Types of Income Tax Notices and How to Respond
- There are at least 8 distinct income tax notice types under the Income Tax Act, each triggered by a specific mismatch or compliance gap — knowing which one you received tells you how urgently you must act.
- Most notices can be responded to entirely online through the Income Tax e-Filing portal; you rarely need to visit an Assessing Officer in person.
- Ignoring even a "low-risk" notice like a 143(1) intimation can escalate into a demand, penalty, or full scrutiny assessment — always respond within the deadline.
- A Quick-Reference Table of the Main Income Tax Notice Types
- Section 143(1) Intimation — The Most Common Notice
- Section 143(2) Scrutiny Notice — What "Scrutiny" Really Means
- Section 148 / 148A Reassessment — When the Department Reopens Old Years
- Section 156 Demand Notice — Pay or Object Within 30 Days
- Section 139(9) Defective Return — Fix It Fast
- Section 245 Set-Off Notice — Your Refund May Be Withheld
- Common Mistakes Taxpayers Make When Responding to Notices
- How to Respond Online — Step by Step
If an income tax notice lands in your inbox or on the e-Filing portal, the first thing to do is not panic — but also not ignore it. India's Income Tax Act uses different section numbers for different types of notices, and each one has a specific trigger, a specific deadline, and a specific way to reply. Salaried employees and small-business owners often treat all notices as equally frightening or equally harmless. Both reactions are wrong. This guide walks you through every major income tax notice type, explains what triggers it, shows you a real-rupee example of how a demand is calculated, and tells you exactly what to do next.
A Quick-Reference Table of the Main Income Tax Notice Types
| Section | Notice Name | Common Trigger | Typical Response Window |
|---|---|---|---|
| 143(1) | Intimation / Prima Facie Adjustment | Mismatch between your return and TDS data / arithmetic error | 30 days from date of intimation |
| 143(2) | Scrutiny Notice | Return selected for detailed scrutiny (random or risk-based) | As specified in the notice (often 15–30 days for first reply) |
| 148 / 148A | Reassessment Notice | Income escapement suspected for a past year | Varies; 148A gives you a right to be heard before notice is issued |
| 156 | Demand Notice | Tax, interest, or penalty is due after assessment | 30 days to pay or file objection |
| 139(9) | Defective Return Notice | Return filed with missing schedules, missing TAN, or other defects | 15 days (extendable on request) |
| 245 | Set-Off of Refund Notice | Department wants to adjust your refund against an old demand | 30 days to agree or object |
| 131 | Summons / Survey Notice | Verification of books, accounts, or statements under oath | Date and time specified in the notice |
| 263 / 264 | Revision by Commissioner | Commissioner finds order erroneous or taxpayer seeks revision | As per notice or application timeline |
Section 143(1) Intimation — The Most Common Notice
This is not technically a "notice" in the scary sense — it is a computer-generated intimation that compares your filed return with data the department already has (Form 26AS, AIS, TDS returns). If the numbers match, you get a nil-demand intimation. If they don't, a demand or refund adjustment is raised.
Worked example: Priya is a salaried professional in Bengaluru with a gross salary of ₹12,00,000 for FY 2025-26. Her employer deducted TDS of ₹85,000. But Priya's Form 26AS shows only ₹72,000 credited (her employer filed a revised TDS return late). The 143(1) system flags a mismatch of ₹13,000 in TDS credit. The intimation raises a demand of ₹13,000 plus applicable interest under Section 234B.
Here is the arithmetic:
- Tax liability per Priya's return: ₹85,000
- TDS credit as per department records: ₹72,000
- Shortfall treated as unpaid tax: ₹13,000
- Interest under 234B (say, 4 months @ 1% per month on ₹13,000): ₹520
- Total demand in the 143(1) intimation: ₹13,520
Priya's fix is not to pay — it is to ask her employer to correct the TDS return first, then submit a rectification request under Section 154 on the portal. Once the corrected 26AS reflects ₹85,000, the demand disappears.
Section 143(2) Scrutiny Notice — What "Scrutiny" Really Means
A 143(2) notice means your return has been picked for a line-by-line examination. The department will ask for documents supporting your income, deductions, and expenses. Cases are selected either randomly or because an algorithm flagged something — unusually high deductions, a large cash deposit, or income that does not match your sector profile.
What to do: Gather every document mentioned in the notice — bank statements, investment proofs, rent agreements, purchase invoices. Reply only to what is asked. Do not volunteer additional information. If the notice lists specific "reasons for scrutiny," address each reason separately and in writing. Engage a CA if the amounts involved are significant.
Section 148 / 148A Reassessment — When the Department Reopens Old Years
This is triggered when the Assessing Officer has information suggesting income escaped assessment in a past year. The law now requires the AO to first issue a 148A show-cause notice giving you an opportunity to explain before formally reopening the assessment. Take this pre-notice stage seriously — a well-drafted reply at the 148A stage can prevent the case from being reopened at all.
There are time limits on how far back the department can go. For small amounts of escaped income, the window is limited. For larger amounts (above a specified threshold), reassessment can go back further. Do not assume old years are safe without verifying the applicable limitation period.
Section 156 Demand Notice — Pay or Object Within 30 Days
This notice is issued after an assessment is completed and a tax demand has been raised. You have 30 days to either pay the demand or file an appeal / rectification request. If you believe the demand is wrong, do not pay it and stay silent. Instead, file a rectification under Section 154 (for computational errors) or an appeal before the CIT(A) / NFAC (for substantive disputes). Paying the demand is treated as accepting it.
Section 139(9) Defective Return — Fix It Fast
Common defects that trigger this notice: filing ITR-1 when you should have filed ITR-3, not filling in the balance sheet for business income, leaving the tax payment schedule blank, or mismatching the name on the return with PAN records. You typically get 15 days to correct and re-file. If you miss this window, the original return may be treated as not filed at all — a serious consequence.
Section 245 Set-Off Notice — Your Refund May Be Withheld
If you have an outstanding demand from a prior year and a refund due for the current year, the department may propose to set off one against the other. You will receive an intimation under Section 245 asking you to agree or disagree within 30 days. If the old demand is itself under dispute or already paid, respond immediately with proof. Silence is treated as consent.
Common Mistakes Taxpayers Make When Responding to Notices
- Ignoring the notice assuming it will go away. It will not. Unresponded notices lead to ex-parte assessments where the department decides without hearing you — almost always unfavourably.
- Responding to a 143(1) demand by paying first and asking questions later. Many 143(1) demands are wrong. Paying them is an admission. Check the mismatch reason first.
- Uploading the wrong documents or documents that do not match the period in question. If the notice is for FY 2022-23 and you upload FY 2024-25 bank statements, the officer will assume you have nothing to show.
- Missing the deadline by even one day. The portal often locks the response window at midnight on the due date. Set a reminder at least a week early and upload everything the day before.
- Treating a 148A show-cause as less important than the 148 notice. The 148A stage is your best — and cheapest — opportunity to shut down a reassessment before it starts. Many taxpayers take it lightly and later spend months fighting a full reassessment.
How to Respond Online — Step by Step
- Log in to incometax.gov.in with your PAN and password.
- Go to e-Proceedings under the "Pending Actions" or "e-File" menu.
- Select the relevant notice from the list — each notice has a unique Document Identification Number (DIN). Verify the DIN matches your paper or email notice.
- Choose "Submit Response," attach supporting documents (PDF, under the size limit), and write your reply in the text box.
- Submit and download the acknowledgement. Keep it.
If you are unsure which notice type you have received or what it is actually asking for, run it through KyaTax's AI Notice Decoder — paste the notice text and get a plain-English explanation of the section, the risk level, and the documents you need.
Do it yourself in minutes — free to try, no login needed.
Open AI Notice Decoder →Frequently asked questions
Can I ignore a Section 143(1) intimation if the demand amount is small?
No. Even a small demand, if unaddressed, gets added to your outstanding demand register and can be set off against future refunds under Section 245. It can also attract interest. Respond within 30 days — either pay if correct, or file a rectification if it is a mismatch error.
How do I know if a notice I received by email is genuine and not a phishing scam?
Every genuine income tax notice carries a Document Identification Number (DIN) on the face of the document. Log in to incometax.gov.in, go to e-Proceedings, and check whether the same DIN appears in your account. If it does not appear there, treat the email as suspicious and do not click any links in it.
What happens if I miss the deadline to respond to a scrutiny notice under Section 143(2)?
The Assessing Officer can proceed ex-parte — meaning they complete the assessment based only on the information they have, without your inputs. This almost always results in additions to your income and a higher tax demand. You can still appeal, but it is expensive and time-consuming. Always reply before the deadline, even if only to request an extension.
Is it mandatory to hire a CA to respond to income tax notices?
It is not legally mandatory, but it depends on the notice type and the amounts involved. A 143(1) mismatch for a small salaried taxpayer can often be handled independently using the e-Filing portal. A 143(2) scrutiny or a 148 reassessment involving business income, large deductions, or multiple years almost always warrants professional help — the cost of a CA is usually far less than the cost of an incorrect response.
General information for FY 2026-27, not professional advice for your specific case. Rules change — verify against the latest notification or ask a KyaTax expert.
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