How to Respond Income Tax Notice in 2026 ?
Welcome to our blog, where we share everything, you need to know about starting a Section 8 Company. A Section 8 Company is a non-profit organization in India that works for causes like education, charity, environmental protection, sports, and research. Unlike regular companies, it doesn’t share profits among its members but uses them to achieve its mission. To start one, the directors need to get Digital Signature Certificates (DSC) and Director Identification Numbers (DIN). After that, they must get the company name approved and submit important documents like the Memorandum of Association (MoA) and Articles of Association (AoA) to the Registrar of Companies (RoC). The company also needs government approval before it can be officially registered.
A Section 8 Company gets tax benefits, lower stamp duty, and fewer legal formalities compared to other companies. However, it must keep proper records, file annual returns, and use funds only for its intended purpose. If the company closes, its assets cannot be taken by members but must be given to another Section 8 Company. Even with strict rules, this structure is a trusted and legally recognized way for NGOs, trusts, and non-profits to operate effectively.
What Is an Income Tax Notice?
An Income Tax Notice is an official communication sent by the Income Tax Department to a taxpayer regarding their income, tax return, or related financial details. The purpose of this notice is usually to seek clarification, request supporting documents, correct errors in the filed return, or inform the taxpayer about any outstanding tax liability. In many cases, notices are generated automatically when there is a mismatch between the income declared in the return and data available with the department through sources like banks, employers, AIS, or TDS records. Receiving such a notice is quite common and does not always indicate any serious issue.
Income Tax Notices are sent electronically through the income tax e-filing portal and to the registered email ID and mobile number of the taxpayer. Each notice clearly mentions the reason for issuance, the section under which it is issued, and the deadline to respond. It is important to check the notice details carefully, understand what information is being asked for, and submit an accurate response within the given time. Failing to respond or ignoring the notice may lead to penalties, interest, or further scrutiny by the department, while a timely and correct reply usually helps close the matter smoothly without additional complications.
Types of Income Tax Notices Issued by the Department
The Income Tax Department issues different types of notices depending on the situation. Each notice has a specific purpose, and understanding the section mentioned in your notice is important because the way you respond will vary. Here are the most common notices you may receive:
1. Section 143(1) – Intimation Notice
This is usually sent after your income tax return is processed. It informs you about any tax payable, refund, or adjustments made by the department. In most cases, no reply is needed unless you disagree with the calculation.
2. Section 139(9) – Defective Return Notice
This notice is sent when your filed return has mistakes or missing information, such as an incorrect ITR form, missing income details, or incomplete documents. You need to correct the errors and re-submit your return within the deadline.
3. Section 142(1) – Inquiry or Information Notice
The department sends this notice when they need more information or documents regarding your income or return. Sometimes it is issued if you haven’t filed your return. You must provide the requested details on time.
4. Section 143(2) – Scrutiny Notice
This notice is sent when your return is selected for detailed checking. You may need to submit supporting documents and explanations for your income, deductions, or other claims. Responding properly and on time is very important.
5. Section 148 – Income Escaping Assessment Notice
If the department believes some income was not reported in your earlier returns, they send this notice. It asks you to file or re-file your return for that year. This is a serious notice and usually requires careful attention.
6. Section 156 – Demand Notice
This notice tells you about tax, interest, or penalties you need to pay. It includes the amount due and payment deadline. If you disagree with the demand, you can respond or file a rectification request online.
7. Section 245 – Adjustment of Refund Notice
If you have pending tax dues from previous years, the department may adjust your refund against them. You can respond if you disagree, otherwise, the adjustment is done automatically.
8. Section 270A / 271AAC – Penalty Notice
These notices are issued when there is under-reporting or misreporting of income, or other non-compliance. You are given a chance to explain your case before the penalty is finalized.
How to Respond to an Income Tax Notice Online ?
Log in to the Income Tax e-Filing portal using your PAN and password. Make sure your login credentials are correct and your account is active.
Navigate to the “e-Proceedings” or “Pending Actions” section to view all notices issued to you. Each notice will show the type, section, and deadline.
Click on the relevant notice and read it carefully to understand why it was issued, the section under which it is sent, and what specific information or documents are required.
Gather all necessary documents, such as Form 16, bank statements, invoices, TDS certificates, or any other proof supporting your income, deductions, or claims.
Draft a clear and concise explanation addressing each query in the notice. Avoid long paragraphs and be factual in your reply.
Upload the documents in the accepted format (PDF, JPEG, etc.) and ensure the total file size meets portal requirements.
Submit your response online before the due date mentioned in the notice to avoid penalties, interest, or further scrutiny.
After submission, download and save the acknowledgement receipt. Keep it safely as proof of submission in case of future reference or follow-up.
Monitor your e-Filing account regularly for any further communications or follow-up notices from the Income Tax Department. Respond promptly if required.
If you are unsure about any part of the notice, consider consulting a tax professional or CA to ensure accurate and timely compliance.
Documents Required to Reply to an Income Tax Notice
When replying to an Income Tax Notice, submitting the right documents is just as important as giving the correct explanation. Don’t worry—you usually don’t need anything unusual. Most notices ask for documents that you already have, such as salary proofs, bank statements, or investment details. The exact documents depend on the type of notice and what the Income Tax Department wants to verify.
Common Documents You May Need While Replying to an Income Tax Notice:
Form 16 / Form 16A – Proof of salary income or TDS deducted
Bank Account Statements – Statements of savings or current accounts for the relevant year
AIS / TIS Report – To check income details available with the Income Tax Department
Copy of Filed Income Tax Return (ITR) – For the assessment year mentioned in the notice
Income Computation Sheet – Breakdown of income, deductions, and tax calculation
Investment Proofs – LIC, PPF, ELSS, health insurance, and other tax-saving investments
Business or Expense Records – Bills, invoices, or expense details claimed in the return
Capital Gains Details – Property sale papers, share or mutual fund transaction statements
Interest Certificates – Interest earned from bank accounts, fixed deposits, or loans
Loan Statements – Home loan or education loan interest certificates, if claimed
Previous Years’ ITRs – Sometimes needed for comparison or clarification
Any Other Document Mentioned in the Notice – Always check the notice carefully
Step-by-Step Guide to Reply to an Income Tax Notice Online in 2026
Responding to an Income Tax Notice in 2026 does not have to be confusing or stressful. If you follow these simple steps calmly and carefully, most notices can be resolved online without any trouble.
Log in and check the notice
Sign in to the Income Tax e-Filing portal using your PAN and password. Go to the “Pending Actions” or “e-Proceedings” section and open the notice to see why it was issued and what the deadline is.Understand what the department is asking
Read the notice slowly and carefully. Check whether they are asking for documents, clarification, correction in your return, or payment of any tax. Knowing this clearly helps you give the right response.Collect the required documents
Gather the documents mentioned in the notice, such as Form 16, bank statements, AIS/TIS, investment proofs, or capital gains details. Make sure the documents are correct and match the information in your return.Prepare and submit your reply online
Upload the documents on the portal and write a clear and simple explanation. Submit your response before the due date to avoid penalties or further action.Save proof and follow up if needed
After submitting, download the acknowledgement and keep it safely for future reference. Keep checking the portal for any updates or additional queries from the Income Tax Department.
What Happens If You Don’t Respond to an Income Tax Notice?
The Income Tax Department may complete your case without hearing your side, based only on the data available with them. This is known as a best judgment assessment.
You may receive a higher tax demand than expected, even if the issue could have been easily clarified with documents.
Penalties and interest may be added for non-response or delay, increasing your total tax liability.
You may lose deductions, exemptions, or benefits claimed in your return if you fail to provide proof on time.
The department can reassess your income, which may result in additional tax, interest, or penalty.
Your income tax refund may be adjusted or blocked against the outstanding demand raised by the department.
Continued non-response may trigger multiple follow-up notices and closer scrutiny of your tax records.
In serious cases or repeated non-compliance, the department may initiate legal or prosecution proceedings under the Income Tax Act.
Ignoring notices can also affect your future tax filings, as your account may be marked for higher scrutiny in upcoming years.
Common Errors to Avoid When Replying to an Income Tax Notice
Never ignore the notice; always read it carefully and respond within the deadline.
Avoid missing the response deadline, as it can lead to penalties, interest, or a best judgment assessment.
Do not upload wrong, incomplete, or unclear documents; ensure all files are accurate and readable.
Provide clear and precise explanations that directly address the queries in the notice.
Never submit false or misleading information, as it can result in penalties or legal action.
Don’t respond without understanding the notice, especially for scrutiny or reassessment cases.
Verify all data, including AIS/TIS, bank statements, and return details, before replying.
Always download and keep the acknowledgement as proof of submission.
Seek professional help from a CA or tax expert if the notice is complex or unclear.
Get Professional Help to Reply to Your Income Tax Notice
If your income tax notice involves high tax demands, scrutiny assessments, reassessment under Section 148, or complex issues like capital gains or business income, it’s a good idea to take professional help. Handling it alone can be confusing and may lead to mistakes, penalties, or unnecessary stress. Even small errors in your response or missing documents can trigger further notices, so having an expert guide you can save time and avoid complications.
A tax expert or CA can help you understand the notice, prepare accurate explanations, organize all required documents, and submit your response correctly online. This ensures that you comply with all income tax rules and avoid penalties. For reliable and hassle-free support, contact VakilAdda. Visit 🌐vakiladda.com or call/WhatsApp 📞 +91 97263 65833 to get professional guidance and resolve your notice quickly, safely, and with peace of mind.
