Income Tax Notice & Assessment

An income tax notice is a formal communication from the department seeking information, flagging a mismatch, or proposing an adjustment. Common notices include 143(1) intimation, 139(9) defective return, 142(1) enquiry, 143(2) scrutiny, 148 reassessment and 245 adjustment of refund. Each has a strict response deadline.

Who needs this: Any taxpayer can receive a notice. Most are system-generated from mismatches between your ITR and AIS/26AS/GST data and can be resolved online without a visit.

Government portal: Income Tax e-filing portal (incometax.gov.in) → e-Proceedings / Pending Actions.

Indicative fees: ₹2,000–₹15,000 depending on complexity (a 143(1) rectification is simple; a 148 reassessment or scrutiny needs professional representation).

Timeline: Response windows range from 15 to 30 days; act before the deadline stated in the notice.

Documents required

The notice itself (with DIN)
Copy of the ITR filed
Form 26AS and AIS/TIS
Bank statements and proof of income
Deduction proofs (80C, 80D, home-loan, etc.)
Any earlier correspondence with the department

Step-by-step process

Read the notice carefully — identify the section, the assessment year and the exact deadline
Verify the notice is genuine by checking the Document Identification Number (DIN) on the portal
Log in to the e-filing portal and open the notice under e-Proceedings
Reconcile the flagged item against your ITR, 26AS and AIS to find the mismatch
Prepare a point-wise reply with supporting documents
For a 143(1) mismatch, either agree and pay/adjust, or disagree and file a rectification under section 154
For a defective return (139(9)), correct and re-file within 15 days
Submit the response online before the deadline and keep the acknowledgement

Penalty for non-compliance

Ignoring a notice can trigger a best-judgment assessment under section 144 plus penalties under 270A (up to 200% of tax on under-reported income).

Identify which notice you have before anything else

The word covers very different things. A section 143(1) intimation is usually arithmetic and sometimes confirms a refund. Section 139(9) says the return is defective and fixable. Section 245 proposes adjusting your refund against an earlier demand. Section 154 concerns rectification of a mistake. Section 148 is reassessment and is genuinely serious. Section 271 concerns penalty. The correct response, the urgency and the cost differ enormously between them.

The deadline governs everything you do next

Each notice states a period, and that date matters more than the strength of your position. A 143(1) adjustment generally allows 30 days. A defective-return notice commonly allows 15, and letting it lapse can render the return invalid — with the consequences of never having filed, including lost loss carry-forward. Diarise the date first, then work backwards; an adequate reply on time beats an excellent one filed late.

Silence produces a best-judgment assessment

Not replying does not make a notice lapse. Under section 144 the assessing officer may complete the assessment on their own estimate of your income, which is rarely favourable, and the burden then shifts to you on appeal. Even where you cannot answer fully within the period, filing an interim response that sets out your position and seeks time is materially better than nothing at all.

Reply with documents, not adjectives

Reference the notice by number, date and section. Deal with each point in the order raised, stating clearly what is accepted and what is disputed, and attach evidence for every disputed item — challans, bank statements, invoices, contracts, Form 26AS and AIS extracts. Show computations rather than asserting conclusions. Do not claim anything you cannot evidence, and do not volunteer material the notice did not seek. File through the portal and keep the acknowledgement.

Know when to escalate, and what appeal involves

Handle arithmetical and routine matters yourself. Engage a chartered accountant or advocate where reassessment, penalty or prosecution provisions are cited, where fraud or wilful suppression is alleged, or where the amount is significant. If an adverse order is passed, an appeal to the Commissioner (Appeals) must be filed within the prescribed period and generally requires payment of the admitted tax — the income tax appeal service covers that stage. The first reply frames the record for all of it.

📘 Income tax in India AY 2026-27 — full guide

Frequently asked questions

What is a 143(1) intimation?

It is an automated summary after your return is processed, comparing your figures with the department's computation. If it shows a demand or refund, you can agree, or file a rectification under section 154 if it is wrong.

How do I check whether a tax notice is genuine?

Every genuine notice carries a Document Identification Number (DIN). Use 'Authenticate Notice/Order issued by ITD' on the e-filing portal to verify it — treat any notice without a valid DIN as invalid.

What happens if I ignore an income tax notice?

The department can make a best-judgment assessment under section 144, levy penalties, disallow refunds, and in serious cases initiate prosecution. Always respond within the deadline, even if only to seek time.

What is a section 148 notice?

It reopens a past assessment where the department believes income has escaped assessment. It has strict time limits and requires a careful, documented response — usually with professional help.

Can I get more time to respond?

Yes, you can file an adjournment request through the e-Proceedings tab, but do it before the original deadline and give a genuine reason.