Receiving an income tax notice can be alarming, but most notices are routine — generated automatically by the CPC (Centralized Processing Centre) and don't always mean you've done something wrong. Understanding the type of notice and responding correctly is key. Here's a complete guide to all types of income tax notices and how to handle them.
Most Common Income Tax Notices and Their Meaning
| Section | Notice Name | Reason Issued | Response Window |
|---|---|---|---|
| 139(9) | Defective Return Notice | ITR has errors/missing information (no tax/income mismatch) | 15 days |
| 143(1) | Intimation Letter | Return processed; tax demand or refund confirmation | 30 days (for demand) |
| 143(2) | Scrutiny Notice | Detailed scrutiny of return selected for examination | Case-specific |
| 142(1) | Inquiry Notice | Additional documents/information sought before assessment | As specified |
| 148 | Reassessment Notice | Income believed escaped assessment in past years | 30–45 days |
| 156 | Tax Demand Notice | Outstanding tax payable after assessment | 30 days |
| 245 | Set-off of Refund Against Demand | Past demand to be adjusted against current refund | 30 days |
| 131 | Summons | Appear or produce books of accounts for investigation | As specified |
Notice u/s 139(9) — Defective Return
This is an automated notice when the ITR has inconsistencies. Common reasons: taxes paid shown in return don't match Form 26AS; income not filled in proper schedule; balance sheet doesn't tally. To respond: log in to income tax portal → e-Proceedings → Response to Outstanding Demand → respond with corrections within 15 days. If not responded within 15 days, the return may be treated as not filed.
Notice u/s 143(1) — Intimation (Demand or Refund)
This is NOT a scrutiny notice. It's an automated summary of how the CPC processed your return. If it shows a DEMAND: verify the computation, check for arithmetical errors or incorrect TDS credit. If you agree, pay within 30 days. If you disagree, file a rectification request under Section 154 with evidence. If it shows a REFUND: the refund will be credited to your bank account within 4–6 weeks.
Notice u/s 143(2) — Scrutiny Notice
This is a serious notice indicating your return has been selected for detailed examination. The AO (Assessing Officer) will ask for documents to verify income, deductions, and exemptions. You must appear (or authorize a CA/tax consultant through Form 2848) and submit requested documents. Ignoring it leads to ex-parte assessment — income computed by AO without your input, almost always resulting in a demand.
Notice u/s 148 — Income Escaped Assessment
Issued when the AO has reason to believe income has not been disclosed or under-reported. From AY 2022-23 onwards, the limitation period is 3 years (extended to 10 years if escaped income exceeds ₹50 lakh). Respond with a fresh return or submit reasons why reassessment is not warranted. This notice requires expert CA/tax counsel — do not respond without professional help.
How to Respond to Any Income Tax Notice
- Log in to incometax.gov.in using PAN and password
- Go to e-Proceedings section in the dashboard
- Find the pending notice — click to view the notice document
- Select 'Submit Response' and choose the appropriate response type
- Upload supporting documents (if required — PDFs, Form 26AS, bank statements)
- Submit the response before the deadline
- Download acknowledgement/response receipt for your records