What is an Income Tax Notice?
An income tax notice is a formal communication from the Income Tax Department regarding discrepancies, verification requirements, or issues with your tax returns. Receiving a notice doesn't always mean something is wrong, but it requires immediate attention and proper response to avoid penalties.
Important:
- Never ignore an income tax notice
- Respond within the specified deadline
- Seek professional help immediately
- Keep all relevant documents ready
- Maintain written communication records
Common Types of Income Tax Notices
Section 139(9)
Defective Return Notice
Issued when there are defects or errors in your filed ITR. You have 15 days to rectify.
Section 142(1)
Inquiry Notice
Request for additional information or documents to verify your income and deductions.
Section 143(1)
Intimation Notice
Summary assessment notice showing discrepancies between your return and IT department's calculation.
Section 143(2)
Scrutiny Notice
Detailed scrutiny of your return. You must appear before the Assessing Officer.
Section 156
Demand Notice
Notice for outstanding tax demand with interest and penalties.
Section 245
Refund Adjustment Notice
Notice when your refund is adjusted against any outstanding tax demand.
Why Do You Receive a Tax Notice?
Mismatch in Income Reporting
Discrepancy between income shown in ITR and information available in Form 26AS or AIS.
High-Value Transactions
Large cash deposits, property purchases, or other high-value transactions not matching your reported income.
Incorrect TDS Claims
TDS claimed in your return doesn't match with TDS deposited as per Form 26AS.
Non-Filing of Return
You haven't filed ITR despite having taxable income or high-value transactions.
Excessive Deductions
Claims under various sections appear disproportionate to your income.
Random Selection
Your return may be randomly selected for scrutiny through CASS (Computer Assisted Scrutiny Selection).
Our Notice Response Process
Notice Analysis
Detailed review of the notice to understand the exact issue and department's concerns.
Document Collection
Gather all relevant documents, ITRs, bank statements, and supporting evidence.
Strategy Development
Create a comprehensive response strategy based on facts and applicable laws.
Response Preparation
Draft detailed reply with all supporting documents and legal justifications.
Submission & Follow-up
Submit response online and follow up with the department for closure.
Personal Appearance (if needed)
Our CA represents you before the Assessing Officer with complete documentation.
How We Help You
Expert Representation
Experienced CAs represent you before IT authorities professionally.
Complete Documentation
Prepare all necessary documents and supporting evidence.
Legal Compliance
Ensure all responses comply with income tax laws and regulations.
Clear Communication
Handle all correspondence with the IT department on your behalf.
Minimize Penalties
Work to reduce or eliminate penalties through proper justification.
Continuous Support
Guide you through the entire process until final resolution.
Our Pricing
Simple Notices
139(9) / 143(1) notices
- Notice Analysis
- Response Drafting
- Document Review
- Online Submission
- Email Support
Scrutiny Notices
143(2) / 142(1) notices
- Everything in Basic
- Detailed Case Study
- Complete Documentation
- Personal Appearance (1 hearing)
- CA Representation
- Phone + Email Support
Demand / Assessment
Complex cases & appeals
- Everything in Scrutiny
- Multiple Hearings
- Appeal Filing Support
- Legal Opinion
- Senior CA Support
- Dedicated Case Manager
- Complete Resolution
*Pricing may vary based on case complexity and additional hearings
Frequently Asked Questions
What should I do immediately after receiving a tax notice?
Don't panic. Read the notice carefully, note the deadline, gather all relevant documents, and immediately consult with a Chartered Accountant. Never ignore the notice or miss the deadline.
What happens if I don't respond to the notice?
Non-response can lead to ex-parte assessment (decision made without your input), heavy penalties, interest charges, and in some cases, prosecution. It can also result in immediate demand for tax payment.
Can I handle the notice myself without professional help?
While simple notices like defective return (139(9)) can be handled personally, scrutiny notices and demand notices are complex. Professional help ensures proper response, reduces penalties, and improves chances of favorable outcome.
How long does it take to resolve a tax notice?
Simple notices can be resolved in 2-4 weeks. Scrutiny assessments may take 3-6 months. Complex cases involving appeals can take 6-12 months or longer, depending on the complexity and department's response time.
Will I have to pay additional tax if I receive a notice?
Not always. Many notices are for verification or clarification only. If there's a genuine error in your return or unreported income, additional tax may be applicable. Professional assistance helps minimize unnecessary tax liability.
Can I file an appeal if I disagree with the assessment?
Yes, you can file an appeal to the Commissioner of Income Tax (Appeals) within 30 days of receiving the assessment order. Further appeals can be made to ITAT, High Court, and Supreme Court if needed.