Income Tax Notice in India: Types, Reasons and How to Respond Online

An income tax notice in India is not automatically bad news, but ignoring one almost always is. Notices range from routine computer-generated intimations to serious reassessment proceedings, and each has its own deadline and consequences. This guide explains the common types of income tax notices, why they are issued, and how to respond online through the e-filing portal. Note that the Income Tax Act, 2025 has replaced the Income Tax Act, 1961 with effect from April 1, 2026; proceedings for earlier assessment years continue under the familiar provisions of the 1961 Act, so the section numbers below remain relevant for most notices taxpayers receive today.

First Step: Verify That the Notice Is Genuine

Every communication from the Income Tax Department carries a Document Identification Number (DIN). Before responding, authenticate the notice on the e-filing portal at incometax.gov.in using the option to authenticate notice or order issued by the department. Fake notices demanding payment into private accounts are a recurring fraud. The department's legitimate demands are paid only through the portal's e-Pay Tax facility, never by transfer to an individual's bank account.

Common Types of Income Tax Notices

Intimation under Section 143(1) is a computerised communication issued after your return is processed, comparing your computation with the department's. It may show no change, a refund, or a small demand arising from arithmetic errors or mismatches, and it must generally be issued within nine months from the end of the financial year in which the return was filed. A notice for a defective return under Section 139(9) points out defects, such as missing schedules, and gives you fifteen days to correct the return. A notice under Section 142(1) seeks documents or information, or calls upon you to file a return if you have not filed one.

A scrutiny notice under Section 143(2) means your return has been selected for detailed examination; it must be issued within three months from the end of the financial year in which the return was filed. A reassessment notice under Section 148 is issued where the department believes income has escaped assessment; under the amended limitation scheme introduced by the Finance (No. 2) Act, 2024, such notices can generally be issued up to three years and three months from the end of the relevant assessment year, extendable to five years and three months only where the escaped income is fifty lakh rupees or more and the officer has evidence of it. A demand notice under Section 156 quantifies tax, interest or penalty payable following an order.

How to Respond Through e-Proceedings

Log in to incometax.gov.in and open Pending Actions, then e-Proceedings. The notice and its annexures appear there, along with the response window. Prepare your reply point by point, attach supporting documents as PDFs, and submit before the deadline. Assessments are conducted in a faceless manner for most cases, which means your written submissions and documents are the substance of your defence, and personal hearings, where granted, happen by video conference. If you need more time, file a request for adjournment through the portal rather than letting the deadline lapse. For an intimation under Section 143(1) with which you disagree, you can file a rectification request or a revised return where permissible.

Common Triggers for Notices

Most notices trace back to mismatches between your return and the information the department already holds. The Annual Information Statement compiles your salary, interest, dividends, securities transactions, property dealings and high-value spends as reported by banks, employers, registrars and other entities. Differences between the AIS and the return, unreported interest income, TDS claimed but not reflected in Form 26AS, large cash deposits, and property transactions disproportionate to declared income are recurring triggers. Reviewing your AIS and Form 26AS before filing, and reconciling any differences, remains the single most effective way to avoid notices altogether.

What Happens If You Ignore a Notice

Non-response allows the officer to complete the assessment on best judgment basis using the material available, which usually produces a higher demand. Penalties and, in serious cases, prosecution provisions can follow continued non-compliance. A demand that remains unpaid attracts interest and can lead to recovery measures, including adjustment of refunds and attachment of bank accounts. Even when you believe the notice is wrong, the safe course is to respond on the record and contest it, and to use the appeal mechanism against any adverse order.

Key Takeaways

Authenticate every notice on the e-filing portal before acting on it. Identify the section under which the notice is issued, since it determines what is being asked and the deadline. Respond through the e-Proceedings module with documents, and seek adjournment formally if needed. Reassessment beyond three years and three months requires escaped income of at least fifty lakh rupees, a meaningful protection for taxpayers. Take professional help for scrutiny and reassessment notices; a precise, document-backed reply at the first stage prevents most escalation.