A daily-wage labourer from an Uttar Pradesh village recently received an Income Tax notice demanding more than Rs 7 crore in unpaid dues. The amount of
tax notice was highly disproportionate to his earnings and living conditions. Govind Kumar, a resident of Rudamau village in Hardoi district, said that the notice came on January 13, saying that he owed Rs 7,15,92,786 to the Income Tax Department. The claim left Kumar anxious and confused, unsure of how such a liability could be linked to someone who survives on manual labour, according to a PTI report. Kumar lives with his wife, Soni Devi, and his elderly parents. According to his family, the household barely manages daily expenses, raising serious questions about how tax authorities could associate crores of rupees in taxable income in his name. As per a PTI report, Income Tax inspector Shubham Sharma said he had no information about any team visiting the village to serve such a notice. A Notice That Raised Serious Questions The family has questioned the basis on which the Income Tax Department associated such a massive tax liability with their name. With no known assets, businesses, or high-value transactions linked to Kumar, the notice has created a fear of possible identity misuse, clerical error, or data mismatch. Cases like these often highlight gaps in financial data tracking, especially when PAN details or personal information are misused or incorrectly linked to high-value transactions carried out by others. What Is An Income Tax Notice And Why Is It Issued? An Income Tax Notice is an official communication sent by the Income Tax Department to seek clarification, information, or action from a taxpayer. Such notices may be triggered due to unreported income, discrepancies between filings and third-party data, errors in returns, or the need for additional documentation. Ignoring them can lead to penalties, which is why a timely response is crucial. Common Types Of Income Tax Notices Explained Taxpayers may receive different types of income tax notices depending on the issue involved. A notice under Section 139(9) flags a defective return that can be corrected within a given time. Section 142(1) notices seek additional details or documents for the filed ITR. An intimation under Section 143(1) usually relates to calculation errors or mismatches, while Section 143(2) indicates that a return has been selected for scrutiny. Section 148 deals with reassessment of income believed to have escaped assessment, and Section 156 specifies a payable demand, including tax, interest, or penalty. Why Prompt Action Matters Experts suggest that taxpayers, especially those facing unexpected demands or notices, should respond quickly, verify details on the income tax portal, and seek professional help if required.
