If you’ve received a notice under Section 133(6) of the Income Tax Act, you’re probably wondering what it means and what to do next. Whether you’re a salaried employee, freelancer, or running a full-fledged business, it’s crucial to understand the implications of this provision.
This guide will break down everything you need to know about Section 133(6), from the basics to real-life use cases. We’ll also explore how section 133 6 of income tax act, jethanica is helping people and businesses respond efficiently.
What is Section 133(6) of the Income Tax Act?
Section 133(6) empowers the Income Tax Department to gather information from any person—not just the taxpayer. The goal is to verify financial transactions, detect tax evasion, and cross-check data during assessments or investigations.
Authorities can demand:
- Books of accounts
- Bank records
- Transaction details
- Any document they deem necessary
Who Can Receive a Notice Under Section 133(6)?
Individuals
You could get a notice if:
- There’s a mismatch between your ITR and Form 26AS
- You’ve made high-value investments or cash deposits
Businesses
Businesses are often issued these notices for:
- Unusual cash flow
- Suspicious deductions or expenses
- Non-reporting of certain transactions
Third Parties
Even if you’re not the taxpayer, you could be asked to furnish info if:
- You’re a banker, auditor, or an employer
- You’re involved in any transaction with the assessee
Common Reasons for Notices
Here are some red flags that might trigger a 133(6) notice:
- Deposits above ₹10 lakh
- Real estate deals
- High credit card expenses
- Foreign remittances
- TDS mismatches
Authority to Issue the Notice
Notices under Section 133(6) can be issued by:
- Assessing Officers
- Assistant/Deputy Commissioners
- Principal Commissioners (in certain cases)
No prior approval is needed when the notice is sent during an assessment. However, for general information-gathering purposes, higher authorization may be required.
Information Typically Requested
Don’t expect vague questions. A 133(6) notice usually specifies what’s needed, such as:
- Account statements
- Income proof
- Expense logs
- Contracts or agreements
- Ledger extracts
What to Do If You Receive a Section 133(6) Notice
- Stay Calm – It’s a request for clarification, not a penalty.
- Read Carefully – Understand the scope of information required.
- Note the Deadline – You generally have 15–30 days to respond.
- Organize Documents – Start compiling relevant records immediately.
How to Respond Effectively
Drafting the Reply
Keep it factual and professional. No emotions or lengthy justifications—just the facts.
Include Supporting Documents
Attach:
- PDF copies of statements or bills
- Scanned agreements
- Calculation sheets, if needed
Use the Correct Portal
Most responses today are submitted through the Income Tax e-filing portal under “e-Proceedings.”
Deadlines and Extensions
Typically, you get 15 to 30 days from the date of receipt.
Need More Time?
File an extension request via:
- Email to the Assessing Officer
- Online application in the portal
Always keep a screenshot or receipt for your records.
Penalties for Non-compliance
If you ignore or delay your response:
- ₹100 per day penalty under Section 272A(2)(c)
- Potential scrutiny
- Adverse inference drawn during assessment
Preventive Measures for Individuals
- File your returns on time
- Report all income, even from freelancing or side gigs
- Keep receipts and bank records for at least 6 years
- Avoid large unexplained deposits
Preventive Measures for Businesses
- Maintain digital records of all transactions
- Reconcile GST, TDS, and ITR data
- Conduct quarterly internal audits
- Keep your accountant in the loop
Section 133 6 of income tax act, jethanica – How Jethanica Helps
Jethanica is an AI-powered tax compliance platform built to simplify tax notice management.
Key Features for 133(6)
- Auto-read notices and identify the information needed
- Pre-filled templates for structured responses
- Upload portal for documentation
- Expert support via chat or call
Whether you’re a CA or an individual, Jethanica removes the confusion from the process.
Sample Scenario: A Business Under Scrutiny
The Situation: A marketing firm received ₹20 lakh in a client transfer.
The Notice: A Section 133(6) asking for justification and bank records.
The Solution: Using Jethanica, the firm compiled invoices, contract copies, and bank proof into a single PDF response. The issue was closed without further escalation.
When Should You Seek Expert Help?
- If the notice covers multiple assessment years
- You’re unsure what documents to submit
- Your case may lead to a deeper audit
Pro Tip: It’s always better to get a tax consultant’s opinion than risk making an error in your response.
Conclusion
A notice under Section 133(6) is not a penalty—it’s a request for clarification. However, treating it casually can land you in trouble. Whether you’re an individual or a business, being prompt, transparent, and organized is your best defense.
And thanks to tools like section 133 6 of income tax act, jethanica, you no longer have to face it alone. From templates to tax experts, Jethanica simplifies compliance, making it one less headache on your plate.
