How to respond to an income tax notice
First: check it is genuine
Every genuine notice carries a Document Identification Number, and you can verify it on the e-filing portal under the authenticate-notice facility before doing anything else. Communications that arrive only by SMS or WhatsApp, that ask for payment to an account, or that demand card or bank details, are not how the department works.
Everything real also appears in your account on the e-filing portal. If it is not there, treat it with suspicion. Respond through the portal and nowhere else.
What each section number means
| Section | What it is | Typical response window |
| 143(1) | Intimation after processing. Compares your return with the department’s records. May show agreement, a refund, or a demand. | Often none. If it shows a demand or a mismatch you disagree with, respond or file a rectification. |
| 139(9) | Defective return. Something in the return is incomplete or inconsistent — frequently the wrong form. | Usually 15 days to correct and resubmit. |
| 142(1) | Inquiry before assessment. The officer wants documents or information, or wants a return filed. | As stated in the notice. Non-compliance carries penalty exposure. |
| 143(2) | Scrutiny. Your return has been selected for detailed examination. | As stated. This is the point to involve a professional. |
| 148 | Income escaping assessment. The department believes income was not disclosed. | As stated. Serious; take advice before responding. |
| 156 | Demand notice. Tax, interest or penalty is payable. | Generally 30 days to pay or to contest. |
| 245 | Intimation that a refund will be adjusted against an earlier demand. | You get an opportunity to agree or object. Silence is treated as agreement. |
The distinction that matters most to an ordinary taxpayer is between the first two rows and the rest. A 143(1) intimation is generated for almost every return filed and is not an accusation. A 143(2) or 148 is a different category of event.
The three most common, and what they usually mean
143(1) showing a demand
Usually one of a small number of causes: a TDS credit claimed that is not reflected in Form 26AS, a deduction disallowed because a schedule was not filled, an arithmetical difference, or income reported in the AIS that was not included in the return. Compare the department’s computation column against your own line by line — the intimation shows both side by side, which makes the difference easy to isolate.
139(9) defective return
Most often the wrong ITR form for your income profile, or a return filed without the balance sheet and profit and loss schedules where business income is declared. The notice states the defect and the correction is filed as a response, not as a fresh return.
245 refund adjustment
A refund for this year is proposed to be set against a demand from an earlier year. Check whether that earlier demand is actually valid — old demands that were already paid, or that arose from an error never corrected, sit on the system for years. If it is wrong, object within the window; if you do nothing, the adjustment goes through.
How to respond, in order
- Note the section and the deadline before anything else. They determine both urgency and approach.
- Verify the DIN on the portal.
- Pull your own records — the filed return, Form 26AS, the AIS, and the certificates behind any credit claimed.
- Identify the specific difference. Almost every routine notice reduces to one or two line items.
- Respond on the portal under e-Proceedings or the pending actions section, attaching evidence rather than explanation alone.
- Keep the acknowledgement. Every submission generates one.
Two judgement calls are worth stating. If the notice is a 143(2) or a 148, engage a chartered accountant before responding — the response frames everything that follows, and an unhelpful first answer is expensive to walk back. And if the department is right, agreeing and paying early limits interest, which continues to accrue while a dispute runs.
What happens if you ignore it
A defective return left uncorrected can be treated as never filed, which brings the late-filing fee under Section 234F and the loss of the right to carry forward most losses. An unanswered 142(1) carries penalty exposure and can lead to a best-judgement assessment under Section 144, where the officer estimates your income without your input. An unanswered 245 results in the refund being adjusted automatically.
None of these outcomes is improved by delay, and all of them are cheaper to handle at the notice stage than at the demand stage.
Frequently asked questions
Is a 143(1) intimation a tax notice?
Not in the sense people fear. It is the automated intimation generated after your return is processed, and most taxpayers receive one every year. It becomes something to act on only where it shows a demand or a refund different from what you expected.
Can I respond to a notice by email or by post?
Responses go through the e-filing portal, under e-Proceedings or pending actions. That is where the submission is recorded and acknowledged. Email and post leave you without proof that a response was received within the deadline.
Do I need a chartered accountant?
For a 143(1) mismatch or a 139(9) defect, usually not — both are mechanical and the portal walks you through the response. For 143(2) scrutiny, 148 reassessment, or any notice involving a substantial amount, engage one. The first response sets the framing for the whole proceeding.
The demand is from years ago and I already paid it. What now?
Respond on the portal disagreeing with the demand and attach the challan evidencing payment. Old demands that were paid but never marked as paid are common, and they resurface when a later refund becomes due and a Section 245 adjustment is proposed.
Where to go next on this site
- How to Fix a TDS Mismatch — The single most common cause of a 143(1) demand.
- Which ITR Form Should You File — The single most common cause of a 139(9) defect.
- Income Tax Calculator — Recompute your liability against the department’s figure.
- Advance Tax on Freelance Income — Interest under 234B and 234C, which notices often include.
- Tax Glossary — Assessment, scrutiny, rectification and demand defined.
- Learn: Taxation — How the assessment process fits the wider tax system.
Sources
- Income Tax e-filing portal — e-Proceedings, notice authentication and responses
- Notices you can respond to under e-Proceedings — the official list