Income Tax Notice Response: Section 143(1), 148 & 245

TL;DR

Most income tax notices are routine and reply-ready in 30 days. Identify the section, classify the bucket, prepare the response within the stipulated window, and escalate only when the demand crosses the threshold.

If you have opened an email or a physical letter from the Income Tax Department and felt your stomach drop, this is the post you actually need. Income tax notices look frightening because they use legal language, cite section numbers you have never read, and give you a deadline in days, not weeks. The reality is that most notices are administrative — they ask for documents, clarification, or correction, and the response is a one-to-five-day job if your books are in order. A small minority are quasi-judicial and need a professional response within a strict window. The single most useful skill is reading the section number at the top of the notice. It tells you what kind of notice it is, what the response window is, and what the consequences of silence are.

This guide is the triage we run for our clients. It maps each common notice type to its section, its response window, the typical exposure, and the bucket it falls into (self-service, CA-led, or counsel-led). If you have a notice in hand, jump to the section that matches its number. If you do not, read the first three sections and you will know what to do the day a notice arrives.

Quick Answer

An income tax notice is a written communication from the Income Tax Department asking you to do one of four things: furnish information, produce documents, show cause why a particular income should not be added to your return, or pay a stated demand. Identify the section number printed on the notice header — that tells you which of the four it is. Match the section to the table below and respond within the stipulated window.

Section	What the department is asking	Typical response window	Bucket
143(1)	Intimation — your ITR has been processed. May carry a refund, a no-demand, or a small demand based on AIS / 26AS adjustment.	Pay demand within 30 days; file rectification within the limitation period (typically up to 4 years) if you disagree.	Self-service
133(6)	Information request — produce a specific document or answer a specific question.	7 days from service (typically, extendable on request).	Self-service
139(9)	Defective return — your ITR has a defect (wrong form, missing schedule, mismatch).	15 days from service (extendable on request).	Self-service
142(1)	Inquiry before assessment — produce accounts, documents, and a prescribed return.	30 days or the period specified in the notice (extendable on request).	CA-led
143(2)	Scrutiny assessment — your ITR has been picked for detailed examination.	30 days or the period specified.	CA-led
148A	Income escaping assessment (pre-notice enquiry) — show cause why income should not be added.	7 to 30 days as specified in the notice.	CA-led
148	Income escaping assessment — assessment proceeding after enquiry.	Reply with return and documents within the timeline in the notice.	CA-led
245	Set-off of refund against a demand — refund withheld, opportunity to be heard.	30 days.	CA-led
156	Demand notice — pay the demand stated.	30 days from service.	CA-led

The bucket determines whether you can reply yourself, whether you need a CA, or whether you need a counsel. As a rule of thumb, sections 143(1), 133(6), and 139(9) are self-service if the books are clean. Sections 142(1), 143(2), 148A, 148, 245, and 156 are CA-led. If any of these involve a demand above ₹10 lakh, a fraud allegation, search and seizure, or prosecution, involve a counsel.

What an Income Tax Notice Actually Is

An income tax notice is not, in itself, a demand. It is a request to do something — usually within a deadline — and the response you file decides the outcome. Three structural features matter:

1. The section number. Every notice is issued under a specific section of the Income Tax Act, 1961. The section number is the first thing to read.
2. The response window. Each section prescribes a default window, and the notice may give you a longer or shorter one. The window is counted from the date of service, which is usually the date the notice was sent or uploaded on the e-filing portal.
3. The consequence of silence. If you do not respond within the window, the department may pass an ex parte order — meaning they decide without your input. An ex parte order is harder to overturn than a well-argued response.

The notice is also typically delivered in one of two channels: the e-filing portal (under e-Proceedings or e-Nivaran) or in physical form to your registered address. Notices issued from AY 2022-23 onwards are increasingly delivered only on the portal, and email is a courtesy notification. Always check the e-filing portal under Pending Actions → Compliance for notices you may have missed.

Section 143(1) — The Most Common Notice (and Why It Is Usually Fine)

Section 143(1) is the summary intimation the Centralised Processing Centre (CPC) issues after processing your ITR. It is not a scrutiny notice, not a show-cause, and not a demand in the adversarial sense. It is the system’s communication that “we have looked at your return and arrived at a number — here it is.”

The intimation can carry one of three outcomes:

• Refund due. Tax paid (TDS + advance tax + self-assessment tax) exceeds the tax on total income. The refund is processed via ECS to the validated bank account, typically 7 to 15 days after the intimation.
• No demand, no refund. The processed income matches the returned income. Treat this as confirmation that the ITR is closed at the CPC level.
• Demand raised. Tax paid is less than the tax on total income. The intimation states the demand amount and is also issued as a demand notice under Section 156.

The demand under Section 143(1) is typically the result of an AIS mismatch — interest income shown in the Annual Information Statement but not in your return, dividend income not declared, a TDS credit claimed in the ITR but not in 26AS, or a bank deposit that the system flags as unexplained credit.

How to respond to a Section 143(1) demand

If you agree with the adjustment, pay the demand within 30 days through the e-filing portal using Challan 280. Interest under Section 234A applies from the original due date if the ITR was filed late.

If you disagree with the adjustment, file a rectification under Section 154 on the e-filing portal. The rectification is filed as Rectification Request → Request for Rectification under 154, and you can attach supporting documents. The CPC will either accept the rectification (issue a revised intimation) or reject it with reasons. If the rectification is rejected, the next step is an appeal to the CIT(A) under Section 246A within 30 days of the rejection order.

A practical workflow is in our PAN-Aadhaar link and ITR processing guide, which walks through the AIS reconciliation and the rectification flow.

Section 133(6) — The Information Request

Section 133(6) is a generic inquiry power. The department uses it to ask a specific question — usually “explain why your bank account shows a credit of ₹X from Y on date Z”, or “produce the agreement for the property transaction you declared in ITR”. The notice is typically a short letter, and the response window is 7 days from service, extendable on written request.

The right response is a one-page letter that:

1. Identifies the document or explanation being asked for.
2. Attaches the document or gives the explanation.
3. Includes the PAN, the assessment year, the date, and the taxpayer’s signature.

This is a self-service item if the document is on file. If the request is for a complex reconciliation, hand it to a CA.

Section 139(9) — The Defective Return Notice

Section 139(9) is issued when the CPC finds a defect in your filed return. Common defects include:

• Wrong ITR form for the nature of income (e.g., filing ITR-1 when you have capital gains, see our ITR form selection guide).
• Income omitted — typically detected through an AIS / 26AS mismatch.
• Deduction claimed without valid proof — TDS claimed but not in 26AS, or 80C claimed without investment details.
• Bank account not validated — the refund account is not pre-validated on the e-filing portal.
• PAN-Aadhaar not linked — see our PAN-Aadhaar linking guide for the linking process and consequences.

The response window is 15 days from service, extendable on request. The response is a corrected return filed on the e-filing portal (under e-File → File ITR → Revised/Defective Return). The corrected return replaces the original ITR, and the CPC re-processes it.

The trap is ignoring the notice because the original ITR was processed. A defective return notice is valid even after processing — the CPC’s processing is provisional until the defect is cured. If you miss the window, the original return is treated as invalid and the department may proceed to assess your income without the benefit of the return.

Section 142(1) — The Inquiry Before Assessment

Section 142(1) is issued when the Assessing Officer (AO) wants to make an assessment under Section 143(3) or 144. The notice asks the taxpayer to:

1. Furnish a return (if not already filed).
2. Produce or cause to be produced specific accounts and documents.
3. Attend in person.

The response window is typically 30 days from service, or the period specified in the notice. It is extendable on a written request showing reasonable cause.

This is a CA-led response. The AO is signalling that your ITR has been picked for scrutiny, and the documents requested (bank statements, books of accounts, expense vouchers, party confirmations) need to be compiled systematically. A poorly prepared response is the most common trigger for an adverse assessment.

Section 143(2) — The Scrutiny Assessment Notice

Section 143(2) is the formal notice that your ITR has been selected for scrutiny assessment. The selection can be:

• Random — the system picked your return out of a basket.
• Risk-based — your ITR matched a risk parameter (high refund, large cash deposit, mismatch with AIS).
• Specific information — the AO has received a report from another wing (Investigation, TDS, AIR) suggesting an issue.

The response is the same as Section 142(1) — produce documents, attend hearings, and explain. The scrutiny can result in an assessment under Section 143(3) (regular assessment after considering your submissions), Section 144 (best judgment assessment if you do not cooperate), or Section 147 (income escaping assessment, which now flows through Section 148A).

The practical advice: engage a CA the day you receive a Section 143(2) notice. The cost is far lower than the cost of an adverse assessment.

Section 148A and Section 148 — Income Escaping Assessment

This is the notice that generates the most anxiety. Section 148 and the pre-notice procedure in Section 148A are the Income Tax Department’s powers to assess income that has escaped assessment in earlier years. The current procedure (Finance Act 2021, effective AY 2022-23 onwards) is a two-step process:

1. Section 148A notice. The AO has information suggesting income has escaped assessment. The AO conducts an inquiry if needed and issues a notice under Section 148A asking you to show cause within a specified period (typically 7 to 30 days) why the income should not be added.
2. Section 148 notice. If your response does not satisfy the AO, the AO proceeds with an assessment and issues the Section 148 notice requiring you to file a return within the specified period.

Time limits

The assessment under Section 148 is time-barred beyond the limits in Section 149 (as amended):

• 3 years from the end of the relevant assessment year — for income escaping assessment up to ₹50 lakh.
• 5 years from the end of the relevant assessment year — for income escaping assessment above ₹50 lakh.
• 10 years from the end of the relevant assessment year — for income escaping assessment involving specified assets (immovable property, shares, jewellery, art).

If the notice is issued beyond the time limit applicable to your case, it is a jurisdictional defect and the notice can be challenged.

What to do if you receive a Section 148A notice

1. Do not ignore it. The most common cause of an adverse ex parte assessment is silence.
2. Read the reasons. The notice must state the specific information on the basis of which the AO believes income has escaped assessment. The reasons are the entire basis for the case.
3. Compile your documents. The response is typically a one-page representation with supporting documents — bank statements, agreements, transaction confirmations, declarations.
4. File within the window. Late responses are not automatically rejected, but the AO gets to use them at their discretion.

A worked example is in the next section.

Section 245 — Set-Off of Refund Against a Demand

Section 245 is issued when the department proposes to adjust your refund against an outstanding demand (typically a demand raised for an earlier year that you have not paid or appealed). The notice gives you the opportunity to be heard before the adjustment is made.

The response window is 30 days from service. The response is typically:

• If you accept the demand: Pay it before the refund adjustment and request the AO not to adjust.
• If you have appealed the demand: State the appeal details (CIT(A) appeal number, date, stay application) and request the AO to keep the refund pending the appeal outcome.
• If the demand is disputed on merits: File a representation explaining why the demand is incorrect, attach supporting documents, and request the AO to either withdraw the adjustment or refer the matter to the higher authority.

If you ignore Section 245, the AO will adjust the refund. The adjustment is appealable under Section 246A, but the appeal does not automatically stay the adjustment. A stay application under Section 254(2A) (in pending appeals) or an interim order from the CIT(A) is needed.

Section 156 — The Demand Notice

Section 156 is the formal demand notice demanding payment of tax, interest, or penalty. It is issued after an assessment order (regular scrutiny, best judgment, escaped assessment, or processing under Section 143(1)).

The response window is 30 days from service. The options are:

• Pay the demand using Challan 280 within 30 days.
• File an appeal to the CIT(A) under Section 246A within 30 days, with a stay application if the demand is disputed.
• File a rectification under Section 154 if the demand is on a clerical error.

Section 156 is the most common notice that taxpayers pay without appealing, sometimes because they do not realise the demand is appealable. Every demand notice carries appeal rights, and the appeal number / date are mandatory disclosures in the notice footer.

Worked Example — Responding to a Section 148A Notice

Suppose you are a salaried individual who declared ₹12 lakh of income in ITR-1 for AY 2024-25 (FY 2023-24). You received a Section 148A notice on 15 September 2026 stating:

“On the basis of information available in the Annual Information Statement (AIS), it appears that income of ₹3,50,000 from a fixed deposit in [Bank Name] maturing in March 2024 has escaped assessment in your return for AY 2024-25. You are required to show cause within 15 days why the said income should not be assessed under Section 148.”

The window is 15 days, ending 30 September 2026.

Step 1 — Read the reasons carefully. The notice cites a specific ₹3,50,000 figure and a specific transaction. The cause is a fixed-deposit interest credit that did not appear in your ITR-1.

Step 2 — Pull the supporting documents.

• The bank’s interest certificate (Form 16A from the bank, or the bank statement for March 2024).
• The original ITR-1 to confirm whether the interest was declared in the schedule for income from other sources.
• The AIS / 26AS download for AY 2024-25 to confirm whether the interest was auto-reported.
• The original FD receipt and maturity advice.

Step 3 — Draft the representation.

The representation is a one-page letter:

• PAN, AY, date, and reference to the notice number.
• A statement: “The interest of ₹3,50,000 was declared at Sr. No. [X] in Schedule OS of the ITR-1 filed for AY 2024-25. The AIS mismatch is on account of [explain — typically, the bank’s reporting had a delay or your ITR-1 reported the interest under a different category].”
• A request: “In view of the above, no income has escaped assessment, and the notice may kindly be withdrawn.”
• The signature of the taxpayer.

Step 4 — Attach documents. Attach the bank interest certificate, the relevant ITR-1 schedule, the AIS printout, and any reconciling document. Number the attachments.

Step 5 — Upload on the e-filing portal. The response is filed under e-Proceedings → Compliance → Submit Reply, with the supporting documents. The portal will generate an acknowledgement.

Step 6 — Wait for the AO’s order. If the AO is satisfied, the proceedings are closed. If not, the AO passes an order under Section 148A(d) rejecting your representation and proceeds to issue a Section 148 notice. The Section 148 notice then triggers a fresh window for filing a return.

The total time for a clean Section 148A response is two to four hours of work, plus wait time. The cost of ignoring it is an ex parte assessment at the AO’s discretion.

Common Mistakes

The mistakes below are the ones we see generating the most adverse outcomes for clients. Treat the numbered list as your notice-handling checklist.

1. Treating the e-filing portal as a passive dashboard. Notices under Section 143(1), 143(2), 148A, 148, 245, and 156 are increasingly delivered only on the e-filing portal, with email as a courtesy reminder. Missing email is forgivable; missing the portal is not. Check Pending Actions → Compliance weekly.
2. Confusing Section 143(1) with Section 143(2). The intimation under Section 143(1) is automatic and not adversarial. The notice under Section 143(2) is a scrutiny selection and requires a substantive response. Reading only the section number suffix can lead to missing the response deadline.
3. Ignoring the response window. Each section prescribes a default window, and the notice may give a shorter or longer one. The window is counted from the date of service, not the date you opened the email. A response filed one day late can be summarily rejected by the AO, and the ex parte order then becomes harder to overturn.
4. Sending a one-line reply without documents. A bare “I disagree” without supporting documents is not a representation. The AO is not required to investigate — they are required to consider what you submit. Submissions without evidence are typically dismissed.
5. Filing a rectification when the right remedy is an appeal. A rectification under Section 154 is for mistakes apparent from the record. If the issue is an interpretation (e.g., whether a particular receipt is taxable, whether a deduction is allowable), the remedy is an appeal under Section 246A, not a rectification. Filing a rectification for a non-rectifiable issue wastes the limitation period.
6. Treating Section 148A as a notice to “pay tax”. Section 148A is a pre-assessment show cause, not a demand. If the AO is satisfied with your response, no assessment is made. Treating the notice as a demand and paying tax prematurely can be a mistake — once paid, the refund route is longer than the assessment route.
7. Not responding to Section 245 in time. Section 245 refund adjustments are routinely processed silently. If your refund is being adjusted against a disputed demand, you must file a representation within 30 days. After adjustment, the only remedy is appeal plus refund.
8. Letting the demand under Section 156 accumulate interest. Section 156 demand carries interest under Section 220(2) at 1% per month or part of the month if not paid within 30 days. Pay or appeal — silence makes the demand more expensive.
9. Using the same reply template for different sections. A reply to Section 133(6) (information request) is not a reply to Section 148A (show cause). The structure, the language, the attachments, and the legal references are different. Templates are useful; copy-paste without editing is risky.
10. Engaging a counsel for a Section 133(6) or 139(9) notice. These are self-service items if the books are in order. A counsel-led response for a routine defect notice can cost 10x the value of the demand. Conversely, engaging only a CA for a Section 148A notice involving search and seizure or fraud allegation is malpractice. Match the professional to the bucket.

FAQ

What is the most common income tax notice?

The most common is the Section 143(1) intimation, which the CPC issues after processing every ITR. If your ITR is clean, the intimation usually carries a refund confirmation. If there is an AIS / 26AS mismatch, the intimation may carry a demand. Section 143(1) is processed automatically and is not adversarial — your response is either a payment or a rectification request.

How many days do I have to respond to an income tax notice?

The window depends on the section. Section 133(6) is typically 7 days, Section 139(9) is 15 days, Section 142(1) is 30 days, Section 143(2) is 30 days or the period specified, Section 148A is typically 7 to 30 days as specified, Section 245 is 30 days, and Section 156 is 30 days. The exact window is printed on the notice. Count from the date of service, not the date you opened the email.

What happens if I do not respond to a Section 148A notice?

If you do not respond within the specified window, the AO proceeds under Section 148A(d) and issues a Section 148 notice. The assessment is then made on the basis of the AO’s information and any material available. The resulting demand can include the escaped income, interest under Section 234A / 234B / 234C, and penalty under Section 270A. An ex parte order is significantly harder to overturn than a well-argued representation.

Can I respond to a notice online on the e-filing portal?

Yes. Most notices issued from AY 2022-23 onwards are delivered on the e-filing portal under e-Proceedings and can be responded to on the portal itself. The response is filed as Submit Reply with attached documents, and the portal generates an acknowledgement. Physical responses by post are still accepted but slower.

What is the difference between Section 143(1) and Section 143(2)?

Section 143(1) is an automatic intimation issued by the CPC after ITR processing — it is not a scrutiny notice. Section 143(2) is a scrutiny selection notice issued by the AO when your ITR has been picked for detailed examination. The two have entirely different implications and response requirements. Always read the full section number printed at the top of the notice.

Can I appeal against a Section 143(1) demand?

Yes. If the Section 143(1) intimation carries a demand and you disagree, you can file a rectification under Section 154 on the e-filing portal. If the rectification is rejected, you can appeal to the CIT(A) under Section 246A within 30 days of the rejection order. You can also appeal directly if the rectification route is not appropriate for the issue (e.g., a question of interpretation rather than a clerical error).

What is a defective return notice under Section 139(9)?

A defective return notice is issued when the CPC finds a defect in your filed ITR — wrong form, missing schedule, AIS mismatch, unvalidated bank account, or PAN-Aadhaar not linked. The response window is 15 days from service. The response is to file a corrected return on the e-filing portal, replacing the original. If you miss the window, the original return is treated as invalid and the AO may proceed to assess your income without a return on file.

Do I need a CA to respond to every notice?

No. Section 143(1) intimation disagreements, Section 133(6) information requests, and Section 139(9) defective return notices are self-service if your books are in order. Sections 142(1), 143(2), 148A, 148, 245, and 156 are CA-led — the response involves compiling accounts, drafting representations, and possibly attending hearings. If any notice involves a demand above ₹10 lakh, a fraud allegation, search and seizure, or prosecution, involve a counsel.

What documents should I keep ready for any income tax notice?

Keep the following on file in digital and physical form for at least 6 years from the end of the relevant assessment year: Form 16 / Form 16A, Form 26AS and AIS downloads, bank statements for all accounts, capital gains statements from brokers, property transaction documents, business books of accounts, GST returns (if applicable), and a copy of every filed ITR with the acknowledgement. Most notices can be responded to within 24 to 48 hours if these documents are accessible.

Is there a fee for responding to an income tax notice?

There is no government fee for filing a response on the e-filing portal. The cost is the professional fee if you engage a CA or counsel. A CA-led response for a Section 148A notice typically ranges from a few thousand to a few tens of thousands of rupees depending on the complexity. A counsel-led response is significantly more expensive and is justified only for high-value or quasi-criminal notices.

Can a Section 148 notice be issued beyond the time limit?

No. Section 149 prescribes the time limits for issuing a Section 148 notice — 3 years, 5 years, or 10 years from the end of the relevant assessment year, depending on the amount and the nature of the escaped income. If the notice is issued beyond the applicable time limit, it is a jurisdictional defect and can be challenged. The first thing to verify on receipt of a Section 148 notice is whether the time limit has been complied with.

What is the difference between Section 245 and Section 156?

Section 245 is a notice proposing set-off of a refund against an existing demand, with the right to be heard before the adjustment. Section 156 is a demand notice for payment of tax, interest, or penalty after an assessment order. Section 245 is preventive; Section 156 is the demand itself.

Sources and References

• Section 133(6), Income Tax Act, 1961 — Inquiry power to call for information
• Section 139(9), Income Tax Act, 1961 — Defective return notice
• Section 142(1), Income Tax Act, 1961 — Inquiry before assessment
• Section 143(1), Income Tax Act, 1961 — Summary intimation by CPC after ITR processing
• Section 143(2), Income Tax Act, 1961 — Notice for scrutiny assessment
• Section 143(3), Income Tax Act, 1961 — Regular assessment after scrutiny
• Section 144, Income Tax Act, 1961 — Best judgment assessment (no cooperation)
• Section 145, Income Tax Act, 1961 — Method of accounting
• Section 147, Income Tax Act, 1961 — Income escaping assessment (jurisdiction)
• Section 148, Income Tax Act, 1961 — Notice for assessment of escaped income
• Section 148A, Income Tax Act, 1961 — Pre-assessment show-cause notice (Finance Act 2021)
• Section 148B, Income Tax Act, 1961 — Definition of “information” suggesting escape
• Section 149, Income Tax Act, 1961 — Time limits for issuance of Section 148 notice
• Section 153, Income Tax Act, 1961 — Time limit for completion of assessment / re-assessment
• Section 154, Income Tax Act, 1961 — Rectification of mistakes apparent from record
• Section 156, Income Tax Act, 1961 — Demand notice
• Section 220, Income Tax Act, 1961 — Consequences of failure to pay demand
• Section 234A / 234B / 234C, Income Tax Act, 1961 — Interest on late payment and default in advance tax
• Section 245, Income Tax Act, 1961 — Set-off of refund against existing demand
• Section 246A, Income Tax Act, 1961 — Appeal to CIT(A)
• Section 270A, Income Tax Act, 1961 — Penalty for under-reporting or mis-reporting of income
• Finance Act, 2021 — Replaced the old Section 148 procedure with the new Section 148A / 148 procedure effective 1 April 2021 (AY 2022-23 onwards)
• Income Tax e-filing portal — https://www.incometax.gov.in
• CPC-ITR (Centralised Processing Centre) — Notices under Section 143(1), 139(9) issued via CPC, Bengaluru
• e-Proceedings module — Portal for replying to notices from AY 2022-23 onwards
• AIS / Form 26AS — Annual Information Statement and Tax Deducted at Source Statement, available on the e-filing portal

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Disclaimer: This article is for general informational purposes and reflects the position of the Income Tax Act, 1961 as understood at the time of publication. Notice response procedure, time limits, and appeal routes can change with subsequent Finance Acts, notifications, circulars, and judicial decisions. The treatment of a specific notice depends on the facts, the assessment year, and the assessing officer’s record. Consider professional advice before responding to a notice involving a demand above ₹10 lakh, a search or seizure, a prosecution allegation, or a cross-border element.

If you have received an income tax notice and need to triage it, FinTax24 handles end-to-end ITR filing and processing support, including Section 143(1) reconciliation, Section 139(9) corrected returns, and Section 148A / 148 representations. For notices with complex demands or appeals, our revised ITR filing and updated return (ITR-U) filing services cover the post-notice remedies. Share the notice (redacted if you prefer) on WhatsApp for a no-charge assessment.

For the related GST notice workflow, see our GST notices: lawyer vs CA-only triage and the GST notice response playbook. For the underlying ITR processing that produces Section 143(1) intimations, see our PAN-Aadhaar link and ITR processing guide and the ITR form selection guide.