Income Tax Notice: Meanings, Types, Reasons and How to Respond
Income Tax Notices are written communications sent to individuals by the Income Tax Department to inform them that their return has been filed and has been picked for scrutiny. There can be various reasons for receiving an income tax notice. After receiving the notice, taxpayers must act on it and resolve it within the given timeline.
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Types of Income Tax Notices
The Income Tax Department issues various notices based on taxpayer compliance or discrepancies.
Notice / Section Purpose / Reason 142(1) AO requests additional information or documents regarding your ITR. 139(9) Notice for defective ITR; missing information, wrong form selection, or errors. 148 Issued if AO believes income is underreported or ITR not filed. 156 Issued for demand of tax, penalty, or other amounts payable. 143(1) Computer-generated intimation after ITR processing. 143(2) / 143(3) Scrutiny assessment notice when AO decides to examine ITR. 131 Issued if AO suspects concealment of income. 245 Issued if taxes remain unpaid for previous FY. -
Common Reasons for Receiving a Notice
- Mismatch in TDS or reported income.
- Errors in ITR or missing documents.
- Non-filing or late filing of ITR.
- Unreported spouse or high-value transactions.
- Incorrect ITR form usage.
- Discrepancy in income or assets.
- Pending self-assessment tax or fake deductions.
- Random scrutiny by assessing officer.
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How to Respond to a Notice
- Read the notice carefully to understand the reason.
- Verify name, PAN, assessment year, and address.
- Identify discrepancies causing the notice.
- Respond within the stipulated time to avoid penalties.
- Support your response with appropriate documents.
- Check online that notice is reflected in your income tax account.
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Essential Documents to Respond
- Copy of Income Tax Notice.
- Proof of income: Form 16 (Part A/B), salary slips.
- TDS certificates, indemnity bond, rectification request letter.
- Investment proofs, if applicable.
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Authenticating an Income Tax Notice Online
Steps:
- Visit the Income Tax e-filing portal.
- Click “Authenticate notice/order issued by ITD” under Quick Links.
- Authenticate using:
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PAN, assessment year, document type, issue date, mobile number
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Or DIN and mobile number
- Enter OTP sent to registered mobile to validate.
- Successful validation shows DIN and date of issue.
- If no notice exists, message “No record found” will appear.
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Time Limits for Issuing Notices (Sec 148)
Time Period Authority Condition / Example Up to 4 years from AY end Assistant Commissioner or above Regular assessment; e.g., AY 2017-18 → notice until 31 Mar 2022 Beyond 4 – 6 years Chief Commissioner / Commissioner Escaped income > ₹1,00,000; e.g., AY 2017-18 → notice until 31 Mar 2024 Beyond 6 – 16 years Income related to undisclosed foreign asset e.g., AY 2017-18 → notice until 31 Mar 2034 -
Legal Consequences of Ignoring Notices
- Penalties and fines.
- Possible prosecution.
- Return may be invalid → loss of exemptions, interest, non-carry forward of losses.
- Additional tax liabilities and reputational risk.
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How Tax Pal Solutions Can Help
- Expert guidance from experienced CAs and tax professionals.
- Detailed notice analysis to understand AO requirements.
- Help with compiling all necessary documents.
- Drafting accurate, timely responses.
- Ensuring full compliance and reducing further queries.
