First steps when a notice arrives
- Verify it is genuine. Every notice carries a Document Identification Number (DIN). Check it on the income tax portal using “Authenticate notice/order issued by ITD”.
- Note the section, year and response date. The section tells you what the department is asking; the date tells you how much time you have.
- Do not reply in haste. An incorrect admission is harder to undo than a short extension request.
- Collect the return, AIS, Form 26AS and computation for that year before drafting anything.
Common notices and what they mean
Notices for years up to AY 2026-27 continue under the Income-tax Act, 1961. The section references below are under that Act; the Income-tax Act, 2025 has corresponding provisions for later tax years.
| Notice | What it is | What to do |
|---|---|---|
| Section 143(1) intimation | Result of processing your return: demand, refund or adjustment | Compare with your computation; file rectification or respond to proposed adjustment |
| Section 139(9) | Return treated as defective | Correct the defect within 15 days, or the return is treated as invalid |
| Section 143(2) | Selection for scrutiny assessment | Respond through e-Proceedings with documents; representation through hearings |
| Section 142(1) | Call for return or information | File the return or information within the time given |
| Section 148A / 148 | Proposed reassessment of income that escaped assessment | Object at the show-cause stage with facts and law; time limits apply |
| Section 245 | Proposed adjustment of refund against old demand | Accept, or disagree with reasons and proof |
| Section 270A / 271AAC | Penalty proceedings | Reply on merits; immunity may be available in some cases |
| AIS / compliance e-campaigns | Information mismatch, high-value transactions | Submit feedback or explanation on the compliance portal |
How a reply is built
- Facts first: reconcile the specific transaction or difference raised, with bank statements, contract notes, deeds or ledgers.
- Law second: identify the provision, time limits and jurisdiction points, and whether the notice itself is valid.
- Authorities that fit: relevant Supreme Court, High Court and ITAT rulings are selected from TaxSphere, checking whether they still hold through the validity tracker.
- Clear submission: a structured reply with an index of annexures, filed on the portal, with hearing support where needed.
Reassessment time limits
For notices issued from 1 September 2024, reassessment is generally possible within 3 years from the end of the assessment year, and up to 5 years where the escaped income is ₹50 lakh or more, after following the show-cause procedure under section 148A. Whether a notice is within time is often the first question to check.
If an order goes against you
Appeals lie before the Commissioner (Appeals), generally within 30 days of the order, and then before the Income Tax Appellate Tribunal. Where tax is disputed, a stay of demand can be requested, usually on payment of a portion of the disputed demand. Rectification under section 154 is available for mistakes apparent from the record.
Documents to send
- The notice (PDF) and any earlier notices or replies for that year.
- Income tax return and computation for the year, AIS and Form 26AS.
- Documents for the transaction in question: bank statements, sale deeds, contract notes, loan agreements, invoices.
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