Income Tax Notice @ ₹7,500 + GST
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Income Tax Notice
Receiving an Income Tax Notice can be stressful and it is common to see people getting nervous when they receive an email, text message, or physical letter from the Income Tax Department. It may be about something small, but it scares people just to get it. The thing is, it is not always because of some violation or penalty. There are many notices sent because of discrepancies.
A failure to acknowledge an income tax notice or responding to it wrongly may result in penalties, interests, reassessment, and even criminal charges. Each income tax notice has a specific reason, time frame, and manner to respond.
At Patron Accounting, we assist individuals, professionals, and businesses in understanding income tax assessment notices and acting accordingly. Our Chartered Accountants analyze the tax notice, fill in the correct reply forms, and submit them to the authorities as per the stipulated time limits.
What Is an Income Tax Notice?
An Income Tax Notice is an official communication issued by the Income Tax Department to a taxpayer. It may be sent to seek clarification, request additional information, point out discrepancies, or initiate assessment or reassessment proceedings.
Notices are usually sent through email, SMS, or the Income Tax e-filing portal. Each notice mentions a specific section of the Income Tax Act under which it is issued, along with the reason and response deadline.
Receiving a notice does not always mean tax evasion or a penalty. In many cases, it is simply a request for confirmation or correction.
Common Reasons for Receiving an Income Tax Notice
- Discrepancy between ITR and Form 26AS or AIS
- Non-Filing or Late Filing of ITR
- Reporting of high-value transactions
- Inaccurate statements of income or deductions
- TDS claimed but not reflected
- Large Cash Deposits or Withdrawals
- Foreign income or assets that were not disclosed
- Capital gains not reported properly
- Inaccuracies in personal or banking information
Types of Income Tax Notices
The Income Tax Department issues different notices for different purposes. Each notice requires a specific response strategy. These issues include:
Intimation under Section 143(1)
Defective Return under Section 139(9)
Scrutiny Notice under Section 143(2)
Reassessment Notice under Section 148
Information Notice under Section 142(1)
Penalty Notice under Section 270A
Step-by-Step Process of Responding to an Income Tax Notice
Notice Review
We carefully examine the notice section, reason, and response deadline to understand what the exact requirement is.
Data Analysis
Income, tax filings, AIS, and Form 26AS are also reviewed to check for and identify mismatches or issues raised.
Document Collection
We need supporting documents to be collected and verified to back the response accurately.
Drafting the Reply
Then a legally correct reply is drafted addressing each point that is mentioned in the notice.
Online Submission
The response is submitted through the Income Tax Portal within the given time.
Follow-Up & Closure
We track the response status and assist until the notice is resolved or closed.
Documents Required to Reply to an Income Tax Notice
The documents depend on the type of notice, but commonly include:
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PAN and Aadhaar
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Copy of Income Tax Notice
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Filed ITR and acknowledgement
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Form 26AS and AIS
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Bank statements
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Salary slips or Form 16
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Investment proofs
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Capital gains statements
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Business books or invoices
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Any document requested in the notice
Time Limit for Responding to Income Tax Notices
- Most notices have strict deadlines
- Deadlines vary based on notice type
- Missing the deadline may lead to penalties
- Extensions are rare and conditional
Responding on time is extremely important.
What Happens If You Ignore an Income Tax Notice?
Even a small notice should never be ignored. Ignoring a notice can lead to:
- Penalty proceedings
- Interest on tax demand
- Best judgment assessment
- Reassessment of income
- Refund withholding
Prosecution in serious cases
Common Mistakes People Make While Handling Notices
- Ignoring emails or portal messages
- Assuming notice is not serious
- Responding without understanding the section
- Submitting incomplete replies
- Missing deadlines
- Providing incorrect documents
- Not reconciling AIS or Form 26AS
- Letting unqualified persons reply
Why Choose Patron Accounting for Income Tax Notice Assistance?
Careful handling is required when you are dealing with an income tax notice, as it is highly technical work that deals with tax laws and government procedures. At Patron Accounting, we handle all notices very professionally.
Our Chartered Accountants carefully examine the notice, arrive at the cause, and draft a response based on the correct information. The responses are checked to see that they are in line with the Income Tax Act and meet the expectations of the department.
We also assist you in understanding the reason behind the notice and help you in correcting the same to avoid such notices in the future. This may be a simple Mismatch Notice or a Scrutiny and/or Re-Assessment situation, and we, at Patron Accounting, ensure that your notice is tackled responsibly, on time, and with full understanding.
Frequently Asked Questions
Have a look at the answers to the most asked questions.