A tax notice lands in your inbox and your stomach drops. Take a breath — it is almost never as bad as it feels.
Most notices are routine. Usually it is a small mismatch the system flagged, or your return picked for a standard check. A serious investigation is rare. What actually matters is simple: reply correctly, and reply on time. Ignoring it is what turns a small query into a real problem.
This guide covers the common notices you might get, how to read them under the restructured legal system, the steps to respond, and when to call an expert. Almost everything now happens online, on the income tax portal.
First, do not panic, but do not ignore it
A notice is a request for information, not a verdict. Two mistakes cost people the most:
- Ignoring it until the deadline passes.
- Replying in a panic before understanding what is being asked.
Two things to check straight away. First, the deadline — most replies are time-bound, and the portal locks after it. Second, the DIN (Document Identification Number) — a code every genuine notice carries. No DIN? Treat it as a likely scam.
Verify it is real: on the e-filing portal there is an "Authenticate notice/order issued by ITD" tool. Enter the DIN to confirm a notice is genuine before you act. Fake tax-notice scams are common, and a quick check protects you.
The new blueprint: old vs new section mapping
With the full rollout of the Income-tax Act, 2025, the structure of Indian tax law has shifted a lot — shrinking from over 700 sections down to 536 streamlined ones. From Tax Year (TY) 2026–27, the Act also retires the old “Assessment Year / Previous Year” language for a single “Tax Year” — one simple period for the year you earned the income.
What this means for you: a notice about income from this current cycle will carry completely different section numbers than the classic ones you may have seen before. The notices themselves do the same job — only the numbering has changed. Here is how the common ones map across the two frameworks:
| Notice type | Old (1961) | New (2025) | What it means |
|---|---|---|---|
| Intimation order | 143(1) | Section 270 | Automated summary processing — a refund, a small demand, or no change. |
| Inquiry / questionnaire | 142(1) | Section 268 | Pre-assessment request for specific documents, or to file a missing return. |
| Scrutiny notice | 143(2) | Section 271 | Detailed, merit-based review of your return (limited or complete). |
| Scrutiny assessment order | 143(3) | Section 272 | The final, formal order passed after a scrutiny review is finalised. |
| Reassessment notice | 148 | Section 280 | Issued when the department has solid information that income escaped assessment. |
Important transition rule: If you get a notice about a historic year (say FY 2024–25 or earlier), the old 1961 Act section numbers — like 143(1), 142(1) or 143(2) — still apply to those proceedings under the saving provisions. For anything originating under the new Act's timeline, the new numbers apply. Either way, the way you read and respond stays the same.
Common types of notice and what they mean
1. Section 270: intimation order (formerly 143(1))
The most common one — and usually nothing to fear. It is just an automatic summary the system sends after processing your return. It either says all's well, shows a refund coming, or shows a small amount due. Agree? Pay or accept it. Disagree? You can file an electronic correction (called a rectification).
2. Notice for an AIS mismatch
The department cross-checks your return against your Annual Information Statement (AIS) and Form 26AS. If interest income, a property sale or a large transaction shows there but not in your return, you will be asked to explain. With more third-party data feeding the AIS every year, these are increasingly common, and usually resolved by either revising the return or explaining the entry.
3. Section 268: inquiry before assessment (formerly 142(1))
A formal request for additional documents, or an instruction to file a return you have not yet submitted. It must be answered with the specific information the officer asks for.
4. Section 271: scrutiny notice (formerly 143(2))
Your return has been picked for a detailed review. This one is more serious and needs exact supporting paperwork — it is where an expert genuinely earns their fee. It does not mean you have done something wrong; many scrutiny cases close with no change at all.
5. Notice for unfiled returns or demand
If you missed filing, or there is an outstanding balance against your PAN, you will be prompted to act. Ignoring these is what leads to steep penalties and, eventually, recovery proceedings.
Example: A salaried professional in Bengaluru gets a mismatch notice: the AIS shows ₹90,000 of fixed-deposit interest she forgot to declare. It looks alarming, but the fix is straightforward: she files a revised/updated return adding the interest, pays the small additional tax, and the matter closes. Handled promptly, it is a non-event.
How to respond, step by step
- Step 1: Read it fully and identify the section. Check whether it is issued under the old 1961 Act or the new 2025 Act, since that tells you the framework in play. Note the DIN and the deadline.
- Step 2: Authenticate it on the e-filing portal using the DIN, so you know it is genuine.
- Step 3: Gather your evidence. Pull the relevant documents: Form 16, bank statements, AIS, investment proofs, sale deeds, whatever supports your position.
- Step 4: Reconcile and decide. Compare what you filed with what is flagged. Either you agree (and pay or revise) or you disagree (and explain with proof).
- Step 5: Respond on the portal. Submit your reply and documents through the e-proceedings section before the deadline. Keep the acknowledgement.
- Step 6: Follow up. Track the status; a notice is not closed until the department records it as resolved.
Where the figures are clean and the answer is simple, you can often handle a Section 270 intimation or a small mismatch yourself. For a Section 268 inquiry, a Section 271 scrutiny, or anything involving significant sums, get an expert involved early. A well-drafted first response often closes a matter that a clumsy one would prolong. That is exactly what our income-tax and notices team does, and keeping clean books and records year-round is what makes any response quick to assemble.
How to avoid notices in the first place
- Reconcile with your AIS before filing. Most mismatch notices vanish if you check the AIS and 26AS first and report everything in them.
- Report all income: interest, capital gains, freelance receipts, rent. The department already has the data; omission is what triggers a flag.
- File on time and keep proof of deductions for at least the period the law requires.
- Do not let small demands sit. A ₹2,000 demand ignored becomes a bigger headache with interest.
Frequently asked questions
Does getting a tax notice mean I am in trouble?
Usually not. Most notices are automated Section 270 intimations or routine AIS mismatches resolved with a simple reply or a revised return. Only a minority are detailed scrutiny, and even those often close without any adverse finding.
Why does my notice have a different section number than older guides suggest?
If the notice concerns income from 1 April 2026 onwards, it follows the new Income-tax Act, 2025 framework. The old sections — 143(1), 142(1) and 143(2) — have been replaced by Sections 270, 268 and 271 respectively. For older years, the original 1961 Act numbers still apply.
How long do I have to respond?
It depends on the notice, but every one specifies a deadline. Some allow 15 or 30 days. Treat the date seriously. The portal generally will not accept a response after it lapses, and non-response invites penalties.
What if I ignore an income-tax notice?
Ignoring it can lead to a best-judgement assessment against you, penalties, interest and eventually recovery action. A notice does not disappear if unanswered. It escalates.
Can I respond to a notice myself?
For a simple Section 270 intimation or a small AIS mismatch, often yes. For scrutiny under Section 271, inquiries under Section 268, or anything involving large amounts, professional help significantly improves the outcome.
How do I know a notice is genuine and not a scam?
Genuine notices carry a Document Identification Number (DIN) that you can verify on the e-filing portal's authentication tool. Anything without a DIN, or asking for payment to an unusual account, should be treated as fraudulent.
Received a notice and not sure what it means? Send it to us. We will authenticate it, explain exactly what is being asked, and draft a response that closes the matter cleanly, on time and with the right evidence.
‘Am I overpaying tax?’ Review
Answer a few questions and get a personalised flag of the deductions you are missing.
Got a notice you are unsure about?
Our income-tax team reads the notice, drafts the response, handles the portal and represents you from start to finish, so you reply calmly and on time.