Got an Income Tax Notice? Here’s What to Do Right Away

Receiving an income tax notice may seem unsettling, but it does not always mean you are in trouble. Many notices are routine, caused by data inconsistencies, inaccurate data, or automated validations using the Income Tax Department's AI-powered processing system.

Whether you're a salaried MNC employee, a freelancer, or a business owner, it's critical to respond appropriately and within the stipulated time to avoid penalties, interest, or escalation.

Common Types of Income Tax Notices

Section 139(9): Defective Return

Issued when the return has missing or inconsistent data, such as TDS not matching Form 26AS, an incorrect ITR form, or unreported income.

Section 143(1): Intimation

A system-generated summary that compares your return to the department's computation. It could confirm your filing or highlight refund discrepancies or tax owed.

Section 143(2): Scrutiny Assessment

Sent when your return is selected for detailed examination. It requires submission of supporting documents and may include inquiries into specific transactions.

Section 245: Adjustment Against Outstanding Demand

Notifies you that your refund is being applied to your past-due balance. Validation and agreement (or disagreement) are required on your end.

Section 148: Reassessment

Issued if the department believes you’ve underreported income in earlier years. This notice requires prompt attention and often leads to audit-level scrutiny.

What You Should Do Immediately

Do Not Ignore the Notice: Every notice has a due date for response. Missing it can result in penalties or loss of appeal rights.
Verify the Details: Cross-check your PAN, Assessment Year, and nature of the notice on the income tax portal.
Match with Form 26AS and AIS: Notices often arise from TDS mismatch or unreported bank interest, crypto gains, or foreign income.
Consult a Tax Expert: Misinterpreting a notice or responding incorrectly can escalate the issue. A professional will help frame a compliant and strategic response.

Expert-Led Resolution, End-to-End

Patron Accounting helps professionals, consultants, and business owners decode and respond to tax notices, whether they're simple clarifications or complex reassessments. We ensure that responses are filed on time, documents are compiled, and legal follow-up is conducted with CPC or jurisdictional officers.

Received a notice? Let our experts guide you through the next steps—accurately and stress-free.

Frequently Asked Questions

Have a look at the answers to the most asked questions.

No. Most notices are auto-generated due to mismatched data, TDS differences, missing income, or incorrect ITR selections. Many are informational—and simply require confirmation or corrections.

You should verify it using the Income Tax India e-filing portal under "e-campaigns" or "View Notices and Orders." Genuine notices will have a unique DIN (Document Identification Number) you can validate online.

Each notice has a due date—usually 7 to 30 days. Missing the deadline may lead to penalty, interest, refund freeze, or case escalation. It’s best to review and respond as early as possible.

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