An income tax notice in your inbox can cause panic. But the reality is: most notices are routine and entirely manageable if you respond correctly and on time. Here is your step-by-step guide.
Step 1: Read the Notice Carefully
Identify: (a) which section it is issued under, (b) what assessment year it relates to, (c) what is being asked or alleged, and (d) the deadline for response. All notices are served through the Income Tax e-filing portal under your account.
Step 2: Do NOT Ignore It
Ignoring an income tax notice is the single biggest mistake you can make. Even a routine 143(1) intimation, if ignored, can escalate to a demand and penalty. Every notice has a legal response obligation with a strict deadline.
Step 3: Identify the Notice Type
- Section 143(2) — Scrutiny notice, requires full documentation and CA representation
- Section 148 — Reassessment of past years, very serious — act immediately
- Section 156 — Demand notice, pay or dispute within 30 days
- Section 245 — Refund adjustment against old demand
- Section 139(9) — Defective return, fix within 15 days
Step 4: Gather Your Documents
Collect ITR copy, Form 26AS, AIS, all income proofs, investment proofs, bank statements, and TDS certificates for the relevant year. Your Annual Information Statement (AIS) on the portal shows all transactions the department already has on file.
Step 5: Engage a CA Immediately
A qualified CA will draft the response, submit it through the e-proceedings portal, and represent you if a hearing is required. CA Prabhpreet Singh's team has resolved 150+ such cases with responses drafted within 24–48 hours of engagement.