I-T notice after filing return? Don’t panic, here’s what to check and do next

Income tax notices are issued for various reasons—mismatch in reported income, high-value transactions, missing deductions, or incorrect ITR filing. For example, if your ITR doesn’t match information in Form 26AS or AIS (Annual Information Statement), you could get a Section 143(1) intimation. Some notices are simple information requests, while others (like under Section 143(2)) involve detailed scrutiny. Identifying the reason behind the notice is the first step towards resolution. Don’t panic—many are auto-generated and easily addressed with the right documentation.

Every tax notice comes with a reference to a section of the Income Tax Act. Section 143(1) indicates a basic processing outcome—either a refund, a demand, or adjustment. Section 139(9) points to a ‘defective return’ requiring correction. Section 143(2) indicates scrutiny and a deeper review of your claims. Section 148 signals reopening of past assessments. Knowing what the section means helps assess the seriousness of the issue and how to respond. A quick lookup or professional consultation can save you from unnecessary stress.

Many I-T notices result from overlooking income shown in Form 26AS or AIS, such as interest on FDs or dividend earnings. These government-compiled statements capture all your reported income from various sources. For instance, if your return omits ₹20,000 FD interest visible in AIS, you could receive a tax intimation adjusting your return. To avoid this, always reconcile your ITR with these statements before filing. It’s especially important if you have income from multiple sources or joint accounts.  

Income tax notices typically provide 15–30 days to respond. Login to the I-T portal, navigate to ‘e-Proceedings’ or ‘e-Responses,’ and upload all supporting documents like salary slips, TDS certificates, or bank statements. Always ensure your response is complete, clear, and well-supported. Missing the deadline could result in automatic adjustments, penalties, or even rejection of refund claims. If unsure, draft your reply offline first or seek a tax consultant’s help before uploading anything.

Notices under Sections 143(2) or 148 are serious and call for detailed examination or reopening of past filings. You may be asked to explain income sources, deductions, or large transactions. Responding late or inadequately could lead to penalties or prolonged audits. If you receive such a notice, consult a Chartered Accountant or tax advisor immediately. These experts can guide you on which documents to submit, how to frame your explanation, and what not to say. Professional help is often crucial here.

While the word “notice” sounds alarming, many are routine or automated. Don’t jump to conclusions or panic. Common notices are triggered by minor mismatches or missed entries, not wrongdoing. For example, a ₹5,000 difference in reported income can prompt a Section 143(1) notice but is easily fixable. Read the notice carefully, act within the timeframe, and respond properly. Many taxpayers handle such notices successfully without needing appeals or legal steps. A proactive mindset is your best ally in dealing with the tax department.