Got an income tax notice? Here are common types of tax notices and what to do to avoid penalties
Filing the income
tax return
(ITR) isn't always the end of your tax journey. Even after submission and verification of returns, you may get a notice from the Income
Tax Department
. While this can seem intimidating, most notices are routine and manageable. Understanding these and responding correctly can help avoid
penalties
, save time, and maintain peace of mind. If you do get a notice, following these tips can keep you from panicking and inviting further trouble.
DON'T IGNORE:
Every notice has a deadline; missing it can result in penalties.
USE FORM 26AS & AIS:
These will help you to verify and reconcile your income and TDS data.
BE ACCURATE:
Mismatches can lead to additional scrutiny or tax demands.
ACT PROMPTLY:
Even minor notices can lead to complications if unaddressed.
SEEK EXPERT HELP:
For complex notices, consult a chartered accountant or a tax professional immediately.
Here is a simple guide to common income tax notices and how to deal with them.
Section 143(1)
Intimation after return processing
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Fastest Selling Plots of Mysore from 40L | 40+ Amenities
PurpleBrick
Learn More
Undo
This is the most frequent notice. It compares your filed return with the department's records. It is sent if there is a TDS mismatch, calculation errors, incorrect deductions, or in case of delayed filing.
What to do
Log in to the income tax portal and review the notice.
If correct, no action is needed.
If tax is payable, pay within 30 days.
If incorrect, file a rectification with documents.
Section 245
Adjustment against previous dues
Live Events
If you're eligible for a refund, but have pending tax dues from previous years, the department may adjust it.
What to do
Check the notice in your portal under 'e-Proceedings'.
Agree or disagree with the reasons within 15 days.
No response leads to the automatic adjustment of your refund.
Section 142(1)
Inquiry before assessment
This is a preliminary inquiry when your return isn't filed or the department needs extra details.
What to do
File your return, if pending.
Submit the requested documents by the given
deadline
.
Ignoring this can lead to penalties or scrutiny.
Section 139(9)
Defective return
If your return has errors or is missing data, it's considered defective. The common issues it deals with are missing income details and incorrect deduction entries.
What to do
You have 15 days to correct and re-file.
Log in, access the notice under 'e-Proceedings', and respond.
Failing to act may make your return invalid.
Section 133(6)
Request for financial information
This notice seeks clarification on transactions like high-value cash deposits or property purchases.
What to do
Share relevant documents, such as bank statements or agreements.
Submit within the deadline to avoid further scrutiny.
HRA and TDS mismatch notices
These are sent when your house rent allowance (HRA) claim or TDS details don't align with the department's records.
What to do
Ensure tenant TDS compliance if rent exceeds Rs. .50,000 a month.
Keep rent receipts and the landlord's PAN.
If the mismatch is real, file an updated return and retain documents for future reference.
Section 143(2)
Scrutiny notice
This notice means your return has been selected for a detailed check.
What to do
Cooperate by submitting all proofs, including income, deductions, or expense claims.
Attend hearings if called, or respond through the portal.
No response may lead to tax assessments based on estimates.
Section 148
Income escaping assessment
It is issued when the department believes some income was left undisclosed in previous returns.
What to do
File a revised return or give explanation as per the notice.
Justify the source of income and submit relevant proof.
Ignoring this can lead to the reopening of past assessments and penalties.
Section 271AAC(1)
Penalty for unexplained income
If unexplained income, like sudden large deposits, is found during scrutiny, this notice may be issued.
What to do
Provide documentation explaining the source of income.
Penalties of up to 60% apply if the income is found to be unexplained.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Lucknow students prefer Europe to US for higher studies abroad
Lucknow: For Aashika Singh, a postgraduate student from Lucknow, choosing between University of Pennsylvania in the United States and University of Deusto in Spain was not a tough task. "Studying in the US appeared out of reach because of high fee and strict visa policies. Europe not only fits my budget but also gives me the chance to work after my course, which is a huge advantage," says Aashika. Like Aashika, many students from Lucknow are choosing European countries like Germany, Spain, Sweden, Ireland, and France for higher education, shifting from traditional destinations like the USA, UK, and Canada. This trend was revealed by a quick survey conducted by TOI, involving conversations with various student consultants, candidates, and agencies. According to data collected by Consultifly, a study abroad consultancy, from various agencies, around 7,100 students from Lucknow are expected to go abroad for studies in 2025, up from approximately 6,000 last year, marking an 18% increase overall. While the total number of outbound students has risen, the count of those choosing the US, UK, and Canada has dropped due to stricter visa rules, limited post-study work opportunities and soaring tuition costs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No dark spots, 10 years younger! Just take this from Guardian URUHIME MOMOKO Learn More Undo In 2024, nearly 3,800-4,000 students from Lucknow chose these countries. In 2025, the number fell to around 2,500-2,800, primarily due to rising tuition fees and increasingly stringent visa regulations. In contrast, European destinations like Germany, Spain, Ireland, Sweden, and France are emerging as more appealing alternatives, offering affordable or free education, relaxed visa norms, and strong post-study employment pathways. About 1,000 students from Lucknow chose Europe in 2024, a number that jumped to 1,400-1,500 this year. "We've observed a 40% rise in applications to European universities from Lucknow in the last two years," said Suresh Katti, founder and CEO of Consultifly. "We have seen a 35% rise in applications from students aspiring to study in Sweden, Ireland, and France this year," said Abdul Raza Khan, manager at Visa GlobeMaster. "I chose Germany because I could study for free with my B1-level German certificate and only pay for food and accommodation," said Prithvi Sharma, who plans to pursue computer science in Germany. Spain is gaining attraction as well. Programmes in business, creative arts, event management, and sports management are popular. "Unlike traditional destinations where tuition fees and living expenses are overwhelming, studying in Europe allows me to focus on learning without constant financial stress. The people are warm, campuses are diverse, and everyday life is budget-friendly. The chance to work after my degree adds real value to the entire experience," said Kushagra Singh, an undergraduate student pursuing event management and marketing in Spain. Ireland sees an intake mostly in MBA, data science, and public health. Sweden attracts primarily for AI, sustainability, and tech innovation courses. France is also becoming a preferred destination, with students opting for courses in management, fashion design, and public policy. "Choosing Ireland was a strategic decision. The universities here are globally ranked, and the two-year stay-back option after graduation gives me ample time to find a job in my field. Moreover, the friendly environment and English-speaking culture made it easier to settle in," said Pranav Sharma, MSc in Data Analytics, University College Dublin. "Sweden offers a perfect blend of innovation and sustainability in education. My program emphasises hands-on learning and critical thinking. International students are allowed to stay and look for jobs after graduating which is helpful," said Ritika Mehta, Master's in Sustainable Engineering, Lund University. "France wasn't my first choice initially, but once I explored the affordable tuition, diverse culture, and generous scholarship options, it became the obvious option. Studying in Mont-Saint-Aignan has exposed me to a truly international community and exciting career prospects in Europe," said Prakhar Bansal, who is set to pursue master's course in international business from NEOMA Business School, France.
Time of India
an hour ago
- Time of India
Why are private sector banks rapidly gaining market share over public banks?
Private sector banks have been steadily gaining market share over their public sector bank counterparts. An ET analysis of the RBI data shows that private sector banks gained more than 5% market share in loans and more than doubled their loan book in the last five years. Agencies At the end of March 2025, private sector banks had a total market share of 40% and an absolute loan size of Rs 75.22 lakh crore. While PSBs still dominate credit distribution in absolute terms with a loan size of Rs 98.21 lakh crore, their market share declined to 52.3% at the end of March 2025 from 57.7% at the end of March 2020. Agencies by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mercado Libre CFD: gana hasta 2.700$ a la semana trabajando desde casa TradeLG Undo Private banks' faster credit deployment and potentially greater operational agility indicate increasing customer preference for them. The overall banking system has expanded significantly between 2020 and 2025, with total loans rising from Rs 105.18 lakh crore to Rs 187.76 lakh crore—more than 78% increase in just 5 years. Smaller players like small finance banks are also expanding their role, indicating a shift toward broader credit access and inclusion.
Time of India
an hour ago
- Time of India
With June 1 here, Bill Belichick's future takes a twist as buyout plummets to $1 million
Bill Belichick's dramatically reduced buyout sparks buzz about his next NFL move post-Patriots (Getty Images) Bill Belichick's unconventional offseason with the North Carolina Tar Heels just reached a critical turning point — and it has little to do with Xs and Os. June 1, 2025, is here, and with it comes a significant shift in the power dynamics between Belichick and UNC. The $10 million buyout in his contract has now shrunk to just $1 million, giving the legendary coach newfound leverage to walk away — no strings attached. Bill Belichick's buyout drops to $1M as June 1 arrives — is a surprise NFL return looming? This change, though buried in contractual fine print, was always the red flag skeptics pointed to when questioning Bill Belichick's true commitment to Chapel Hill. While many downplayed the importance of this clause, its presence said more than any press conference ever could. If Belichick had truly envisioned himself building a long-term program in North Carolina, he could have simply asked the school to remove the clause. He didn't. Now, with the reduced buyout officially in play, the dance between the Hall of Fame coach and his new college home just got a lot more complicated — and perhaps a little bit colder. What makes this entire situation even more volatile is the presence of 24-year-old Jordon Hudson, Belichick's girlfriend and, as some have put it, his de facto brand manager. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Their relationship has become tabloid fodder and locker-room curiosity all rolled into one — not least because of the visible influence she seems to wield over the stoic, famously private coach. Channing Crowder didn't mince words when describing the couple: 'She kind of coordinates and brand manages. She has her paws on the situation. It's different . . . It was weird to be around Belichick and Jordon. . . . I don't see Belichick in that light. But he just smiles and nods. . . . His old lady is different. . . . She lurks. It's weird to know him as Coach Belichick running the entire organization as G.M., head coach, talent coordinator, all that stuff, and then to see this tiny, little 95-pound girl kind of — pretty much telling him what to do. ' That last line hit a nerve. Hard. The fallout was swift — an awkward apology from Ryan Clark and an edited version of the show where Crowder's take was originally aired. But no amount of backpedaling could erase what was said. If anything, it confirmed the underlying tension many suspected: Hudson isn't just Belichick's partner — she's part of the inner circle. Reports that Hudson was banned from UNC's football facilities only poured fuel on the fire, even if the university denied such claims. Hudson herself clapped back at journalist Pablo Torre in a now-deleted social media post, suggesting the friction is real — and very personal. Belichick, who is no stranger to walking away before the first snap — just ask the New York Jets — now holds the cards. If he senses resistance, if Hudson feels slighted, or if the NFL suddenly calls with an irresistible offer, he can write a check and vanish. A $1 million exit fee is pocket change for a man who would be walking away from a $25 million deal. And let's not forget: Belichick didn't sign on at UNC during a hot hiring cycle. His phone wasn't exactly ringing off the hook with NFL offers. But now, if circumstances change — or if Hudson decides it's time — he has the power to act. Whether or not Belichick ever coaches a game in Tar Heel blue is no longer just a football question. It's a story about control, influence, and legacy — and how quickly all of that can pivot when the right clause finally kicks in. Also Read: Travis Kelce startles Adam Sandler in first full 'Happy Gilmore 2' trailer as Netflix confirms star-studded sequel premieres July 25
