The first thing to establish: what kind of notice is it
Not every income tax notice is bad news, and treating all of them with the same level of alarm — or the same level of casualness — is a mistake in both directions. A Section 143(1) intimation confirming your return processed with no changes needs no action at all. The same section, showing an adjustment you didn't expect, needs a closer look. A Section 143(2) scrutiny notice is more serious and needs a properly prepared response, but it isn't itself a demand. A Section 156 demand notice is a specific amount the department wants paid, with its own deadline.
The document identification number (DIN) on a genuine notice can be verified on the income tax portal — this is worth doing before responding to anything that looks unusual, since verifying a notice is genuine takes a few minutes and protects against acting on a fraudulent communication.
Common notice types and what they mean
| Notice | What it means | Typical response |
|---|---|---|
| Section 143(1) intimation | Return processed; may show a refund, a demand, or no change | Review the intimation against your own computation; respond only if there's a genuine discrepancy |
| Section 139(9) defective return | An error in the return needs correcting | File a corrected return within the time specified, or the original is treated as never filed |
| Section 143(2) scrutiny | Return selected for detailed examination | Respond to specific queries raised, with supporting documents, within the time allowed |
| Section 148 reassessment | Department believes income escaped assessment in an earlier year | File the return for that year if required, and respond to the specific grounds cited |
| Section 156 demand | A specific amount is due | Pay within 30 days, or file an appeal or rectification request if you disagree |
Documents to gather as soon as a notice arrives
- The notice itself, with its DIN verified on the income tax portal.
- The return and computation for the assessment year the notice relates to.
- Form 26AS and the Annual Information Statement for that year.
- Supporting documents for the specific point raised — investment proofs, capital gains statements, or bank records, depending on what the notice questions.
- Any prior correspondence with the department on the same or a related matter.
How we handle a notice, step by step
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Verification and classification
The notice's DIN is verified, and its type and the specific section under which it's issued are confirmed — this determines both the urgency and the correct form of response.
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Reviewing against the original return and records
The specific point raised is checked against what was actually filed and the supporting records for that year, to establish whether it's a genuine issue, a data mismatch, or a departmental error.
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Preparing the response
A response addressing the specific point raised is prepared with supporting documents, rather than a general reply — this is filed through the income tax portal, in the format the notice calls for.
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Following through
Where a response doesn't resolve the matter, we continue through assessment or appeal as needed — see our assessment and appeals page for that stage of the process.
Practical notes from our engagements
- A Section 143(1) intimation ignored because it "looks routine." Where an intimation shows an adjustment, checking it against your own computation matters — a genuine department error in processing does happen, and it isn't corrected unless flagged.
- Scrutiny notices responded to with a general narrative instead of documents. A specific query needs a specific, document-backed answer — "the income is correctly reported" without supporting evidence rarely closes a scrutiny matter.
- Notices not checked for authenticity before a response is prepared. Fraudulent communications impersonating the department do circulate — verifying the DIN before doing anything else avoids wasted effort on a fake notice, and equally, avoids dismissing a genuine one as fake.
- Demand notices left unpaid or unappealed past the 30-day window. A Section 156 demand that's neither paid nor formally disputed within the time given can lead to recovery proceedings — silence isn't a way to avoid the demand.
How we handle income tax notices
We verify every notice's authenticity before responding to it, classify it correctly by type and section, and prepare a response addressing the specific point raised with supporting documents. Where a notice doesn't resolve at the first response, we carry the matter through assessment and, if necessary, appeal.
Related services
Frequently asked questions
How do I know if an income tax notice is genuine?
Every genuine notice carries a Document Identification Number (DIN), which can be verified on the income tax portal — check this before acting on anything that looks unusual.
Is a Section 143(1) intimation something to worry about?
Not necessarily — it's issued after every return is processed and often shows no change at all. It's worth reviewing against your own computation, particularly if it shows an adjustment or a demand you didn't expect.
What's the difference between a scrutiny notice and a demand notice?
A scrutiny notice under Section 143(2) means your return is being examined in detail and needs a response with supporting documents. A demand notice under Section 156 specifies an actual amount due, generally payable within 30 days.
What happens if I don't respond to a defective return notice?
The return is treated as if it was never filed at all, unless corrected within the time specified — this is a more serious consequence than it might initially seem.
Can I dispute a demand I disagree with?
Yes — through an appeal, or in some cases a rectification request if the issue is a factual or computational error rather than a matter of interpretation. Simply not paying without taking either step doesn't resolve the demand.
How far back can the department reopen an assessment under Section 148?
This depends on the amount of income alleged to have escaped assessment and the specific facts of the case — the applicable time limits are worth confirming for your particular situation rather than assumed generally.
Do I need to respond to every notice myself, or can a CA respond on my behalf?
A CA can respond on your behalf once duly authorised — most notices allow this, and professional representation is common, particularly for scrutiny and reassessment matters.