Income Tax Notice Reply in Delhi
Review and reply to income tax notices — intimations, defective return notices, scrutiny, reassessment and demand — on the e-filing and faceless assessment portals.
Last updated · Page maintained by SKAG and Associates · Editorial policy
Quick answers
What should I do first when I receive an income tax notice?
Log in to the e-filing portal and confirm the notice is listed there with a Document Identification Number (DIN), then note the section, the assessment year and the response due date. Read what exactly is being asked, compare it with your return, Form 26AS and AIS, and prepare the reply and documents before the due date.
What is the time limit to reply to an income tax notice?
It depends on the notice. A defective return notice under Section 139(9) normally allows 15 days, and a proposed adjustment under Section 143(1)(a) or a refund adjustment under Section 245 allows 30 days. Scrutiny and reassessment notices state their own date. Extensions can be requested on the portal, but are at the officer's discretion.
How does SKAG and Associates handle notice replies?
The firm reads the notice and the underlying return, identifies the issue raised, reconciles the figures with AIS, Form 26AS and the books, drafts the written submission with supporting documents, uploads it on the portal within the stated time and follows the matter through to the order, rectification or appeal stage.
What our Income Tax Notice Reply service covers
How the engagement works
How to start
Before the reply date runs out, share the notice by email or WhatsApp so that it can be read with your return.
Send these three things first:
- The notice, including its DIN and the date of issue
- The return and computation for that year
- AIS, Form 26AS and any documents on the point raised (for example bank statements for a cash deposit)
What you provide
- The notice and complete records on the issue raised
- Explanations and confirmations from third parties where needed
- Approval of the draft reply before it is filed
What the firm does
- Reading the notice with the return, AIS and books
- Drafting the point-wise reply with supporting documents
- Uploading it on the portal and following later queries
What happens next: The office confirms what the notice asks, the reply date and the documents still needed, and sets out scope and fees in an engagement letter.
Documents required
- → Copy of the notice (with DIN) and any earlier correspondence
- → Income tax return and computation for the year
- → Form 26AS, AIS and TIS for the year
- → Bank statements for the period in question
- → Books of account, ledgers and audit report (if applicable)
- → Purchase / sale deeds and capital gains workings
- → Investment and deduction proofs claimed in the return
- → TDS certificates and challans
- → Confirmations from parties for loans, deposits or receipts
- → e-Filing portal credentials or access through an authorised representative
For a specific Income Tax Notice Reply matter, you may send the details through the contact form, call +91 88022 54567 or write on WhatsApp (Mon–Sat, 10:00 AM–7:00 PM). Please do not send passwords or OTPs.
Government fees in notice and appeal matters
Replying to a notice carries no government fee. If an order is taken to appeal:
| Item | Government fee / duty | Basis and notes |
|---|---|---|
| Appeal to the Commissioner (Appeals), Form 35 | Rs 250 where assessed income is up to Rs 1 lakh; Rs 500 above Rs 1 lakh and up to Rs 2 lakh; Rs 1,000 above Rs 2 lakh; Rs 250 for other appeals | Section 249(1) of the 1961 Act; Section 358(2) of the Income-tax Act, 2025 |
| Rectification request, Section 154 | Nil | Filed on the e-filing portal |
Government fees and duties only. The firm’s professional fees are not published on this website; they depend on the scope of work and are agreed in an engagement letter.
Common income tax notices and their sections
Identify your notice
The notice names the section it is issued under, usually in its title or subject line. Find it below and open the explainer, which describes the notice, works out the reply date from the notice date and lists what to gather:
- “Communication of proposed adjustment”, Section 143(1)(a): CPC wants to change a figure in your return. Explain this notice; reply template: reply to 143(1) intimation.
- “Intimation”, Section 143(1): the result of processing, showing no change, a refund or a demand. Explain this notice.
- “Defective return”, Section 139(9): correct within 15 days. Explain this notice.
- Scrutiny, Section 143(2), or inquiry, Section 142(1): the return has been picked for assessment. Section 143(2) · Section 142(1).
- Show cause before reopening, Section 148A, or reassessment, Section 148: income is said to have escaped assessment. Section 148A · Section 148.
- Demand, Section 156, or refund adjustment, Section 245: tax is shown as payable, or a refund is to be set off. Section 156 · Section 245.
- Rectification, Section 154: a mistake apparent from the record. Explain this notice.
- “e-Verification” on the Compliance Portal, Section 135A: a mismatch between AIS and the return, or a high-value transaction. See the section on cash deposits and AIS mismatches below.
GST notices (ASMT-10, DRC-01A, DRC-01, REG-17, REG-31, GSTR-3A) are also in the notice explainer.
Notice types, sections and response time
The table lists the notices most often received. The 2025 Act column applies to proceedings for Tax Year 2026-27 onwards; earlier years continue under the 1961 Act.
| Notice | 1961 Act | 2025 Act | What it means / time to respond |
|---|---|---|---|
| Intimation after processing | 143(1) | 270(1) | Result of CPC processing: no change, refund or demand. Check the computation against the return. |
| Proposed adjustment | 143(1)(a) | 270(1) | CPC proposes an adjustment (for example, a mismatch with Form 26AS). Response within 30 days, otherwise the adjustment is made. |
| Defective return | 139(9) | 263(7) | The return has a defect. Correct it within 15 days (extension can be sought), otherwise the return is treated as invalid. |
| Scrutiny notice | 143(2) | 270(8) | The return is selected for scrutiny. Reply by the date given; assessment order under 143(3) / 270(10). |
| Inquiry before assessment | 142(1) | 268(1) | Call for information, accounts or documents, or for a return where none was filed. Reply by the date given. |
| Show cause before reopening | 148A | 281 | Opportunity to explain before a reassessment notice is issued. Reply within the period stated in the notice. |
| Reassessment notice | 148 | 280 | Income is considered to have escaped assessment (147 / 279). A return is filed in response and proceedings follow. |
| Best judgment assessment | 144 | 271 | Assessment where the taxpayer did not file or did not respond. Avoided by responding in time. |
| Notice of demand | 156 | 289 | Tax, interest or penalty payable under an order. Pay, seek rectification, or appeal and request a stay. |
| Refund adjustment | 245 | Re-enacted | Proposal to adjust a refund against an earlier demand. Respond within 30 days, agreeing or disagreeing with reasons. |
| Rectification | 154 | 287 | Correction of a mistake apparent from the record, on request or by the officer. |
Faceless assessment
Scrutiny and reassessment are generally conducted under the faceless scheme (Section 144B of the 1961 Act; Section 273 of the 2025 Act) through the National Faceless Assessment Centre. Notices, replies and the draft order are exchanged on the e-filing portal. A draft assessment order is issued with a show-cause notice where a variation is proposed, and the taxpayer may request a personal hearing by video conference. Replies should be complete, since there is usually no opportunity to explain in person unless a hearing is granted.
Notices on cash deposits, AIS mismatches and high-value transactions
Banks, registrars, mutual funds and others report large transactions to the Department in Statements of Financial Transactions. For FY 2025-26 these include, under Rule 114E of the Income-tax Rules 1962, cash deposits of Rs 10 lakh or more in a year in savings accounts (Rs 50 lakh in current accounts), time deposits of Rs 10 lakh or more, and purchases or sales of property of Rs 30 lakh or more. The data appears in your Annual Information Statement (AIS). Where it does not match the return, or no return was filed, the Department usually writes first under the e-Verification Scheme, 2021 (Section 135A), through the Compliance Portal.
- Check the AIS entry first. If it is wrong, duplicated or belongs to someone else, give feedback on the AIS itself (for example “information is not fully correct” or “information relates to another PAN”); the reporting entity is asked to confirm or correct it.
- Explain the source. For a cash deposit, the usual evidence is earlier withdrawals, sale proceeds, business receipts recorded in the books, or gifts from relatives with their confirmation and bank trail. Reply on the Compliance Portal within the time given, with documents.
- If income was left out, a revised return (up to 31 March 2027 for AY 2026-27) or an updated return (ITR-U, within 48 months) brings it on record with tax and interest before an assessment starts. The ITR-U calculator estimates the additional tax.
- Why it matters: an amount that remains unexplained can be taxed as unexplained income (Sections 68 to 69D of the 1961 Act) at 60% plus a 25% surcharge and cess under Section 115BBE, with no deductions, and a further penalty under Section 271AAC. For Tax Year 2026-27 onwards, the Finance Act 2026 reduces the rate to 30% (Section 195 of the 2025 Act), omits the separate penalty, and treats such income added in assessment as misreporting under Section 439.
The 26AS / AIS discrepancy reply template gives a starting format for the explanation.
Penalty exposure and immunity
- Under-reporting: 50% of the tax on the under-reported income (Section 270A of the 1961 Act; Section 439 of the 2025 Act).
- Misreporting (for example suppressed facts, false entries or unrecorded receipts): 200% of that tax.
- Immunity (Section 270AA): the penalty can be avoided by paying the tax and interest within the period in the demand notice, not filing an appeal, and applying within one month from the end of the month in which the order is received. From 1 March 2026 the Finance Act 2026 extends this to misreporting cases where additional tax of 100% of the tax on the misreported income is also paid within that period.
- Updated return after a reassessment notice: income offered in an ITR-U filed in response to a notice under Section 148 carries a further 10% of tax and interest, and is not the basis for a Section 270A penalty (Finance Act 2026).
Reassessment time limits (Sections 148 and 148A)
For notices issued on or after 1 September 2024, a reassessment notice can be issued within three years from the end of the relevant assessment year, or within five years where the income escaping assessment is Rs 50 lakh or more. Before the notice under Section 148, the Assessing Officer issues a show-cause notice under Section 148A with the information relied on, and the taxpayer can respond within the period specified in it. After a notice under Section 148, the return is filed within the period stated in the notice, which the Finance Act 2026 says cannot be less than 30 days from the date of the notice (from 30 March 2026). The same framework is carried into Sections 279 to 281 of the Income-tax Act, 2025.
Demand notices and appeals
- A demand is generally payable within 30 days of the notice of demand; interest applies if it is not paid in time.
- Before paying or disputing, check the demand on the portal and use Response to Outstanding Demand to state whether it is correct, partly correct or disputed.
- A mistake apparent from the record can be corrected by a rectification request under Section 154 (Section 287 of the 2025 Act).
- An appeal to the Commissioner (Appeals) is filed in Form 35 (Form 99 under the Income-tax Rules, 2026) within 30 days of service of the demand notice, with a separate application for stay of demand where needed. A starting format is in the Form 35 appeal template. Time limits, stay of demand and the further appeal to the Tribunal are explained on the income tax appeal page.
Checking whether a notice is genuine
Every communication from the Department carries a computer-generated Document Identification Number (DIN), which can be verified under Authenticate Notice / Order on the e-filing portal. Notices that ask for payment into personal accounts or for passwords by email or phone should not be acted on.
To map a section in a notice to the new Act, use the Income Tax Act 2025 section finder. NRIs receiving notices can also see the NRI taxation page.
Common mistakes
- Missing the reply date. An unanswered 143(1)(a) proposal is adopted, and a defective return not corrected in time is treated as invalid.
- Replying without documents. A reply that only says the figure is correct, without the statement or confirmation that proves it, is usually not accepted.
- Ignoring a wrong AIS entry. If AIS shows a transaction that is not yours or is duplicated, give feedback on AIS as well as replying to the notice.
- Acting on a notice without checking the DIN. Fake notices ask for payment or passwords; genuine ones can be verified on the portal.
- Paying a demand you dispute without recording it. Use Response to Outstanding Demand, rectification or appeal so that the dispute is on record.
Income Tax Notice Reply for clients in New Delhi & Delhi NCR
SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. The firm handles Income Tax Notice Reply work and allied compliance for individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage it remotely.
Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).
Frequently asked questions
I received a notice under Section 143(1). Is it serious? +
An intimation under Section 143(1) (Section 270(1) of the 2025 Act) is the result of automated processing of the return. It shows whether the return is accepted as filed, results in a refund, or results in a demand. Compare the Department's computation with your return; if a demand arises because of a mismatch, it can often be addressed through a rectification request or by responding with the correct details.
What happens if I ignore a defective return notice under Section 139(9)? +
If the defect is not removed within the time allowed (normally 15 days, extendable on request), the return is treated as invalid, as if it was never filed. That can lead to loss of refunds, carry-forward of losses and to interest or fees for non-filing.
Can I ask for more time to reply to a scrutiny notice? +
Yes. An adjournment can be requested through the e-proceedings facility on the portal, giving reasons. Whether it is granted is at the officer's discretion, and statutory time limits for completing the assessment continue to run, so requests should be made before the due date.
What is a Section 148A notice? +
It is a show-cause notice issued before reopening an assessment. It contains the information suggesting that income has escaped assessment and gives the taxpayer an opportunity to explain. The officer then passes an order deciding whether it is a fit case for a notice under Section 148. Under the 2025 Act these are Sections 281 and 280.
The demand on the portal is wrong. What can I do? +
Submit a response under Response to Outstanding Demand on the portal stating that the demand is incorrect with reasons, and file a rectification request under Section 154 (Section 287) where the error is apparent from the record, such as TDS credit not given. If the demand arises from an assessment order you disagree with, an appeal and stay application may be needed.
How do I know whether an income tax notice is genuine? +
Check that it appears under Pending Actions / e-Proceedings on the e-filing portal and verify its DIN using the Authenticate Notice / Order facility. Genuine notices do not ask for bank passwords or OTPs.
I got a notice about a high-value transaction shown in AIS. Do I need to file a revised return? +
Not always. First check whether the transaction is correctly reported in AIS and whether it is already included in your return. You can give feedback on incorrect AIS entries on the compliance portal. If income was omitted, a revised return (if still in time) or an updated return may be appropriate.
I got a notice for a cash deposit. What should I do? +
Check the deposit in your AIS and the bank statement, then explain its source on the Compliance Portal within the time given: earlier withdrawals, sale proceeds, recorded business receipts, or gifts from relatives with their confirmation. If the amount is already in your return, say so with the reference. If part of it was income left out, a revised or updated return can bring it on record before an assessment. An unexplained amount can be taxed at 60% plus surcharge for AY 2026-27 and earlier years.
How do I reply to a 143(1)(a) proposed adjustment? +
On the e-filing portal, under Pending Actions > e-Proceedings, open the communication and choose whether you agree or disagree with each proposed item and give the reason, with the document that supports your figure (Form 16, interest certificate, capital gains statement, audit report). Reply within 30 days; otherwise the adjustment is made when the return is processed.
What happens if I don't reply to an income tax notice? +
The officer can go ahead on the information available: a 143(1)(a) adjustment is made, a defective return is treated as invalid, and in scrutiny or reassessment a best judgment assessment can be passed, with interest and possibly penalty on any addition. Non-compliance with some notices can itself attract a penalty. Replying in time, even to ask for more time with reasons, keeps your explanation on record.
Can I file an updated return after getting a notice? +
It depends on the notice. An updated return (ITR-U) cannot be filed once a search, survey or assessment or reassessment is pending for that year, but after a notice under Section 148 the Finance Act 2026 allows one to be filed within the period in that notice, with a further 10% of tax and interest; that income is then not the basis for a Section 270A penalty. After an e-verification query, an ITR-U is usually still possible if no assessment has begun.
What is the penalty for under-reporting income? +
Under Section 270A (Section 439 of the 2025 Act), 50% of the tax on the under-reported income, and 200% where the under-reporting is due to misreporting such as suppressed facts or false entries. Immunity under Section 270AA is available on paying the tax and interest in time and not appealing; from 1 March 2026 it also covers misreporting cases if additional tax of 100% is paid.
Questions about Income Tax Notice Reply?
You may contact CA Gaurav Singh to discuss your specific facts and requirements.
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