Receiving an income tax notice can be stressful, but it does not always mean trouble. In many cases, the Income Tax Department simply needs additional clarification, missing documents, or correction of minor errors in your tax return. Understanding different types of notices and responding on time can help you avoid penalties and legal issues.

Here’s a detailed look at why these notices are issued and how you should deal with them.

🔍 What Is an Income Tax Notice?

An income tax notice is an official communication issued by the Income Tax Department. It informs a taxpayer about:

• Errors or mismatches in the filed return




• Unreported income




• Pending tax liabilities




• Requests for additional documentation or clarification

These notices can be issued even if you have already filed your Income Tax Return (ITR) or if you fail to file it when required. Timely response is critical to ensure compliance and avoid penalties or further scrutiny.

🧾 Types of Income Tax Notices in India

Here are the eight most common notices issued under different sections of the Income Tax Act:

1️⃣ Section 142(1): Inquiry or Return Filing Notice

Issued in two situations:

• You have filed ITR but more information or proofs are needed




• You have not filed ITR, and the department asks you to submit it

This is generally a request for clarification or document support.

2️⃣ Section 133(6): Notice for Information

You may receive this if:

• Your income exceeds the basic exemption limit but ITR is not filed




• Income reported doesn’t match financial activity




• Your expenses seem significantly higher than your declared income

It seeks explanations and supporting documents.

3️⃣ Section 143(1): Intimation

After automated processing of your ITR at the CPC (Central Processing Centre), the department sends this intimation to clarify whether:

• Refund is due




• Additional tax is payable




• Return is simply accepted

This is a summary assessment, not scrutiny.

4️⃣ Section 143(2): Scrutiny Notice

Issued when:

• Response to Section 143(1) is unsatisfactory




• Department suspects under-reporting or improper claims

They may examine deductions, exemptions, and income sources in detail.

5️⃣ Section 148: Reassessment Notice

Sent if the department believes:

• Some income was left undisclosed




• Taxes were under-reported deliberately or by mistake

The return may be reopened for reassessment.

6️⃣ Section 245: Adjustment of Refund Against Tax Dues

Issued when:

• A pending tax demand exists from earlier years




• Your refund from another year is adjusted against that liability

The department must inform before making such an adjustment.

7️⃣ Section 156: Demand Notice

Sent after assessment is complete and tax is due.
It includes:

• Tax




• Interest




• Penalty amounts (if applicable)

Immediate action is required to avoid further penalties.

8️⃣ Section 139(9): Defective Return Notice

Issued when:

• ITR has errors, missing details, or inconsistent information

You must correct and refile within the specified time to validate your return.

📌 What Should You Do When You Receive a Tax Notice?

Follow these important steps:

✔ Read the notice carefully to understand the issue
✔ Verify its authenticity on the Income Tax portal
✔ Collect all necessary documents — Form 16, bank statements, investment proofs
✔ Draft a correct and clear response
✔ Upload response and documents on the e-filing portal
✔ Save acknowledgment and track further updates on your email & portal