Notice Under section 143(2) A notice can also be issued if you fail to file your return within the prescribed time. General notice for verification A general notice for verification is issued to check transactions. For example, a taxpayer may receive a notice of cash deposit or initial public offer (IPO) subscription. Such notices typically require you to only confirm whether you have filed your return and if this transaction was included. This notice should not be construed as a scrutiny notice. Notice is about assessment or reassessment If the notice is about assessment or reassessment, it indicates that the taxpayer’s case has been selected for detailed scrutiny. It will generally be accompanied by a questionnaire seeking information. Notice for limited scrutiny If the notice is related to limited scrutiny, you have to provide details of particular aspects mentioned in the notice. How to reply to a Notice Go through the email and do what is needed as early as possible because most notices require time-bound response. You can reply to almost all tax notices online, through your tax filing account on www.incometaxindiaefiling.gov.in. For each tax notice, a particular response procedure has to be followed. Once you receive such an email, access your income tax account under the head ‘My Account’. Here you can see the refund and demand status. Or, after logging in, you can click on the ‘My Pending Actions’ tab on the dashboard. You can also click on ‘Worklist’ and then ‘For your action’ to see if any demands or arrears are there for you. To respond to any intimation, go to the ‘Response to Outstanding Tax Demand’ tab, select the correct assessment year, and click on ‘Submit’. Then select among these options (based on whether you agree or disagree with the tax authority)—demand is correct, demand is partially correct or disagree with demand. If you think the demand raised is correct, then click on the option ‘demand is correct’. If any refund is due, outstanding demand along with interest is adjusted against it. If some tax is still due, pay immediately. If the demand is only partially correct, enter the correct and the incorrect amounts, along with reasons. The third choice is ‘Disagree with demand’. There are two choices for partially or fully disagree. You have to mandatorily give one or more reasons as to why the demand is incorrect. Once you successfully submit your response, you will get a transaction ID. Click on the ‘View’ link under the response column to see what you have submitted. You can also contact your respective assessing officer for clarification. If the content of the notice is simple and you can respond on your own, then do so. But if it is complex, take professional help. The taxpayer can appoint an authorised representative to appear on her behalf. Or, she can accompany the representative during scheduled hearings. Things to remember If you don’t respond to the tax notices within the time allotted, there can be various implications. Non-compliance of a tax notice would attract penalty of Rs10,000/- and may lead to judgement assessment by the tax officer. In some cases, prosecution up to one year may also apply. Request for an adjournment If you need more time to reply, request for an adjournment. This  is up to the discretion of the tax officer. If you receive an email from the tax department, don’t be nervous about it but don’t ignore it either. Read through it and take corrective measures if needed. If you find the matter difficult to resolve, take an expert’s advice.  

Section(s)	Purpose	Penal aspects
143 (1)	Successful Processing of return. If TDS wasn’t allowed, tax payable or refundable is recalculated	Penal interest may apply on tax dues
143 (2)	To ensure income is not under-reported too much loss is not claimed, and tax isn’t underpaid	If details are not given, a best judgement assessment can be made. Penalty of Rs. 10,000 may apply
142 (1) (i)	Return not submitted within due date or before end of relevant assessment year	maximum penalty for not filing return is Rs. 5000
142 (1) (ii) and (iii)	Documents needed to calculate taxpayer’s Income. Information sought on assets and liabilities	Notices under other sections may be sent
147	Reassessment if some income has not been assessed	Further notices may be sent
139 (9)	Defective return:
	Form not filled properly	If you don’t make corrections within deadline, return will be treated as void
	Taxes not paid or details of self assessment challan not mentioned	if you rectify late before assessment is completed, return may be valid
	Certain annexures, statements, audit reports, not attached	you may have to pay interest and other penalties for not filing or not reporting correct income if return is treated as defective or void
	Tax credit(TDS) claimed without reporting relevant income	Nil