Income Tax Notices: Meaning, Types & How to Respond
Received a notice from the Income Tax Department? Here's everything you
need to know and how to handle it confidently.
What is an Income Tax Notice?
An income tax notice is a formal communication from the Income Tax Department of India
regarding your tax filing or compliance. It could be a request for more details, an alert on
discrepancies, an audit, or even a refund notification. Understanding the nature of the
notice is key to responding appropriately and avoiding penalties.
Common Reasons for Receiving a Notice
- Mismatch in income, deductions, or TDS details
- Failure to file returns within the deadline
- High-value transactions that don't align with reported income
- Discrepancies in TDS/TCS data as per Form 26AS
- Large investments or property transactions under scrutiny
- Routine scrutiny or random selection for review
- Pending tax dues or demand raised by the department
- Verification of refund claims or foreign income/assets
Types of Income Tax Notices
- Section 143(1): Intimation on return processing with
adjustments or mismatches.
- Section 142(1): Inquiry seeking more documents after
return filing or prior to assessment.
- Section 139(9): Indicates a defective return needing
correction within 15 days.
- Section 143(2): Scrutiny notice for detailed
examination of your return.
- Section 156: Demand notice for tax, interest, or
penalties due.
- Section 245: Adjustment of current refund against
previous dues with intimation.
- Section 148: Issued for reassessment when income is
believed to have escaped taxation.
How Are Income Tax Notices Delivered?
Notices can be served through:
- Registered post or courier
- Email and electronic portal (e-filing account)
- By posting on residence/business if recipient is unavailable
- Sent to legal representatives or responsible parties in case of minors, HUFs, firms, or
companies
Steps to Take After Receiving an Income Tax Notice
- Carefully read and understand the notice type and deadline
- Check if the details like PAN, name, year, etc., match yours
- Identify the issue highlighted by the department
- Respond within the stipulated time frame with valid explanations
- Attach all supporting documents such as Form 16, salary slips, TDS statements, etc.
- Cross-check the notice on the e-filing portal for authenticity
- Seek expert guidance if the matter is complex or unclear
Essential Documents for Response
- Copy of the income tax notice received
- Proofs of income (Form 16, salary receipts, etc.)
- Form 26AS and TDS certificates
- Investment proofs, if applicable
- Any other documents supporting your claims or explanation
Need Assistance with Your Tax Notice?
Our professionals are here to help. From reviewing your notice to crafting a proper response
and ensuring compliance, we make the process smooth and error-free.
