Receiving an income tax notice can be alarming, but it is important to stay calm and respond correctly. The Income Tax Department issues notices for a variety of reasons — from simple data mismatches to full scrutiny assessments. Understanding the type of notice you have received is the first step to responding effectively.
Types of Income Tax Notices
| Section | Notice Type | Reason Issued |
|---|---|---|
| Section 139(9) | Defective Return Notice | Your ITR has errors or is incomplete |
| Section 143(1) | Intimation | Mismatch between ITR and Form 26AS/AIS — most common |
| Section 143(2) | Scrutiny Notice | Your return has been selected for detailed scrutiny |
| Section 148 | Income Escaping Assessment | Department believes income has not been disclosed |
| Section 156 | Demand Notice | Outstanding tax, interest, or penalty is due |
| Section 245 | Adjustment of Refund | Refund being adjusted against outstanding demand |
| Section 131 | Summons | You are required to appear before the assessing officer |
| Section 271 | Penalty Notice | Penalty proceedings for concealment or inaccuracy |
Step 1: Verify the Authenticity of the Notice
All genuine income tax notices are sent via email to your registered email ID and are also available on the e-filing portal. Verify the notice by:
- Logging in to www.incometax.gov.in → e-Proceedings → View Notices
- Checking the Document Identification Number (DIN) on the notice — all notices issued after October 2019 must have a DIN
- Verifying the PAN mentioned on the notice matches yours
Never respond to notices received via WhatsApp, SMS, or unofficial email IDs. Fraudsters often impersonate the Income Tax Department. Always verify on the official portal.
Step 2: Understand What the Notice is Asking
Read the notice carefully to understand:
- The assessment year to which the notice pertains
- The specific issue or discrepancy identified
- The documents or information required
- The deadline for response
Step 3: Gather Supporting Documents
Depending on the notice type, gather relevant documents:
- Form 26AS and AIS for the relevant year
- Bank statements showing income and transactions
- Investment proofs, loan documents, property papers
- Books of accounts and audit reports (for businesses)
- Previous ITR acknowledgements
- Any correspondence with the department
Step 4: Respond Within the Deadline
Most notices have a specific response deadline. Failing to respond can result in ex-parte assessment (assessment done without your input), higher tax demands, and penalties. Respond through the e-filing portal under e-Proceedings.
Responding to Common Notices
Section 143(1) — Intimation
This is the most common notice. If you agree with the adjustment, pay the demand. If you disagree, file a rectification request under Section 154 with supporting documents.
Section 143(2) — Scrutiny
This requires detailed documentation. You must appear (in person or through a representative) before the Assessing Officer and submit all requested documents. Professional representation by a CA is strongly recommended.
Section 148 — Income Escaping Assessment
This is a serious notice. You must file a fresh ITR for the relevant year within the specified time. Consult a CA immediately — the department believes you have undisclosed income.
Always keep copies of all documents submitted in response to a notice. Maintain a record of all communications with the department, including dates and reference numbers.
When to Seek Professional Help
While simple intimations under 143(1) can often be handled independently, you should consult a Chartered Accountant for:
- Scrutiny notices under Section 143(2)
- Notices under Section 148 (income escaping assessment)
- Penalty notices under Section 271
- Any notice involving large tax demands
- Notices related to search and seizure operations
Received an income tax notice? Do not ignore it. Bhowal Associates has extensive experience in handling all types of income tax notices and assessments — from simple intimations to complex scrutiny cases.