Income Tax Notices

   

      

 Introduction 

•       In the context of income tax, there are several types of notices that the tax authorities( like Income Tax Department) may issue to taxpayers.

•       Some of common types of income tax notices include.

•       There are some of the most common notices issued by the tax authorities. Each serves a different purpose, depending on the situation of the taxpayer.

Notice under Section 139(1)

•       Notice to file Income Tax Return:

•       This notice is issued when the taxpayers has not file their Income Tax Return by due date.

•       It serves as a reminder to file the return.

                 Notice under Section 143(1)

      •       Intimation of Processing of Return.

•       After the tax return is filed, the Income Tax Department processes the return and sends an intimation notice to the taxpayer.

•       This notice confirms the acceptance or rejection of the return and may indicate the amount of tax refund or dues.

                 Notice under Section 142(1)

      •       Notice to Submit the Documents or Information.

•       This notice is issued when the tax authorities require additional information or documents from the taxpayers to process their return, such as income details, bank statements etc.

                    Notice under Section 148

      •       Notice for Reassessment.

•       This notice is issued when the Income Tax Department wants to reassess the taxpayer’s income for a previous year.

•       It is typically issued if the department believes that the income has escaped assessment or was underreported.

                Notice under Section 156

•       Notice of Demand.

•       After assessing the return and determining tax dues, the Income Tax Department sends this notice, determining the payments of outstanding tax.

                Notice under Section 245

      •       Notice for Set-off of refund.

•       If the taxpayers has pending dues and a refund is due to them this notice informs them that refund will be adjusted against the dues.

                   Notice under Section 271(1)(c)

•       Notice for Penalty.

•       If the Income Tax Department believes that a taxpayer has committed tax evasion(e.g. filling a false return), they can issue this notice proposing a penalty for the concealment of income or incorrect statements.

                 Notice under Section 133(6)

•       Notice for Enquiry or Information.

•       The Income Tax Department may issue a notice to obtain information from third parties (e.g., banks, financial institutions) about a taxpayer’s income, financial transactions, etc.

              Notice under Section 139(9)

•       Defective Return Notice.

•       If the income tax return filed by the taxpayer is defective, the department may issue this notice asking the taxpayer to rectify the mistake and re-file the return.

                Notice under Section 119(2)(b)

•       Notice for Granting the Extension of Time.

•       This notice is issued if a taxpayer requests an extension for the filling their income tax return, and the department grants an extension under specific circumstances.

 

*Key Things to Keep in Mind*

• Verify notice validity: Make sure it has a valid DIN (Document Identification Number).
• Always confirm whether the notice was issued via the official income tax portal or by mail.
• Keep deadlines in mind: Delayed or no response could lead to penalties or prosecution.
• Talk to a tax professional for professional advice if unsure.
• Do not ignore any notice, even if you think there's no error.

 Details on how to reply to a specific section notice?


Here's a step-by-step guide on how to reply to Income Tax Notices in India:

👉Step-by-Step Guide to Reply to an Income Tax Notice

• Read the Notice Carefully 
• Check these :
• Section under which notice is issued (e.g. 139(9), 143(2), 148, etc.)  
• Assessment Year (AY)
• Reason for notice
• Deadline to reply

 2. Log in to the Income Tax e-Filing Portal
Portal: https://www.incometax.gov.in

    Log in using PAN and password.

 3. Proceed to 'e-Proceedings' or 'Pending Actions'
Go to:
e-Proceedings → View Notices and give a response

Or e-File → Income Tax Forms → Response to Notice

4. Draft and Upload Your Response
Attach supporting documents, including:

• Bank statements
• Salary slips
• Investment proofs
• Computation sheets
• Amended ITR (if required)
• Offer a clear, respectful explanation stating the problem presented.

 

5. Submit and Download Acknowledgment
Online submit the reply.

Download the acknowledgment for record purposes.

Basic Response Format Example:
Subject: Re: Notice u/s [Section] for AY [Year]

Respected Sir/Madam,
This is in reference to the Income Tax Notice dated [Date] issued under section [Section]. I have read through the notice contents and wish to clarify as under:

[Point-wise response to the point raised]

[Reference to supporting documents annexed]

You will find the documents mentioned below attached for your perusal.

Thank you.

Sincerely,
[Your Name]
PAN: [XXXXXXXXXX]
Contact: [Phone/Email]

Tips:

• Never ignore any notice — always respond by due date.
• Use only official income tax website for response.
• If in doubt, take guidance from a tax expert or CA to prepare the response.
• Never send response on a postcard.

Author 

Shabnam