Income Tax Notice

Table of Contents

Income Tax Notices: Verify & Respond with N D Savla & Associates

Even after timely filing your ITR, receiving a notice from the Income Tax Department (ITD) can be stressful. At N D Savla & Associates, we help you verify the authenticity of these notices and prepare precise responses—ensuring compliance and protecting you from penalties.

What Is an Income Tax Notice?

An Income Tax Notice is an official communication from the ITD, issued when there’s a discrepancy, omission, or need for clarification in your tax filings. Common reasons include:

  • Section 142(1): Requests for additional documents or return filing.

  • Section 139(9): Indicates a defective or incomplete return.

  • Section 148: Issued when income appears escaped from assessment.

  • Section 156: Demand for tax or penalty.

  • Section 143(1): Intimation post-processing, indicating tax due or refund.

  • Section 143(2): Notice for detailed scrutiny.

  • Section 131: Where concealment of income is suspected.

  • Section 245: Adjustment of refund against outstanding demand.

Section 133(6) Notice: Mismatch Between ITR & AIS

A Notice under Section 133(6) is issued when there’s a mismatch between your ITR and the Annual Information Statement (AIS):

  • Unfiled ITR despite AIS showing income.

  • Discrepancies in reported income vs. AIS entries.

  • Major expenses in AIS not reconciled in ITR.

How to respond:
Log in to the e‑Filing portal → navigate to Pending Actions → Compliance Portal → e‑Verification. Compare ITR with AIS. If it’s your error, file an Updated Return under Section 139(8A). If the department is at fault, provide clarifications through the portal and include supporting documents.

Must-Do: Authenticate Notices Before Responding

Before responding, verify that a notice is genuine:

  1. Visit the Income Tax e‑Filing portal homepage.

  2. Click on “Authenticate Notice / Order issued by ITD” under Quick Links. 

  3. Authenticate using either:

    • PAN + Document Type + Assessment Year + Date of Issue + Mobile, or

    • Document Identification Number (DIN) + Mobile 

  4. Enter the OTP received via SMS to confirm authenticity.

    • A valid notice will show its DIN and issue date.

    • Else, you’ll see “No record found for the given criteria”—treat it as invalid. 

A notice without a DIN (for notices issued post-October 2019) is considered invalid and non-est in law—you can ignore it

Responding to Common Notices

  • Section 143(1) Intimation: Review discrepancies. If an error exists, file a rectification under Section 154 within four years. Else, pay the demand via the link.

  • Section 142(1) & 143(2): Submit the required documents and clarifications online via the portal’s e-Proceedings module.

  • Section 245: You must reply within 30 days, or your refund may be adjusted without recourse.

Why Choose N D Savla & Associates?

As a renowned Chartered Accountant firm in Mumbai, we offer:

  • Notice Verification Assistance (validating authenticity via the e‑Filing portal)

  • Customized Response Drafting for each notice

  • Document Collection & Submission Support

  • Deadline Management ensuring timely replies

  • Audit & Scrutiny Handling

Take Action Now

If you’ve received a notice, let’s act immediately:

  1. First, authenticate the notice online.

  2. Then, collaborate with us to draft an accurate, deadline-compliant response.

  3. Maintain your tax compliance and avoid penalties.

N D Savla & Associates are your trusted tax compliance partners. Let us handle the notice so you can focus on what you do best.