Filing your Income Tax Return (ITR) isn’t the end of your tax journey. Even after you’ve submitted and verified your return, you might still receive a notice from the Income Tax Department. While this may seem alarming, most notices are routine and manageable—provided you understand them and respond appropriately.
This guide will help you decode the most common types of income tax notices in India and the right way to deal with them.
✅ General Tips If You Receive an Income Tax Notice
- Don’t Ignore It: Every notice has a deadline. Missing it can lead to penalties or further action.
- Use Form 26AS & AIS: Reconcile your income and TDS data using these reports.
- Be Accurate: Mismatches or wrong responses can attract more scrutiny.
- Act Promptly: Even simple notices, if ignored, can turn complicated.
- Consult a Tax Expert: For complex notices, take help from a Chartered Accountant or a tax consultant.
📬 Common Income Tax Notices & What to Do
🔹 Section 143(1) – Intimation After Return Processing
This is the most common type of notice. It is sent after your ITR is processed and compares the details in your return with the department’s database.
Why you may get it:
- TDS mismatch
- Calculation errors
- Wrong deductions
- Late filing
What to do:
- Log in to the income tax portal to review the notice.
- If correct, no action is needed.
- If there’s a tax demand, pay within 30 days.
- If incorrect, file a rectification with supporting documents.
🔹 Section 245 – Adjustment Against Past Dues
This notice is sent if you are eligible for a refund, but the department finds past tax dues.
What to do:
- Check the notice under ‘e-Proceedings’ on the portal.
- Agree or disagree with the adjustment within 15 days.
- No response leads to automatic adjustment.
🔹 Section 142(1) – Inquiry Before Assessment
This is a preliminary notice sent when your return is not filed or the department needs more information.
What to do:
- File your return, if pending.
- Submit documents as per the notice.
- Non-compliance may lead to scrutiny or penalties.
🔹 Section 139(9) – Defective Return
Your return is considered defective due to missing or incorrect information.
Common issues:
- Incomplete income details
- Errors in deduction claims
What to do:
- You have 15 days to rectify and re-submit your return.
- Find the notice under ‘e-Proceedings’ and respond.
- Inaction may result in your return being declared invalid.
🔹 Section 133(6) – Request for Financial Information
This is a data verification notice usually related to high-value transactions.
What to do:
- Provide required documents like bank statements, property purchase agreements, etc.
- Respond within the deadline to avoid further investigation.
🔹 HRA or TDS Mismatch Notices
These are sent when your HRA claim or TDS entries don’t match with Form 26AS or AIS.
What to do:
- Ensure rent above ₹50,000/month is reported with landlord PAN.
- Keep rent receipts and lease agreements.
- If incorrect, file an updated return with correct data.
🔹 Section 143(2) – Scrutiny Notice
This means your return has been selected for a detailed assessment.
What to do:
- Submit all requested documents (income proofs, deduction receipts, etc.)
- Attend hearings or respond online.
- Ignoring this can lead to tax estimation without your input.
🔹 Section 148 – Income Escaping Assessment
Issued when the department believes you have not reported some income in previous returns.
What to do:
- File a revised return or explanation as required.
- Justify income sources with documentation.
- Non-compliance may reopen past assessments and attract penalties.
🔹 Section 271AAC(1) – Penalty for Unexplained Income
If unexplained credits or large deposits are found, you may be issued this notice.
What to do:
- Provide documents proving the source of such income.
- Penalties up to 60% apply for unexplained amounts.
🛡️ Final Thoughts
Getting an income tax notice can feel stressful—but it’s not always a cause for panic. Many are automated and easily resolved if you respond in time and provide accurate data. Stay proactive, keep your records handy, and when in doubt, always consult a tax expert.