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

Notices are more common than they used to be. With the department now matching your return against AIS, Form 26AS and reported transactions automatically, even a small mismatch can trigger one. The good news: most notices are routine and fixable, if you respond in time and correctly.

First, don't panic, but don't ignore it

Read the notice carefully and note three things: the section it cites, the reason given, and the deadline to respond. Almost every notice is handled through the "e-Proceedings" module on the e-filing portal, and every response generates an acknowledgement you should save. The mistake that turns a small notice into a big problem is silence.

The notices you might get

Section 143(1), intimation. The most common one, and usually not scrutiny. It is a system-generated comparison of your return with the department's records. It may confirm your return, show a refund, or propose an adjustment and a demand. If it matches your return, no action is needed; if it proposes an adjustment, you agree or disagree on the portal.

Section 139(9), defective return. Issued when your return is incomplete or inconsistent, for example a missing schedule or unpaid self-assessment tax. You typically get 15 days to fix it. Ignore it and your return is treated as invalid, as if you never filed.

Section 143(2), scrutiny. Your return has been selected for detailed examination. This one needs care and usually professional help. It can only be issued within three months from the end of the financial year in which you filed, so for a return filed in FY 2025-26 the outer limit is 30 June 2026.

Section 245, refund set-off. The department proposes to adjust a refund due to you against an old outstanding demand. You get a short window to object; silence is treated as agreement, and the refund is adjusted automatically.

Section 148, reassessment. Issued when the officer believes income has escaped assessment. This is serious and should be handled with a professional from the start.

Reply deadlines at a glance

What happens if you ignore it

Each ignored notice has a specific cost. An unanswered 143(1) adjustment becomes a final demand. An ignored 139(9) makes your return invalid and can cost you loss carry-forward and a late-filing fee. An ignored 245 lets the department take your refund without consent. And repeatedly ignoring inquiry or scrutiny notices can lead to a best-judgement assessment under Section 144, where the officer estimates your income on the least favourable reasonable view, plus interest and penalties.

Get help replying correctly

The reply matters as much as the deadline, a rushed or wrong response can make things worse. If you have received any notice, our team can read it, reconcile the figures, and draft the correct response through the portal. Our Income Tax & ITR filing service handles notices end to end. Get a free consultation and send us the notice.