Receiving a notice from the Income Tax Department can be stressful, but most notices are routine and manageable if handled correctly. Whether it’s for missing documents, mismatched income, or scrutiny, a timely and accurate response can help resolve the matter without penalty.
This blog explains how to respond to an Income Tax notice, the types of notices commonly issued, and step-by-step instructions to reply online for FY 2024-25.
Legal Reference
- Sections 139(9), 142(1), 143(1)/(2), 148, 156, Income Tax Act, 1961
- Income Tax Rules and CBDT Circulars
- Portal: https://www.incometax.gov.in
Common Types of Income Tax Notices
| Section | Purpose |
|---|---|
| 139(9) | Defective return — missing or incorrect information |
| 143(1) | Intimation of tax computation mismatch |
| 143(2) | Scrutiny notice — detailed assessment initiated |
| 142(1) | Notice to submit details, books, or documents |
| 148 | Reassessment of escaped income |
| 156 | Notice of demand — tax, interest, or penalty payable |
| 245 | Adjustment of refund against old demand |
Reasons for Receiving a Notice
- Mismatch between ITR and Form 26AS/AIS
- Non-filing of return despite TDS or high-value transactions
- Claiming incorrect deductions or losses
- Reporting foreign assets without details
- Under-reporting of capital gains, crypto, or interest
- Late or non-payment of taxes due
Step-by-Step Guide to Respond to a Notice
Step 1: Login to https://www.incometax.gov.in using your PAN and password
Step 2: Navigate to ‘e-Proceedings’ or ‘Pending Actions’ > ‘e-Compliance’
Step 3: Click on the specific notice reference number
Step 4: Read the notice carefully to understand the section, reason, and response due date
Step 5: Gather relevant documents — ITR copy, Form 26AS, AIS/TIS, bank statements, investment proofs, etc.
Step 6: Prepare a point-wise response in PDF format (if required)
Step 7: Submit your reply along with supporting documents via e-Proceedings > Submit Response
Step 8: Save the Acknowledgment Number and confirmation PDF for records
Additional Tips
- Use “Submit Grievance” only if the notice was wrongly issued
- If asked to attend hearing, it can often be done via faceless proceedings
- Always respond within the deadline mentioned in the notice
- Hire a professional if the notice involves reassessment or penalty
Common Mistakes to Avoid
- Ignoring notice or delaying response
- Submitting incomplete or incorrect replies
- Not attaching documentary proofs
- Responding casually without legal language
- Assuming faceless notice means non-serious action
Example Scenario
- Ravi receives a 143(1) intimation stating mismatch in TDS
- He logs into the portal, compares Form 26AS with ITR, finds that one FD interest wasn’t declared
- Files a revised return, responds to the notice via e-Proceedings, and receives updated intimation without penalty
Conclusion
Income Tax notices are not always a sign of wrongdoing — but failure to respond can lead to penalties, reassessment, or blocking of refunds.
Understanding the type of notice and responding properly within deadlines ensures smoother resolution and protects your tax profile.
Call to Action
Received an Income Tax notice and unsure what to do?
Book a notice response consultation with Anshul Goyal, Chartered Accountant, and we’ll help you draft, submit, and close the case professionally.
Visit: https://calendly.com/anshulcpa
Disclaimer
This blog is for informational purposes only. Every tax notice must be evaluated based on facts, law, and income disclosure.
Frequently Asked Questions
1. What should I do after receiving a tax notice?
Login to the portal, understand the section, and respond via e-Proceedings.
2. Is there a penalty for late response?
Yes, depending on the notice type. Delay can trigger further action or reassessment.
3. Can I revise my return after receiving a notice?
Yes, if it’s an intimation under Section 139(9) or 143(1), and deadline has not passed.
4. What if I ignore a 143(2) scrutiny notice?
Your case can be assessed without your input, and penalties may apply.
5. Is professional help required for notices?
Strongly advised for Sections 143(2), 148, or 156, as legal implications are high.