How to Respond to a Notice for Refund Claim Confirmation: A Step-by-Step Guide

 Receiving a notice from the Income Tax Department titled "Response to Confirm or Revise Claim of Refund" can be concerning. This guide will help you navigate the process and respond effectively to ensure your tax filing is accurate and compliant.

Step 1: Log in to the Income Tax e-Filing Portal

1. Visit the official Income Tax portal: https://www.incometax.gov.in.
2. Log in using your PAN, password, and Captcha code.
3. Follow the path provided in the notice:
   • Pending Actions > Worklist > Response for Refund Confirmation.

Step 2: Review Your Annual Information Statement (AIS)

Before submitting a response, review your Annual Information Statement (AIS) under the Services section. This ensures all your financial transactions, such as TDS and prepaid taxes, are accurately reflected.

Step 3: Understand the Reason for the Notice

The notice mentions that a "Large proportion of prepaid taxes claimed as Refund" is under review. Ensure that:

• The Advance Tax, TDS, or Self-Assessment Tax paid matches your actual liability.
• All prepaid taxes have been properly declared.

Step 4: Choose the Correct Response Option

You have two response options to choose from:

1. Option 1: Confirm the Refund Claim

   • If the refund claim is correct, select:
     "The claim of refund is correct to the best of my knowledge and belief."
   • Submit this if no errors are found and the refund amount is accurate.

2. Option 2: Revise the Return

   • If there are discrepancies, select:
     "Return of income being revised, by filing Revised return of income, wherein correct claim of refund shall be made."
   • File a Revised Return under Section 139(5) before the compliance date, adjusting the refund amount if necessary.

Step 5: Submit Your Response

1. After selecting the appropriate option, click Submit.
2. Ensure that the response is submitted by 06-Oct-2024, as specified in the notice.

Step 6: Save Proof of Compliance

After submitting your response, download the acknowledgment or take a screenshot to keep as proof of your compliance for future reference.

Important Reminders:

• Verify Your Details: Double-check your prepaid taxes, TDS, and refund claims to avoid any errors.
• Review AIS: Use your AIS to ensure all your financial transactions have been accurately reported.
• Act Quickly: Submit your response or file a revised return by the compliance date (06-Oct-2024) to avoid penalties or delays.

If you're unsure about your response or need further assistance, consider consulting a tax professional to ensure everything is in order.