26 September 2026 · Ruhu AI
How to read and reply to an income tax notice
A notice from the Income Tax Department feels alarming, but most are routine and have a clear, time-bound response. What matters is identifying which notice you've received, understanding what it asks, and responding through the correct channel before the deadline. This guide walks you through the common notices by section and how to reply.
First, don't panic, identify the notice
Every notice quotes a section and, for anything issued since October 2019, a DIN (Document Identification Number). A communication without a valid DIN is treated as never issued, so check it. Note the section, the assessment year, and the response deadline before you do anything. You can verify a notice is genuine using "Authenticate Notice/ Order Issued by ITD" on the e-filing portal (available before login), using either your PAN details or the DIN with an OTP.
Common notices, by section
- Section 143(1), intimation. An automated intimation after your return is processed, showing no demand, a refund, or a demand after prima-facie adjustments. No action if you agree; if you disagree, respond within 30 days or the adjustment is finalised.
- Section 139(9), defective return. Your return has a defect (mismatch, missing schedule). Rectify it within 15 days (extension possible), or the return is treated as invalid, with loss of carry-forward, late fees and other consequences.
- Section 142(1), inquiry before assessment. A call to file a return or produce documents/information, usually within the period stated (often 15 days). Non-compliance can lead to a best-judgment assessment and penalty.
- Section 143(2), scrutiny. Your return is selected for detailed (faceless) scrutiny. The department must issue it within 3 months from the end of the FY in which you filed; one issued later is invalid. Respond with the documents called for.
- Section 148 / 148A, income escaping assessment. Before a 148 reassessment notice, the AO issues a 148A show-cause with the information relied on and gives you 7 to 30 days to reply, then passes a reasoned order. Current time limits (Finance (No. 2) Act 2024): broadly 3 years 3 months from the end of the relevant AY, extended to about 5 years 3 months where the escaped income is ₹50 lakh or more. This usually needs a CA.
- Section 245, adjustment of refund against demand. Intimation that a refund will be set off against an old demand. Agree or disagree within 30 days, or it's adjusted automatically.
Two related provisions worth knowing: Section 144 (best-judgment assessment) is the consequence of ignoring notices, not a notice you reply to; and Section 154 (rectification) is a remedy you initiate to fix a mistake apparent from the record (like TDS not credited in a 143(1)), within 4 years of the end of the FY of the order.
Where notices arrive
Notices are posted to the e-Proceedings tab on the e-filing portal and pushed to your registered email and mobile; physical service is now the exception. Check the portal regularly, especially around filing season, and be wary of any "notice" demanding payment to a private account or asking for your password or OTP, the department never does that.
How to respond on the portal, step by step
- Log in at incometax.gov.in.
- Go to Pending Actions → e-Proceedings and open the notice.
- Read the notice and note the deadline.
- Prepare your response and attachments (PDF, up to 5 MB each).
- Submit, e-verify, and save the acknowledgement.
Demand-type notices (143(1)/245) are handled under Response to Outstanding Demand (Agree/Disagree); defective returns (139(9)) under Respond to Defective Notice. You can seek an adjournment through e-Proceedings, ask before the deadline.
Deadlines, and what happens if you miss them
Each notice carries a response window (30 days for 143(1)/245, 15 days for 139(9)/142(1)). Miss it and you risk a finalised demand, an invalid return, or a best-judgment assessment under Section 144 with income estimated against you. If you can't meet a deadline, request more time before it lapses.
When to involve a CA
Simple intimations (143(1)) and defective-return fixes (139(9)) you can often handle yourself. Scrutiny (143(2)), reassessment (148), and anything involving additions to income or penalties are worth a CA's help, the framing of the reply matters, and a weak response can cost you later.
New Act (2025) section reference
For assessment year 2025-26 and earlier, the 1961-Act section numbers above still govern, even for a notice issued after 1 April 2026. From Tax Year 2026-27, the Income-tax Act, 2025 applies, with these corresponding numbers.
| Notice / provision | 1961 Act | New Act, 2025 |
|---|---|---|
| Intimation | 143(1) | 270(1) |
| Scrutiny notice | 143(2) | 270(8) |
| Assessment order | 143(3) | 270(10) |
| Defective return | 139(9) | 263(7) |
| Inquiry before assessment | 142(1) | 268 |
| Reassessment notice | 148 | 280 |
| Pre-notice procedure | 148A | 281 |
| Time limit for reassessment | 149 | 282 |
| Set-off of refund vs demand | 245 | 438 |
| Best-judgment assessment | 144 | 271 |
| Rectification | 154 | 287 |
| Bar on double demand (TDS deducted) | 205 | 401 |
| DIN requirement | 282B / 292B | 522 |
Confirm any specific number on CBDT's official 1961-vs-2025 comparison utility; DIN is also mandated by CBDT Circular 4/2026.
FAQ
Can I get an extension to respond? Yes, e-Proceedings lets you seek an adjournment; request it before the deadline.
What documents should I keep ready? Your return and computation, Form 26AS/AIS, bank statements, and proof for the specific items queried.
What's the difference between a rectification and a response to a notice? A rectification (s.154) corrects a mistake apparent from the record and is something you file; responding to a notice answers a specific proceeding. They're different actions.
Is an intimation under 143(1) something to worry about? Often it's a no-demand or refund intimation needing no action. It needs a response only when it shows a demand or an adjustment you disagree with.