needs to be paid if the reported income is less than or equal to ₹ 1,00,000, ₹ 500 if it lies between ₹ 1,00,000 and ₹ 2,00,000 and ₹ 1,000 for that above ₹ 2,00,000.

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