Notice issued by Income Tax Authorities

Sometimes, you may be required to file income tax returns (ITR) in response to a notice issued to you by the income tax authorities. 

These are some major instances when notice can be issued to the taxpayer:

• Notice for Defective Return 

If the Assessing Officer thinks that your return of income is defective, he may notify you of the defect,¹ and give you an opportunity to rectify the defect within fifteen days of the notice. The defect should be rectified within fifteen days or the extended period allowed by the Officer. Otherwise, your return shall be treated as an invalid return. It will be considered that you as the taxpayer have failed to submit the return, which will result in penalties for you.

• Notice for Non-Filing of Return
  

In order to make an income tax assessment, the Assessing Officer may serve a notice on any person who has not submitted an income tax return on time, to make the person submit the return. The Officer can also ask you to produce any accounts or documents required by the Officer. The income tax authorities can ask you to submit or verify any information.  Further, this may include a statement of all your assets and liabilities.²

• Notice for Income Escaping Assessment
  

If the Assessing Officer thinks that any part of your income chargeable to tax has escaped assessment³ or not been assessed for any tax year, then he may assess or reassess such income which has escaped assessment and which comes to his notice subsequently. Before making this assessment, the Assessing Officer shall serve you a notice requiring you to submit a return of income⁴ for the previous year corresponding to the relevant tax year. The notice will specify the time within which you have to submit the return.

1. Section 263(7), Income-tax Act, 2025. [↩]
2. Section 268(1), Income-tax Act, 2025. [↩]
3. Section 269, Income-tax Act, 2025. [↩]
4. Section 280, Income-tax Act, 2025. [↩]