Income Tax Notice: Common Types and How to Respond

An email from the Income Tax Department can be worrying, but most notices are routine. Many simply ask you to correct a mistake, explain a mismatch or pay a small balance. What matters is that you read the notice carefully, find out what type it is, and reply before the deadline it gives. Ignoring a notice is what turns a small issue into a penalty or a best-judgment assessment.

First, a note on section numbers

The Income-tax Act, 2025 has applied since 1 April 2026, and it renumbers most sections. But notices about FY 2025-26 (AY 2026-27) and earlier years continue to be issued and decided under the Income-tax Act, 1961, because the new Act’s transitional provisions keep those proceedings under the old law. So most notices you receive in 2026 and 2027 will still quote the familiar old sections. This article uses the old numbers and shows the new ones where they are relevant.

Step 1: Check that the notice is genuine

Every notice or order issued since 1 October 2019 must carry a Document Identification Number (DIN). Before you reply:

Use “Authenticate notice/order issued by ITD” on the e-filing portal (no login needed). You can search by PAN, document type, year and date of issue, or by the DIN. Either way you confirm with an OTP on your mobile.
Log in to the portal and check Pending Actions → e-Proceedings. Genuine notices appear there.
Never pay money through a link in an SMS or email, and never share OTPs. Tax is paid only through the portal’s e-Pay Tax service.

Step 2: Identify the type of notice

Notice (1961 Act section)	What it means	Typical time to reply
139(9) – Defective return	Your return has a defect, e.g. wrong ITR form, income declared without tax paid, missing schedule or audit report	15 days (extension can be requested)
143(1) – Intimation	Your return has been processed by CPC. It shows a refund, a demand, or no change	No reply needed unless there is a demand or an error
143(1)(a) – Proposed adjustment	CPC proposes to change your return, e.g. AIS income not reported or a deduction mismatch	30 days. If you don’t reply, the adjustment is made
142(1) – Inquiry	The Assessing Officer (AO) wants documents or information, or asks you to file a return	Date stated in the notice
143(2) – Scrutiny	Your return has been selected for detailed assessment	Date stated in the notice
148A / 148 – Reassessment	The AO has information that income has escaped assessment for an earlier year	Date stated in the notice. Reply to the show-cause stage in detail
156 – Demand notice	Tax, interest or penalty payable, usually with an assessment order	30 days to pay or to appeal
245 – Refund adjustment	The department proposes to adjust your refund against an old demand	30 days to agree or disagree
133(6) – Calling for information	Information is needed, often about high-value transactions	Date stated in the notice
154 – Rectification	A mistake apparent from the record is proposed to be corrected	Date stated in the notice

Under the 2025 Act, processing and scrutiny are reported to sit in section 270 and reassessment in sections 279 to 286. These apply to tax year 2026-27 onward.

Common reasons for receiving a notice

Income in AIS not shown in the return, such as savings bank interest, FD interest, dividends, or capital gains from mutual fund redemptions
TDS claimed doesn’t match Form 168 (formerly Form 26AS)
High-value transactions without a return, e.g. large cash deposits, a property purchase or a credit card spend, while no ITR was filed (a non-filing notice from the compliance portal)
Deductions claimed without matching data, such as 80C, 80D or HRA claimed in the ITR but not in Form 16
Wrong ITR form or a missing schedule
Large refund claims or unusual claims compared with previous years

Step 3: How to reply on the portal

Log in to incometax.gov.in → Pending Actions → e-Proceedings.
Open the notice, download it and read every point it asks about.
For an AO notice, choose Full Response or Partial Response. Add written remarks (up to 4,000 characters) and attach supporting documents, each up to 5 MB.
If you need more time, use Seek Adjournment and give a reason. Ask before the due date.
Where the AO allows it, you can Seek Video Conferencing.
Save the acknowledgement number of every submission.

For a demand shown in a 143(1) intimation, use Pending Actions → Response to Outstanding Demand. You can mark it correct, disagree (fully or partly), or not correct but agree to adjustment. Once you mark a demand as correct, you cannot disagree with it later. If the demand comes from a processing mistake, file an online rectification request instead.

Practical tips for a good reply

Answer exactly what is asked. Keep the reply point by point and match the paragraph numbers in the notice.
Reconcile first. Compare your ITR with AIS, TIS and Form 168 before writing anything.
Attach evidence, not just explanations: bank statements, contract notes, sale deeds, Form 16, rent receipts.
If you made a genuine mistake, it is usually better to accept it and pay the tax with interest, or file a revised or updated return where allowed, than to argue it.
Never miss a deadline. Not replying can lead to a best-judgment assessment, and a penalty of ₹10,000 for each failure to comply with a 142(1) or 143(2) notice.

Frequently asked questions

I received a 143(1) intimation. Is that a notice of scrutiny?
No. A 143(1) intimation only tells you the result of processing your return. If it shows no demand and no refund, nothing more is needed.

How do I know if the email is really from the Income Tax Department?
Check the DIN using the portal’s “Authenticate notice/order” service, and look for the notice under e-Proceedings after logging in.

Can I reply to a notice after the deadline?
Usually the portal still accepts a response, but the AO may already have acted on it. If you are late, seek an adjournment or reply at once and explain the reason for the delay.

Do I need a CA to reply?
Simple notices, such as a defective-return notice or a small proposed adjustment, can often be handled yourself. For scrutiny, reassessment or large demands, a professional reply that cites the law and the evidence makes a real difference.

Got a notice and not sure what it means? Garvita Jain & Co. reviews the notice, reconciles your AIS and Form 168, drafts the reply and represents you before the department. Contact us here, or at contact@garvitajainandco.com or +91 98678 16597.

This article is general information based on the law as of October 2026 and is not professional advice.

Sources

Official

Professional / CA publications

Received an Income Tax Notice? Common Notice Types and How to Respond