Got an income-tax notice? Five steps to take first
Most income-tax notices are now issued and answered online. A notice is not in itself a demand, but the time allowed to respond is short, and a missed deadline can lead to a best-judgment assessment or a penalty. These five steps help in the first few days.
1. Note the date of service and the deadline
Write down the date the notice was issued and served (usually by email and on the e-filing portal), and the date by which you must respond. If the time is too short to collect the information, ask for an adjournment through the portal before the deadline, giving reasons.
2. Check that the notice is genuine
A notice issued by the department carries a Document Identification Number (DIN), and you can confirm it with the "Authenticate notice/order issued by ITD" service on the e-filing portal. It should also appear under Pending Actions > e-Proceedings in your account. Be cautious of messages that ask you to pay through a link or to share passwords or OTPs.
3. Identify the Act, the year and the section
The Income-tax Act, 2025 applies from tax year 2026-27. Notices for earlier years, including assessments and reassessments now in progress, continue under the Income-tax Act, 1961. The section quoted tells you what is being asked. Common ones are below, with the matching section of the 2025 Act, which you will see on notices for tax year 2026-27 onwards:
| Section (1961 Act) | Section (2025 Act) | What it usually means |
|---|---|---|
| 139(9) | 263(7) | The return filed is treated as defective |
| 143(1) | 270(1) | Intimation after processing: an adjustment or demand |
| 142(1) | 268(1) | Information or documents called for before assessment |
| 143(2) | 270(8) | The return is selected for scrutiny assessment |
| 148A / 148 | 281 / 280 | Reassessment: income believed to have escaped assessment |
| 154 | 287 | Rectification of a mistake apparent from the record |
| 245 | 438 | Proposal to set a refund off against an outstanding demand |
| 270A | 439 | Penalty for under-reporting or misreporting income |
More pairs are in our old and new section finder.
4. Gather the records
Collect the return and computation for the year, Form 26AS and the Annual Information Statement (AIS) (both replaced by Form 168 under the Income-tax Rules, 2026), bank statements, and the documents behind the specific item in question. Compare the AIS with your return: many notices arise from mismatches in interest, dividends, sale of property or securities, or high-value transactions.
5. Reply on the portal, completely and on time
Answer each point in the notice, attach supporting documents, and keep the acknowledgement. Do not deny facts that the department can verify from third-party data; explain them. If the issue involves a legal position, a reassessment or a large amount, take professional advice before replying, because the reply becomes part of the record for any later appeal.
See also: notices and assessments and income tax appeals.