Income Tax Notice: Types of Notices and How to Respond in Time
Most income tax notices are routine, but each one carries a deadline that starts running on the day it is issued. This guide explains the common notices (143(1), 142(1), 143(2), 148A, 148 and 270A), what each one means, and the steps to take before the date runs out.
Which income tax notice have you received?
An income tax notice is a written communication from the Income Tax Department asking you to explain, correct, pay or produce something. It is not always an accusation. A section 143(1) intimation, for example, is only a processed statement of your return. Even so, a notice can become a binding order if no reply is filed. The first step is to confirm it is genuine: log in to the e-filing portal and look under Pending Actions, then e-Proceedings. A genuine notice also carries a Document Identification Number (DIN). Never pay through a link sent by email or message. Replies are filed on the official e-Proceedings page of the Income Tax Department, and a response cannot be edited once submitted.
The Income-tax Act, 2025 came into force on 1 April 2026. Under its savings clause (section 536(2)(c)), notices, assessments, penalties and appeals for tax years that began before that date continue under the Income-tax Act, 1961. So a notice you receive today for AY 2026-27 or earlier will still cite sections 143(1), 142(1), 148A, 148 or 270A. The table below shows both numbering systems. If you need advice on a specific notice, our income tax lawyer in Kolkata page explains how the chamber handles such matters.
Which income tax notice have you received?
Pick the description that matches the latest paper or portal message you received. This is general information, not advice, and the wording on your own notice and its deadline always control.
Choose one of the options above.
How a reassessment notice moves from first message to final order
Reopening an old return follows a fixed path. Each stage has a safeguard you can raise, so the order of events matters. This is the 1961 Act path, which still applies to tax years that began before 1 April 2026.
Look for the notice under Pending Actions, then e-Proceedings, on the e-filing portal and check for a Document Identification Number. Never pay through a link in a message. If you are unsure, read about how an income tax lawyer in Kolkata can help.
The notice must be accompanied by the information said to suggest escaped income. File a reply within the stated period, dealing with jurisdiction and limitation first, then the merits. Keep the acknowledgement.
The officer must take your reply into account and obtain prior approval of the specified authority. Courts, including the Calcutta High Court, have set aside orders that ignored a reply or recorded approval mechanically.
This notice must enclose the s. 148A order and must be within the time limits of s. 149: 3 years 3 months from the end of the assessment year, or 5 years 3 months only where escaped income is ₹50 lakh or more. You file the return within the period it states.
The officer must complete reassessment within one year from the end of the financial year in which the s. 148 notice was served. If the order goes against you, the next step is an appeal.
Appeal to the CIT(A), then the ITAT, then the High Court on a substantial question of law. A writ under Article 226 is for a notice issued without jurisdiction, as in Calcutta High Court advocate consultation matters.
Three things people often get wrong about income tax notices. Tap a card.
Most notices, such as a s. 143(1) intimation, are routine processing messages. They still need a reply on time, because a proposed adjustment is made automatically after 30 days.
No. A s. 148 notice is generally limited to 3 years 3 months from the end of the assessment year. It can go to 5 years 3 months only where escaped income is ₹50 lakh or more.
Not for years that began before 1 April 2026. Under s. 536(2)(c) of the Income-tax Act, 2025, those proceedings continue under the 1961 Act, so sections like 143(1), 148A and 270A still apply.
Common income tax notices and what to do
Intimation and proposed adjustment
A processed statement of your return. If it proposes an adjustment, you have 30 days to respond. If you do not, the adjustment is made. If the intimation is wrong, you can seek rectification under section 154 or appeal within 30 days.
Inquiry and scrutiny notices
These call for documents or explanations by a date stated in the notice. A scrutiny notice under section 143(2) must be served within three months from the end of the financial year of filing. If you need more time, ask for an adjournment in writing before the date.
Reopening of an old assessment
Reassessment begins with a show-cause notice under section 148A, which must come with the information relied on. After considering your reply, the officer passes an order with approval of the specified authority, and only then issues a section 148 notice. Time limits apply.
Penalty and immunity
Penalty for under-reporting is 50% of the tax on under-reported income, and 200% for misreporting. Immunity under section 270AA needs payment of tax and interest, no appeal, and an application within one month from the end of the month of the order.
Appeal ladder: forums, deadlines and fees
- Rectification under section 154 for a mistake apparent from the record (within 4 years).
- CIT(A), Form 35: 30 days from the demand notice or order; fee of ₹250 to ₹1,000 depending on assessed income. Tax on returned income must be paid first.
- ITAT Kolkata Benches, Form 36: two months from the end of the month in which the order is communicated.
- Calcutta High Court under section 260A on a substantial question of law (verify the period); a writ under Article 226 lies against a notice issued without jurisdiction.
- Stay of demand is sought under section 220(6); the CBDT 20% deposit is a guideline, not a binding rule.
What courts have said about income tax notices and reopening
These Supreme Court and High Court rulings decide when an income tax notice can be challenged, what the officer must do before reopening, and how stay and penalty immunity work. Each one is cited from published reports, so confirm it against the official copy before you rely on it.
1961
Writ lies against notice without jurisdiction
The Supreme Court held that a High Court can stop a reassessment notice issued without the conditions the Act requires, even though an appeal remedy exists. A missing jurisdictional condition is not a matter to argue later in appeal. Courts still rely on this case for writs under Article 226 against time-barred or unauthorised reassessment notices.
2003
Objections must be decided by speaking order
Under the old reopening regime, the assessee could ask for the reasons for reopening and file objections. The Assessing Officer had to decide them by a separate written order before going ahead. Section 148A now writes a similar safeguard into the statute: information, a reply, and an order that deals with the reply.
2022
No section 148 notice without section 148A
The Court treated about 90,000 reassessment notices issued under the old law after 1 April 2021 as show-cause notices under section 148A(b). Officers had to supply the information relied on and consider each reply. The ruling confirms that a section 148 notice cannot issue unless the section 148A procedure is followed first. CBDT Instruction 1/2022 put the judgment into effect.
2024
TOLA extends time, defences survive
A Constitution-level bench led by the Chief Justice held that TOLA only extended the time limits for reassessment notices. The safeguards of the 2021 regime still apply: limitation under section 149, sanction under section 151, and the ₹50 lakh threshold for the longer period. Each notice therefore needs a careful limitation calculation, including the TOLA period.
2018
20% deposit is not a rigid rule
The CBDT office memoranda of 29.02.2016 and 31.07.2017 ask for a 20% deposit before a disputed demand is stayed. The Supreme Court held they do not bind the Assessing Officer or Commissioner. A smaller deposit can be ordered on the facts. The authority must look at the prima facie merits and give reasons if it refuses a stay pending appeal.
2022
Vague penalty notice cannot defeat immunity
The penalty notice did not say whether the charge was under-reporting or misreporting under section 270A. The Delhi High Court held that refusing immunity under section 270AA on the ground of misreporting was arbitrary and without reasons. If the notice does not identify the limb or explain how misreporting arises, the department cannot use misreporting to refuse immunity.
How to respond to an income tax notice, step by step
Check that the notice is genuine
Log in to the e-filing portal and look under Pending Actions → e-Proceedings, or use the Authenticate Notice service. Check that the notice carries a DIN, since Circular 19/2019 treats a communication without one as never issued (verify any change made by the Finance Act, 2026). Never pay through a link in an email or SMS.
Identify the section, the Act and the deadline
For AY 2026-27 and earlier years, the 1961 Act still applies under section 536(2)(c) of the 2025 Act. Typical deadlines are 15 days for a defective return under section 139(9), 30 days for a section 143(1)(a) adjustment, and the date stated in the notice under sections 142(1), 143(2), 148A and 270A. Note the date in writing.
Gather the documents behind the figures
Keep the notice, ITR and computation, Form 26AS, AIS/TIS, Form 16/16A and bank statements ready. Add proof of source: sale or gift deeds, the donor’s ITR, loan confirmations, cash book and capital-gains working. For a section 148A notice, first study the information supplied with it.
Reply on jurisdiction first, then on merits
In a reopening case, check limitation first: 3 years 3 months from the end of the AY, or 5 years 3 months only where escaped income is ₹50 lakh or more. Then check sanction and who issued the notice. Answer the merits after that. Raise every objection in the written reply so that it is preserved for a later challenge.
Submit on the portal and keep proof
Go to e-Proceedings → Submit Response (full or partial), or Seek Adjournment before the due date. A response cannot be edited once submitted. The portal FAQ says the facility closes 7 days before the limitation date. Save the Transaction ID and acknowledgement. Ask for a video-conference hearing where you need one (see the e-Proceedings help page).
If the order goes against you
An apparent mistake can be corrected by rectification under section 154. Otherwise appeal to the CIT(A) in Form 35 within 30 days, then to the ITAT within two months from the end of the month the order is received. Apply for a stay of demand under section 220(6). Where a notice is without jurisdiction, a writ under Article 226 may lie before the Calcutta High Court.
Penalty under section 270A of the Income-tax Act, 1961 (section 439 of the 2025 Act) on the tax payable on under-reported income
Common mistakes after receiving an income tax notice
Ignoring a section 143(1)(a) proposed adjustment If you do not respond within 30 days of the communication, the adjustment is made automatically and becomes a demand. A short reply on the portal at this stage can save a later appeal.
Going straight to court without replying to a section 148A notice The Calcutta High Court has set aside section 148A orders that ignored a reply that was actually filed, or that were approved mechanically. Without a filed reply, that ground is not open to you, so always reply and keep the acknowledgement.
Missing the short windows for immunity and appeal Immunity under section 270AA must be sought within one month from the end of the month in which the order is received, and it is not available for misreporting under the 1961 Act. The CIT(A) appeal is due within 30 days. Calendar both deadlines the day the order arrives.
Replying under the wrong Act or wrong section The Income-tax Act, 2025 has applied since 1 April 2026, but notices for earlier years still run under the 1961 Act. Quote the section printed on the notice, and check the old-to-new mapping before citing any provision.
Received an income tax notice?
Notices carry deadlines that start from the date of issue, so the dates on the notice and on the portal should be checked early. Bring the notice, your return and computation, Form 26AS or AIS, bank statements and any source documents. The chamber appears before the Income Tax Department, the ITAT and the Calcutta High Court, and will explain the options available on your facts. No result can be promised.
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Frequently asked questions on income tax notices
Log in to the e-filing portal and look under Pending Actions, then e-Proceedings. Check for a Document Identification Number on the notice. Do not pay through a link sent by email or message, and do not share your password or OTP with anyone.
It is a processed statement of your return, which may include adjustments for arithmetical errors or claims apparent from the return. If it is wrong, you can seek rectification under section 154 or appeal within 30 days. Compare it with your return and Form 26AS before replying.
Thirty days from the issue of the communication. If you do not respond within that time, the adjustment is made. A reply is filed on the e-filing portal under e-Proceedings. Keep the transaction ID, as a response generally cannot be edited after submission.
The officer can make a best-judgment assessment and may start penalty proceedings. If you need more time or documents, ask for an adjournment through the portal before the due date. The deadline is the date stated in your notice.
Generally only within 3 years 3 months from the end of the assessment year. Up to 5 years 3 months is allowed only where escaped income is ₹50 lakh or more. A section 148A show-cause notice must come first, so check the dates on your notice.
Reply first and keep the acknowledgement. A writ petition is generally for cases such as a notice beyond the time limit, a notice issued without jurisdiction, or an order that ignored your reply. Raise jurisdiction and limitation in the reply itself to preserve them.
Fifty per cent of the tax on under-reported income, or 200 per cent where income is misreported. Misreporting covers only the cases listed in the Act. A bona fide explanation with full disclosure is an exclusion. The penalty is imposed by a written order.
An appeal to the CIT(A) is due within 30 days. An appeal to the ITAT is due within two months from the end of the month in which the order is communicated. Delay can be condoned only for sufficient cause, so verify your dates on the order.
