Receiving an income tax notice is common and usually not a cause for panic — but it must be answered on time. Notices range from a routine intimation after processing to a scrutiny or reassessment notice.
This guide explains the common notice types and how to respond.
What is Income Tax Notices?
Notices are issued electronically and appear on the e-filing portal. Each cites a section that tells you why it was issued and what response is expected.
Ignoring a notice can lead to best-judgment assessment, penalties and interest.
Step-by-step process
- Read carefully. Identify the section, the assessment year and the deadline to respond.
- Gather documents. Collect the records the notice asks for.
- Respond on the portal. Submit your reply and documents through the e-proceedings/response facility.
- Seek help if needed. For scrutiny (143(2)) or reassessment (148), consider professional assistance.
Common notices and what they mean
| Section | Meaning |
|---|---|
| 143(1) | Intimation after processing — refund, demand or no change |
| 139(9) | Defective return — needs correction |
| 142(1) | Inquiry before assessment — asks for documents/return |
| 143(2) | Scrutiny — return selected for detailed examination |
| 148 | Income escaping assessment — reassessment |
| 245 | Adjustment of refund against outstanding demand |
Frequently asked questions
Is a 143(1) intimation a problem?
Not necessarily. It is the standard intimation after your return is processed; check whether it shows a refund, a demand, or no change.
What if I ignore a tax notice?
Non-response can lead to a best-judgment assessment, additional tax, penalties and interest. Always respond by the deadline.