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.

• 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.

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.

• 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.

• 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.

1. Log in to incometax.gov.in.
2. Go to Pending Actions → e-Proceedings → View Notices.
3. Note the section, AY, deadline, and document list.
4. Cross-check the AY (Assessment Year).
5. Pull together the requested documents.

• 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.

• 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)”.

• Read what the AO wants (often: bank statements, source of cash deposit, expenses claimed).
• Upload documents on the portal.
• If unsure, hire a CA.

• 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).

• 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.

• Pay within 30 days OR
• File appeal to CIT(A) within 30 days; deposit 20% of demand to get stay.
• Apply for stay of demand with the AO if you have appealed.

• 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.

Income tax is a central subject. There are no state variations. The same Income-tax Act applies across India.

1. Treating 143(1) intimation as a “notice” and panicking — usually it is just a confirmation.
2. Replying via email — only portal e-Proceedings is valid.
3. Missing AIS / Form 26AS mismatch — fix it via the AIS feedback feature before filing.
4. Claiming 80C deductions you cannot prove — often triggers 142(1).
5. Cash deposits > ₹10 lakh in savings / ₹50 lakh in current — auto-flagged in AIS.
6. Filing revised return after notice — usually not allowed once notice under 143(2)/148 is issued.
7. Ignoring SMS / email alerts — log into the portal weekly during scrutiny.

Check on the portal. Real notices appear under e-Proceedings. Cross-check the DIN (Document Identification Number) — every legitimate notice has one.

A 20-character ID. Verify it at incometax.gov.in/iec/foservices → “Verify DIN”. No DIN = invalid notice.

Pull AIS for that AY. Reply with Form 26AS. If genuinely no income, file a NIL return in response.

Yes — revise return if within window (1 year from end of AY) or file rectification under 154.

Most assessments are faceless. If a personal hearing is granted, attend with your CA.

271(1)© was the old section; 270A applies for AY 2017-18 onwards. Similar in effect.

Notices come from a central NeAC, not your local AO. Reply only via portal. No personal visit unless videoconference is granted.

Yes, in cases of escaped income > ₹50 lakh (Section 149). For lesser amounts, the limit is 3 years from end of relevant AY.

Yes, especially if AIS shows large stock trades, foreign assets, or property sale not in your return.

Usually 2–4 years at present. ITAT next, then High Court. Faceless appeal scheme is now in force.

Generally no, after 143(2) or 148. Before that, yes within the revised-return window.

Apply for instalments under Section 220(3) or stay of demand pending appeal (deposit 20%).

• 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.

• Income-tax Act, 1961 — incometaxindia.gov.in.
• e-Filing portal — incometax.gov.in.
• DIN Verification — incometax.gov.in/iec/foservices.
• CBDT Faceless Assessment Scheme, 2019 (as amended).
• Annual Information Statement (AIS) — compliance.insight.gov.in.
• ITAT — itat.gov.in.

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