Receiving a notice from the Income Tax Department can be stressful. But not all notices are alarming — many are routine. Understanding the type of notice and the correct response is what matters.
Common Types of Income Tax Notices
Section 139(9) – Defective Return
Your return has an error — wrong bank account, missing schedules, or a technical deficiency. You must correct and refile within 15 days. This is a simple fix and not a cause for worry.
Section 143(1) – Intimation
This is not a notice — it is an intimation of assessment. After processing your return, the department tells you whether you owe additional tax or are entitled to a refund. No response is needed unless you disagree with the calculation.
Section 143(2) – Scrutiny Notice
Your return has been selected for detailed scrutiny. The department wants supporting documents for specific entries — high deductions, foreign income, large transactions. You must respond with the requested documents within the time given. Do not ignore this notice.
Section 148 – Reassessment Notice
The department believes income was under-reported in a past year and wants to reassess your return. This is serious — you must file a return in response and may need to engage a tax advocate.
Section 156 – Demand Notice
You owe tax after assessment. Pay within 30 days to avoid interest and penalty. If you disagree, file an appeal before the Commissioner of Income Tax (Appeals) — CIT(A) — within 30 days of receiving the demand.
Section 245 – Adjustment of Refund
The department is adjusting your current year’s refund against a past demand. You can object within 30 days if you dispute the past demand.
How to Respond
- Log in to the Income Tax e-filing portal (incometax.gov.in)
- Go to “Pending Actions” or “e-Proceedings”
- Read the notice carefully — note the section, deadline, and what is specifically asked
- Submit a response with supporting documents within the deadline
Never Ignore a Notice
Ignoring an income tax notice leads to ex-parte assessment, penalties, and even prosecution in serious cases. Respond within the deadline — even if to say you need more time.
When to Get Professional Help
Section 143(2) scrutiny, Section 148 reassessment, and Section 156 demands involving large amounts require a qualified tax advocate or chartered accountant. Getting the response right the first time is far cheaper than appealing wrong decisions.