Accounting

ITR Notices and Responses: How to Handle Income Tax Department Communications

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Accounting

ITR Notices and Responses: How to Handle Income Tax Department Communications

Read More

Accounting

ITR Notices and Responses: How to Handle Income Tax Department Communications

Read More

Filing income tax returns (ITR) is a responsibility every taxpayer must fulfill. But what happens when the Income Tax Department sends you a notice? For many, it can feel stressful or even intimidating. The reality is—not all notices are bad news. Some are routine communications, while others may require your urgent attention.

At hisabkitab, we help individuals, startups, and businesses stay compliant with tax rules. In this article, we’ll break down the different types of ITR notices, why you might receive one, and the correct way to respond—so you can avoid penalties and stay stress-free.

What is an ITR Notice?

An ITR (Income Tax Return) Notice is an official communication sent by the Income Tax Department regarding your filed (or unfiled) return.

👉 The notice could be:

  • A request for clarification

  • A correction for mismatched data

  • A routine verification

  • Or in some cases, a demand for additional tax

📌 Official Income Tax e-Filing Portal  is the place to download and respond to notices.

Common Types of ITR Notices

Here are the most frequent notices taxpayers receive:

  • Notice under Section 139(9): Defective Return

    • Trigger: Errors or missing information in your return

    • Action: Correct the defect and re-file within the specified time

  • Notice under Section 142(1): Inquiry before Assessment

    • Trigger: Department needs additional documents or explanations

    • Action: Submit requested information before the deadline

  • Notice under Section 143(1): Intimation

    • Trigger: Department compares your return with its records

    • Action: If refund or demand is raised, respond accordingly

  • Notice under Section 143(2): Scrutiny Assessment

    • Trigger: Return selected for detailed scrutiny

    • Action: Provide all documents supporting your claims

  • Notice under Section 148: Income Escaping Assessment

    • Trigger: Suspected income not reported

    • Action: File return for the relevant assessment year

  • Notice under Section 156: Demand Notice

    • Trigger: Additional tax, interest, or penalty payable

    • Action: Pay dues within the mentioned period

Reasons You May Receive an ITR Notice

The most common triggers include:

  • Mismatch between Form 26AS/AIS and ITR

  • Non-disclosure of income (salary, FD interest, capital gains, rent, etc.)

  • Late or non-filing of ITR

  • Incorrect personal or bank details

  • Random scrutiny under compliance checks

💡 hisabkitab tip: Our software automatically reconciles your income data with Form 26AS and AIS, reducing the chances of mismatches.

How to Respond to ITR Notices

Follow these steps to respond correctly:

  1. Check the Notice Details – Verify notice number, section, and assessment year

  2. Log in to the e-Filing Portalwww.incometax.gov.in

  3. Understand the Reason – Read carefully why the notice was issued

  4. Prepare Documents – Form 16, Form 26AS, AIS, bank statements, investment proofs

  5. Submit Response Online – Use the “Pending Actions → e-Proceedings” tab

  6. Keep Acknowledgment – Always download and store the response copy

Tips to Avoid ITR Notices in Future

✅ File your returns before the due date
✅ Match details with Form 26AS and AIS before filing
✅ Disclose all income sources (salary, freelance, interest, capital gains, etc.)
✅ Enter correct PAN, Aadhaar, and bank details
✅ Keep proper records of deductions/exemptions claimed

Final Thoughts

Getting an ITR notice is not always a reason to panic. Many are routine intimations, while some may point to small mismatches. The key is to respond promptly, accurately, and within the given deadline.

If you’re unsure how to handle a notice, consult a tax professional or use hisabkitab’s expert-backed accounting software to simplify compliance and stay penalty-free.

📌 Ready to file your ITR stress-free?
👉 Try hisabkitab – India’s smart cloud accounting software

Best Accounting Software in India

Built by CAs for Indian businesses. Create invoices, automate GST, track expenses, and run your accounts faster with AI + cloud.

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Aiko Karlsson

Eric Gronberg

Best Accounting Software in India

Built by CAs for Indian businesses. Create invoices, automate GST, track expenses, and run your accounts faster with AI + cloud.

No subscription required.

Aiko Karlsson

Eric Gronberg

Best Accounting Software in India

Built by CAs for Indian businesses. Create invoices, automate GST, track expenses, and run your accounts faster with AI + cloud.

No subscription required.

Aiko Karlsson

Eric Gronberg