A message from the Income Tax Department can make anyone nervous. However, a notice does not always mean trouble. Often, the department just wants more information, a small clarification, or a quick fix to a mismatch in your return.
So the smart move is simple. Read the notice, understand why it landed, and reply within the deadline. This guide walks you through every common income tax notice, why it reaches you, and exactly how to respond. Let us start with the one most people see first.
A Quick Income Tax Notices Summary
| Section | What it is | Common reason | When to respond |
|---|---|---|---|
| 143(1) | Intimation after return processing | Refund, demand, or a math or TDS mismatch | Usually within 30 days |
| 139(9) | Defective return notice | Wrong ITR form, missing details, or income-tax mismatch | Within 15 days |
| 142(1) | Inquiry before assessment | Return pending, or documents needed | As stated in the notice |
| 143(2) and 143(3) | Scrutiny notice and assessment order | Return picked for detailed review | As stated, then appeal if needed |
| 147, 148, 148A | Reassessment of escaped income | Undisclosed income or third-party data | 148A reply in 7 to 30 days |
| 144 | Best judgment assessment | Non-filing or non-cooperation | Appeal within 30 days of the order |
| 245 | Refund adjusted against old demand | Refund due, but a past demand is unpaid | Within the time stated in the notice |
| 156 | Notice of demand | Tax, interest, or penalty payable after an order | Pay within 30 days |
| 270A | Penalty for under-reporting or misreporting | Lower income shown or wrong claims made | As stated in the notice |
| 271 | Penalty for non-compliance | Ignoring notices or not sharing information | As stated in the notice |
| 234F | Late filing fee | Return filed after the due date | Pay with the return or on demand |
Section 143(1): Intimation After Your Return Is Processed
What is it?
Section 143(1) is the most common communication of all. The department’s system processes your return, checks the math, and sends an intimation that compares your figures with its own records.
Why do you receive it?
You get it after almost every return. It shows one of three outcomes: a refund, a tax demand, or no change at all. Sometimes the system also adjusts an arithmetical error or a TDS mismatch.
How should you respond?
First, check whether the figures match your return. If they agree and show no demand, you simply keep it for your records. However, if a demand appears, log in to the e-filing portal and either pay it or disagree with reasons, usually within 30 days. A quick look at your Form 26AS and AIS often explains the gap, and our guide on how to download your AIS shows you how.
Section 139(9): Defective Return Notice
What is it?
The department sends a Section 139(9) notice when your filed return carries a defect, such as a missing schedule, an unfilled mandatory field, or a mismatch between income and tax paid.
Why do you receive it?
Common triggers include incomplete details, the wrong ITR form, or a gap between the tax claimed and the tax actually deposited. So the return needs a correction before the department can process it.
How should you respond?
Act quickly, since you usually get only 15 days to fix it. Log in, open the notice, and file a corrected return. If you ignore it, the department can treat your return as invalid, which feels like you never filed at all. Picked the wrong form? Our income tax return filing service helps you file the right one cleanly.
Section 142(1): Inquiry Before Assessment
What is it?
A Section 142(1) notice asks you either to file a return you have not filed yet, or to produce specific accounts and documents.
Why do you receive it?
The Assessing Officer sends it to gather details before assessing your income. So it often arrives when a return is pending or when the officer needs supporting papers.
How should you respond?
Submit the requested documents through the portal within the stated time. Do not skip it, because non-compliance can lead to a best judgment assessment and a penalty.
Section 143(2) and 143(3): Scrutiny Notice and Assessment Order
What is it?
A Section 143(2) notice tells you that your return is under scrutiny. After a detailed review, the officer passes the final order under Section 143(3).
Why do you receive it?
The department picks returns for scrutiny to verify income, deductions, and exemptions. Unlike automated processing, a real officer examines your documents here.
How should you respond?
Answer every query with clear evidence, and meet each deadline. Once the 143(3) order arrives, compare it with your return. If you agree, pay any extra demand on time. If you disagree, you can appeal before the right authority.
Section 147, 148, and 148A: Reassessment of Escaped Income
What is it?
These sections let the department reopen a past year when it believes some income escaped tax. The process starts with a show-cause notice under Section 148A, and a formal notice under Section 148 follows.
Why do you receive it?
Triggers include an undisclosed bank account, unreported income, a high-value transaction, or information from a third party. So the officer asks you to explain before reopening the case.
How should you respond?
Reply to the 148A show-cause within the window given, normally 7 to 30 days, with documents that show the income was already disclosed or not taxable. Also check the time limit. After 1 September 2024, the department can reopen a year only within 3 years and 3 months from the end of that tax year. For escaped income of Rs 50 lakh or more, the limit extends to 5 years and 3 months. So a notice beyond these limits may not hold. Given the stakes, professional help usually pays for itself here.
Section 144: Best Judgment Assessment
What is it?
Under Section 144, the officer estimates your income from whatever records are available, because you did not cooperate during the assessment.
Why do you receive it?
It follows when you skip filing, ignore notices, or stay absent from the proceedings. So the officer decides the income on a best judgment basis.
How should you respond?
Never ignore the earlier notices, since that is exactly what leads here. If an order is already passed, review it, gather your proof, and file an appeal when the estimate looks wrong.
Section 245: Adjusting Your Refund Against an Old Demand
What is it?
A Section 245 notice tells you the department plans to adjust your current refund against a tax demand from an earlier year.
Why do you receive it?
It arrives when a refund is due now, yet an unpaid demand still sits on your record. First, though, the department gives you a chance to agree or object.
How should you respond?
Check whether that old demand is genuine. If it is correct, accept the adjustment. If it is wrong, submit proof and explain, strictly within the time mentioned in the notice.
Section 156: Notice of Demand
What is it?
A Section 156 notice is a formal demand to pay tax, interest, penalty, or any other sum the department has worked out.
Why do you receive it?
It usually follows an assessment or order that creates a payable amount. So it spells out how much you owe and by when.
How should you respond?
Pay the demand within 30 days of receiving it. If you dispute it, apply for a stay or file an appeal, rather than letting interest pile up.
Section 270A: Penalty for Under-Reporting or Misreporting
What is it?
Section 270A brings a penalty when you report less income than you should, or claim something incorrectly that lowers your tax.
Why do you receive it?
It applies to under-reported income, wrong deductions, or misrepresented facts. Moreover, deliberate misreporting attracts a much steeper penalty, up to 200% of the tax on that income.
How should you respond?
Read the basis carefully. If a genuine mistake caused the gap, explain it with evidence. If the penalty looks unfair, you can contest it through the proper appeal route.
Section 271: Penalty for Non-Compliance
What is it?
The Section 271 group of provisions covers penalties for failing to meet various duties under the Act.
Why do you receive it?
Typical reasons include ignoring departmental notices, not sharing required information, or not cooperating during proceedings. The notice itself states the exact charge.
How should you respond?
Do not let it sit. Understand the allegation, reply with supporting documents, and if a fair reason explains the lapse, set it out clearly.
Section 234F: Fee for Late Filing
What is it?
Section 234F is not a notice as such, yet it shows up in intimations as a late filing fee.
Why do you receive it?
You see it when you file your return after the due date. The fee is Rs 5,000 in most cases, or Rs 1,000 if your total income stays up to Rs 5 lakh.
How should you respond?
Check whether the fee is correct. If you did file late, you generally pay it. If the system charged it wrongly, you can seek rectification. To avoid it next time, file before the deadline, and fix any earlier slip with an updated return (ITR-U).
How to Respond to Any Income Tax Notice: A Quick Checklist
Whatever the section, a few steps keep you safe:
1. Verify the notice first. Check your name, PAN, the tax year, and the DIN (Document Identification Number), since a genuine notice always carries one.
2. Read the reason. Then match it against your filed return and your Form 26AS and AIS.
3. Gather your proof. Keep salary slips, bank statements, and investment records ready.
4. Reply on time. Use the e-filing portal, and never miss the stated deadline.
5. Get help when unsure. A wrong reply can cost more than the notice itself.
Conclusion
A notice rarely means you are in trouble. More often, the department just wants clarity or a small correction. So read it calmly, understand the section, and respond within the time limit. Above all, keep clean records and reconcile your return with Form 26AS and AIS before you file, since most notices start with a simple mismatch.
Got a Notice and Not Sure What to Do?
Some notices close easily on your own. Others, like scrutiny or reassessment, need a careful, well-documented reply. So if you would rather not risk it, AMpuesto can review your notice and respond on your behalf. Reach out through our income tax return service or talk to our team today.
Frequently Asked Questions
1. Is an income tax notice always bad news?
No. Many notices, like a Section 143(1) intimation, simply confirm your return or flag a small mismatch you can fix.
2. How long do I get to respond to a notice?
It depends on the section. A defective return under 139(9) usually allows 15 days, while a 143(1) demand allows about 30 days.
3. What happens if I ignore an income tax notice?
Ignoring it can lead to a best judgment assessment, penalties, interest, or a return treated as invalid. So always reply in time.
4. How do I check and respond to a notice online?
Log in to the income tax e-filing portal, open the “e-Proceedings” or “Pending Actions” tab, read the notice, and submit your response with documents.
