Income Tax Notice Reply handled calmly, on time.

Why do income tax notices come?

An income tax notice is a formal communication from the Income Tax Department. Most notices today are generated by automated systems that compare your return with information from your employer, bank, broker and other sources, shown in your AIS and Form 26AS. A notice does not mean you did something wrong. It means the department needs a correction, an explanation or a document, and it expects a reply by a fixed date. All notices and replies are handled online through the e-Proceedings section of the e-filing portal, and most assessments are now faceless, so there is no need to visit a tax office.

Common notices and what they mean

• Section 139(9) – defective return. Usually 15 days to correct, or the return may be treated as invalid.
• Section 143(1) – intimation after processing, showing a refund, nil or a demand.
• Section 143(1)(a) – proposed adjustment before processing. Usually 30 days to agree or disagree.
• Section 143(2) – scrutiny assessment of your return.
• Section 142(1) – request for information, documents or a return not filed.
• Sections 148A and 148 – show-cause and reopening of an earlier year’s assessment.
• Section 245 – proposal to adjust your refund against an old demand.
• Section 156 – notice of demand for tax payable.

Under-reported income can attract a penalty under section 270A of 50% of the tax on it, and 200% where income is misreported. These are Income-tax Act, 1961 sections, which continue to apply to earlier years even though the Income-tax Act, 2025 applies from tax year 2026-27.

Common mistakes we see

• Ignoring an email or SMS until the deadline has passed
• Agreeing to a demand that was already paid or wrongly raised
• Replying without documents, or attaching the wrong year’s papers
• Filing a revised return when a rectification or response was needed
• Sharing login details with callers pretending to be tax officials

How our expert handles your notice

• Step 1: We verify the notice on the portal using its Document Identification Number.
• Step 2: We explain in simple words what is being asked and by when.
• Step 3: We compare the notice with your return, AIS and Form 26AS.
• Step 4: We prepare the reply, corrected return or rectification, with documents.
• Step 5: You approve, we guide the submission and track the outcome.

A short example

Suppose you receive a 143(1)(a) notice because AIS shows interest of ₹48,000, while your return showed only ₹18,000. On checking, we find you missed FD interest of ₹30,000. If you are in the 30% slab, the extra tax is ₹9,000, and with 4% cess of ₹360, it is ₹9,360. Here the right response is to agree and pay. If instead that FD belonged to a family member and was wrongly linked to your PAN, we would submit feedback on AIS and disagree with the adjustment, with proof. Either way, the reply goes in before the 30-day deadline, so the return is processed on the correct figures and no avoidable demand, interest or penalty follows later.