Complete Overview of Effective Notice Management for Taxpayers in India

Common Types of Tax Notices and Their Purpose

The Income Tax Department issues various types of notices, each with a specific function. Below are the most common tax notices and their purposes:

• Notice under Section 139(9) – Defective Return This notice is issued when there are errors or omissions in your return. The department provides you with an opportunity to rectify the mistake within a set time frame.

• Notice under Section 142(1) – Inquiry Notice Issued when the Income Tax Department requires additional documents or information to process your tax return or assess your tax liability.

• Notice under Section 143(1) – Intimation After Processing After processing your return, this notice informs you of the outcome, including whether any refund is due or if you need to pay additional taxes or penalties.

• Notice under Section 143(2)/143(3) – Scrutiny NoticeThis notice indicates a deeper review of your return, where the Income Tax Department scrutinizes your financial statements and other supporting documents.

• Notice under Section 148 – Reassessment NoticeIssued when the Income Tax Department believes that income has been escaped from assessment. This can happen even after your return has been processed.

• Notice under Section 156 – Demand NoticeA demand notice is issued when there is an outstanding tax liability, which could include taxes, penalties, or interest due.

• Notice under Section 131 – Summons

  Issued when you are required to appear in person or submit specific documents.