Income Tax Notice: Types, Reasons and How to Respond (2026 Guide)

You open your phone and see an SMS or email saying “Income Tax Department.” Your first thought may be: “What happened? Did I make a mistake in my ITR?”

Before you panic, take a breath. An income tax notice does not automatically mean that you have done something wrong. Many notices and intimations are routine, system-generated communications that simply ask you to check some information, confirm a calculation, provide details or take a specific action within the prescribed time.

In this guide, we’ll explain why income tax notices are issued, the different types of notices, how to check and authenticate a notice online, and what to do after receiving one. We’ll also cover common ITR filing mistakes that can help you avoid unnecessary tax notices in the future.

If you want to check your tax calculation before filing, the ArthikDisha Tax Utility can also help you calculate your tax liability and compare the Old and New Tax Regimes.

What Is an Income Tax Notice?

An income tax notice is an official communication from the Income Tax Department issued under a specific provision of the Income-tax law. It may be sent through the e-Filing portal, email or post and can require the taxpayer to review information, provide documents, clarify a discrepancy, respond to a proceeding or take a specific action within the prescribed time.

Taxpayers sometimes use the term “income tax letter” informally to describe such communications. However, a notice, intimation, order, summons, and letter are not necessarily the same thing.

Their purpose and legal effect depend on the provision under which the communication is issued. Therefore, always check the section, DIN, reason for communication and response deadline rather than relying only on whether the communication is called a “notice” or a “letter.”

It is issued when the income tax department wants to:

• Confirm the outcome of processing your return
• Point out a mismatch between your return and its own data (AIS, Form 26AS, TDS records)
• Ask for missing information or documents
• Flag an error that makes your return “defective”
• Raise a tax demand after assessment

A notice always carries a Document Identification Number (DIN) and cites the specific section of law under which it’s issued — that section tells you exactly what’s being asked of you.

Common Types of Income Tax Department Notices

1. Section 143(1) – Intimation → New: Section 270

This is the most common notice, sent automatically after the Centralised Processing Centre (CPC) processes your return. It simply communicates the result of processing — such as a refund, demand or no change.

If you agree with the result, you generally do not need to challenge the computation; if you disagree because of an apparent error, you may consider the appropriate rectification process.

2. Section 139(9) – Defective Return Notice → New: Section 263(7)

The department issues it when your ITR is incomplete or internally inconsistent—for example, filing the wrong ITR form, missing a schedule, or not attaching an audit report when required. You get a window (usually 15 days) to correct and refile; ignoring it can make the department treat your return as if it was never filed.

3. Section 143(2) – Scrutiny Notice → New: Section 270(8)

A scrutiny notice means the return has been selected for detailed examination. The department may seek clarification or supporting documents regarding income, deductions, tax credits, transactions or other information reported in the return.

4. Section 148 / 148A – Reassessment Notice → New: Section 280 / 281

These sections are used when the department believes income has escaped assessment in a prior year. Under the new Act, a pre-notice opportunity is generally provided under Section 281 before a notice under Section 280 is issued, although specified exceptions apply.

5. Section 156 – Demand Notice → New: Section 289(1)

An income tax demand notice confirms that tax, interest, or penalty is payable after assessment. Payment is due within 30 days. If you disagree — say, because TDS credit wasn’t accounted for — respond immediately with a rectification (Section 154) or an appeal (Section 246A) rather than staying silent.

6. Section 245 – Adjustment of Refund Against Demand → New: Section 438

Tells you the department intends to set off a refund due to you against an outstanding demand from an earlier year. You can object within the specified period if the demand is disputed or already resolved.

Important 2026 transition: The Income Tax Act, 2025 applies to Tax Year 2026-27 onwards. Returns and proceedings relating to AY 2026-27 and earlier years generally continue under the Income-tax Act, 1961, even if the notice or action takes place after 1 April 2026. This is why taxpayers may continue to receive notices carrying the familiar 1961 Act section numbers during the transition period.

How to Check Income Tax Notice Online

It is strongly suggested that you never act on a notice purely from a WhatsApp forward, SMS, or unofficial email — verify it first:

1. Step 1: Go to the official Income Tax e-Filing portal.
2. Step 2: Open Authenticate Notice / Order issued by ITD from the portal’s Quick Links.
3. Step 3: Choose either DIN and Mobile Number or the PAN/document-details option.
4. Step 4: Enter the required details and verify using OTP.
5. Step 5: If the communication is genuine, the portal will confirm that it was issued by the Income Tax Department.
6. Step 6: If you need to view or respond to the notice, log in and go to Pending Actions → e-Proceedings.

The Department confirms that e-Proceedings is where taxpayers can view and respond to notices/letters/intimations.

If a notice isn’t showing up on the portal at all, treat it with suspicion — it could be a phishing attempt rather than a genuine communication from the department.

ITR Notices Can Sometimes Be Wrong — What to Do?

But here’s something every taxpayer should know: the department can get it wrong too. There have been instances where taxpayers who had filed their returns correctly still received defective return notices, including notices raising questions about Section 44AD turnover limits.

Imagine filing everything correctly and then receiving a message saying your return is defective — it can certainly cause a moment of panic. The important thing is not to rush into revising your ITR or paying tax. Check the notice, verify the details and understand what has actually gone wrong first.

Within days, the income tax department acknowledged the erroneous ITR notices, told affected taxpayers to disregard them, and confirmed it would process the original returns normally.

Important: If a notice looks inconsistent with what you actually filed, don’t panic-file a revised return right away.

• Re-check your original ITR and supporting schedules against the notice’s claim.
• Verify the notice’s DIN and status on the portal — it may already be withdrawn.
• If it’s genuinely in error, wait for or request a formal withdrawal rather than assuming a revised return is your only option (a hasty revision can itself create complications, since a revised return supersedes the original once filed).
• When in doubt, a tax professional can confirm within minutes whether the notice is valid.

Can Salaried Employees Receive an Income Tax Notice?

Yes. Salaried employees can also receive an Income Tax Notice. In fact, a salaried employees income tax notice may arise when the information reported in your ITR needs clarification or does not match information available with the Income Tax Department.

Common reasons include:

• TDS mismatch: Salary TDS reported by your employer in Form 16 may differ from the TDS reflected in Form 26AS or the department’s records.
• Interest income: Interest from savings accounts, FDs or other sources may appear in AIS but may not have been reported correctly in the ITR.
• AIS mismatch: Income, TDS, securities transactions or other information in the Annual Information Statement (AIS) may differ from what you reported.
• Capital gains: Sale of shares, mutual funds or other investments may result in capital gains that need to be reported correctly.
• Incorrect deductions: Deductions claimed in the ITR may not match the supporting documents or may not be allowable under the selected tax regime.
• Wrong ITR form: Filing an incorrect ITR form based on your income or transactions can result in a defective return notice.
• Refund mismatch: A refund claimed in the ITR may differ from the amount determined during processing.

Receiving a notice does not automatically mean that you have made a serious mistake. Verify the notice, understand the reason and respond within the prescribed time.

Correct Income Tax Return Filing Procedure (to Avoid Notices)

Most notices are the result of a small number of avoidable errors. A clean filing procedure should be structured as follows:

1. Collect documents first — Form 16, bank interest certificates, capital gains statements, home loan interest certificate, insurance/investment proofs.
2. Download and reconcile your AIS and Form 26AS before you start filling anything in. Compare reported income, TDS, interest, capital gains and other relevant transactions with your own records. Differences between the information reported to the department and your ITR can lead to queries or notices.
3. Choose the correct ITR form based on your income sources — salary, capital gains, business or professional income, foreign assets, and so on. Using the wrong form is a common reason for receiving a defective-return notice.
   1. If you’re unsure which form applies to you, our guide on Which ITR Form to File can help you identify the right ITR for your income and circumstances.
4. Fill every applicable schedule — capital gains, house property, foreign assets — even if the amount is small.
5. Match TDS claimed with Form 26AS/AIS to avoid a 143(1) mismatch.
6. Verify the return (via Aadhaar OTP, net banking, or EVC). If the return is not verified within the prescribed period, it may be treated as invalid, subject to the applicable rules and condonation provisions.
7. Keep a filing checklist for future years so recurring mismatches don’t repeat.

Do I need any Professional help?

Handle routine notices — a simple 143(1) intimation or a straightforward 139(9) defect — yourself if your filing was accurate. Get professional help when you’re facing:

• A Section 143(2) scrutiny or Section 148 reassessment notice
• A Section 156 demand of a significant amount that you dispute
• Multiple notices for the same assessment year
• Anything involving foreign income/assets, transfer pricing, or search proceedings

Key Takeaways

• Not every income tax letter is a red flag — Many income tax communications are routine, but always read the notice carefully and check whether any action is required.
• Always verify a notice’s DIN on the official e-filing portal before responding to it.
• Respond within the stated window; missing a deadline can turn a minor issue into a bigger one.
• A clean, well-reconciled ITR filing procedure is still the best defence against ever receiving a notice.