Received an Income Tax Notice in India? Here's What to Do
Don't panic — understand different types of income tax notices, why you received one, and how to respond correctly.
Don't Panic When You Receive an IT Notice
Receiving an Income Tax notice can be alarming, but most notices are routine and don't indicate wrongdoing. The key is to respond promptly and correctly. This guide helps you understand what type of notice you received and what action to take.
Why Does the IT Department Send Notices?
- Mismatch between income shown in ITR and Form 26AS/AIS
- Non-filing of ITR despite taxable income
- High-value transactions not explained in return
- Request for information or documents
- Regular scrutiny assessment (random selection)
- Defective return (missing information)
Types of Income Tax Notices
Section 143(1) — Intimation/Processing Notice
Most common. IT department processes your return and sends intimation showing their computation vs your return. If demand raised = you owe more tax. If refund due = you'll receive refund. Action: Review carefully, pay demand if correct, or respond with objection if incorrect.
Section 139(9) — Defective Return
Your return has missing or incorrect information. Action: Respond within 15 days of notice with corrected information at e-filing portal.
Section 142(1) — Inquiry Notice
IT department wants more information or documents before processing return. Action: Respond within the timeframe mentioned with requested documents.
Section 148 — Reassessment Notice
Serious notice indicating department believes income escaped assessment. Usually requires professional CA help. Act immediately within the response deadline.
How to Respond to IT Notices
- Read the notice completely — note section, year it relates to, deadline
- Log in to incometax.gov.in → e-Proceedings → Response to Notice
- Find your notice under DIN (Document Identification Number)
- Submit response with supporting documents online
- Download acknowledgment of your response
When to Hire a CA
Section 148 (reassessment), notices with demands above ₹1 lakh, scrutiny notices (143(2)/147), or any notice you don't understand — always worth a CA consultation (₹2,000-10,000 typically). Don't ignore any notice — non-response leads to ex-parte orders.