Do Not Ignore — Check the Deadline Immediately
Every income tax notice carries a mandatory response deadline. Ignoring or missing this deadline can result in an ex-parte assessment order passed against you — meaning the Assessing Officer will proceed based solely on available records, without considering your explanation. Before anything else, locate the deadline stated in the notice. Common deadlines under the Income Tax Act, 1961 (and equivalent IT Act 2025 sections): 15 days under Section 139(9) / new Section 263(9) for defective return; 30 days under Section 142(1) / new Section 268(1) for document production; 30 days under Section 143(2) / new Section 270(8) for scrutiny proceedings; 7–30 days as specified under Section 148A / new Section 281 for pre-reassessment show cause.
Verify the Notice is Genuine
All legitimate income tax notices issued since November 2019 must carry a Document Identification Number (DIN). Verify the DIN at incometax.gov.in under the e-Verify section. A notice without a valid DIN is not legally enforceable per CBDT Circular No. 19/2019. Also check: (1) Your PAN is correctly stated, (2) The Assessment Year (or Tax Year under IT Act 2025) matches the period under dispute, (3) The issuing officer holds jurisdiction over your case. Notices issued by an officer without jurisdiction are liable to be quashed by the CIT(Appeals) or High Court. Do not respond to any notice that does not match your PAN or arrives through unofficial channels (SMS, WhatsApp, email not from @incometax.gov.in).
Identify the Notice Type and What Is Being Asked
The notice type determines your response strategy and timeline. Key notice types under the Income Tax Act, 1961 with their IT Act 2025 equivalents: Section 139(9) / 263(9) — Defective Return Notice, requires rectification of the filed ITR; Section 142(1) / 268(1) — Inquiry Notice, requires production of documents, books, or information; Section 143(2) / 270(8) — Scrutiny Assessment Notice, initiates detailed scrutiny of your return; Section 148A / 281 — Pre-Reassessment Show Cause Notice, must be responded to before reassessment can be opened; Section 148 / 280 — Reassessment Notice, income alleged to have escaped assessment; Section 156 / 319 — Demand Notice, a tax demand raised after assessment; Section 245 / 334 — Refund Adjustment Intimation, proposed adjustment of refund against outstanding demand. For periods up to Assessment Year 2025-26, the Income Tax Act, 1961 sections apply. From Tax Year 2026-27 onwards, the new IT Act 2025 section numbers apply.
Log In to the e-Filing Portal and Find the Notice
Access the Income Tax e-Filing portal at incometax.gov.in. Navigate to: e-File → e-Proceedings (also accessible via Pending Actions → e-Proceedings). All notices issued to your PAN are visible here in chronological order. Download the original notice document (PDF). Record the following from the notice: (1) Notice reference number / DIN, (2) Date of issue and deadline for response, (3) Assessment Year or Tax Year under dispute, (4) The specific demand amount if raised, (5) The name and designation of the Assessing Officer. If you cannot locate the notice on the portal, contact your jurisdictional Assessing Officer or the CPC helpline at 1800-103-0025 before assuming the notice is fraudulent.
Gather Your Documents
Assemble all relevant documents before drafting any reply. Required documents typically include: your filed Income Tax Return (ITR) for the year under dispute; Form 26AS — Tax Credit Statement; Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) from the portal; bank statements for the relevant financial year; investment proofs for claimed deductions (Section 80C, 80D, 80G, etc.); TDS certificates — Form 16 (salary) and Form 16A (other TDS); for business taxpayers: audited accounts, books of accounts, trading and profit & loss account, balance sheet; any prior correspondence with the Income Tax Department regarding the same year. Organise these documents in chronological order before cross-referencing with the notice allegations.
Reconcile the Discrepancy
Compare the allegation in the notice against your filed return and AIS data. The most common discrepancies and their typical causes: (1) Mismatch between AIS income and declared income — often arises from high-value transactions (property sale, fixed deposits, mutual funds) reported by third parties but not fully reflected in your ITR; (2) TDS credits claimed but not reflecting in Form 26AS — usually a deductor has not deposited or filed correctly; (3) Deductions claimed without documentation — Section 80C, 80D claims flagged for verification; (4) Business income vs. turnover reported in GSTR filings — an increasing area of scrutiny. Categorise each discrepancy as: (a) a genuine error on your part requiring payment of additional tax, (b) a timing or data issue requiring factual explanation, or (c) incorrect data sourced by the department requiring documentary rebuttal.
Draft Your Reply
Your reply must address each allegation specifically and individually. A well-structured reply includes: (1) Identification paragraph — PAN, Assessment Year, notice number and date; (2) Response to each allegation — numbered to correspond with the notice; (3) Relevant section citations — e.g., "As per Section 10(38) of the Income Tax Act, 1961..."; (4) Documentary evidence — attached as numbered Annexures (Annexure A, B, C...); (5) Concluding prayer — requesting that the notice be dropped or the demand be reduced accordingly. For scrutiny matters under Section 143(3) / new Section 270(9), a professionally drafted reply by a qualified Chartered Accountant or tax advocate is strongly recommended — the factual record built at this stage governs all future appeals. Simple matters (defective return, TDS mismatch) can often be self-replied through the portal.
Submit Through e-Proceedings on the Portal
All replies to income tax notices must be filed electronically through the e-Filing portal. Path: incometax.gov.in → e-File → e-Proceedings → View Notices and Proceedings → select the relevant notice → Submit Response. Upload your reply letter (PDF, max 50MB) and all annexure documents. If multiple documents are being attached, combine them into a single indexed PDF. After successful submission: download the submission acknowledgement immediately — this is your legally valid proof of timely response. Record the acknowledgement number and submission timestamp. Do not attempt to submit via email or post unless specifically directed by the Assessing Officer in writing.
Keep Records of Everything
Maintain a complete and permanent file for each notice matter: the original notice (downloaded PDF with DIN), your full reply including all annexures, the submission acknowledgement from e-Proceedings, the electronic hash/SRN of each document uploaded, subsequent communications from the department, and any hearing notices or orders received thereafter. In the event of an assessment order, appeal, or future reassessment, contemporaneous records are indispensable. Tax matters can resurface years later — the Income Tax Department can reopen assessments in certain cases under the amended law. A disciplined record-keeping practice protects you at every stage.
If the Order is Unfavourable — Appeal Within 30 Days
If the assessment or rectification order is adverse, you have a statutory right to appeal. The appeal hierarchy is: (1) First Appeal — to CIT(Appeals) / NFAC (National Faceless Appeal Centre) under Section 249 of the Income Tax Act, 1961 (new: Section 358 under IT Act 2025) — must be filed within 30 days of receipt of the order. A 20% pre-deposit of the disputed demand is typically required. (2) Second Appeal — to the Income Tax Appellate Tribunal (ITAT) under Section 253 (new: Section 362), if the CIT(A) order remains adverse. (3) High Court — on a substantial question of law under Section 260A (new: Section 368). (4) Supreme Court — under Section 261 (new: Section 369). Under IT Act 2025, the faceless appeals process is formally extended and strengthened. Missing the 30-day appeal window requires filing a condonation of delay application — this is discretionary and not guaranteed. Act within the deadline.
Key Deadlines
| Notice Type | Section (1961 Act) | Section (IT Act 2025) | Deadline |
|---|---|---|---|
| Defective Return | 139(9) | 263(9) | 15 days |
| Inquiry / Document Production | 142(1) | 268(1) | As specified (typically 30 days) |
| Scrutiny Notice | 143(2) | 270(8) | 30 days |
| Pre-Reassessment SCN | 148A | 281 | 7–30 days (as specified) |
| Demand Notice | 156 | 319 | 30 days |
| Refund Adjustment | 245 | 334 | 30 days |
| First Appeal to CIT(A) | 249 | 358 | 30 days from order |
Related Guides
Need help drafting your reply?
Our team of Chartered Accountants reviews your notice and drafts a complete, legally vetted reply — typically within 48 hours.
Get Expert Help →