As the Income Tax Department begins processing returns, it sends a series of emails and SMS updates to taxpayers about the status of their filings – whether the return has been successfully processed, a refund has been credited, or further action is required from the taxpayer’s end. With so many different intimations and notices being issued, it’s important to understand what each one means and, more importantly, what steps you need to take.
Here’s a simple guide to income tax notices.
What is the difference between a notice an intimation?
For starters, it’s important to understand that a notice and an intimation are not the same. An intimation is simply a status update or an information. For example, if your return has been processed and you’re due a refund, you may receive an intimation under Section 143(1). You don’t need to take any action in such cases.
A notice, however, is different. It’s an official communication from the ITD that requires you to act – whether that means submitting documents, correcting errors, or in some cases, paying additional tax.
At a broader level, the department issues these notices to ensure compliance and accuracy. The ITD verifies tax returns against information collected from banks, employers, registrars, and other financial institutions. And if something doesn’t add up, or if an income appears to be missing, a notice is triggered.
What are the different types of income tax notices?
Here are the most common notices you might come across:
1. Notice under Section 142(1) – Inquiry before assessment
This notice is issued when the income tax department needs more details before completing your assessment – that is, the review of your income, deductions, and taxes to decide your correct tax liability.
This notice may be sent if you haven’t filed your return on time, or if the officer wants supporting documents like proof of deductions, bank statements, or an asset–liability statement. In some cases, even after a return is filed, the officer may ask for clarifications through this notice.
2. Intimation under Section 143(1) – Summary assessment
This is where most people tend to get confused, and obviously so, because everyone receives it and wonder if they need to take any action.
An intimation under Section 143(1) is essentially an automated communication sent after your income tax return has been processed. It simply informs you about the outcome of your return: whether you’re entitled to a refund, have a demand payable, or if there’s no refund/no demand.
In most cases, no action is needed on your part unless the intimation specifies a tax amount that you need to pay.
3. Notice under Section 143(2) – Scrutiny assessment
This notice means your return has been selected for a detailed examination. The department may want to verify the correctness of your income, deductions, or exemptions. Scrutiny assessments are carried out when there are significant mismatches, unusual claims, or sometimes even at random as part of routine checks.
At this stage, the officer may request detailed documents like investment proofs, property transaction records, or bank statements to confirm that the return has been filed accurately.
4. Notice under Section 139(9) – Defective return
A return is considered defective when it is incomplete or has errors that make it invalid in its current form.
This could happen if the wrong ITR form was used, mandatory details were skipped, or if the income reported does not reconcile with data in Form 26AS or AIS. For example, if you report only your salary of ₹8,00,000 but forget to include bank interest of ₹20,000, and Form 26AS already shows tax deducted on that interest, the return may be flagged as defective.
5. Notice under Section 148A – Show cause before reassessment
This notice is basically a heads-up from the income tax department before they reopen your case under Section 148. It’s sent when the department believes some part of your income may have been missed in your return and gives you a chance to explain or share supporting details.
If you receive this notice, you get to present your side before any reassessment begins under section 148.
6. Notice under Section 148 – Income escaping assessment
Before issuing this notice, the department first sends a show-cause notice under Section 148A, giving you a chance to explain your side.
If the explanation isn’t satisfactory, the officer can reopen your return under Section 148 to examine the unreported income. Such cases usually involve large property transactions or high-value financial activities that are not reflected in the return. Depending on the case, the department can reopen assessment for up to 3 years or even 10 years if the unreported income is more than ₹50 lakh.
7. Notice under Section 156 – Demand notice
A demand notice is issued after the assessment of your return. If, upon assessment, the income tax officer determines that you owe additional tax, interest, fee, or penalty, the department will formally communicate this through a demand notice.
The notice will specify the exact amount payable, clearly mention the break-up of tax, interest, or penalties and direct the taxpayer to make the payment within 30 days of service of the notice.
If you disagree with the demand, you can raise an objection on the ITD portal through the ‘Response to Outstanding Demand’ section.
8. Intimation under Section 245 – Adjustment of refund
When you are due a refund for the current year but also have outstanding tax dues from earlier years, the department may adjust one against the other. For instance, if you are eligible for a ₹15,000 refund this year but owe ₹5,000 from an earlier assessment year, you’ll only receive ₹10,000 after adjustment.
This intimation informs you that your refund has been set off, either fully or partially, against the pending demand, giving transparency to the process.
Where to find your tax notice?
When the Income Tax Department issues a notice, you’ll usually be informed on your registered email ID or SMS. If it comes by email, it may be a password-protected PDF and the password is your PAN (in lowercase) + your date of birth (DDMMYYYY).
You can also log in to the Income Tax portal and navigate to Pending Actions, you’ll see these options:
- e-Proceedings – for notices that require documents or clarification.
- Response to Outstanding Demand – for notices that involve tax payment.
Once you view the notice, you can either:
- Agree and pay any dues,
- Disagree fully or partially by giving reasons and remarks, or
- File a revised ITR if you realise there was a mistake in your original return.
So, if you’ve received a notice, respond it within the timeline, and if you need help, we’ll take it from there.