Income Tax Notices: Types, Reasons, and How to Respond
By KCJM, Chartered Accountants | Excellence in Everything We Do
Receiving a notice from the Income Tax Department can be stressful for individuals and business owners alike. However, not all notices mean trouble—some are simply for verification or clarification purposes.
As your trusted tax advisors, KCJM Chartered Accountants has put together this detailed guide to help you understand the various types of income tax notices issued in India, the reasons behind them, and how to respond correctly to avoid penalties or further action.
📌 Why Are Income Tax Notices Issued?
The Income Tax Department sends notices for a variety of reasons, including:
- ✔ Mismatch in income details or deductions
- ✔ Non-disclosure of income or assets
- ✔ Random scrutiny or selection for audit
- ✔ Non-filing or delayed filing of returns
- ✔ Verification of high-value transactions
📄 Types of Income Tax Notices and What They Mean
1. Notice under Section 139(9): Defective Return
Reason: The ITR filed is considered defective due to missing information or incorrect details.
How to Respond: File a revised return within 15 days of receiving the notice, correcting the defect.
2. Notice under Section 143(1): Intimation
Reason: Sent after processing of return, informing about tax calculation—whether refund, payable, or no change.
How to Respond: No action needed if everything matches. If discrepancies exist, file a rectification under Section 154.
3. Notice under Section 143(2): Scrutiny Assessment
Reason: Your return has been selected for detailed scrutiny to verify the correctness of claims and income.
How to Respond: Appear in person or through a representative and submit the required documents as per the notice.
4. Notice under Section 148: Income Escaped Assessment
Reason: Department believes income has escaped assessment and wants to reassess previous years.
How to Respond: Respond within the time limit and file the return for the specified year. Take legal advice if required.
5. Notice under Section 245: Adjustment of Refund
Reason: Your current year’s refund is being adjusted against outstanding tax dues of earlier years.
How to Respond: Agree or disagree through the income tax e-filing portal within the prescribed time.
6. Notice under Section 131(1A): Investigation
Reason: Department suspects concealment of income and initiates inquiry before assessment proceedings.
How to Respond: Cooperate fully and provide all requested information. Seek professional assistance for drafting your response.
📬 How to Respond to Income Tax Notices in India
- ✅ Log in to the Income Tax e-filing portal and check the notice under “e-Proceedings.”
- ✅ Understand the notice type and reason carefully.
- ✅ Collect and verify all relevant documents (bank statements, TDS certificates, etc.).
- ✅ File a response within the specified time frame—typically 15 to 30 days.
- ✅ Seek professional advice to draft a proper and compliant reply, especially for scrutiny or reassessment notices.
KCJM Tip: Ignoring a tax notice can result in penalties, interest, and legal proceedings. Timely action is the key to resolving issues efficiently.
🔍 Common Triggers for Tax Notices
- 🚨 High-value cash deposits without explanation
- 🚨 Non-disclosure of foreign income or assets
- 🚨 Discrepancy in Form 26AS vs. filed ITR
- 🚨 Claims of unusually high deductions or losses
Need Help Responding to a Tax Notice?
KCJM Chartered Accountants specializes in handling income tax notices, scrutiny assessments, and reassessments. Our services include:
- 📑 Drafting legal and factual replies to notices
- 📋 Representation before Assessing Officers
- 🧾 Tax return rectification and reassessment filing
- 🔐 End-to-end notice management and compliance support
📞 Don’t panic if you receive a notice. Let our expert team handle it with precision and professionalism.
🌐 https://kcjm.in
📧 support@kcjm.in
📱 Your tax notice response partner—KCJM Chartered Accountants
Keywords: income tax notice India, Section 143(1) notice, Section 148 reassessment, how to respond to IT notice, KCJM Chartered Accountants, tax scrutiny notice help, ITR mismatch resolution
