Notice Under Section 142(1) – Inquiry Before Tax Assessment
A notice under Section 142(1) of the Income Tax Act is issued when the Assessing Officer seeks information, documents, or clarification before completing an income tax assessment. This notice may be served to verify details in a filed return or to require filing of a return where none has been submitted.
Although it is an inquiry notice, it carries legal weight. Failure to respond correctly or within the prescribed time can result in best judgment assessment, penalties, and further scrutiny.
At N D Savla & Associates, we help taxpayers respond to Section 142(1) notices accurately, on time, and in a manner that prevents escalation.
What a Section 142(1) Notice Means?
Section 142(1) empowers the Assessing Officer to call for:
Filing of income tax return, if not already filed
Books of accounts or financial statements
Bank statements and transaction details
Explanations for income, expenses, or investments
Any other information necessary to complete the assessment
This notice is usually issued at the initial stage of assessment proceedings.
Common Reasons for Issuance of 142(1) Notice
Section 142(1) notices are commonly issued when:
A return has not been filed within due time
Further clarification is required on income or deductions
High-value transactions appear in AIS or Form 26AS
Business or professional income needs verification
Incomplete or inconsistent disclosures are detected
Each notice is case-specific and must be handled carefully.
Why Proper Response Is Important?
An incorrect, incomplete, or delayed response may lead to:
Best judgment assessment under Section 144
Higher tax liability without your explanation being considered
Penalties for non-compliance
Extended scrutiny or reassessment proceedings
Timely and structured responses keep the inquiry limited and controlled.
Our Section 142(1) Notice Services:
Notice Review & Scope Assessment
We examine the notice to understand the exact information required and compliance deadlines.
Documentation Planning
We identify and organise relevant records, statements, and explanations.
Drafting Precise Replies
Our responses address only what is asked—clearly, accurately, and without over-disclosure.
Online Submission & Compliance
We file replies through the income tax portal within statutory timelines.
Representation & Follow-Up
We handle further queries, hearings, and submissions until the inquiry is concluded.
Who We Assist?
We regularly assist:
Salaried individuals and professionals
Business owners and partnerships
Companies and startups
NRIs with Indian income
Taxpayers facing pre-assessment inquiries
Why Choose N D Savla & Associates?
Experienced Chartered Accountants in assessment proceedings
Strong understanding of procedural compliance
Clear communication and disciplined timelines
Practical, risk-aware approach
Trusted by clients across Mumbai and India
We focus on clarity and closure.
Respond Early. Respond Right.
A Section 142(1) notice is often the first step in an assessment. Handling it correctly can prevent deeper scrutiny.
If you’ve received a Notice under Section 142(1), get professional guidance before submitting your response.
Speak to our tax assessment team today.
