This guide is general information. If you would rather a chartered accountant handled it, see Income Tax Notice Reply or Income Tax Appeals.
An income tax notice is not always bad news. Many are routine. What matters is reading it carefully and replying on time.
Common types of notices
| Notice | What it generally means |
|---|---|
| Section 143(1) | Intimation after processing your return. May show a refund, a demand or adjustments |
| Section 139(9) | Your return is defective. Correct it within the time stated |
| Section 142(1) | The officer asks for a return, information or documents |
| Section 143(2) | Your return is selected for scrutiny |
| Section 148 | Reassessment: the officer believes income has escaped assessment |
Step 1: Read the notice and note the deadline
Check the section, the assessment year, what is being asked and the due date. Notices are visible on the e-filing portal under Pending Actions, and also sent by email and SMS.
Step 2: Match with your records
Compare the issue with your return, Form 26AS, AIS and books. Most mismatch notices arise because some income or TDS was reported differently.
Step 3: Prepare the reply
- Answer only what is asked, clearly and in order
- Attach supporting documents such as bank statements, invoices and agreements
- If you agree with a correction, say so and pay any tax
- If you disagree, explain why with proof
Step 4: Submit on the portal
Use the e-proceedings section to submit the response. Keep the acknowledgement. If a hearing is offered, attend it through video conferencing.
Do not ignore it
Ignoring a notice can lead to an assessment based on available information, with higher tax, interest and penalty. If the notice is complex, such as under Section 148, take professional help early.
What a good reply contains
- A short opening that identifies the notice, the section, the assessment year and your PAN
- A point-by-point answer to each query in the order asked
- Supporting documents, labelled and referred to in the text
- A statement of what you agree with and what you dispute, with reasons
- Your contact details and, if applicable, the authorisation of your representative
A worked example: income mismatch
Suppose an intimation says your return does not match the interest income shown in the Annual Information Statement. You check your bank records and find that you had omitted interest on a fixed deposit. The simplest response is to agree, file a revised return if the time allows, and pay the extra tax and interest. If instead the interest belongs to a joint holder who is the real owner, you can respond with the bank's confirmation that the income is not yours.
After you reply
The officer may accept your reply and close the matter, ask for more information, or pass an order. Check the portal regularly, because the next notice may carry a short deadline. If an order is passed against you, read the reasons carefully, and decide quickly whether to seek rectification, file an appeal or pay.
Mistakes that make a notice worse
- Replying in an emotional tone instead of sticking to facts.
- Attaching a large pile of unlabelled documents.
- Contradicting an earlier statement or return without explanation.
- Replying after the due date without requesting an extension.
- Ignoring a later notice because you replied once.
Keeping a notice file
Create a folder for each notice with the notice, the reply, the documents, the acknowledgement and any follow-up. Note the dates in a calendar. If the matter goes to an assessment, appeal or later year, you will need this record. It also helps a new adviser pick up the matter without starting from scratch.
When to bring in a professional
Seek help early if the notice mentions scrutiny, reassessment or a large demand, if it involves foreign assets or cash deposits, or if the due date is close. A professional can explain the legal position, draft a precise reply and represent you in hearings, which can matter a lot for the outcome.
Official sources
The income tax e-filing portal shows every notice issued to you, with the response window and the option to reply. The Income-tax Act and the rules describe what each section means and what the department may ask for. If you want a second opinion on a notice, a chartered accountant can review it quickly and tell you whether a reply, a revised return or an appeal is the right route.
Frequently asked questions
How long do I have to reply?
The time is written in the notice, and varies by type of notice. It can be as short as 7 or 15 days, and can sometimes be extended on request.
Can a CA reply on my behalf?
Yes, a chartered accountant can be authorised to represent you on the e-filing portal, subject to your authorisation.
What if I did not receive the notice by email?
Notices are also visible on the portal. Check it regularly, and keep your email and mobile number up to date, because the portal sends the alerts there.
Is a notice the same as a penalty?
No. A notice asks for information or correction. A penalty may follow only if the department finds a default and passes a separate order.
This content is for general information and does not constitute professional advice. Laws, rates and due dates change; confirm the current position for your case. Section references are to the Income-tax Act, 1961 unless stated; the Income-tax Act, 2025 applies to later periods with renumbered sections.