How to Respond to Income Tax Notices Professionally – Step-by-Step Guide

PRAVEEN DILLIBABU
Nov 9
2 min read

Published by: Revenue Dynamics Tax Advisory

Date: 9 November 2025

Category: Income Tax / Compliance Advisory

1. Introduction - Income Tax Notice

Getting an Income Tax Notice can be stressful — but most notices are simply requests for clarification or additional information. Whether it’s a minor mismatch, a missed filing, or a random scrutiny case, responding accurately and within the deadline keeps your record clean and avoids unnecessary penalties.

At Revenue Dynamics Tax Advisory, we help clients decode and respond to such notices with confidence and compliance.

2. Why You May Receive an Income Tax Notice

Common reasons include:

Type of Notice	Section	Purpose
Intimation	143(1)	Correction of arithmetic errors or mismatches in return.
Scrutiny / Assessment	143(2)	Detailed review of return; supporting proof required.
Defective Return	139(9)	Missing or incorrect data in the return filed.
Inquiry / Non-Filing	142(1)	Asking for specific information or a return not filed.
Re-Assessment	148A	The department believes income was under-reported.
TDS Mismatch	200A / 201	Difference between TDS claimed and Form 26AS/AIS.

3. First Things To Do

✅ 1. Verify authenticity — check if the notice is from the official domain @incometax.gov.in and has a valid DIN (Document Identification Number).

✅ 2. Identify the section — this tells you why the notice was issued.

✅ 3. Log in to the portal — www.incometax.gov.in → Pending Actions → e-Proceedings.

✅ 4. Note the response timeline — usually 15 to 30 days.

✅ 5. Don’t ignore it — even an intimation under 143(1) requires acknowledgment.

Indian taxpayer checking Income Tax Notice online – step-by-step response guide by Revenue Dynamics Tax Advisory.

4. Step-by-Step: How To Respond Online

1️⃣ Login → Income Tax e-filing portal

2️⃣ Go to: Pending Actions → e-Proceedings → For your PAN

3️⃣ Read the entire notice carefully (section, assessment year, reasons).

4️⃣ Gather supporting documents

Filed ITR acknowledgment
Form 26AS, AIS, TIS
Bank statements, salary slips, invoices
Investment proofs or deduction receipts.

5️⃣ Prepare your response with a short explanation letter if needed.

6️⃣ Upload and submit the response using your DSC or EVC.

7️⃣ Save Acknowledgment No. (DIN) for tracking under “View Response History.”

5. Professional Tips from Revenue Dynamics

💡Be proactive: File returns before due dates to minimize mismatch risk.

💡Check Form 26AS, AIS, TIS quarterly — correct discrepancies early.

💡Keep records — preserve salary slips, purchase/sales bills, and proof of investments for 7 years.

💡Stay alert: Most notices come via email + SMS; don’t miss them.

💡Consult experts: A professional review ensures accurate replies and avoids escalation.

6. How Revenue Dynamics Tax Advisory Can Help

Decoding the notice and its legal section
Drafting professional responses and uploading online
Liaising with tax officers for clarifications
Ensuring complete compliance to avoid future notices

“Professional handling today prevents tax troubles tomorrow.”

7. Conclusion

An Income Tax Notice isn’t a punishment — it’s a signal to review and correct. Respond calmly, support every claim with documentation, and keep all communication digital for transparency.