Received an Income Tax Notice? Understand What to Do Next
An income tax notice can ask for information, point out a mismatch in your return or require you to take a specific action. Read the communication carefully, check its authenticity and note the deadline before deciding how to respond.
What Is an Income Tax Notice?
An income tax notice is a formal communication from the Income Tax Department asking you to provide information, explain a transaction, correct an issue or take an action under the applicable tax law. Some communications are statutory notices; others are intimations, proposed adjustments or requests for clarification.
For example, a salaried employee may receive a communication about a difference between income reported in the return and information available to the Department. A business owner may be asked to provide bank statements, books of account or details of a particular transaction. The right response depends on what the communication actually asks.
Why Might You Receive an Income Tax Notice?
Mismatch in ITR and Tax Records
The income, tax credit or transaction reported in your return may differ from Form 26AS, the Annual Information Statement (AIS), or other information available to the Department.
Clarification or Supporting Proof
The Department may ask for evidence supporting deductions, exemptions, expenses, loans, gifts or a particular bank or investment transaction.
Return or Tax Calculation Issue
A calculation error, incorrect tax credit, missing schedule or inconsistent entry may lead to an intimation or a request to correct or explain the return.
Non-filing or Delayed Filing
A communication may arise where a return was required but not filed, or where a return or other compliance is outstanding. The applicable consequences depend on the facts and law.
High-value Transactions or Income
Property transactions, securities, interest, foreign income or other reported information may need to be reconciled with the income and transactions disclosed in the return.
Assessment or Other Proceedings
An Assessing Officer may seek details or select a case for scrutiny, subject to the applicable legal process. The notice should explain the required action and how to respond.
Common Types of Income Tax Notices and Communications
Tax section numbers depend on the tax year and the law governing the proceeding. For returns relating to periods before 1 April 2026, the Income-tax Act, 1961 may continue to govern the relevant proceeding even if a communication is received later. The Income-tax Act, 2025 applies to tax years beginning on or after 1 April 2026, subject to its transitional provisions.
| Notice or communication | What it generally means | What you should check |
|---|---|---|
| Section 143(1) intimation (1961 Act) | A processed-return intimation may show a refund, no change, or a tax demand or adjustment. | Compare the Department's computation with the filed return, tax credits and supporting schedules. If a proposed adjustment is raised, follow the response option and deadline shown in the communication. |
| Section 142(1) notice (1961 Act) | The Assessing Officer may require a return or ask for accounts, documents or information. | Provide the information specifically requested through the prescribed channel by the stated deadline. Under the 2025 Act, section 268(1) is the corresponding provision for a notice to produce information in relevant proceedings. |
| Section 143(2) scrutiny notice (1961 Act) | The return has been selected for scrutiny and specified matters may be examined. | Read the scope of scrutiny and prepare a clear, evidence-backed response. Verify the notice, the applicable law and the date by which compliance is required. |
| Section 148A show-cause / Section 148 notice (1961 Act) | These relate to reassessment where income is believed to have escaped assessment. A show-cause step and a reassessment notice have different purposes. | Do not treat the two as interchangeable. For relevant tax years under the 2025 Act, sections 281 and 280 respectively provide the show-cause procedure and reassessment notice framework. Transitional rules may preserve the old Act for earlier years. |
| Section 139(9) defective-return notice (1961 Act) | The Department considers the return defective and asks you to correct the specified defect. | Identify the defect and correct it within the time stated in the notice. The corresponding provision under the 2025 Act is section 263(7), subject to the applicable tax year and transitional rules. |
| Section 245 adjustment communication (1961 Act) | A refund may be proposed to be adjusted against an outstanding demand, with a response opportunity where applicable. | Check whether the demand is correct, already paid, disputed or belongs to another year. Use the portal's response facility and preserve payment or appeal records. |
How to Check an Income Tax Notice Online
Use the official e-Filing portal rather than a link in an unexpected email or message. You can review available notices and proceedings after logging in, and separately authenticate a notice or order where needed.
Open the official portal
Visit incometax.gov.in and sign in using your credentials. Do not share your password or OTP with anyone.
Look for pending actions and e-Proceedings
From your dashboard, check the relevant pending-action or e-Proceedings area. Menu labels can change; use the portal's current help instructions if the option is not visible.
Open and download the communication
Select the relevant proceeding or communication, read the full notice and download the PDF. Note the tax year or assessment year, provision, issue date, response deadline and documents requested.
Authenticate the notice if necessary
Use the portal's Authenticate Notice / Order issued by ITD service. Follow the available verification method using the DIN or the requested identifying details. Portal visibility and DIN authentication are distinct checks.
Some notices have a specific response facility, and not every communication can be answered through the same route. Follow the instructions in the notice and the portal.
How to Respond to an Income Tax Notice
A good reply addresses the question asked and supports the explanation with relevant records. Avoid sending unrelated documents or making assumptions about the issue.
Read the notice fully
Identify the issuing authority, section or provision, tax year, issue raised and the exact action requested.
Mark the deadline
Use the response date stated in the notice or portal. If the deadline is close, check immediately whether an extension or other procedural option is available; do not assume it will be granted.
Reconcile the relevant records
Compare the notice with the filed ITR, computation, Form 26AS, AIS, TIS, bank statements, Form 16 or business books, depending on the issue.
Prepare a point-by-point explanation
Answer each question clearly. If there is a mismatch, explain the reason and attach evidence that directly supports the explanation.
Submit through the prescribed channel
Use the response facility specified in the notice or on the portal. Check that attachments are readable and comply with file-format and size requirements.
Save the acknowledgement
Download the submission acknowledgement or transaction reference and retain a copy of the reply and all attachments for future follow-up.
What Happens If You Ignore an Income Tax Notice?
The consequences depend on the type of communication, the statutory provision, the issue and whether the taxpayer has a reasonable opportunity to comply. Depending on the circumstances, failure to respond may lead to an assessment based on available information, loss of an opportunity to explain a discrepancy, a demand, penalty proceedings or other consequences provided by law.
Missing a deadline does not mean every consequence follows automatically in every case. Read the notice promptly and obtain advice on the available options. If the deadline has already passed, check the portal status and the law applicable to that proceeding before taking the next step.
Documents You May Need
The documents depend on the question raised. You may not need every item below for every notice.
Return and Tax Records
- Copy of the notice and any annexures
- ITR acknowledgement and filed return
- Income computation
- Form 26AS, AIS and TIS
- Tax payment challans and TDS certificates
Salary, Investment or Personal Records
- Form 16 and salary statements
- Bank statements and interest certificates
- Investment and deduction proofs
- Property or securities transaction records
- Evidence for gifts, loans or other queried items
Business or Professional Records
- Books of account and ledgers
- Sales and purchase invoices
- Bank and loan statements
- GST returns or reconciliations, if relevant
- Supporting contracts and expense evidence
How JPR Capital Works Can Help
If you are unsure what a notice means or how to organise your response, JPR Capital Works can assist with understanding the communication and preparing the information needed for the next step, subject to the agreed scope and applicable professional requirements.
Understand the Issue
Review the communication, identify the question raised and explain the response route and deadline indicated.
Reconcile Information
Compare the return with relevant tax statements and supporting records to identify possible differences that need explanation.
Organise the Reply
Help arrange supporting documents and prepare a structured response based on the records provided and the applicable requirements.
The appropriate service and scope will depend on the notice and facts. No particular outcome, cancellation of a demand or favourable decision can be guaranteed.
Frequently Asked Questions
Why have I received an income tax notice?
Common reasons include a mismatch in tax information, a request for supporting documents, a return-processing adjustment, non-filing or assessment proceedings. Read the notice to identify the specific reason in your case.
How can I check an income tax notice online?
Visit the official Income Tax e-Filing portal, sign in and check the relevant pending actions or e-Proceedings area. You can also use the portal's notice authentication service to verify a communication where appropriate.
Does an income tax notice mean I must pay extra tax?
No. Some communications only ask for information or clarification. If a demand or proposed adjustment is shown, check the calculation and tax credits before deciding how to respond or pay.
What should I do if the information in the notice is incorrect?
Collect records that support your position, compare them with the return and tax statements, and submit a clear response through the prescribed channel within the applicable deadline. Keep proof of submission.
Can I respond to an income tax notice online?
Many notices and proceedings can be responded to through e-Proceedings or another specified portal facility. Follow the instructions in the particular notice because the route varies by communication type.
What if I miss the response deadline?
Check the proceeding status and seek advice promptly. Depending on the case, there may be limited procedural options, but an extension or acceptance of a late reply should never be assumed.
Can I receive a notice after filing my ITR?
Yes. Filing a return does not prevent the Department from processing it, asking for information, proposing an adjustment or initiating proceedings permitted under the applicable law.
Do I need a Chartered Accountant to reply?
Not every communication requires professional assistance. However, a complex scrutiny, reassessment, significant demand or issue involving multiple records may benefit from a qualified professional's review.
Are old section numbers still relevant after 1 April 2026?
They may be relevant for proceedings relating to tax years governed by the Income-tax Act, 1961. The Income-tax Act, 2025 applies to tax years beginning on or after 1 April 2026, and transitional provisions preserve the earlier law for certain matters. Check the actual notice and relevant tax year.
Need Help Understanding an Income Tax Notice?
Do not leave the notice until the last day. Review the issue, note the deadline and gather the records relevant to your case. If you need assistance, contact JPR Capital Works to discuss the next steps.
JPR Capital Works • Tax and compliance support
Disclaimer: This page provides general information and is not a legal or tax opinion for an individual case. The applicable provisions, deadlines and procedures depend on the notice, the relevant assessment year or tax year, transitional rules and the facts involved. Check the actual communication and official portal before acting.
Official references: Income Tax Department e-Filing portal, Authenticate Notice / Order, e-Proceedings help and Reassessment Proceedings FAQs.