FAQs: How to Reply to Notice Under Section 133(6) of the Income Tax Act, 1961

Have you received a notice under Section 133(6) of the Income Tax Act? Don’t worry! This FAQ guide explains why you received it, how to respond, common mistakes to avoid, and when to seek professional help.

1. What is Section 133(6) of the Income Tax Act, 1961?

Section 133(6) allows income tax authorities to seek information from individuals, businesses, banks, financial institutions, or other entities. It is an important tool for the income tax authorities to verify the transactions between the parties or to seek the important information. Most of the cases it is used just like a cross verification of witness in the courts.

2. Who can issue a notice under Section 133(6)?

Section 133(6) gives power to issue a notice to various authorities of income tax department. Following are a few of them.

• Assessing Officer (AO)
• Commissioner of Income Tax (CIT)
• Director of Income Tax (DIT)
• Any other authorized tax officer

3. Why did I receive a notice under Section 133(6)?

You can receive the notice u/s 133(6) due to various reasons. Some of which are explained below.

• High-Value Transactions: Large cash deposits, high-value property purchases, or significant investments made during a year
• Mismatch in Tax Data: If the department finds discrepancies in your ITR, AIS, or Form 26AS, it may ask for further details to verify the transactions.
• Third-Party Information Request: If any of your vendors, customers or lender is being scrutinized by the income tax department, they may send you a notice to cross verify the transactions reported by them. It is just like a third party confirmation during investigation.
• Before reopening the assessment: The income tax department invariably issue this notice before reopening the assessment u/s 147.
• To Gather Information: If the assessee is not responding in an assessment proceedings, the assessing officer may use this notice to gather related information from various parties involved i.e. banks, financial institutions, stock brokers etc.

4. What should I do if I receive a notice under Section 133(6)?

If you have received a notice u/s 133(6), it should be duly replied. You can follow the below steps when you receive a notice under this section.

• Read the notice carefully – Understand what information is being asked.
• Verify the authenticity – Check the Income Tax e-Filing Portal (https://www.incometax.gov.in) and confirm the notice using the DIN (Document Identification Number).
• Collect required documents – Gather bank statements, invoices, ITR copies, and other supporting documents.
• Draft a proper reply – Ensure your response is clear, concise, and supported by relevant documents.
• Submit your response – Either online through the portal or offline if instructed.

5. How do I verify if the notice is genuine?

Now a days, the department issues all the notices in online mode over the portal. If your notice is appearing in your income tax login portal, then it is genuine notice and you should comply the requirements.

Alternatively you can also Check for a DIN (Document Identification Number) mentioned on the notice. It is mandatory to mention the DIN on every valid notice.

Log in to the Income Tax e-Filing Portal and check under “E Proceedings” Tab. You may find the notice either under “Your PAN” tab or “Other PAN” tab. If the income tax department is asking for your own information it will appear in “Your PAN” Tab. If income tax department is asking for information of some other person, the notice will appear in “Other PAN” tab of E-proceedings.

6. What should my reply include?

Normally in notice u/s 133(6) the income tax department asks for specific information only. In your reply you should try to reply all of the information asked in the notice. If any of the information is not readily available with you, you may ask for additional time to submit that information. But it is quite important that you submit at least some of the information within time to avoid any penal proceedings. You should attach the desired information with proper Annexure numbers mentioned in the notice. You should use a polite and professional tone.

You can use this format to submit the reply to your notice.

Word Format for Reply of Notice under section 133(6)

7. How do I submit my reply?

Now a days all the notices u/s 133(6) are issued in online mode and the reply is also required to be submitted in online mode only. Your personal presense or physical visit before the income tax officer is not required for replying to the notice.

For filing the reply you should login to your income tax portal. Go to E proceedings Tab. Look for notice u/s 133(6) in “Your PAN” or “Other PAN” tab. Upload the pdf file of the reply and other related document on the portal itself.

Important Tip:

You should always use the “Partial Reply” option while uploading the reply. If you have used “Full Response” option you will not be able to submit any additional document after submitting the first response of the notice.

8. What happens if I don’t reply to the notice?

It is very important to reply to notice u/s 133(6). If it is not replied the assessing officer can levy penalty u/s 272A(2) which is Rs. 500/- per day of default. Thus the penalty is quite high for not replying to the notices.

In addition, if the notice is not replied, apprehensions may arise in the mind of the assessing officer and he may proceed for more stringent actions i.e. summons, further detailed scrutiny and referring the case to investigation department.

9. What are some common mistakes to avoid?

• Ignoring the notice – This can lead to legal action.
• Providing incomplete information – Ensure all queries are answered.
• Submitting incorrect data – Double-check before submitting.
• Missing the deadline – Late responses can result in penalties.
• Not keeping a record – Always save a copy of your reply and acknowledgment receipt.

10. When should I seek professional help?

If your notice involves complex transactions and detailed information. If you are not sure how to reply then it is always better to ask for professional help. It doesn’t cost much.

11. Is receiving a Section 133(6) notice a bad thing?

Not necessarily! It is just a request for information. If you respond correctly and on time, there is nothing to worry about.

12. Final Thoughts

Receiving an income tax notice can be unsettling, but staying calm and responding correctly is the key. Follow the steps mentioned above, ensure compliance, and seek professional help if needed.