Got an Income Tax Notice? What It Means and How to Respond

An email or SMS saying you have an income tax notice can ruin your day. The good news: most notices are routine, and nearly all of them can be handled calmly if you understand what is being asked and reply on time.

This guide explains the notices people receive most often, how to tell a real notice from a scam, and a simple way to respond.

First, check that the notice is genuine

Fake "income tax" messages are common, especially around refund season. Before doing anything else:

1. Look for the DIN. Every genuine notice from the department carries a Document Identification Number.
2. Verify it on the portal. Use the Authenticate notice/order issued by ITD service on the income tax e-filing website.
3. Log in to the e-filing portal yourself and check under Pending Actions and e-Proceedings. Real notices appear there.

The notices you are most likely to see

A quick note on section numbers: the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered its sections. Notices about earlier years often still use the familiar 1961 numbers below. The meaning is the same either way.

Intimation after processing: Section 143(1)

This is the most common one and usually not a problem. It tells you the result of processing your return: whether your tax matches, you get a refund, or there is a demand.

• If it matches or shows a refund: nothing to do.
• If it shows a demand you disagree with: check the computation. If the department made an error, file a rectification request online.

Proposed adjustment: Section 143(1)(a)

Sent before processing when the department spots a mismatch, for example between your return and Form 26AS, AIS or your audit report. You can agree or explain the difference online, usually within 30 days.

Defective return: Section 139(9)

Your return has a technical defect, such as missing schedules or a mismatch in income and TDS details. You usually get 15 days to fix and refile. If you don't, the return can be treated as never filed.

Inquiry before assessment: Section 142(1)

The department wants more information or documents, or asks you to file a return you haven't filed. Reply with exactly what is asked, by the date given.

Scrutiny notice: Section 143(2)

Your return has been picked for a detailed check. It doesn't mean you did anything wrong, but it does need careful handling: supporting documents, reconciliations and clear explanations.

Received a scrutiny or reassessment notice?

We read the notice, prepare the reply with supporting documents and represent you through the faceless assessment process.

Income escaping assessment: Sections 148A and 148

The department believes some income was not taxed in an earlier year. Before reopening, you get a show-cause notice and a chance to explain why the case should not be reopened. This is serious and time-sensitive. Get professional help before replying.

Demand notice: Section 156

You owe tax, interest or a penalty. Pay within the time allowed, usually 30 days, or file an appeal or rectification if the demand is wrong. Unpaid demands attract interest.

Refund adjusted against a demand: Section 245

The department proposes to use your refund to clear an old outstanding demand. Respond on the portal to agree, disagree or partly agree. If the old demand was wrong or already paid, say so with proof.

Not every message is a formal notice

You may also get messages about AIS mismatches, high-value transactions or non-filing of returns through e-campaigns. These are compliance nudges rather than formal notices, and you respond through the Compliance Portal. Don't ignore them, though. An unanswered nudge can turn into a formal notice.

How to respond: a simple 5-step approach

1. Read the full notice. Note the section, assessment year, what is being asked and the due date.
2. Verify it using the DIN on the e-filing portal.
3. Collect documents: your return, Form 26AS, AIS, bank statements, invoices and any proof linked to the issue.
4. Reply online through the e-filing portal before the deadline. If you need more time, request an adjournment on the portal rather than staying silent.
5. Keep records of everything you submit, including acknowledgements.

What not to do

• Don't ignore it. Missing a deadline can mean an assessment without your side of the story, plus penalties.
• Don't reply in a hurry with incomplete or inconsistent information. What you submit becomes part of the record.
• Don't pay a demand you believe is wrong without first checking whether rectification or appeal is the better route.
• Don't share OTPs or passwords with anyone claiming to be from the department.

The short version

• Most income tax notices are routine. Read carefully and stay calm.
• Always verify the DIN on the e-filing portal before responding.
• Reply online before the due date, or ask for more time.
• Scrutiny, reassessment and large demand notices need expert handling. Get help early.