Income Tax Notice in India: What It Means and What To Do Next (2026)
An income tax notice is not the end of the world. Most are routine. But every notice has a deadline — miss it and the matter gets serious. Here is exactly what each notice means and how to respond.
Quick Answer
Every notice quotes a section — that tells you what it is about.
Most common: 143(1) (intimation, no action), 139(9) (defective return, fix in 15 days), 142(1) (inquiry), 143(2) (scrutiny), 148 (income escaped — serious), 156 (demand), 245 (set-off of refund).
Reply on the e-filing portal at
incometax.gov.in under “
Pending Actions → e-Proceedings”.
Always reply within the deadline, even if you ask for adjournment.
Never ignore — best-judgement assessment under Section 144 follows, and you lose appeal grounds.
A Chartered Accountant can usually handle this for ₹1,000–₹5,000 per notice.
What the Law Says
The Income-tax Act, 1961 governs notices. Key sections:
143(1) — Intimation after processing. Not a demand. Just shows tax payable / refund.
139(9) — Defective return. Fix within 15 days or your return is treated as not filed.
142(1) — Inquiry before assessment. AO is asking for documents.
143(2) — Scrutiny notice. Issued within 3 months from end of FY in which return was filed.
148 — Income escaping assessment. Reopens up to 10 years in serious cases (₹50 lakh+ escaped). Always consult a CA/lawyer.
156 — Notice of demand. 30-day deadline.
245 — Set-off of refund against demand. 30 days to object.
271(1)© / 270A — Penalty after assessment if under-reporting found.
148A — Inquiry before reopening. Pre-148 stage; chance to explain.
What You CAN Do
Read the section number on the notice.
Log in to incometax.gov.in → Pending Actions → e-Proceedings.
Download the notice PDF and read it twice.
Reply online with documents. Most notices no longer require physical visit (faceless assessment).
Ask for adjournment once if you need more time — usually granted.
Engage a CA / tax lawyer — fees deductible as business expense if relevant.
Appeal: CIT(A) within 30 days of order; ITAT within 60 days of CIT(A) order.
What You CANNOT Do
Ignore the notice — leads to ex-parte order under Section 144.
File a manual reply when faceless mode is on — only e-Proceedings count.
Miss the deadline without filing an adjournment request.
Hide information — penalty under Section 270A is 50%–200% of tax.
Pay informal “settlement” — pay only via demand notice on the portal.
Step-by-Step Action Guide
As soon as you receive a notice
Log in to incometax.gov.in.
Go to Pending Actions → e-Proceedings → View Notices.
Note the section, AY, deadline, and document list.
Cross-check the AY (Assessment Year).
Pull together the requested documents.
For Section 143(1) intimation
Compare your Form 26AS / AIS with what you filed.
If correct, no action needed.
If you disagree (mismatch), file a rectification under Section 154 within 4 years.
For Section 139(9) defective return
Open the notice — it lists exactly what is wrong.
File a revised return within 15 days using the same ITR utility, marking it as “in response to 139(9)”.
For Section 142(1) inquiry
Read what the AO wants (often: bank statements, source of cash deposit, expenses claimed).
Upload documents on the portal.
If unsure, hire a CA.
For Section 143(2) scrutiny
This is a full audit. Do not reply alone. Get a CA.
The questionnaire (Section 142(1)) follows; respond on time.
Final order within 12 months of issuing 143(2).
For Section 148 reopening
Preceded by Section 148A(b) show-cause. You get 7 days (extendable to 30) to object.
Your written objection at 148A stage decides whether the case is reopened.
If 148 is issued, file the return within the time given (usually 3 months) and participate in scrutiny.
Always involve a tax professional.
For Section 156 demand
Documents / Proof Required
PAN, Aadhaar.
Bank statements for the relevant FY.
Form 16 / 16A.
Form 26AS, Annual Information Statement (AIS), Tax Information Statement (TIS).
Investment proofs (80C, 80D, etc.).
Books of accounts (for business / profession).
Sale deed / agreement for property transactions.
Bills, ledger for any expense claimed.
Penalties & Consequences
| Issue | Penalty |
| Late return filing | Section 234F: ₹1,000–₹5,000 |
| Under-reporting | Section 270A: 50% of tax on under-reported income |
| Misreporting (concealment) | Section 270A: 200% of tax |
| Failure to maintain books | Section 271A: ₹25,000 |
| Failure to deduct TDS | Section 271C: amount of TDS |
| Best-judgement assessment under 144 | Tax + interest + 270A penalty |
| Prosecution (wilful evasion > ₹25 lakh) | Section 276C: 6 months – 7 years jail |
State Variations
Income tax is a central subject. There are no state variations. The same Income-tax Act applies across India.
Common Mistakes
Treating 143(1) intimation as a “notice” and panicking — usually it is just a confirmation.
Replying via email — only portal e-Proceedings is valid.
Missing AIS / Form 26AS mismatch — fix it via the AIS feedback feature before filing.
Claiming 80C deductions you cannot prove — often triggers 142(1).
Cash deposits > ₹10 lakh in savings / ₹50 lakh in current — auto-flagged in AIS.
Filing revised return after notice — usually not allowed once notice under 143(2)/148 is issued.
Ignoring SMS / email alerts — log into the portal weekly during scrutiny.
If this complaint isn't resolved through the regular complaint route, you can file an RTI to force the public authority to either act or explain in writing why they haven't. The fee is ₹10 (free if you're BPL).
FAQ
1. I got an SMS saying "Notice issued" — is it real?
Check on the portal. Real notices appear under e-Proceedings. Cross-check the DIN (Document Identification Number) — every legitimate notice has one.
2. What is DIN?
A 20-character ID. Verify it at incometax.gov.in/iec/foservices → “Verify DIN”. No DIN = invalid notice.
3. Notice quotes a year I do not remember filing — what now?
Pull AIS for that AY. Reply with Form 26AS. If genuinely no income, file a NIL return in response.
4. Can I get a refund of TDS I forgot to claim?
Yes — revise return if within window (1 year from end of AY) or file rectification under 154.
5. AO wants me to come in person — must I?
Most assessments are faceless. If a personal hearing is granted, attend with your CA.
6. Penalty notice 271(1)(c) — same as 270A?
271(1)© was the old section; 270A applies for AY 2017-18 onwards. Similar in effect.
7. Faceless assessment — what changes?
Notices come from a central NeAC, not your local AO. Reply only via portal. No personal visit unless videoconference is granted.
8. Can the Department reopen 10-year-old cases?
Yes, in cases of escaped income > ₹50 lakh (Section 149). For lesser amounts, the limit is 3 years from end of relevant AY.
9. I am a salaried person — can I get scrutiny notice?
Yes, especially if AIS shows large stock trades, foreign assets, or property sale not in your return.
10. CIT(A) appeal — how long does it take?
Usually 2–4 years at present. ITAT next, then High Court. Faceless appeal scheme is now in force.
11. Can I revise my return after a notice?
Generally no, after 143(2) or 148. Before that, yes within the revised-return window.
12. What if I genuinely cannot pay the demand?
Apply for instalments under Section 220(3) or stay of demand pending appeal (deposit 20%).
Final Checklist
Identify the section and DIN.
Note the deadline.
Pull all relevant documents.
Reply only on the portal e-Proceedings.
Engage a CA for 142(1), 143(2), 148, and any demand notice.
Pay or appeal within 30 days of demand.
Keep all acknowledgements.
Sources
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DIN Verification — incometax.gov.in/iec/foservices.
CBDT Faceless Assessment Scheme, 2019 (as amended).
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