Receiving an Income Tax Notice can be stressful, but it doesn’t always mean trouble. The Income Tax Department issues notices for various reasons—some routine, others requiring immediate action.
If you’ve received a notice, don’t panic! Instead, follow these steps to respond correctly and avoid penalties or legal issues.
Why Did You Receive an Income Tax Notice?
The first step is to understand the reason behind the notice. Common reasons include:
✔ Mismatch in ITR (Income Tax Return) details (Form 26AS, AIS, TDS discrepancies)
✔ Unreported or underreported income
✔ High-value transactions (property, investments, foreign assets)
✔ Random scrutiny assessment
✔ Delayed or non-filing of ITR
✔ Tax refund verification
The notice will mention the section under which it is issued (e.g., Section 139(9), 143(1), 148, etc.), helping you identify the issue.
Step-by-Step Guide to Responding to an Income Tax Notice
1. Verify the Notice’s Authenticity
- Check if the notice is from the official Income Tax Department portal (https://www.incometax.gov.in).
- Beware of fake emails/SMS scams—never share personal details without verification.
2. Identify the Notice Type & Deadline
- Open the notice and note the type (e.g., intimation, demand, scrutiny) and response deadline.
- Missing the deadline can lead to penalties or a best judgment assessment (ex parte order).
3. Gather Required Documents
Depending on the notice, you may need:
- ITR filed
- Form 16/16A, Bank Statements, Investment Proofs
- AIS (Annual Information Statement) & Form 26AS
- Business books (if applicable)
4. Analyze & Rectify the Issue
- If there’s a mismatch, correct it by filing a revised return (if allowed).
- If it’s a scrutiny notice (Section 143(2)), prepare a detailed reply with supporting documents.
- For tax demands (Section 156), verify calculations and pay if valid or file an appeal.
5. Submit a Proper Response
- Draft a clear, point-wise reply addressing the tax department’s query.
- Submit via the Income Tax Portal or consult a tax professional for complex cases.
6. Follow Up & Keep Records
- Track the status on the IT portal.
- Save all communication for future reference.
Common Types of Income Tax Notices & How to Handle Them
| Notice Type | Reason | Action Required |
| Section 139(9) | Defective ITR | Correct errors & re-file |
| Section 143(1) | Intimation (tax mismatch) | Verify & respond if disputed |
| Section 143(2) | Scrutiny Notice | Submit documents & explanations |
| Section 148 | Income Escapement (unreported income) | File updated ITR or challenge notice |
| Section 245 | TDS mismatch | Reconcile & clarify |
What If You Ignore an Income Tax Notice?
❌ Penalties (under Section 271F, 271H)
❌ Best Judgment Assessment (tax officer decides liability)
❌ Prosecution in severe cases (tax evasion)
Need Professional Help?
Dealing with an income tax notice can be complex. Taxation Legal Advisor provides expert assistance in:
✅ Notice analysis & response drafting
✅ ITR revisions & scrutiny support
✅ Appeals against unfair tax demands
📞 Contact us today for a consultation at [ +919034263307]
📧 Email:contact@taxationlegaladvisor.in
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