Income Tax Notice: Types, Reasons, and How to Respond

Receiving a notice from the Income Tax Department can be unsettling. However, most notices are routine communications — not investigations. Understanding the type of notice you have received and responding correctly within the deadline is all that is required in the majority of cases.

Common Types of Income Tax Notices

Section 143(1) — Intimation Notice

This is not really a “notice” in the traditional sense — it is the automatic acknowledgement of your filed ITR after the system processes it. If there is no discrepancy, it is a confirmation. If there is a discrepancy (e.g., mismatch with 26AS), it will show the tax demand or refund. Respond within 30 days if there is a discrepancy.

Section 139(9) — Defective Return

Sent when your ITR has errors — wrong form filed, incomplete schedules, or missing information. You must correct and resubmit within 15 days. Ignoring this notice means your return is treated as not filed.

Section 148 — Reassessment Notice

This is the most serious type. Sent when the department has reason to believe income has escaped assessment. Can be issued up to 3 years from the end of the assessment year for cases below ₹50 lakh, and up to 10 years for income above ₹50 lakh. Respond through an Authorized Representative (CA) if you receive this.

Section 245 — Adjustment of Refund Against Demand

Sent when your outstanding tax demand from a prior year is being adjusted against your current year refund. Verify whether the demand is correct. If it is not, file a rectification request immediately.

Responding to a Notice

All responses must be submitted online through the IT portal (incometax.gov.in). Log in → e-Proceedings → select the relevant notice → submit your response with supporting documents.