An income tax notice does not always mean a penalty or additional tax. Many notices are automated: they ask for clarification, point out a mismatch, or ask for a defective return to be corrected. What matters is reading the notice carefully, replying within the time allowed, and supporting the reply with documents. Junaid Khan & Co. assists taxpayers in Bhopal with understanding and responding to notices.
Which law applies?
The Income-tax Act, 2025 came into force on 1 April 2026. Proceedings for tax years from 2026-27 onwards fall under the new Act. Assessments, reassessments and other proceedings for earlier assessment years continue under the Income-tax Act, 1961. The section quoted on your notice tells you which law and procedure apply.
Common types of notices
- Intimation after processing: This compares the return with the department’s computation. It may show a demand or a refund adjustment.
- Defective return notice: This is issued when the return is incomplete or inconsistent and must be corrected within the stated time.
- Mismatch communications: These arise from differences between the return and AIS, TIS or Form 26AS, such as unreported interest, securities transactions or TDS entries.
- Scrutiny assessment notice: The return is selected for detailed examination, and information is requested through the e-proceedings facility.
- Notice for income escaping assessment (reassessment): This is issued where the department believes income was not assessed, subject to the procedure and time limits in the law.
- Demand and adjustment notices: These concern outstanding demands and proposed adjustment against refunds.
What to do after receiving a notice
- Verify it. Log in to the income tax e-filing portal and confirm the notice appears under pending actions or e-proceedings. Notices can also be authenticated on the portal.
- Note the deadline. Every notice states a response date. If you need more time, you can request an adjournment through the portal where the law allows.
- Collect documents. These may include bank statements, Form 16 or 16A, AIS, purchase and sale records, investment proofs and books of account.
- Prepare the reply. The reply should address each point raised, with reconciliations and evidence.
- Submit and keep records. File the response online and keep the acknowledgement.
Things to avoid
Avoid ignoring the notice, replying after the deadline, or submitting explanations that are not supported by documents. A best-judgment assessment can be made if there is no response.
How we assist
We review the notice and the relevant return, identify the issue, reconcile the data with AIS and 26AS, draft the response, and file it on the portal. Where needed, we represent you in the e-proceedings as an authorised representative. Our income tax advisory service covers return filing and planning to reduce future mismatches. If the notice concerns TDS credits, see TDS/TCS compliance. Notices about audited accounts may link to our audit and assurance work.
You can book an appointment and bring the notice along with your return acknowledgement.
FAQs
- Is every income tax notice serious?
No. Many are intimations or requests for clarification. Each one still needs a timely and accurate reply. - How do I check whether a notice is genuine?
Use the notice authentication facility on the income tax e-filing portal, and check the e-proceedings section of your account. - What if I miss the reply deadline?
Respond as soon as possible and request time where available. Non-response can lead to an assessment based on the information the department has. - Does the Income-tax Act, 2025 apply to old notices?
Proceedings for years before the new Act generally continue under the 1961 Act. Check the section cited on the notice. - What should I bring to the meeting?
The notice, the relevant return and computation, AIS/26AS, bank statements and any supporting documents.
