Income Tax Notices Explained: 143(1), 139(9), 143(2) and 148
An email from the income-tax department is not the same as a demand. Some notices are routine processing intimations, some ask you to fix a form, and only a few open a real examination of your return. Knowing which one you're holding tells you how worried to be and how fast to move.
Why it matters
Most Notices Are Routine. Missing Them Is Not.
Assessments are now faceless and run on the portal. There is no officer to call, and no allowance for an email you didn't read.
Deadlines are counted from service
Time runs from when the notice is posted to your portal account, not from when you open it.
A defective return can become no return
Fail to fix a defect in time and the return can be treated as never filed, taking your refund and loss carry-forward with it.
Refunds get adjusted
Under Section 245, a refund due to you can be set off against an old demand after an intimation, so old demands matter even when you've forgotten them.
Penalties depend on the label
Under-reporting attracts a penalty of 50% of the tax, and misreporting 200%. Which one applies often turns on how you explain the difference.
Which notice is which
| Section | What it is | Time to respond |
|---|---|---|
| 143(1) | Intimation after the return is processed, with any arithmetical or obvious adjustments | 30 days to agree or disagree |
| 139(9) | The return is defective, for example accounts or tax details are incomplete | 15 days, extendable on request |
| 142(1) | Inquiry before assessment: file a return, or produce accounts and information | As stated in the notice |
| 143(2) | Your return has been selected for scrutiny | As stated; the assessment then proceeds in stages |
| 148A | Show cause before reassessment, with the information relied on | As stated in the notice |
| 148 | Notice to file a return for a year where income is said to have escaped assessment | As stated in the notice |
| 156 | Demand notice following an order | 30 days to pay |
| 245 | Intimation that a refund will be adjusted against an outstanding demand | Usually 30 days to respond |
| 133(6) | Call for information, sometimes sent to third parties about you | As stated in the notice |
The department also sends advisories and campaign emails, for example asking you to confirm high-value transactions shown in your AIS. These aren't notices, but they are worth answering, because an unexplained entry today is what produces a 148A notice later.
Section 143(1): the processing intimation
Almost every return gets one. It compares what you filed with what the department's systems hold and shows three possible outcomes: no difference, a refund, or a demand. Adjustments at this stage are limited to arithmetical errors, incorrect claims apparent from the return, disallowance of a loss or deduction claimed in a late return, and income appearing in Form 26AS or your AIS but not in the return.
If the intimation shows a demand you disagree with, respond on the portal within 30 days, selecting whether you agree or disagree and giving reasons. If you simply ignore it, the adjustment stands. Where the error is yours, a rectification application under Section 154 is the usual route.
Section 139(9): a defective return
Common reasons a return is treated as defective:
- Business income declared but the balance sheet and profit and loss details are incomplete
- Tax payable as per the return has not been paid before filing
- The wrong ITR form has been used for your type of income
- TDS is claimed on income that has not been offered to tax
- Presumptive income is declared below the prescribed rate without a tax audit
You have 15 days to file a corrected return, and you can ask for more time. If the defect is not cured, the return is treated as invalid, which means it is as though you never filed. The knock-on effects are the ones that hurt: no refund, no loss carry-forward, and a late fee if you then file afresh.
Section 143(2): scrutiny
This notice can only be issued within three months from the end of the financial year in which you filed the return, so it arrives relatively soon after filing, not years later. Assessment is faceless, conducted through the portal by a unit you don't meet.
Limited scrutiny
The notice names specific issues, such as a single large deduction or a mismatch. Keep your reply to those issues and support them with documents.
Complete scrutiny
The whole return is examined. Expect questions on bank credits, capital account movements, loans, and large expenses.
Ask for time, in writing
If you need longer, request an extension through the portal before the deadline. An unanswered notice is far worse than a late but reasoned reply.
Personal hearing
A hearing through video conference can be requested. Use it where the issue needs explanation rather than documents alone.
Section 148: income said to have escaped assessment
Reassessment now begins with a show cause notice under Section 148A, which must set out the information suggesting that income has escaped assessment and give you an opportunity to reply. Only after considering your reply can the officer issue a notice under Section 148.
Time limits were shortened by the Finance (No. 2) Act, 2024. In ordinary cases, reassessment can be opened within three years from the end of the relevant assessment year. Where the income said to have escaped assessment is ₹50 lakh or more and is represented by an asset, expenditure or entry, the period extends to five years, reduced from the ten years that applied earlier.
This is the point at which the matter can be closed without a reassessment. Sale proceeds of a property, a large cash deposit, or a transaction reported by a bank often have a complete and ordinary explanation. Giving it here, with documents, is far cheaper than contesting an assessment order afterwards.
How to respond on the portal
Find the notice
Log in to the income-tax portal and open Pending Actions, then e-Proceedings. Every notice, and the window to respond, is listed there.
Read the section and the assessment year
The section tells you what is being asked. The year tells you which records to pull out.
Reconcile against AIS and Form 26AS
Most queries trace back to something reported by a bank, employer, broker or registrar. Start there.
Upload a reasoned reply with documents
Answer each point separately, attach the proof, and keep the acknowledgement. Vague replies invite follow-up questions.
Track it to closure
Check the portal until the proceeding shows as closed. Don't assume silence means it's finished.
This guide is general information on Indian tax and corporate law as it stood on 11 September 2026, and is not advice for any particular case. Rules, due dates and forms change, and how they apply depends on your facts. Please confirm the current position before acting, or speak to a qualified professional.
Who this applies to
What Usually Triggers a Notice
The department works from reported data. These are the entries that most often start a query.
Property transactions
A registered sale or purchase of ₹30 lakh or more in Vadodara is reported, and the gain has to appear in your return.
Large cash deposits
Cash deposits above the reporting thresholds in savings or current accounts are matched against declared income.
Share and mutual fund transactions
Brokers and registrars report gains directly. Traders often miss speculation and F&O income entirely.
Foreign assets and remittances
Foreign bank accounts, shares and ESOPs must be reported in Schedule FA even where no income arises.
Frequently asked questions
Answers to Your Income Tax Notice Questions
I received an intimation under Section 143(1). Is that a notice?
It is a processing intimation rather than a scrutiny notice, and almost every filed return gets one. It shows whether the department agrees with your computation. If it shows a demand you disagree with, respond on the portal within 30 days, or consider a rectification under Section 154.
What happens if I don't fix a defective return under Section 139(9)?
The return can be treated as invalid, as though it was never filed. You lose the refund and the ability to carry forward losses, and filing again afterwards attracts a late fee. You have 15 days to cure the defect and can request more time.
How far back can the department reopen my assessment?
Ordinarily three years from the end of the relevant assessment year. Where the income said to have escaped assessment is ₹50 lakh or more and is represented by an asset, expenditure or entry, the period extends to five years, reduced from ten by the Finance (No. 2) Act, 2024.
Can I get more time to reply to a scrutiny notice?
Yes. Request an extension through the e-Proceedings section of the portal before the deadline, giving a reason. Assessments are faceless, so everything happens on the portal and there is no local officer to approach.
My refund was adjusted against an old demand I knew nothing about. What can I do?
Under Section 245 the department issues an intimation before adjusting. Check Response to Outstanding Demand on the portal, where you can disagree with the demand and give reasons. Old demands often relate to years where a credit was never given effect, so pull out the records for that year.
How do I know a notice is genuine?
Genuine notices carry a Document Identification Number and appear in your account on the income-tax portal under Pending Actions, e-Proceedings. If something arrives by email or message but isn't on the portal, treat it with caution and verify before responding or paying anything.
Received a Notice You Don't Understand? Send It Over.
Share the notice and the assessment year, and we'll tell you what section it's under, what it's asking and how long you have, then prepare the reply with you.
C M Patel & Company, Chartered Accountants
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