How to Respond Income Tax Notices? Guide by CA in Udaipur

In this blog, we’ll break down the most common types of income tax notices, the documents you need to respond, and why taking help from a CA in Udaipur can make the process smoother and stress-free.

Don’t Panic: Understanding Income Tax Notices :- For many honest taxpayers, filing an income tax return feels like the final step in their tax journey. But sometimes, that journey continues with the unexpected arrival of an income tax notice in your inbox. It can feel overwhelming—but don’t worry. Most of these notices are routine and easily manageable, especially with the right support from a qualified Chartered Accountant (CA) in udaipur .

With the government’s use of advanced data analytics, integration of financial records (via AIS, TIS, 26AS), and stricter compliance norms, the issuance of notices has increased. But this doesn’t mean you’ve done anything wrong. Often, it’s simply a request for clarification.

What it means:

1. Section 143(1): Intimation After Return Processing

This is a preliminary assessment sent after your return has been processed. It compares your declared income with the tax department’s records.

• ✅ If everything matches: no action needed
• ❌ If there’s a mismatch: you may need to pay more tax or receive a refund

Action Steps:

• Check the intimation for errors in TDS, deductions, etc.
• Gather relevant documents: Form 16, TDS certificates, investment proofs
• If needed, revise your return under Section 139(5)

CA in Udaipur Says: “This is not a final order. Respond after carefully reviewing discrepancies. We can help you prepare a revised return and supporting explanations.”

2. Section 142(1): Inquiry Before Assessment

What it means:

A formal information request from the Assessing Officer. Sent if:

• You haven’t filed your return
• More information is required to complete your assessment

Documents You May Need:

• Salary slips
• Bank statements
• Rent receipts
• Business/professional income details

Risks of Ignoring:

• Best Judgement Assessment under Section 144
• Penalties or prosecution

CA in Udaipur Advises: “You must submit all requested documents clearly. We help clients prepare fact-based responses to prevent escalation or misinterpretation.”

3. Section 139(9): Defective Return

What it means:

There’s an error or omission in your filed return—such as:

• Incorrect ITR form used
• Missing income details
• Tax payment details not disclosed

Action Steps:

• You get 15 days to correct the defect
• File a corrected return via the portal
• If ignored, your return is considered invalid, which can cause loss of exemptions or carry-forward losses.

Advice from CA in Udaipur: “We identify defects, correct ITR forms, and file revised returns with necessary tax payment disclosures. Time is critical—act quickly.”

4. Section 245: Adjustment Against Tax Dues

What it means:

You’re eligible for a refund, but the department is adjusting it against previous unpaid taxes.

Your Options:

• Accept the adjustment
• Dispute it with valid reasoning Response Time: 21 days

You’ll need:

• Past demand and refund records
• Previous ITRs

CA Suggests: “Always review the past dues before agreeing to an adjustment. We analyze demand orders and help you draft an accurate response.”

5. Section 148: Income Escaping Assessment

What it means:

The department has credible information that some of your income was not disclosed in past returns.

What You Need to Do:

• File a fresh return for the relevant year
• Explain income sources clearly
• Submit supporting documents (property sale deeds, bank credits, foreign income disclosures, etc.)
• This notice is serious and could involve reassessment under Sections 147 to 153

 CA in Udaipur Warns: “These cases need expert handling. From gathering correct documentation to representing you in reassessment proceedings—we help every step of the way.”

How to Respond to Any Income Tax Notice – Step by Step

1. Login to the Income Tax Portal
2. Check the notice and verify its Document Identification Number (DIN)
3. Identify the section under which it was issued
4. Gather necessary documents
5. Approach a CA in Udaipur for reviewing the notice and drafting a compliant response
6. Submit your reply via the e-filing portal
7. Retain all acknowledgments and correspondence
8. Track updates on the portal regularly

Why Approach a CA in Udaipur?

Handling tax notices can be technical, especially if they involve legal interpretations, reassessments, or multiple years. A professional Chartered Accountant in Udaipur can:

• Analyze your notice and income data
• Draft accurate and timely responses
• Represent you in case of reassessments or appeals
• Ensure no legal rights are lost due to inaction

“Each notice is unique. We help clients understand their situation and respond strategically—minimizing risk and avoiding penalties,” says a CA in Udaipur.

Don’t Ignore a Notice – Seek Help Immediately

Whether it’s a minor clarification or a complex reassessment, responding on time is non-negotiable. The Income Tax Department imposes penalties for delays or non-compliance.

If you’ve received a notice and aren’t sure what to do:
➡Reach out to a CA in Udaipur
➡Submit your documents
➡Let the professionals guide you with a legally sound, fact-based response

Conclusion

Receiving an income tax notice doesn’t mean you’ve done something wrong. It’s often just the system seeking clarification. The key is to stay calm, read carefully, and respond with the right documents and professional help.

Need help replying to a tax notice? Connect with a qualified CA in Udaipur and get your case handled with confidence.