Why income tax notices reach taxpayers in Gurugram
Gurugram has a high concentration of salaried professionals, property transactions, share trading and business income, and the department receives information on all of these through banks, registrars, brokers and employers. Most notices are triggered by a mismatch between what you reported and what appears in your AIS or Form 26AS. Others arise from high-value transactions, a refund claim that looks unusual, or a selection for scrutiny.
Whatever the reason, the first step is the same: read the notice carefully, note the section and the deadline, and do not ignore it.
Common notices and what they mean
| Notice | Meaning | Usual time to respond |
|---|---|---|
| Section 143(1) intimation | Result of processing of your return by CPC; may show a demand or reduced refund | Rectification under Section 154 if you disagree; a separate proposed-adjustment notice, where issued before processing, allows 30 days |
| Section 139(9) defective return | Return is incomplete or inconsistent, for example wrong ITR form or missing audit report | 15 days from the notice, extendable on request |
| Section 143(2) scrutiny | Return selected for detailed assessment | As stated in the notice and in the questionnaire under Section 142(1) |
| Section 148A show cause | Proposal to reopen an earlier year, with the information relied on | As stated in the notice; extension can be sought with reasons |
| Section 148 reassessment | Notice to file a return for the reopened year | As stated in the notice |
| Section 245 intimation | Proposal to adjust a refund against an outstanding demand | 30 days |
| Section 156 demand notice | Formal demand after an assessment or order | Payment within 30 days, unless stayed or extended |
For assessment years up to AY 2026-27, these proceedings run under the Income-tax Act, 1961, even though the Income-tax Act, 2025 came into force on 1 April 2026. Under the new Act, processing is now in Section 270 and reassessment notices in Sections 280 and 281. If your notice quotes a different number, we work from the notice section mentioned on your notice.
Faceless assessment: how scrutiny works now
Most scrutiny and reassessment proceedings are handled under the faceless scheme. There is no physical visit to an officer in the ordinary course.
- Selection. A notice under Section 143(2) is issued, generally within three months from the end of the financial year in which the return was filed.
- Questionnaire. The National Faceless Assessment Centre sends notices under Section 142(1) asking for explanations and documents.
- Your submission. Replies are uploaded on the e-filing portal under e-Proceedings, in PDF with supporting documents.
- Show cause notice. If an addition is proposed, a draft or show cause notice is issued, and you can reply.
- Personal hearing. You can request a hearing by video conference where an adverse view is proposed.
- Order. The final assessment order is passed with a demand notice, if any.
Each reply must be complete and consistent, because the officer decides largely on the written record.
Reassessment: Sections 148A and 148
Reassessment is used when the department believes income for an earlier year has escaped assessment. The process has safeguards that you should use:
- Show cause first. The officer must share the information and the reasons with you through a notice under Section 148A, and consider your reply before a Section 148 notice is issued.
- Time limits. For notices issued on or after 1 September 2024, the general limit is three years from the end of the relevant assessment year. It can go up to five years only where the income alleged to have escaped is Rs 50 lakh or more and is represented by an asset, expenditure or entry in the books.
- Approval. Notices require prior approval of the specified authority.
Many reassessment notices can be challenged on time limits, approval or the information relied on, apart from the merits. We check each of these before preparing the reply. Where the income was in fact missed, an updated return may sometimes be an option, subject to the conditions that apply.
Demands, rectification and refund adjustments
- Section 154 rectification. Used for mistakes apparent from the record, such as TDS credit not given, a wrong tax computation or a missed deduction that was claimed in the return.
- Section 245 adjustments. Respond to the intimation before the refund is set off against an old demand you dispute.
- Section 156 demands. Check whether the demand is correct, already paid, or the subject of an appeal. Request a stay under Section 220(6) where an appeal is filed.
- Outstanding demands on the portal. Respond under “Response to Outstanding Demand” to say whether you agree or disagree with each entry.
Appeal to CIT(A)
If an assessment order, penalty order or intimation is wrong and cannot be fixed by rectification, an appeal lies to the Commissioner of Income-tax (Appeals), or in notified cases to the Joint Commissioner (Appeals).
| Step | Detail |
|---|---|
| Form | Form 35, filed online |
| Time limit | 30 days from receipt of the order or demand notice; delay can be condoned for good reason |
| Fee | Depends on the assessed income, as prescribed |
| Tax payment | Tax on returned income must be paid before filing |
| Stay of demand | Apply to the Assessing Officer; usually granted on payment of a part of the disputed demand |
| Hearing | Through the faceless appeal system, with written submissions and, on request, video conference |
Further appeal lies to the Income Tax Appellate Tribunal. Our appeal and case management service handles appeal drafting and hearings.
How we prepare your reply
- Read the notice. We check the section, DIN, year, deadline and what exactly is being asked.
- Collect records. Return, computation, AIS and Form 26AS, bank statements, ledgers and supporting documents.
- Reconcile. Every figure the department has questioned is tied to the ledger and to the source document.
- Draft. A clear written submission, point by point, with an index of annexures.
- File and track. Uploaded on the e-filing portal under your login or as your authorised representative, with acknowledgement shared on WhatsApp.
- Follow through. Further questions, hearings, the final order, rectification or appeal.
We assist individuals, professionals, firms and companies in Gurugram and across Delhi NCR, Haryana, Uttar Pradesh, Rajasthan and Chhattisgarh. If your return for the current year is still pending, see our income tax filing service; if the notice relates to TDS defaults, see our TDS compliance service. Share a copy of the notice with us through the contact page and we will tell you what it involves and the likely fee before starting.
Frequently asked questions
I received an email from the income tax department. Is it genuine?
Log in to the e-filing portal and check the e-Proceedings and Pending Actions sections. Genuine notices from the department carry a Document Identification Number (DIN) and also appear on the portal. Do not click on links in an email or SMS asking for bank details or OTPs.
What is an intimation under Section 143(1)?
It is the result of the computerised processing of your return by CPC. It shows whether your figures were accepted, a refund is due, or a demand has been raised. If there is a demand because of a mismatch, you can either accept it or file a rectification request explaining why it is wrong.
How much time do I get to reply to a defective return notice?
Under Section 139(9), the time given is normally 15 days from the date of the notice, which can be extended on request. If the defect is not removed in time, the return is treated as invalid, as if it had never been filed.
What happens in a scrutiny assessment?
A notice under Section 143(2) informs you that your return has been selected for detailed examination. Questions are then sent under Section 142(1) through the faceless assessment system. You reply online with documents, and at the end an assessment order is passed accepting the return or making additions.
Can the department reopen an old year?
Yes, under the reassessment provisions, but within time limits. Before a notice under Section 148, the officer must issue a show cause notice under Section 148A with the information relied on, and you get a chance to reply. For notices issued from 1 September 2024, the general limit is three years from the end of the assessment year, extended to five years only where escaped income is Rs 50 lakh or more.
The department adjusted my refund against an old demand. Can I object?
Yes. Before adjusting a refund under Section 245, CPC sends an intimation. You can respond online that you agree, disagree fully or disagree in part, with reasons such as a pending rectification, a stay, or a demand that has already been paid. Responding in time prevents a wrong adjustment.
Notice ka reply nahi diya toh kya hoga?
Usually the officer will decide based on the information available, which often means an addition to income, tax demand, interest and possibly a penalty. A best-judgment assessment under Section 144 is harder to challenge later. It is far better to reply, even if only to seek time with reasons.
What if I disagree with the assessment order?
You can file an appeal before the Commissioner of Income-tax (Appeals) in Form 35 within 30 days of receiving the order or demand notice. You can also apply for a stay of the demand while the appeal is pending, usually by paying a part of the disputed amount.
Do notices now quote sections of the Income-tax Act, 2025?
Notices for proceedings relating to AY 2026-27 and earlier years continue under the Income-tax Act, 1961, though some notices may also refer to the corresponding section of the new Act. Notices relating to tax year 2026-27 onwards are issued under the Income-tax Act, 2025. We go by the section mentioned on your notice.