How to Respond to an Income Tax Notice Without Panic: A Step-by-Step Guide (2025)
Receiving an Income Tax notice can feel stressful, but in most cases—there is nothing to worry about. The Income Tax Department now sends notices frequently for verification, mismatched data, or simple clarifications.
In this guide, we will explain why you receive an income tax notice, types of notices, and a step-by-step method to respond correctly.
✅ Why Did You Get an Income Tax Notice?
Some common reasons include:
Incorrect or mismatched information in your ITR
High-value transactions not reported
TDS mismatch
Non-filing of previous years’ returns
Scrutiny for random verification
Claiming deductions without proper proof
Most notices simply ask you to confirm or correct the information.
🔍 Types of Income Tax Notices You May Receive
Here are the most common ones:
1. Notice u/s 143(1) – Intimation
Sent for minor mismatches or adjustments in return.
2. Notice u/s 139(9) – Defective Return
Your ITR has errors or missing details.
3. Notice u/s 148 – Income Escaped Assessment
Issued when department believes income was not reported.
4. Notice u/s 143(2) – Scrutiny
A detailed check of your ITR.
5. Notice u/s 245 – Adjustment Against Old Demand
Old tax demand may be adjusted against refund.
6. Notice u/s 156 – Demand Notice
Issued when tax, interest, or penalty is payable.
📝 Step-by-Step: How to Respond to an Income Tax Notice
Step 1: Don’t Panic – Read the Notice Carefully
Check:
Section under which it is issued
Assessment year
Reason for the notice
Deadline for response
Step 2: Log In to the Income Tax Portal
Visit: www.incometax.gov.in
Go to: e-Proceedings → View Notices → Submit Response
Here you can see the exact details and required actions.
Step 3: Compare Your ITR With Form 26AS + AIS + TIS
Match:
TDS
Bank interest
Salary income
Mutual fund/stock transactions
Property transactions
If mismatch exists → correct and upload evidence.
Step 4: Prepare Your Response
Depending on the notice:
Attach proof (salary slips, rent receipts, bank statements)
Correct ITR (if required)
Give a written explanation
Submit all documents clearly
Step 5: Submit Response Before the Deadline
This is very important.
Late replies can lead to penalties or automatic additions to your income.
Step 6: Keep Acknowledgment Safe
After submission, download:
Response receipt
Uploaded documents
This may be required for future reference.
⚠️ What Happens If You Ignore an Income Tax Notice?
Ignoring a notice may result in:
Penalties
Extra tax liability
Scrutiny assessment
Even prosecution in rare cases
Always respond—even if you think the notice is incorrect.
🎯 How a CA Can Help You
A Chartered Accountant can:
Identify the exact reason for the notice
Prepare a proper legal response
Upload documents on the portal
Represent you before the Assessing Officer
Handle scrutiny cases professionally
For best results, consult a CA if the notice is:
u/s 143(2) (Scrutiny)
u/s 148 (Income Escaped Assessment)
Large tax demand
Repeated notices
📌 Conclusion
Income Tax notices are common in 2025 and often issued for simple clarifications. Responding on time with correct details is the key. With a proper checklist and expert guidance, the entire process becomes smooth and stress-free.
