How to Respond to an Income Tax Notice Under Section 143(1) or 148

An SMS or email from the Income Tax Department can be alarming, but most notices are routine and resolvable if you understand what's being asked. Here's a look at two of the most common ones.

Section 143(1): intimation after processing

This isn't technically a 'notice' in the adversarial sense — it's an intimation sent after your return has been processed, comparing what you filed against the department's own computation.

• If the figures match, it simply confirms your return has been processed — no action needed.
• If there's a mismatch (a common cause is a deduction claimed but not matching Form 26AS/AIS data), it will show an adjusted tax demand or a reduced refund.
• You typically have a window to respond or file a rectification if you believe the adjustment is incorrect.
• If the adjustment is valid, you can pay the additional demand; if not, a rectification request under Section 154 can be filed with supporting documents.

Section 148: notice for income escaping assessment

This is more serious than a 143(1) intimation. It means the department believes some income wasn't reported in your original return and wants to reassess it.

• It's usually triggered by data mismatches — high-value transactions, TDS credits not reflected in your return, or information from third parties (banks, registrars, etc.).
• You'll typically be asked to file a return in response to the notice, or explain why the income in question shouldn't be added.
• There are defined time limits for how far back this notice can be issued, and defined windows for your response — missing them narrows your options considerably.
• This is not something to respond to without reviewing the underlying reason for the notice carefully.

What to do the moment you receive either notice

1. Don't ignore it, and don't panic-respond either. Read the notice fully, including the specific section and assessment year it refers to.
2. Check the notice against your filed return, Form 26AS, and AIS for the same period.
3. Note the response deadline mentioned in the notice — these are usually strict.
4. Get a professional opinion before submitting anything, especially for a Section 148 notice.

If you've received a notice and aren't sure what it means, send it to us. We'll review it, tell you plainly what's being asked, and prepare the response on your behalf.