Income Tax Notice: How to Check, Authenticate, & Respond to ITR Notices?

An Income Tax Notice is an official communication from the Income Tax Department issued to a taxpayer for reasons such as discrepancies in the ITR filed, requests for additional documents, or requiring the taxpayer’s presence. Notices are issued under various sections of the Income Tax Act, each specifying the purpose and the required taxpayer response.

While receiving a notice can feel alarming, it often just requires a timely and accurate response.

Notices are usually sent to the registered email of the taxpayer. Some notices are also available through the income tax portal. You can authenticate a notice using the “Authenticate Notice/Order Issued by ITD” option on the official website. Knowing your DIN (Document Identification Number) is essential.

Yes, salaried individuals may receive tax notices, especially in cases of income mismatch, omission, or errors in Form 26AS, AIS, or TIS.

Stay calm. Read the notice, identify the reason, and gather any required information or documentation. Respond within the deadline to avoid penalties. Rectify errors or furnish missing details as needed.

Not responding to the income tax notice may have different consequences according to the type of notice. Such consequences include penalties of up to Rs. 10,000 and imprisonment for up to one year.

Failing to respond to the notice within 30 days can get you in trouble. The IT department will adjust the outstanding demand without giving you an opportunity to respond.

Replying to an income tax notice is easy as you can do it online by visiting the official website of the income tax department. Log in to the official income tax website, go to the compliance section, and submit your response under the relevant notice.

An intimation order/notice is issued by the income tax department under section 143(1) after the successful processing of your return. It includes the details of the information submitted at the time of tax filing and a corresponding column of the details available with the tax department. This intimation is sent within a year from the end of the financial year.

EXC-001 refers to monthly cash transactions exceeding ₹10 lakh, which fall outside the permissible limits under the IT Act.

Yes, transactions above Rs. 50 lakh in a current account within a financial year can trigger a tax notice if not properly disclosed.

​It refers to any information by the IT department regarding adjustment against refund claimed in your income tax return, such as incorrect claim, arithmetical error, or disallowance of loss claimed. Such adjustment could relate to the outstanding demands of previous assessment years.

If any demand raised in the discrepancy in notice u/s 143(1) is correct, you should pay it. Conversely, you should file rectification u/s 154 (1) or a revised return if a mistake is apparent from the record. For a revision, click ‘e-file’ and choose ‘file income tax return’. For rectification, click ‘services’ and select the ‘rectification’ option from the menu.

Paying online is an easy way to clear your tax on demand. Log in to the e-filing portal, go to “Response to Outstanding Demand,” and pay directly using online banking or debit card.

Once again, you can do it by logging in to the official efiling website, going to the pending actions section, and selecting Response to Outstanding Tax Demand.

You can get a scrutiny assessment notice u/s 143(2) only up to six months from the end of the financial year.

You get an ITRV (acknowledgment) on your registered mail ID soon after filing the ITR. You can also download it from your account on the official website.

You can download the demand notice from the Income Tax portal by logging into your account, going to 'e-Proceedings' or 'My Account,' and then selecting 'View Tax Credit Statement (Form 26AS).’ You can find and download the notice from here.

Section 156 of the Income-tax Act specifies the provision for demand notice issued by the Income-tax Department on completion of the assessment indicating that a taxpayer is liable to pay some extra amount of income tax. The notice will specify the amount payable and the due date.

An answer to the notice of income tax would contain the following: details of the taxpayer, reference to the notice in question, explanation or justification with clarity on the issue raised, and supporting documents. One should seek a tax expert for correctness.

In case of an income tax notice for failure to file an income tax return, if not already filed, the filing of the return shall be done within the time allowed on that behalf in the said notice. Afterwards, reply to the notice and explain the same along with proof of filing, if applicable.

​Normally, the time limit for completing the scrutiny assessment is 12 months from the end of the financial year in which the return was filed. Extension may apply in specific cases.

The notice under the income tax that is imposed usually depends on the kind of notice that has to be given. The assessment or reassessment notice should unbelievably be issued within four years from the end of the corresponding assessment year generally.

High-value transactions, as big as purchasing substantial properties or making significant bank deposits, investments, and so on, can trigger an income tax notice. These are generally noticed for the source of funds.

Reply to the notice of the income tax on the purchase of the property, with full details of the transaction, that is, sale deed, proof of payment, and source of funds, and enclosed all necessary relevant supporting documents, with regard thereto.

The format for reply to the letter of income tax scrutiny shall include the subject line, which mentions the notice, then the details of the taxpayer, the summary of the issue under consideration, and thereafter, the detailed explanation for the same with attached documents. The form shall be in formal tone, in clear terms.

Scrutiny involves a detailed assessment of your ITR by the tax department to verify income, deductions, and taxes paid. Timely responses and documentation are important.