Most income tax notices are not accusations. A large share are system-generated intimations that need nothing more than a correct, timely response on the e-filing portal. The damage is almost always done by letting the response window lapse — at which point a routine adjustment hardens into a demand, and a demand starts attracting interest and recovery action.
Identify the notice before you react
Every income tax communication states the section it is issued under. That single detail tells you how serious it is and how long you have.
| Section | What it is | Typical trigger | Time to respond |
|---|---|---|---|
| 143(1) | Intimation after processing | Arithmetical error, mismatch with Form 26AS / AIS, disallowed claim | 30 days to agree or disagree |
| 139(9) | Defective return | Incomplete schedules, audit report not filed, tax unpaid | 15 days |
| 142(1) | Enquiry before assessment | Return not filed, or documents called for | As specified in the notice |
| 143(2) | Scrutiny assessment | Case selected for detailed examination | As specified; assessment follows |
| 148 | Income escaping assessment | Information suggesting undisclosed income | Preceded by a 148A procedure |
| 245 | Adjustment of refund | Refund proposed to be set off against an earlier demand | 30 days — silence is treated as consent |
| 156 | Notice of demand | Tax payable after an assessment order | 30 days to pay or contest |
Section 148 and the 148A gateway
Reassessment cannot be started abruptly. Before a notice under Section 148 is issued, the department must follow the procedure in Section 148A — giving you the information it holds and an opportunity to explain, followed by a reasoned order deciding whether reopening is justified.
That 148A stage is the most valuable point in the entire process. A complete reply with documents can end the matter before reassessment begins. Once a Section 148 notice is issued, you are into a full assessment with a much longer road ahead.
Where notices come from now
Assessments are faceless and largely data-driven. Notices are commonly generated by mismatches between your return and:
- AIS and TIS — the Annual Information Statement, which aggregates reported financial transactions
- Form 26AS — TDS and TCS credited against your PAN
- SFT reporting — high-value transactions reported by banks, registrars, mutual funds and companies
- GST returns — turnover declared under GST compared with turnover in the income tax return
AIS is not always right. Entries get duplicated, transactions get attributed to the wrong PAN, and a sale reported gross gets treated as income. Where the AIS is wrong the fix is a documented feedback submission, not an amended return that concedes something you do not owe.
What we do
- Establish the section and the deadline — and tell you plainly whether it is routine or serious.
- Reconcile the department's data against your records — AIS, 26AS, bank statements, books and the return as filed.
- Draft the response with evidence attached and file it through the e-proceedings tab within time.
- Represent you through the assessment, including video hearings and adjournment requests where genuinely needed.
- Appeal where the order is wrong — Form 35 before the Commissioner (Appeals), and further where the amount justifies it.