Income tax notice
An income tax notice is a letter from the department asking for a return, a correction, or proof of a figure. Company Suggestion reads the section printed on it and files the reply on the e-filing portal within the time the notice gives.
Why does a notice arrive?
The common triggers are these. The section on the first page decides which of them it is.
- No return was filed, and the department has information that one was due.
- The return was filed in the wrong form, or a schedule was left blank.
- The tax credit claimed does not match Form 26AS, Form 16, or the Annual Information Statement.
- A refund is being adjusted against tax that is still unpaid.
- The return has been selected for a closer check.
Which notice is which?
Each section asks for something different. Replying to the wrong one does not close the case.
| Section | What it is |
|---|---|
| 139(9) | The return is defective. Correct it within 15 days, or the further time allowed. |
| 142(1) | A request for a return that was not filed, or for accounts and documents. |
| 143(1) | The intimation after processing. It states the refund, the demand, or that nothing is payable. |
| 143(2) | Scrutiny. The officer will examine the return. |
| 148 | Income is considered to have escaped assessment. A return is required in response. |
| 156 | A notice of demand for the sum already determined. |
| 245 | A refund is proposed to be set off against tax still outstanding. |
What does the reply need?
The notice lists the points. The reply answers those points and attaches the record that supports the return.
- The notice itself, with the section and the date
- The acknowledgement of the return that was filed
- Form 26AS, the Annual Information Statement, and Form 16 or 16A where the difference is a tax credit
- The computation, the books, or the deed the question refers to
What are the reply steps?
Company Suggestion answers the notice in four steps.
- The section and the reply date are read off the notice.
- The figure in dispute is matched to 26AS, the AIS, and the return.
- A defective return is corrected under section 139(9). Any other notice is answered on the portal with the papers it asks for.
- The submission receipt is saved. Silence lets the officer proceed under section 144 on the material already held.
Frequently asked questions
4 questions cover the rules that decide this registration.
What is a defective return notice?
Section 139(9). The return is on file but is incomplete or inconsistent. The defect is removed within 15 days of the intimation, or within the further time the officer allows. If it is not removed, the return is treated as invalid.
What is an intimation under section 143(1)?
It is the processing of the return. It can show a refund, a demand, or no difference. A mismatch with Form 26AS or the Annual Information Statement is a common reason for an adjustment.
What is a scrutiny notice?
A notice under section 143(2). The assessing officer has selected the return for scrutiny and will ask for evidence. It is not the same letter as the 143(1) intimation.
What happens if the notice is ignored?
A defective return can be treated as never filed. A demand can stay outstanding. The officer can complete the assessment under section 144 on the material available. The time to reply is the time written on the notice.