Common income tax notices after ITR filing
1. Section 143(1): Intimation
Key reasons
- Difference between the department's tax computation and the taxpayer's calculation
- Tax credit mismatch
- Interest under Sections 234B or 234C due to short payment of advance tax
How to avoid it?
- Verify all income before filing
- Match TDS with Form 26AS and AIS
- Pay any remaining self-assessment tax before submitting the return
2. Section 139(9): Defective return
Key reasons
- Filing the wrong ITR form
- Missing mandatory schedules or disclosures
- Incomplete income details
- Mismatch between reported income and tax records
How to avoid it?
- Choose the correct ITR form
- Fill every applicable schedule
- Review the return carefully before submission
3. Section 142(1): Inquiry before assessment
Key reasons
- Additional documents required
- Clarification on income or deductions
- Return not filed despite tax liability
How to avoid it?
- File the return within the due date
- Maintain supporting documents for deductions, exemptions and income
- Ensure complete disclosures while filing
4. Section 143(2): Scrutiny notice
Key reasons
- High-value financial transactions
- Large deduction claims
- Significant mismatch in reported information
How to avoid it?
- Report all sources of income accurately
- Keep documentary evidence for deductions and exemptions
- Ensure information matches AIS, Form 26AS and other financial records
5. Section 148: Income escaping assessment
Key reasons
- Undisclosed income
- New information received by the department indicating under-reporting
How to avoid it?
- Report every source of income, including interest, dividends and capital gains
- Review AIS before filing to identify any missing income
6. Section 156: Demand notice
Key reasons
- Additional tax payable after assessment
- Interest or penalty imposed
- Short payment of taxes
How to avoid it?
- Calculate tax liability accurately
- Pay advance tax and self-assessment tax on time
- Respond promptly if any discrepancy is identified
7. Section 245: Refund adjustment notice
Key reasons
- Pending tax demand from an earlier year
- Refund available for the current assessment year
How to avoid it?
- Verify and clear outstanding tax demands, if valid
- Regularly check the income tax portal for pending demands
- Respond within the specified timeline if you disagree with the adjustment
How to respond to income tax notices?
- Log in to the e-filing portal using your user ID and password.
- Navigate to Dashboard > Pending Actions > e-Proceedings.
- View the notice issued in your name (or as an authorised representative) and review its details.
- Submit your response by providing an explanation (agree or disagree) and uploading supporting documents.
- Once submitted, an acknowledgement and Transaction ID will be generated.
Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.