Income tax notice? Check the date before the facts.
Every notice raises three questions, in this order: which Act (the 1961 Act was repealed on 1 April 2026, but old-year proceedings continue under it), is it in time (reassessment: 3 years 3 months from the end of the assessment year — 5 years 3 months only if escaped income is ₹50 lakh or more), and what's the actual gap between AIS, 26AS and your return. We answer all three, reply with evidence and represent you at hearings. 93% of our notices close at the first reply.
- Notice decoded: which Act, which section, which year
- Limitation check before anything else
- AIS / 26AS / books reconciliation
- Reply drafted and filed on the e-proceedings portal
- Video-conference hearing representation
- Stay of demand, rectification and appeal if needed
The income-tax notice framework in 2026
A new Act, old proceedings, shorter reassessment windows and faceless hearings. Knowing which law governs your notice and whether it was issued in time often matters as much as the facts.
Which Act:
- 1961 Act repealed 1 April 2026; Income-tax Act, 2025 in force
- Old-year proceedings continue under the 1961 Act
- New numbering from tax year 2026-27
Common notices:
- 143(1)(a) adjustment — 30 days · 139(9) defective — ~15 days
- 143(2) scrutiny — within 3 months from end of FY of filing
- 148A / 148 reassessment · 245 refund adjustment · 156 demand
Reassessment limits (from 1 Sep 2024):
- Escaped income under ₹50 lakh: 3 years 3 months from end of AY
- ₹50 lakh or more: 5 years 3 months
After an order:
- CIT(A) in Form 35 within 30 days; stay usually on 20%
- 270A penalty 50% / 200%; 270AA immunity for under-reporting
Talk to us if...
- You got a 143(1)(a) proposed adjustment, an AIS mismatch query or a defective-return notice (139(9)) and the response window is short
- You're under scrutiny (143(2)) and questionnaires are arriving on the e-proceedings portal
- You received a 148A show cause notice or a 148 reassessment notice — often for income from years ago
- A demand (156) or a refund adjustment (245) doesn't look right
- An assessment order went against you and the 30-day CIT(A) appeal window is running
- You're not sure whether the notice is under the 1961 Act or the new Income-tax Act, 2025
Consider this first...
- The mismatch is genuine and small — an updated return (up to 48 months from the end of the relevant year) or simply paying may be cheaper than contesting
- You want a guaranteed result — we give an honest view of your position, not a promise
- It's a GST notice — see GST Notice Reply & Litigation
- You need planning for a future transaction — see Tax Planning or Capital Gains Advisory
- The notice is a search or survey matter — these need specialist handling from day one; call us immediately
- You simply haven't filed a return — file it (or an updated return) first; we can help
What our notice practice delivers
Limitation checked first · the right Act · AIS reconciliations that close queries · faceless proceedings handled · demand, stay and appeal · honest penalty advice.
Limitation Checked Before Anything Else
Many reassessment notices fail on time alone. For notices issued from 1 September 2024, a Section 148 notice can generally be issued only within 3 years and 3 months from the end of the assessment year — extending to 5 years and 3 months only where escaped income is ₹50 lakh or more. Tribunals regularly quash notices issued outside these limits. We check dates, thresholds and the sanctioning authority before we argue a single fact.
Which Act? We Tell You
The Income-tax Act, 1961 was repealed on 1 April 2026 and replaced by the Income-tax Act, 2025 — with transitional provisions that continue proceedings for earlier years under the 1961 Act. Returns for FY 2025-26 still use the old section numbers; new numbering applies from tax year 2026-27. Almost every notice arriving today concerns an old year and quotes the 1961 Act. We read the notice correctly and reply under the right law.
AIS Reconciliations That End Queries
Most notices start with a mismatch — AIS or Form 26AS showing income, TDS, interest, securities or property transactions your return doesn't reflect. The fix is usually a clear, line-by-line reconciliation with evidence: bank statements, contract notes, sale deeds, TDS certificates. That's what closes queries. Our firm has closed 93% of notices at the first reply.
Faceless Proceedings Handled
Scrutiny and reassessment are conducted online through the e-proceedings facility. We file submissions and evidence in the format the unit expects, track every notice and deadline, and represent you in video-conference hearings when a personal hearing is requested — you rarely need to appear yourself.
Demand, Stay and Appeal
If an order goes against you, a CIT(A) appeal must be filed in Form 35 within 30 days; a further appeal to the ITAT within 2 months. Under CBDT's instructions, a stay of the disputed demand pending first appeal is generally granted on payment of 20%. We also correct errors through rectification and challenge wrong refund adjustments.
Honest View on Penalty
Additions often bring penalty under Section 270A — 50% of tax on under-reported income, 200% for misreporting. Section 270AA offers immunity in under-reporting cases if you pay the tax and don't appeal. Sometimes accepting and seeking immunity is cheaper than fighting; we show you both paths before you decide.
Coming soon: handling an income-tax notice
Verify the DIN → which Act → limitation → reconcile AIS and 26AS → reply → hearing → order → rectify, immunity or appeal. In 2 minutes.
3-stage journey · Decode, respond, decide
Red = decode the notice. Gold = reconcile and respond. Green = order and next steps. The first two days — checking the Act and limitation — can decide the whole matter.
Verify
DIN, section, year, and which Act governs.
Limitation
Dates, thresholds and sanction checked.
Reconcile
AIS, 26AS and books matched with evidence.
Reply
Filed on e-proceedings with evidence index.
Represent
Video-conference hearing on request.
Decide
Rectify, 270AA immunity or CIT(A) appeal.
6 eligibility scenarios
Documents for a notice reply
The notice and portal records, the evidence behind your income, and access details. A screenshot of the notice on WhatsApp is enough to start.
Notice + Portal
- The notice (PDF from e-filing portal / email)
- Document Identification Number (DIN) on it
- Return acknowledgement and computation for that year
- AIS, TIS and Form 26AS for that year
- Earlier replies and orders (if any)
- Demand / refund status from the portal
Income Evidence
- Bank statements for all accounts
- Salary slips / Form 16, TDS certificates
- Broker contract notes and capital-gains statements
- Property sale / purchase deeds and valuation
- Loan and gift documents
- Books of account and audit report (business)
Identity + Access
- PAN and e-filing login (or authorised-representative set-up)
- Aadhaar-linked mobile for OTP / e-verification
- Digital signature (if company / tax-audit case)
- Contact details registered on the portal
- Power of attorney / authorisation letter
- Any correspondence with the department
Check limitation and your response deadline
Choose the notice type and enter the dates. For reassessment: the assessment year and escaped income tell you the limit. For scrutiny: the return filing date. For appeals and 143(1)(a): the 30-day window and, for appeals, the typical 20% stay payment. Indicative only.
Respond vs revise vs appeal · Choosing the right move
Three different moves for three different situations. Choosing the wrong one costs money, time or penalty protection.
| Criteria | Reply to the notice | Updated / revised return | Appeal the order |
|---|---|---|---|
| When | Notice received, proceeding open | Omission discovered, no order yet | Adverse order passed |
| Goal | Close the query on the record | Correct the return yourself | Overturn or reduce the order |
| Time limit | As stated (often 7-30 days) | Updated return: up to 48 months | CIT(A): 30 days · ITAT: 2 months |
| Cost to you | Our fee only | Tax + interest + additional tax | Fee + usually 20% for stay |
| Penalty exposure | Avoided if query closes | Reduced — you disclosed | Depends on outcome |
| Evidence | Main opportunity | N/A | Limited new evidence |
| Limitation defence | Raise here first | N/A | Can still be argued |
| Portal | e-proceedings | e-filing | e-filing (Form 35 / 36) |
| Hearing | Video conference on request | None | Before CIT(A) / ITAT |
| Typical time | Weeks to months | Days | Months to years |
| Best for | Most mismatches and queries | Genuine omissions | Disputed additions |
| Watch out | Missing the reply date | Not allowed in some cases | Missing the 30 days |
| Old-year notices | 1961 Act continues | Per year's law | 1961 Act continues |
| Our fee | From ₹3,500 | Per return | From ₹15,000 |
| Outcome certainty | Highest if evidence is clear | Certain (you pay) | Uncertain |
| Next step if it fails | Order → appeal | — | ITAT → High Court |
India income-tax notice map · 6 frameworks in one chart
Which Act, processing notices, scrutiny, reassessment limits, penalty and appeals — in one view.
Decode to decision · the 4-phase path
Phase 1: decode and check limitation. Phase 2: reconcile. Phase 3: reply and hearing. Phase 4: order and the 30-day decision.
Which Act, which section, which year — and is it in time?
We verify the DIN, identify the section and year, check which Act governs and test limitation. For reassessment: 3 years 3 months from the end of the AY, or 5 years 3 months where escaped income is ₹50 lakh or more.
A time-barred notice can fail on limitation aloneAIS, 26AS and books, line by line
Every item the department relies on is matched to evidence: bank entries, contract notes, deeds, TDS certificates. Genuine gaps are identified early so we can decide whether to explain, accept or correct.
Most notices are mismatches — reconciliations close themFile the reply, attend the hearing
Structured reply with evidence index on the e-proceedings portal; video-conference hearing if requested. Adjournments sought in writing where genuinely needed — never by default.
Missed replies invite best-judgment assessmentRectify, accept with immunity, or appeal
If the order is adverse we compare paths: rectification, 270AA immunity, or CIT(A) appeal in Form 35 within 30 days with a stay application (typically 20% of disputed demand).
The 30-day appeal clock runs from service of the order6 common notice mistakes — and how to avoid them
#1: arguing merits before limitation. #2: missing the portal deadline. #3: quoting the wrong Act. Plus generic replies, ignored refund adjustments, and appealing without weighing penalty and cost.
Replying on the merits before checking limitation
Explaining the transaction in detail to a notice that was issued out of time. Limitation is a complete answer — and it must be raised at the first opportunity.
Missing the portal deadline
Notices arrive on the e-filing portal and by email, often with 7-15 day windows. Missing one can lead to a best-judgment assessment or an adverse 148A order.
Quoting the wrong Act
Since 1 April 2026 some replies cite new-Act sections for old-year notices, or the reverse. It invites confusion and, occasionally, arguments about validity.
Generic replies without reconciliation
"All income has been disclosed" is not an answer to an AIS entry of ₹18 lakh. Officers decide on specific evidence.
Ignoring a refund adjustment or old demand
A 245 intimation proposing to adjust your refund against an old demand — which may already be paid, rectified or stayed. Silence lets the adjustment go through.
Appealing without thinking about penalty and cost
Appealing every addition by default, without weighing the 20% stay payment, time and the chance of success — or missing 270AA immunity that might have been cheaper.
Pick your plan
Intimation, AIS query or defective return? From ₹3,500. Scrutiny or reassessment? From ₹8,000 (recommended). Appeal to CIT(A) with stay? From ₹15,000.
- Notice decoded: Act, section, year
- AIS / 26AS reconciliation
- Reply with evidence index
- Filed on the e-filing portal
- Corrected return where needed (139(9))
- Follow-up until closure
- Fee depends on number of items and years
- Everything in Notice Reply +
- Limitation and sanction checks
- 148A show cause reply with objections
- All questionnaire responses
- Video-conference hearing representation
- Draft order / show cause responses
- Penalty exposure assessment (270A / 270AA)
- Rectification or appeal advice on the order
- Search / survey matters quoted separately
- Grounds of appeal and statement of facts
- Form 35 filed within 30 days
- Stay of demand application
- Written submissions and hearing
- Additional evidence application where apt
- ITAT options after the CIT(A) order
- ITAT appeals quoted individually
Prefer a call back?
Leave your number and a good time — we call within business hours (Mon–Sat, 10 am–7 pm) about Income Tax Notice Reply.
Tax desk · 93% of notices closed at first reply
The Tax Paramarsh desk
"Most income-tax notices are mismatches — something in AIS your return doesn't explain — and a careful reconciliation closes them. The rest are often about time: reassessment notices issued after the limit simply don't survive. Since April 2026 there's a new question too — which Act. For old years, it's still the 1961 Act. We check the Act and the dates first, reconcile line by line, and tell you honestly whether an appeal is worth it."
What clients say about our notice work
Common questions
Straight answers on which Act applies, time limits, adjustments, penalties, stays, updated returns and hearings. Still curious? WhatsApp us your notice.
I got an income tax notice. What should I do first?
Check it's genuine: every notice should carry a Document Identification Number (DIN), and you can see it under e-Proceedings on the e-filing portal. Note the section, the year and the response date. Then download your AIS and Form 26AS for that year — most notices come from a mismatch between them and your return. Don't ignore it, and don't reply in a hurry without reconciling. Send it to us and we'll tell you what it means.
The new Income-tax Act, 2025 is in force. Does my notice fall under it?
The Income-tax Act, 1961 was repealed on 1 April 2026 and replaced by the Income-tax Act, 2025. But the new Act's transitional provisions continue proceedings relating to earlier years under the 1961 Act, and returns for FY 2025-26 still use the old section numbers. The new numbering applies from tax year 2026-27.
So a notice today about an earlier year — quoting 143(2), 148 or 270A — is normally a valid 1961-Act notice. We reply under the law the notice relies on.
What are the time limits for reassessment?
For notices issued from 1 September 2024 (Finance (No. 2) Act, 2024):
- Section 148 notice: within 3 years and 3 months from the end of the assessment year
- Up to 5 years and 3 months only where escaped income is ₹50 lakh or more
- A 148A show cause notice comes first, with the information relied on; you get 7-30 days to reply
Earlier notices are governed by earlier rules and Supreme Court rulings on the transition. Limitation is often decisive — we check it first.
What is a 143(1)(a) adjustment and how do I respond?
When processing your return, the Centralised Processing Centre may propose an adjustment — for example, income in AIS/26AS but not in your return, or a deduction it considers unsupported. You can respond online within 30 days, agreeing or disagreeing with reasons. A good response reconciles the item with evidence; if you don't respond, the adjustment is usually made.
What do your services cost?
- Notice Reply: from ₹3,500 — intimations, AIS queries, defective returns, refund adjustments
- Scrutiny / Reassessment: from ₹8,000 — 143(2), 142(1), 148A and 148 proceedings
- Appeal: from ₹15,000 — CIT(A) in Form 35 with stay of demand
Fees depend on the number of years, issues and hearings, and are quoted before we start.
Do I have to pay the demand while I appeal?
Under CBDT's instructions, the officer generally grants a stay of the disputed demand pending the first appeal on payment of 20% of it, with room to vary in appropriate cases. The stay must be applied for — it isn't automatic. Undisputed amounts must be paid.
What penalties can apply?
Under Section 270A, penalty is 50% of the tax on under-reported income and 200% where under-reporting results from misreporting. Section 270AA gives immunity from 270A penalty (for under-reporting, not misreporting) if you pay the tax and interest and don't appeal. Whether to seek immunity or appeal depends on the strength of your case — we compare both.
Should I file an updated return instead of replying?
If you genuinely omitted income, an updated return can be filed up to 48 months from the end of the relevant year, paying tax, interest and additional tax. It isn't allowed in every situation — for example, once certain proceedings have started for that year — so check before filing. If the notice is based on a misunderstanding, a reply with evidence is the better route.
How long do I have to reply?
- 143(1)(a) adjustment: 30 days
- 139(9) defective return: usually 15 days
- 148A show cause: 7 to 30 days, as stated
- 142(1) / scrutiny questionnaires: as stated in each notice
- CIT(A) appeal: 30 days from service of the order
- ITAT appeal: 2 months from the CIT(A) order
Always check the date on the notice itself.
When can a scrutiny notice be issued?
A notice under Section 143(2) must be served within 3 months from the end of the financial year in which you filed the return. A return filed in July 2025, for example, could be picked for scrutiny until 30 June 2026. A late scrutiny notice can be challenged.
Do I need to attend a hearing in person?
Usually not. Proceedings are largely faceless and online, with hearings by video conference on request. As your authorised representative we file submissions and attend hearings. We'll tell you if your confirmation or presence is needed.
My refund is being adjusted against an old demand. What can I do?
Respond to the Section 245 intimation on the portal, agreeing or disagreeing. If the old demand was already paid, rectified, reduced in appeal or stayed, say so with proof — challans, rectification orders or stay orders. Many such demands are stale and can be corrected.
Send it to us today.
WhatsApp a screenshot of the notice and the date you received it. Free 30-minute review: which Act, whether it's in time, what the department is really asking and your deadline. Notice Reply from ₹3,500. Scrutiny / Reassessment from ₹8,000. Appeal from ₹15,000.