Filing an Income Tax Return (ITR) is a routine responsibility for millions of taxpayers in India. However, many people become anxious the moment they receive a notice from the Income Tax Department. The truth is, not every income tax notice signals trouble. In many cases, notices are sent simply to seek clarification, additional information, or to inform taxpayers about adjustments.
The Income Tax Department issues different types of notices under various sections of the Income Tax Act, each with a specific purpose. Understanding what each notice means can help taxpayers respond calmly and correctly instead of panicking unnecessarily. Here is a detailed explanation of eight common types of income tax notices and what they actually signify.
A notice under Section 142(1) is issued when the tax officer needs additional information or documents to verify the claims made in your ITR. This notice may also be sent if you have not filed your ITR at all, despite being required to do so.
The department may ask for:
Supporting documents for deductions or exemptions
Clarification on income details
Submission of a pending ITR
This notice is primarily information-based and does not automatically mean wrongdoing.
The Section 133(6) notice is sent when the department seeks information related to your income or financial transactions. It is commonly issued if:
Your income exceeds the basic exemption limit but you haven’t filed an ITR
Income is not properly reported in the return
Your expenses appear significantly higher compared to your declared income
This notice is often used for data verification and cross-checking financial details.
A notice under Section 143(1) is one of the most common notices sent by the department. It is usually an intimation, not an investigation.
Through this notice, the department informs you whether:
Your tax calculation matches their assessment
There is a refund due
There is a small tax demand
In many cases, this notice is sent purely for informational purposes and does not require any action.
If the department is not satisfied with your response to Section 143(1) or wants to conduct a detailed scrutiny of your return, it may issue a notice under Section 143(2).
This notice indicates that:
Your return has been selected for scrutiny
Additional documents or explanations may be required
Receiving this notice means the department wants a closer look, but it does not automatically imply tax evasion.
A Section 148 notice is issued when the department believes that some income has escaped assessment. This could happen if:
Certain income was not disclosed
Incorrect information was provided
Past financial data reveals inconsistencies
This notice allows the department to reopen past assessments. It is more serious than routine notices and should be addressed carefully, often with professional assistance.
The Section 245 notice is largely informational. It is issued when the department plans to adjust your tax refund against outstanding tax dues from another assessment year.
For example:
You are eligible for a refund this year
You have pending tax dues from a previous year
The department informs you before making the adjustment, giving you a chance to respond if needed.
A notice under Section 156 is known as a demand notice. It is issued when, after assessment, the department determines that:
Additional tax is payable
Interest or penalty is applicable
The notice clearly mentions the amount payable and the deadline. Taxpayers must respond or pay the dues within the specified time to avoid further action.
If there is any error, omission, or inconsistency in your filed ITR, it is treated as a defective return. In such cases, the department issues a notice under Section 139(9).
This notice gives you:
An opportunity to correct mistakes
Time to re-submit the return with proper details
If corrected within the given period, the return remains valid.
Receiving an income tax notice does not always mean you are in trouble. Many notices are sent for:
Routine verification
Minor mismatches
Missing information
Ignoring a notice, however, can lead to complications. The best approach is to read the notice carefully, understand its purpose, and respond within the deadline.
The Income Tax Department issues different notices for different reasons, and each serves a specific function. Being aware of these eight common notices helps taxpayers stay informed and confident. Instead of panicking, timely and accurate responses can resolve most issues smoothly.
Disclaimer: This article is for informational purposes only. Taxpayers are advised to consult a qualified tax professional for personalized guidance.
