Income Tax Notice Reply Handled by Tax Experts

Most notices are triggered automatically when your return doesn't match the department's data: AIS, Form 26AS, TDS returns or reports from banks, brokers and registrars. Common reasons are missed interest or capital gains, TDS mismatches, wrong ITR form, large cash deposits, high-value purchases, or claims that look unusual. Some cases are also selected for scrutiny under CBDT guidelines.

Every genuine notice carries a Document Identification Number (DIN). Check it with "Authenticate notice/order issued by ITD" on incometax.gov.in, and look for the notice under Pending Actions → e-Proceedings after logging in. The department never asks for OTPs, card details or payment to a personal account.

It is the result of the CPC processing your return. It shows your figures next to the department's and states whether there's no change, a refund or a demand. If there's a demand you disagree with, respond online and seek rectification; if it's correct, pay it within 30 days.

Correct the defect, such as a wrong ITR form, missing schedules, unpaid tax or a mismatch with TDS receipts, and file the corrected return in response to the notice within 15 days, or the extra time you're given. If it isn't fixed, the return is treated as invalid, as though it was never filed.

A 142(1) notice asks for specific information or documents, or asks you to file a return. A 143(2) notice means your return has been selected for scrutiny assessment, where the officer examines issues in detail. Both are handled online under faceless assessment and both need a timely reply.

Not necessarily. Many cases are selected because of data mismatches or risk parameters, and a well-documented reply often ends in no addition. What matters is answering each issue clearly with evidence and on time.

It means an earlier year's assessment has been reopened because the department believes income escaped tax. Before it, the officer must issue a show-cause notice under Section 148A (Section 281 of the new Act), consider your reply and pass an order. After the 148 notice you must file a return for that year and then defend the assessment.

Generally up to three years from the end of the assessment year. It can go up to five years only if the income that escaped is ₹50 lakh or more and the officer has evidence of it. Under the new Act these limits are counted from the end of the tax year, so they read as four and six years. A notice issued after the time limit can be challenged.

The new Act applies from 1 April 2026, so notices and show-cause notices issued since then may cite new section numbers, for example Section 270 for assessment and Sections 280 and 281 for reassessment. Proceedings that were already pending for older years continue under the Income-tax Act, 1961. We check which law applies to your notice.

The officer can complete a best judgment assessment on the information available, make the proposed additions, and raise a demand with interest. Not complying with an inquiry or scrutiny notice can attract a penalty of ₹10,000, a defective return is treated as never filed, and refunds can be adjusted. In serious cases of wilful non-compliance, prosecution is possible.

Yes, you can request an adjournment online under e-Proceedings, explaining why you need more time. It is at the officer's discretion and is usually granted only for a short period, so start preparing the reply right away rather than counting on an extension.

Reply as soon as possible, with a short explanation for the delay. Where the order hasn't been passed yet, a late reply is usually still considered. If an order has already been passed, options include rectification, revision or an appeal, depending on the case.

Log in to the e-filing portal, go to Pending Actions → e-Proceedings or Worklist, open the notice and choose Submit Response. Upload your written reply and documents in PDF, and save the acknowledgement. We can do this for you as your authorised representative.

In faceless assessments you can request a personal hearing through video conferencing, generally after a show-cause notice proposing a variation. A hearing helps when the issue needs explanation beyond documents.

Submit a "Disagree with demand" response under Response to outstanding demand with reasons and proof, and file a rectification request or revised return where needed. If the demand comes from an assessment order you disagree with, you can file an appeal and request a stay of demand.

Under-reporting attracts a penalty of 50% of the tax on the under-reported income, and misreporting, such as false entries or suppressed facts, attracts 200%. Penalties start with a show-cause notice, which you can answer. Immunity may be available in some cases if you pay the tax and don't appeal.

Our fees start at ₹1,499 + GST for intimations, defective returns, refund adjustments and demand responses, ₹4,999 + GST for inquiry and scrutiny notices, and ₹9,999 + GST onwards for reassessment and penalty cases. There's no government fee for replying; any tax, interest or penalty is paid to the government.

Yes. Appeals to the Commissioner (Appeals) and the ITAT, stay of demand and rectification are quoted separately after reviewing the order. Representation that requires a chartered accountant or advocate is provided through our partner professionals.