Quick answer
How do I reply to an income tax notice?
For an income tax notice reply, log in to the e-filing portal, open the notice under e-Proceedings or Pending Actions, read the response date, and upload a written explanation with documents before that date. Check which year and Act the notice relates to, and get help early if it is a scrutiny or reassessment notice.
- Replies are filed online on the e-filing portal
- Each notice states its own response date
- Most notices start from an AIS or 26AS mismatch
- Ignoring a notice can lead to a best-judgment assessment
What is an income tax notice reply and why does it matter?
An income tax notice reply is the formal answer you give to the department, on the portal, explaining or correcting the point it has raised. A timely, documented reply often closes the matter; silence usually makes it worse.
Notices are not always a sign of wrongdoing. Many are automated: the system compares your return with what employers, banks, brokers and property registrars reported against your PAN, and asks about the difference. Others are routine, such as a defective return or a refund adjustment. A few, such as scrutiny and reassessment notices, need careful handling because they can lead to additional tax, interest and penalties.
Notices are issued electronically and carry a document identification number (DIN). Before acting on any email or SMS about a notice, log in to the e-filing portal and confirm it is listed there.
What are the common types of income tax notice?
The notices Delhi taxpayers most often receive are processing intimations, defective return notices, mismatch queries, scrutiny notices, reassessment notices and outstanding demand notices. The section numbers below are those of the Income-tax Act 1961, which still governs returns up to FY 2025-26.
| Notice | What it usually means | Typical response |
|---|---|---|
| Intimation under section 143(1) | Return processed; it may show a refund, no change or a demand | Check the computation; agree or file a rectification or response |
| Defective return under section 139(9) | Something is missing or inconsistent in the return | File a corrected return within the time stated |
| Information mismatch query | AIS or 26AS shows income not in your return | Explain the difference or file an updated return if income was missed |
| Scrutiny under section 143(2) | The return has been selected for detailed assessment | Submit explanations and evidence in each round, usually through faceless proceedings |
| Inquiry under section 142(1) | The officer wants specific documents or a return | Provide the documents or return asked for |
| Reassessment under section 148 | The department believes income escaped assessment | Respond to the preliminary notice with facts; take professional help |
| Outstanding demand or refund adjustment | Tax shown as payable, or a refund to be set off | Agree and pay, or disagree with reasons on the portal |
Under the Income-tax Act 2025, in force from 1 April 2026, these provisions are renumbered. A notice will cite the Act it is issued under. Source: CBDT press release, checked October 2026.
Need help with income tax notice reply? Talk to a chartered accountant in Delhi today. First call is free.
How long do you have to respond to an income tax scrutiny notice?
There is no single deadline: every notice, including an income tax scrutiny notice, states its own response date on the portal, and that is the date that counts. Some allow a few weeks, others only days, so check it the day the notice arrives.
If you need more time to collect documents, the portal usually lets you request an adjournment with reasons, but approval is at the officer's discretion. Missing the date can lead to the assessment being completed on the information the department already has, which rarely works in your favour. When we take on a notice, the first thing we record is the response date and the year it relates to.
How do we prepare an income tax notice reply?
We work in five steps: confirm the notice is genuine, find the trigger, gather evidence, draft a point-by-point reply for your approval, and submit it on the portal while tracking any follow-up.
- 1
Verify the notice
We check the DIN and the listing on your e-filing account, and note the Act, section, assessment year and response date.
- 2
Find the trigger
We compare your filed return with AIS, TIS and Form 26AS to locate the exact entries the department is asking about.
- 3
Collect evidence
Bank statements, sale deeds, broker reports, invoices and ledgers are gathered so every claim in the reply is backed by a document.
- 4
Draft and approve
We write a clear, numbered reply addressing each point raised. You review and sign off before anything is uploaded.
- 5
Submit and follow up
The reply is filed on the portal, the acknowledgement saved, and further questions or the final order tracked until the matter closes.
Why do people in Delhi get income tax notices?
In our experience the most frequent triggers are unreported interest or capital gains, property transactions, large cash deposits, mismatched TDS credits and wrong ITR forms. All of these show up in the department's data before you file.
- Property deals. Sales and purchases are reported by registrars. A sale missing from your return, or a purchase without matching sources of funds, is a classic query.
- Share and mutual fund sales. Broker data feeds AIS directly. Leaving out a small redemption can still draw a mismatch notice.
- Interest income. Savings and fixed deposit interest is easy to forget and is always reported.
- TDS mismatches. If your deductor filed late or with the wrong PAN, the credit you claimed may not appear. That is fixed through the deductor's TDS return correction.
- Cash in business accounts. Traders with heavy cash sales should keep books that explain deposits.
Most of these are avoidable with careful income tax return filing that reconciles AIS before submission.
What happens if you ignore an income tax notice?
Ignoring a notice usually leads to the department deciding the matter without your side, which can mean an assessment on its own estimates, a tax demand with interest, and in some cases penalties for non-compliance.
A demand that is not paid or disputed can later be adjusted against refunds for other years. Penalty provisions and amounts differ by notice type and by Act, so we do not quote a single figure here. The practical rule is simple: respond by the date stated, even if your response is a request for more time with reasons.
Can you file an updated or revised return instead of replying?
Sometimes, yes. If the notice points to income you genuinely missed, filing an updated or corrected return and paying the tax can be the cleanest response, but it depends on the type of notice and the timing.
Once scrutiny or reassessment proceedings have started, the option to file an updated return may be restricted, and a revised return will not close a notice on its own. We look at the notice type first, then advise whether to correct the return, explain the difference, or do both.
Income tax notices for NRIs, businesses and property sellers
NRIs, business owners and anyone who sold property face notices with more moving parts, such as foreign remittances, GST turnover, TDS deducted by buyers and capital gains computations, so the reply needs more supporting records.
NRIs often receive queries on property sales where the buyer deducted TDS, or on Indian bank interest. Our NRI tax filing page explains the residential status point that many of these turn on. Businesses may get notices that overlap with GST data; if a GST officer has written too, see our GST notice reply service so both answers stay consistent.
Who can help with an income tax notice reply in Delhi?
Choose someone who reads the notice before quoting, reconciles your data with AIS, and drafts a written reply you can review. For scrutiny or reassessment, a chartered accountant with assessment experience is the safer choice.
Our office at Netaji Subhash Place is a short metro ride from Rohini, Pitampura and Shalimar Bagh, and notices can also be handled entirely online. Khubchandani & Co. Chartered Accountants and Moneymji both list income tax among their services, and Greenwolf Advisors handles cross-border matters for families and groups. Details are on the chartered accountant firms in Delhi page. You get a fixed quote once we have seen the notice.
Frequently asked questions
How do I check if an income tax notice is genuine?
Log in to the e-filing portal and look under e-Proceedings or Pending Actions. Genuine notices are listed there and carry a document identification number. Do not click links in unexpected emails or SMS messages, and never share your password or OTP with anyone who calls about a notice.
What is an income tax scrutiny notice?
It is a notice telling you that your return has been selected for detailed assessment. Under the 1961 Act this was section 143(2). The department will ask questions in stages, usually through faceless proceedings on the portal, and you answer each one with explanations and documents.
Can I reply to an income tax notice myself?
Simple ones, yes. A mismatch you can explain with a bank statement, or a demand you agree with, can be handled through the portal directly. Scrutiny, reassessment and large demands are better handled by a professional, because what you say in the first reply shapes the rest of the case.
What does an intimation under section 143(1) mean?
It means your return has been processed. The intimation compares your figures with the department's and shows a refund, a nil result or a demand. If you disagree with an adjustment, you can respond or seek rectification on the portal.
I got a notice about income in AIS that is not mine. What should I do?
Submit feedback on the AIS entry through the portal, stating that the information is incorrect or belongs to someone else, and keep evidence. Then reply to the notice pointing to that feedback. The reporting entity may also need to correct its filing.
Can I ask for more time to reply?
Usually you can request an adjournment on the portal, giving reasons. It is not automatic and depends on the officer. Ask before the response date, not after, and use the time to collect complete documents.
Will the new Income-tax Act 2025 change my notice?
Notices for years up to FY 2025-26 generally relate to the 1961 Act, while those for tax year 2026-27 onwards will cite the new Act's renumbered sections. The notice itself states which Act and section apply, so read that line first.
How much does it cost to reply to an income tax notice?
It depends on the notice type, the amounts involved and the number of hearings. A simple mismatch reply is much less work than a reassessment. We give you a fixed quote after reading the notice and your return, before any work starts.
Can a refund be held back because of a notice?
Yes. Refunds can be adjusted against an outstanding demand from another year, and you are usually given a chance to agree or object first. Respond to that adjustment intimation on the portal if the old demand is wrong.