ITR deadline over, but I-T notices may still be issued:Here’s a quick guide to income tax orders, why you might get one and how you can respond

With the extended ITR filing deadline of September 15 now over, the Income Tax Department has started processing returns for FY2024-25. However, taxpayers may still receive I-T notices, regardless of whether they filed on time. According to CA Ashish Niraj, Partner at ASN Company, Chartered Accountants, a Delhi-based accountancy firm, the department can issue various notices under the Income-tax Act, 1961, for discrepancies in ITR filing. Here are some of them that are more commonly received. Nonetheless, CA Niraj notes the department may also send notices under other, less common sections. Let’s take a closer look at the key sections under which the Income Tax Department may issue notices. 1. Defective Return Notice – Section 139(9) If, during the processing of your ITR, any defect is found, such as missing details, incomplete information, or filing the wrong form, the department issues a notice under Section 139(9). Taxpayers are generally given 15 days to rectify the error. Failure to respond within the stipulated time may render the return invalid, attracting interest, penalties, and other consequences. 2. Intimation Notice – Section 143(1) Once your return is processed, you may receive intimation under Section 143(1). This is not an assessment notice but a preliminary check to confirm the correctness of calculations, challan details, and TDS (tax deducted at source) information. 3. Additional Information Notice – Section 142(1) When the Assessing Officer (AO) requires more information or supporting documents, a notice under Section 142(1) is issued. Taxpayers are usually given 15-30 days to respond. Non-compliance can lead to a “best judgment assessment” under Section 144, along with penalties or even prosecution. 4. Scrutiny Assessment Notice – Section 143(2) If the AO is not satisfied with your response or finds discrepancies, a detailed scrutiny may be initiated through a notice under Section 143(2). This can be either a limited or complete scrutiny. Failure to respond can result in a best judgment assessment under Section 144, with penalties and possible prosecution. 5. Reassessment Notice – Section 148 If the department believes that income has been under-reported or not disclosed, a notice for income escaping assessment may be issued under Section 148. An inquiry is conducted under Section 148A before reopening the case. Such notices can be issued up to 3 years and 3 months from the end of the relevant assessment year in normal cases, or up to 5 years and 3 months if the undisclosed income is ₹50 lakh or more. 6. Search Seizure Notice – Section 153A When tax authorities suspect undisclosed income, assets, or irregularities in books of accounts, they may initiate a search and seizure operation under Section 153A. 7. Outstanding Demand Notice – Section 245 If the department adjusts a pending demand from earlier years against your current refund, a notice under Section 245 is issued. Got an Income Tax Notice? Don’t Panic – Do This! According to CA Niraj, here’s what you should do if you receive a notice from the Income Tax Department.