Got an
Income Tax
Notice?

Step 1 — Don't panic, but act immediately. Log into incometax.gov.in > e-Proceedings and find the notice. Note the exact deadline for response. Step 2 — Identify the section (139(9), 143(1), 143(2), 148 etc.) — each requires a different response strategy. Step 3 — Download the notice and check it against your ITR filing and AIS (Annual Information Statement). Step 4 — Contact a CA immediately, ideally within the first 24–48 hours, to review the notice and plan the response. TAXAJ assigns a CA within 2 hours of receiving your request — WhatsApp us the notice directly at +91-8802-912345 for fastest response.

Ignoring a notice is the worst thing you can do. Consequences: (1) Best-judgment assessment under Section 144 — AO estimates your income based on available data, usually inflating it significantly. (2) Penalty under Section 270A — 50% to 200% of tax on under-reported income. (3) Interest under Section 234B/C — 1% per month on unpaid demand. (4) Prosecution under Section 276C — up to 7 years imprisonment for willful evasion. (5) Recovery proceedings — bank account attachment, salary attachment, property seizure. The department also shares data with GST authorities, potentially triggering a GST notice as well. Never ignore — even if you think the notice is wrong.

Section 143(1) — Intimation: Automatically generated by the Centralised Processing Centre (CPC) after processing your ITR. It's a computer-generated communication showing: your declared figures vs. IT system's computation, any demand or refund. This is NOT a scrutiny notice — it's often a simple mismatch. Most 143(1) issues are resolved by checking AIS/Form 26AS and filing a rectification.

Section 143(2) — Scrutiny: This is a manual notice issued by an Assessing Officer who has selected your return for detailed examination. This is serious — the AO wants to examine your books, bank statements, and all income/deductions claimed. Must be responded to with full documentation. Must be issued within 3 months from the end of the FY in which ITR was filed — if received after this, it may be invalid.

Technically yes — for simple 143(1) intimations showing a minor demand. The IT portal allows you to submit responses yourself. However, for any scrutiny (143(2)), reassessment (148), summons (131), or penalty (270A) notice, always engage a CA. The stakes are too high — a wrong or incomplete response can be used by the AO to disallow more deductions or raise a higher demand. CAs know the legal precedents, how to frame responses, which documents to submit and which to withhold, and how to protect you from overreach. TAXAJ's fee starts at ₹1,499 — far less than the cost of a wrong response.

Section 143(2) scrutiny notices must be issued within 3 months from the end of the financial year in which ITR was filed. Example: For AY 2023-24 ITR filed in July 2023, the scrutiny notice must be issued by June 30, 2024. If you receive a 143(2) notice after this time limit, it is time-barred and can be challenged. For reassessment (Section 147/148): 3 years from the end of relevant assessment year for income up to ₹50 lakh, and 10 years for income escaped of ₹50 lakh or more. TAXAJ always checks the time limits before advising on response strategy.

For a 143(2) scrutiny response, you typically need: (1) ITR filed and computation of income, (2) Bank statements for all accounts for the relevant FY, (3) Form 26AS and AIS for the assessment year, (4) TDS certificates — Form 16 (salary), Form 16A (others), (5) Books of accounts — P&L, balance sheet if business income, (6) Investment proofs — 80C, 80D, housing loan certificates, HRA documents, (7) Capital gain documents — sale deed, purchase deed, broker statements, (8) Business-specific docs — GST returns, sales register, purchase register, (9) Any specific documents mentioned in the notice. TAXAJ prepares a customised document list once we review the specific notice queries.

The National Faceless Assessment Centre (NFAC), introduced in August 2020, makes all income tax scrutiny assessments, appeals, and reviews completely online — no physical meeting with the Assessing Officer. How it works: (1) Notice is served digitally on IT portal. (2) All communications happen through e-Proceedings only. (3) Cases are randomly allocated to AOs across India — you never know which officer is handling your case (prevents corruption and personal relationships). (4) Your CA submits the complete response with annexures on the portal. (5) AO reviews online and either passes assessment order or asks for additional information. The benefit: you can engage TAXAJ from anywhere in India — Delhi, Bangalore, Goa, or Bihar — regardless of where the AO is located.