In today’s age of increased digitalisation, data matching and automated checks by the Income Tax Department of India, receiving an income tax notice is no longer reserved only for large business taxpayers. Individuals, salaried professionals and small business owners are increasingly seeing notices tied to their returns or filings. However, a notice need not spell trouble – but ignoring it may. In this blog, we walk you through what a tax notice is, the common types you may receive, whether notices for FY 2024-25 have started, how to check if you have one, and how best to respond.
What is an income tax notice?
Put simply, an income tax notice is a formal communication sent by the Income Tax Department asking the taxpayer to act: provide information, clarifications, pay an outstanding amount or respond to a query. It serves as a preliminary inquiry when the department requires additional documents or wants to alert you to an adjustment.
The key point: it does not automatically mean guilt or heavy penalty, but it does mean you need to respond. Ignoring it can lead to escalation, interest, penalties or even assessment/reassessment.
Below are the major notices you may encounter. Each has a distinct purpose and timeline. If you receive one, knowing which type it is helps you act appropriately.
Income tax notice under Section 142(1): Inquiry before assessment
Under Section 142(1) of the Income-tax Act, 1961, a notice may be issued to ask the taxpayer to furnish a return (if none has been filed) or to provide books of accounts, documents or other information for the purpose of assessment.
When do you get an income tax notice under Section 142(1)?
Typically you receive this if you haven’t filed your return although you were required to, or if the Assessing Officer (AO) feels additional information is required before making an assessment. For example, your Form 26AS shows certain transactions, but you haven’t filed ITR or the AO needs more detail.
Income tax notice under Section 139(9): Defective income tax return
When you file your income tax return (ITR) but it contains “defects” (for example, missing information, mismatches with Form 26AS, incorrect disclosures), the Income Tax Department may issue a notice under section 139(9).
When do you get a tax notice under Section 139(9)?
If you filed your ITR and it’s processed, but the department believes the return is incomplete or incorrect in a material way. The notice asks you to rectify within the time specified (generally 15 days).
Also read : Received an notice under Section 139(9)? Here’s what you need to know
Income tax notice under Section 143(1): Intimation after processing
After the return is filed and processed (arithmetical error correction, adjustment of certain claims), the ITD issues an intimation under section 143(1), indicating whether you owe tax or are eligible for a refund.
When do you get a tax notice under Section 143(1)?
Usually within a year of filing the return. It reflects adjustments made by the department based on available information. If you disagree, you must respond or file a rectification or a revised return, considering the time limit.
If the AO is not satisfied with the return or there are significant discrepancies, a notice under section 143(2) may be issued, signalling that your case has been selected for detailed scrutiny (assessment under section 143(3)).
Also read : Received a notice under Section 143(1)? Here’s what it means
Income tax notice under Section 148: Income escaping assessment
When the department has reason to believe that some income has escaped assessment for a particular year (i.e., you omitted to report it), they issue a notice under section 148 to reassess that year.
When do you get a tax notice under Section 148?
This can happen if post-filing your return, information (banking, SFT, AIS) reveals unreported income or your return is found to be substantially understated and there seems to be tax evasion either through wilful misrepresentation or through failure to fully disclose all material facts.
Also read : Received a notice under Section 148? Here’s what you need to know
Income tax notice under Section 156: Demand notice
Under section 156, once any tax, interest, penalty or fee becomes payable following an order (assessment/reassessment/rectification), the AO issues a demand notice specifying the amount and the due date.
When do you get an income tax notice u/s 156?
After the assessment/reassessment/rectification is concluded and the department determines you must pay. Ignoring this is risky because interest and enforcement can follow.
Other notices
There are other sections and notices you should be aware of:
- Notice under section 133(6) – asking for books/documents or explanations.
- Notice u/s 245 – if refund for a year is being offset against outstanding demand for previous year(s).
- Notice u/s 144 – Best-judgement assessment in case you fail to respond.
Each has their own features, but the ones above cover the majority of situations.
Has the Income Tax Department started sending notices for FY 2024-25?
Yes, the department is actively working on the assessment cycle for Assessment Year (AY) 2025-26 i.e., for FY 2024-25. While many notices will still be issued in the coming months, given strengthened data-flows (e.g., from AIS, Form 26AS, SFT) the chances of notices being triggered are higher. Recent industry commentary for 2025 emphasises that mismatches in ITR vs AIS/Form-26AS are among the most common triggers. Therefore, if you have already filed your ITR for FY 2024-25, it is prudent to check for any pending actions or notices, rather than assume all is closed.
How long will you get income-tax notices?
The time limits for issuing income-tax notices vary depending on the section and the nature of the case:
Section 142(1) or 139(9): Notices under these sections for non-filing of returns or for defective returns are generally issued shortly after the due date for filing or soon after submission of a return found to be incomplete or inconsistent.
Section 143(2): A notice under section 143(2) must be issued within 3 months from the end of the financial year in which the return is furnished. This marks the start of a detailed assessment (under section 143(3)).
Section 148: Under the amended Section 149 for income escaping assessment, the time limit for issuing a notice to reassess escaped income is:
- Up to 3 years from the end of the relevant assessment year in normal cases, and
- Up to 10 years only if the Assessing Officer possesses evidence that income chargeable to tax, represented in the form of an asset, expenditure, or entries in books, exceeding ₹50 lakh has escaped assessment.
This amendment has significantly reduced the earlier 6-year period and made the extended 10-year limit applicable only to high-value or serious cases.
- Section 154: An order for rectification (and consequential notice, if any) can be passed within 4 years from the end of the financial year in which the order sought to be amended was passed.
How to check if you have income-tax notices
Here is what you should do:
- Log into the official e-filing portal of the Income Tax Department using your credentials. On the dashboard check for any “Pending Action/ e-Proceedings/ Notices” items. It is always recommended to verify the authenticity of a notice via the portal.
- Check your registered email and SMS (the department sends alerts).
- Review your AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) for your PAN – these reports show third-party reported transactions. Any mismatch compared to what you filed is a red flag.
- Keep an eye on “Demand/Refund” notices under the portal’s “Pending Actions” section. If you’ve got a notice under section 156, you’ll see the amount, due date etc.
If you find a notice, don’t delay. Note the section under which it is issued, the deadline for response, and gather relevant documents right away and ensure timely communication is sent to Income Tax Department.
How to respond to income-tax notices
Here are best-practice steps (and why you should involve a Chartered Accountant):
- Authenticate the tax notice: Ensure it is legitimately from the Income Tax Department. Check your ITR e-filing portal, verify PAN and notice reference before you proceed. .
- Read carefully: Note the section cited, the reason (e.g., “please furnish documents for AY 2025-26”), the deadline, and what action is demanded.
- Gather documents: Based on the notice type you may need ITR filed, Form 16/16A, Form 26AS, bank statements, investment proofs, asset schedules, foreign asset disclosures, etc.
- Draft your response: This could mean furnishing additional documents (for 142(1)), rectifying return (for 139(9)), agreeing or disagreeing with intimation (for 143(1)), providing explanations (for 143(2)), or engaging in reassessment proceedings (for 148).
- Submit via portal: Most notices allow e-response in the “e-Proceedings” module of the e-filing portal. Save acknowledgement ID. Experts note that timely response prevents escalation to best‐judgement or penalty.
- Follow-up & track: Check the portal frequently for updates, additional questions, or assessment orders.
- Why engage a Qualified Financial Advisor: A Chartered Accountant helps you interpret the notice, measure your exposure, quantify tax/interest/penalty risk, negotiate with the AO, if needed, and manage documentation. Especially in 2025 when data flows are stronger, having expert support can reduce stress and avoid costly mistakes.
Conclusion
In today’s era of digital data-matching and tighter compliance, income-tax notices have become a normal part of the tax landscape – not necessarily a cause for panic. The key lies in awareness and timely action. If you receive a notice, understand why it was issued, when you need to respond, and what documents support your case. Acting promptly can often resolve the issue without penalties or prolonged correspondence.
As the Income Tax Department continues to strengthen its systems going forward, proactive taxpayers – who maintain records, reconcile AIS/Form 26AS data, and seek professional guidance when needed – will find the process smooth and stress-free.
Remember, a tax notice is not a judgment; it’s an opportunity to clarify. Respond, don’t react.
