Got a Tax Notice? Here's Exactly How to Respond (Step-by-Step)
Don't panic. Most tax notices are routine. 143(1) is just a processing acknowledgment. 139(9) means a fixable error. Even 143(2) scrutiny is manageable if you have your documents.
Common Notice Types
| Section | Type | Severity | Action Required |
|---|---|---|---|
| 143(1) | Intimation | Low | Review computation, respond if mismatch |
| 139(9) | Defective Return | Medium | Correct and resubmit within 15 days |
| 143(2) | Scrutiny Assessment | High | Submit documents as requested |
| 148 | Reassessment | High | File return for the specified year |
| 245 | Adjustment of Refund | Medium | Confirm or dispute the adjustment |
| 154 | Rectification | Low | Review the rectified computation |
Section 143(1) — Intimation
This is the most common notice. After CPC processes your return, it sends a 143(1) intimation showing its computation. If the tax computed by CPC matches your filing, no action needed. If there's a difference, CPC will show adjustments made. Common reasons: TDS mismatch with Form 26AS, disallowed deductions, or arithmetic errors.
Section 139(9) — Defective Return
This means your return has errors that need fixing. You get 15 days to respond (extendable to 30 days). Common defects: missing Schedule FA (foreign assets), incomplete Schedule CG (capital gains), balance sheet not attached for ITR-3/5, or incorrect form selection.
- Log in to the e-filing portal
- Go to 'Pending Actions' → 'Response to Defective Return'
- Review the specific defect mentioned
- Correct the return and submit the revised response
- E-verify the corrected return
Section 143(2) — Scrutiny
This is a detailed examination of your return. The assessing officer wants to verify specific claims. You'll receive a questionnaire listing documents to submit. Stay calm, respond within the deadline, and submit only what's asked for. Consider engaging a CA if the amounts involved are significant.
General Response Tips
- Always respond before the deadline — non-response escalates everything
- Keep all supporting documents: Form 16, bank statements, investment proofs, rent receipts
- Match your AIS/TIS data with your filed return before responding
- If the demand is incorrect, file a response online with supporting evidence
- For scrutiny or reassessment, consider professional help