Income Tax Notices & Orders
What Are Income Tax Notices & Orders?
An Income Tax Notice is an official communication from the Income Tax Department to a taxpayer. It may request information, seek clarification, or demand compliance under the provisions of the Income Tax Act, 1961. These notices are typically issued during return processing, assessments, or investigations.
An Income Tax Order is a formal decision or directive passed by the tax authority after examining the return or completing a legal process such as assessment, rectification, or appeal.
Common Types of Income Tax Notices
| Section | Type of Notice | Purpose |
|---|---|---|
| 139(9) | Defective Return | Issued when the return filed is found to be defective due to missing details or discrepancies. |
| 143(1) | Intimation | Sent after processing the return; it indicates tax payable, refundable, or no demand. |
| 143(2) | Scrutiny Notice | Initiates detailed scrutiny to verify income, deductions, and claims made in the return. |
| 142(1) | Inquiry Before Assessment | Requests books of accounts or other documents necessary for assessment. |
| 148 | Income Escaping Assessment | Reopens a previous assessment if the Assessing Officer believes income has escaped taxation. |
| 245 | Adjustment of Refund | Notifies about proposed adjustment of refund against outstanding tax liabilities. |
| 156 | Notice of Demand | Specifies the amount of tax, interest, penalty, or fine payable by the taxpayer. |
| 131(1A) | Power of Inquiry | Requires attendance, evidence, or documents during investigation or inquiry. |
Income Tax Orders
| Type of Order | Description |
|---|---|
| Assessment Order (Sec 143(3), 144, 147) | Final order passed post scrutiny (u/s 143(3)), best judgment (u/s 144), or reassessment (u/s 147). |
| Rectification Order (Sec 154) | Issued to correct an apparent mistake in any order or intimation. |
| Penalty Order (Sec 270A, 271A, etc.) | Levies penalties for underreporting, misreporting of income, or procedural non-compliance. |
| Appeal Order | Issued by higher authorities such as CIT(A), ITAT, or courts after appeal proceedings. |
| Refund Order | Grants refund based on excess payment or rectified tax position. |
How to Respond to an Income Tax Notice
- Review the Notice
- Relevant section of the Act
- Nature of the issue
- Deadline to respond
- Log in to the Income Tax Portal Visit www.incometax.gov.in and access your account.
- Navigate to the Notice Go to Pending Actions > E-Proceedings or Work list to view the notice.
- Prepare & Submit Response Upload the necessary information, explanations, and supporting documents.
- E-verify the Response complete the process by e-verifying the submission, if required.
Consequences of Not Responding
Failure to respond to an income tax notice within the stipulated time may lead to:
- Interest and Penalty under relevant sections
- Best Judgment Assessment under Section 144
- Prosecution for wilful default or tax evasion
- Blocking of refunds or ITC where applicable
Pro Tips for Taxpayers
- Always keep your email ID and mobile number updated on the Income Tax portal.
- Maintain a secure digital record of all notices and responses for future reference.
- If a notice is based on incorrect facts, consider filing a rectification (u/s 154) or revision (u/s 264).
- You may authorize a Chartered Accountant or Tax Practitioner to represent and respond on your behalf.
How VETRI AUDIT SERVICES PRIVATE LIMITED Can Help
We provide end-to-end support for all types of Income Tax Notices and Orders, including:
- Review and analysis of notices
- Drafting and filing of responses
- Representation before Assessing Officers
- Filing rectification and appeal petitions
- Advisory and preventive compliance
Stay compliant, avoid penalties, and respond professionally — partner with VETRI AUDIT SERVICES.
Contact us today for a consultation!
