Income Tax Notice?
Don't Panic – Respond Right.

Do not panic. First, verify the notice is genuine by logging in to incometax.gov.in and checking "Pending Actions." Note the response deadline, the section under which it is issued, and the specific queries raised. Then consult a CA or tax professional before drafting a response. Never ignore the notice or respond without proper preparation.

Not at all. Most income tax notices — especially 143(1) intimations and 142(1) inquiry notices — are routine and do not imply wrongdoing. Many are triggered by automated mismatches in the department's system. A notice is the department's way of seeking clarification, not an accusation. However, it must be responded to properly.

Missing a response deadline can lead to serious consequences: an ex-parte (one-sided) assessment by the AO based only on available information, a best judgment assessment that may inflate your tax liability, penalties under various sections, and in severe cases, prosecution. You can apply for an extension of time, but this must be done before the deadline and with valid reasons.

Legally, yes — you can respond yourself. However, the stakes are high. An incorrect, incomplete, or poorly worded response can trigger further notices, penalties, or a full scrutiny. For simple intimations (Section 143(1)) where you just need to pay a small demand or verify data, self-response may be feasible. For scrutiny notices (143(2)), reopening (148), or search-related notices, professional assistance is strongly recommended.

Yes. You can file a request for adjournment or extension on the e-Filing portal or by writing to the Assessing Officer. The AO has discretion to grant extensions. Typically, extensions are granted for 15–30 additional days if you have valid reasons (hospitalisation, natural calamity, genuine document unavailability). Always apply for the extension well before the original deadline.

A Section 143(1) intimation is an automated communication after processing your return. If there's a demand, it usually arises from a mismatch between your return and the department's data. First, compare your return with Form 26AS and AIS. If the demand is correct, pay within 30 days to avoid interest. If incorrect, file a rectification request under Section 154 with supporting documents. Do not just pay without verifying.

A Section 143(2) scrutiny notice is one of the most serious types. The Assessing Officer selects your return for in-depth examination of income, deductions, and expenses. You must provide comprehensive documentation to justify every item in your return. The notice must be issued within 6 months from the end of the financial year in which the return was filed. Non-response leads to ex-parte assessment. Professional CA support is essential.

Under the current law (post-Finance Act 2021), the AO can reopen cases up to 3 years from the end of the relevant assessment year for income below ₹50 lakh, and up to 10 years for income above ₹50 lakh that has escaped assessment. If the notice is beyond the limitation period, you can challenge it legally. Always verify the dates and consult a CA to check validity before responding on merits.

Section 245 allows the department to adjust your current year's refund against a prior year tax demand. The notice is a proposal — you have 30 days to object. If you believe the prior demand was already paid or is disputed, file a detailed objection with proof (challans, appeal orders). If you don't respond within 30 days, the adjustment is made automatically. Always respond even if you agree with the adjustment.

Common defects include: return filed under the wrong ITR form, no tax paid despite taxable income, mismatch between income head totals and the total income, missing schedules, TDS claimed without corresponding income, deductions claimed exceeding eligible limits, and audit report not filed when required. The notice specifies the exact defect. You must re-file corrected data within 15 days, or the return is treated as not filed.

Most replies to notices must be submitted online through the Income Tax e-Filing portal (incometax.gov.in). Log in, go to "Pending Actions" → "e-Proceedings," select the notice, and submit your response along with supporting documents. For certain notices and hearing-based assessments, physical submission or appearance before the AO may also be required. Always download the submission acknowledgment as proof.

There is no fixed number — you must provide enough documents to justify every item questioned by the AO. Typically, a scrutiny reply involves 20–80+ documents including bank statements, salary slips, Form 16, investment proofs, capital gains statements, property documents, business books, and audit reports. Our team provides a precise checklist tailored to the specific queries in your notice.

If certain original documents are unavailable (e.g., old property purchase deeds), you can submit alternative evidence such as bank transaction records, registered valuer reports, or affidavits. You can also request certified copies from banks or registrar offices. Our CA team will guide you on acceptable alternative documentation and how to present missing information in the most favourable legal manner.

For most notices that involve written responses on the e-Filing portal, your physical presence is not required. Our CAs can submit the complete response with all documents online. However, for notices that require personal hearing before the AO (common in Section 142(1) and 143(3) proceedings), you or an authorised representative (CA/advocate) must appear. We can represent you as your authorised representative with a proper Power of Attorney.

Simple notices like 143(1) intimations can be resolved within 1–4 weeks. Scrutiny notices (143(2)) typically take 3–18 months, depending on the complexity of queries and the AO's schedule. Reopening cases (148) and survey-related matters can take 12–36 months. Throughout the process, AssamFilings provides status updates and manages all communication with the department.

Yes, in many cases demand amounts can be legitimately reduced or even zeroed out if the original assessment had errors. Options include: filing a rectification (Section 154), filing an appeal before the CIT(A) or ITAT, or applying for settlement. Interest components may be waived or reduced under certain circumstances. Do not simply pay without verifying if the demand is correctly computed — many demand notices contain errors.

Absolutely. The Indian tax system has a multi-level appeals process: first appeal to the Commissioner of Income Tax (Appeals) — CIT(A) — within 30 days of the order; second appeal to the Income Tax Appellate Tribunal (ITAT) within 60 days; then to the High Court and Supreme Court on questions of law. AssamFilings can assist with first and second-level appeals. A CA/advocate must represent you from the ITAT level onwards.

Section 271(1)(c) penalises concealment of income or furnishing inaccurate particulars. The penalty ranges from 100% to 300% of the tax on the concealed income. To avoid this penalty, it's critical to make complete and accurate disclosures in your reply, cite bona fide reasons for any discrepancies, and demonstrate that any error was not deliberate concealment. A well-drafted professional reply significantly reduces the risk of 271(1)(c) penalty imposition.

The Income Tax Act does not have a formal instalment payment plan. However, you can apply to the Tax Recovery Officer for a stay of demand while an appeal is pending, or seek instalments under hardship provisions. The AO/TRO has discretion to grant this. In practice, a 20% payment of the demand amount is typically required to get a stay of the balance during an appeal.

Vivad se Vishwas (VsV) is a government dispute resolution scheme that allows taxpayers to settle pending tax disputes by paying a reduced percentage of the disputed tax demand with full waiver of interest and penalties. Multiple rounds of VsV have been announced. Eligibility depends on whether your case is pending appeal and falls within the scheme's scope. Consult our CA team to evaluate if VsV is applicable to your dispute.

NRIs are taxable in India on income sourced from India — including rental income, capital gains on Indian property, and interest from Indian bank accounts. If you received a notice for such income, you must respond through the e-Filing portal (Indian registration required) or appoint a local representative. AssamFilings handles NRI tax notice responses and can coordinate with you remotely across time zones. DTAA benefits may reduce your tax liabiliy.

In such cases, the legal heirs are responsible for responding to notices addressed to deceased taxpayers. You must register as a legal representative on the e-Filing portal with documentary proof (death certificate, legal heir certificate). The response is then filed in the capacity of the legal heir. Income tax proceedings against a deceased person continue against their estate. AssamFilings can guide you through the entire legal heir registration and response process.

If you sold property and reported the sale in your ITR with the correct capital gains computation and Section 54EC bond investment (up to ₹50 lakh), you have a valid exemption claim. Notices are typically sent when the department sees a large property transaction in the SFT data but doesn't see corresponding disclosure in the ITR, or when the exemption computation appears incorrect. Having proper purchase/sale documents and bond certificates is essential.

Tea garden income has a unique tax treatment in India — 60% is treated as agricultural income (exempt) and 40% as business income (taxable). Common notices relate to: incorrect proportioning of agricultural vs. business income, non-disclosure of tea business income, cash transactions in procurement without proper recording, and TDS on payments to workers. Accurate books of accounts and proper agricultural income documentation are essential to avoid and respond to such notices.

Yes. Government employees receive notices for reasons including: interest income from savings accounts or FDs not declared in ITR, rental income not disclosed, mismatch between Form 16 and the ITR filed, high-value transactions like property purchase, and claiming incorrect deductions. Government employment does not exempt you from scrutiny. Our team handles notices for state and central government employees across Assam efficiently.

Our fees are based on the complexity and type of notice. Simple notices (143(1) intimations, 245 adjustments) start from an affordable base fee. Complex scrutiny (143(2)), reopening (148), and search-related notices involve higher fees reflecting the extensive work required. We provide a fixed, transparent quote after reviewing your notice — no hidden charges. Contact us for a free consultation and quote.

You can share documents via WhatsApp, email, or our secure document upload portal. Scanned copies of documents are generally acceptable. We maintain strict confidentiality and do not retain your documents beyond the case closure period. All communication is encrypted and your data is never shared with third parties.

Absolutely. Our service is 100% online. Clients from all 35 districts of Assam — including remote areas like Dima Hasao, Majuli, Charaideo, and Dhemaji — are served remotely via phone, WhatsApp, and email. The e-Filing portal allows responses to be submitted from anywhere in India. There is no need to travel to our office in Guwahati.

Yes. Our Chartered Accountants can appear before the Assessing Officer as your authorised representative with a duly executed Power of Attorney. We represent clients at income tax offices in Guwahati, Jorhat, Dibrugarh, Silchar, and other major CCIT/PCIT jurisdictions across Assam. For hearings outside our direct reach, we can coordinate with associate CAs or advocates at the relevant location.

Yes. AssamFilings offers a full suite of income tax services — ITR filing for individuals, businesses, and NRIs; advance tax computation; TDS compliance; tax planning and investment advice; GST returns; company registration; and more. Clients who file through us receive proactive reminders and compliance checks that minimise the risk of future notices. Ask us about our annual compliance package.

If you cannot log in, use the "Forgot Password" option on incometax.gov.in using your registered mobile number or email for OTP verification. If your Aadhaar is linked to your PAN, you can reset via Aadhaar OTP. If your registered mobile number has changed, contact the e-Filing helpdesk at 1800-103-0025. AssamFilings can assist with portal access issues as part of our service.

AIS is a comprehensive statement of all financial transactions reported against your PAN by banks, registrars, mutual funds, brokers, and other reporting entities. The Income Tax Department uses AIS to cross-check your ITR. Before responding to any notice, you must download and carefully review your AIS to understand what information the department already has — it's the primary source of notice triggers. AIS is available in your e-Filing portal under "Annual Information Statement."

Yes. You can submit feedback on incorrect AIS information directly through the portal. For each transaction, you can mark it as "Information is correct," "Income is not taxable," "Income is already included in another transaction," "Information is duplicate," or "Information relates to other PAN/Year." The reporting entity will be asked to verify. Until corrected, include an explanation in your ITR and any notice reply about why the AIS data is incorrect.

An ITR that is not e-verified (or not sent as a physical signed ITR-V within 120 days for pre-2023 returns) is treated as not filed. This can result in a notice for non-filing. If you realise this, e-verify immediately through Aadhaar OTP, net banking, or bank account/demat account EVC on the portal. For returns beyond the e-verification window, you may need to file a condonation request. AssamFilings can assist.

The Compliance Portal (compliance.insight.gov.in) is a separate portal where the department sends compliance queries regarding high-value transactions identified in your AIS. It is distinct from the main e-Filing portal (incometax.gov.in) where returns are filed and formal notices are received. If you receive an email asking you to log in to the Compliance Portal and explain certain transactions, respond promptly — non-response can escalate to formal notices.

Banks are required to report cash deposits of ₹10 lakh or more in a financial year (savings account) or ₹50 lakh or more (current account) to the department through SFT (Statement of Financial Transactions). Such deposits appear in your AIS. If the source of these deposits is not adequately reflected in your ITR (as income, loan receipt, agricultural income, etc.), a notice is likely. Always disclose the source of large deposits in your ITR and maintain documentary proof.

Property purchases above ₹30 lakh are reported by registrars to the Income Tax Department. If your declared income in the return seems insufficient to support a ₹75 lakh purchase, the department may send a notice questioning the source of funds. Ensure you can document the source — salary accumulation, loans, gifts, sale of other assets — and that these are reflected in your returns for the relevant years.

Medical professionals with private practices commonly receive notices for: under-reporting of professional income (assuming cash consultations), high cash deposits relative to disclosed income, pharmaceutical company payments/gifts, non-maintenance of books of accounts required under presumptive taxation limits, and TDS on payments to staff. Section 44ADA presumptive taxation (50% of gross receipts) is available to doctors with receipts up to ₹75 lakh — proper utilisation reduces scrutiny risk.

From AY 2023-24, Virtual Digital Assets (VDAs) including cryptocurrency are taxable at 30% flat (no deduction except cost of acquisition, no set-off of losses). Exchanges are required to report transactions. If you undeclared crypto gains and receive a notice, do not ignore it — the department has data from exchanges. Consult our CA team immediately to assess options including updated return (ITR-U) filing, which allows voluntary disclosure with reduced penalties compared to facing a formal assessment.

F&O trading turnover is calculated as the absolute sum of all profits and losses on individual trades — not just the net P&L. This can run into crores even if your net result is a loss. If your F&O turnover exceeds ₹2 crore (or lower limits for losses without audit), a tax audit under Section 44AB is mandatory. Notices arise when this turnover is not disclosed or audit is not conducted. Our CA team can compute correct F&O turnover and prepare the required audit report.

ITR-U (Section 139(8A)) allows taxpayers to file an updated return within 24 months of the end of the relevant assessment year to declare previously unreported income. It requires payment of an additional tax of 25%–50% of the tax and interest due. Filing ITR-U before a notice is issued (or in some cases after notice but before assessment) can significantly reduce penalty exposure compared to a formal assessment order with 271(1)(c) penalty of 100%–300%.

Old outstanding demands do not expire automatically. They remain recoverable and the department can adjust future refunds against them (Section 245). Interest continues to accrue under Section 220(2) at 1% per month. If you believe the demand is incorrect or already paid, file a rectification or apply for withdrawal. If it's correct and you are facing hardship, speak to our team about settlement or instalment options under applicable provisions.

The Income Tax Department's official mode of communication is through the e-Filing portal (for registered users) and by post to the registered PAN address. Notices via email alone may be supplementary communications or preliminary reminders. Always verify on the portal. If a notice appears only on email but not on the portal and lacks a valid DIN, it could be a phishing attempt — do not respond to it or click any links. Report it to incometaxindia.gov.in.

Assessment is the original determination of tax liability for an AY (Sections 143/144). Reassessment (Section 147/148) is the reopening of a completed assessment when income is believed to have escaped assessment. Rectification (Section 154) is the correction of apparent mistakes in an order — arithmetic errors, incorrect application of rates, etc. Each has different timelines, requirements, and legal implications. Use the correct remedy for your situation to avoid procedural rejections.

Yes, grievances filed through the e-Filing portal's "Grievance" section can be withdrawn if the issue has been resolved or you want to pursue a different remedy. For formal notice responses and rectification applications, there is no "withdrawal" per se — but you can file supplementary submissions or sequest adjournment if a matter is pending. Contact our CA team to assess the best course of action for your specific situation.

Since the introduction of faceless assessment (2020), most notices are delivered electronically through the e-Filing portal. You receive an email notification to your registered email ID alerting you to a notice on the portal. Physical notices by post are still used in some jurisdictions, particularly for older cases or where portal delivery fails. Ensure your PAN is updated with your current address, mobile number, and email to receive all communications promptly.

Launched in 2020, the Faceless Assessment Scheme eliminates direct contact between taxpayers and AOs. Cases are randomly allotted to assessment units across India. All proceedings — notices, queries, hearings, orders — are conducted electronically through the portal. This reduces corruption risk but also means you must respond promptly through the portal as there is no face-to-face opportunity to explain your case. Nearly all scrutiny assessments (143(3)) and many 148 cases are now faceless.