What to do in the first few days after a notice arrives. General legal information only.
First, the law that applies
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, with renumbered sections. Notices for earlier years may still refer to the 1961 Act, or be issued under the new Act with transition rules. Read which Act and which section the notice cites.
Step 1: Check it is genuine
- Every notice should carry a Document Identification Number (DIN).
- Log in to the income tax e-filing portal and confirm the notice appears under pending actions.
- Do not click links or pay through messages that do not show up on the portal.
Step 2: Identify the type
- Intimation or adjustment after processing of the return, for example a mismatch with AIS or Form 26AS.
- Scrutiny notice asking for documents to support the return, usually through faceless assessment.
- Reassessment (show-cause and notice for income said to have escaped assessment, the old sections 148A and 148). Time limits and sanction requirements are strict and often decide the case.
- Demand notice for tax, interest or penalty.
- Defective return notice asking you to correct the return.
Step 3: Note the deadline
Most notices allow a short time to reply. If you need more time, request an adjournment on the portal before the deadline and keep the acknowledgement. Missing a deadline can lead to an order based only on the department’s material.
Step 4: Reply with documents
- Reply point by point to what is asked.
- Attach bank statements, invoices, agreements, capital-gain workings, TDS certificates and AIS feedback as relevant.
- For a reassessment show-cause, object to jurisdiction and limitation first, then the merits.
Step 5: If the order goes against you
Consider an appeal to the Commissioner (Appeals) within the time allowed, a stay of demand, rectification of mistakes apparent from the record, or a writ to the High Court where the notice itself is without jurisdiction.
Entity-specific points
- Companies and firms: transfer pricing, related-party transactions, cash deposits and unexplained credits.
- AOP and BOI: share determinability among members and the applicable rate.
- Trusts: registration and approval status, application of income and anonymous donations.
Related: Income tax practice · Due diligence · Send an enquiry
As of 18 October 2026. Important disclaimer: This article is general legal information, not legal or tax advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current provisions and time limits before relying on it.
