Before doing anything else, verify the notice is genuine:

• 1 Find the Document Identification Number (DIN) on the notice — it appears at the top
• 2 Go to incometax.gov.in → Authenticate Notice/Order Issued by ITD (available in pre-login section)
• 3 Enter the DIN and verify — the portal will confirm if the notice is genuine and show its details
• 4 If DIN verification fails — the notice may be fraudulent. Do not respond to it. Report to cybercrime.gov.in

• 1Login to the Portal
  Go to incometax.gov.in → Login with PAN and password → complete OTP verification
• 2Navigate to e-Proceedings
  Dashboard → Pending Actions → e-Proceedings. All notices requiring response appear here with their deadlines clearly shown.
• 3Check e-Campaign Tab Too
  Some AIS mismatch communications appear under Pending Actions → Compliance Portal → e-Campaign rather than e-Proceedings. Check both tabs when looking for notices.
• 4Open the Notice
  Click on the relevant notice. Read it completely — identify: the section under which it is issued, the Assessment Year, the specific issue/query raised, and the response deadline.
• 5Download the Notice PDF
  Download and save the notice PDF. This is your reference document for preparing the response.

How you prepare depends entirely on which notice you received. Here is a guide by notice type:

For Section 143(1) Intimation — Demand or Mismatch

• Compare “As per return filed” vs “As per department” columns line by line
• Common causes: TDS credit not matching Form 26AS, deduction calculation difference, wrong income figure
• If you agree: pay the demand using e-Pay Tax → select AY and challan type
• If you disagree: file Rectification under Section 154 → select “Tax Credit Mismatch” or “Return Data Correction”
• Documents: Form 16, Form 26AS, AIS, bank statements showing TDS deductions

Rectification Under Section 154 — Complete Guide

For Section 142(1) Questionnaire — Document Submission

• List every query raised in the questionnaire — respond to each one separately
• Organise documents by query number — makes it easy for the Assessment Unit to match
• Typical documents: Bank statements, purchase/sale contracts, investment proofs, business books, loan agreements
• Write a covering note explaining each document’s relevance to the specific query

For Section 148A(b) — Show Cause Notice

• This is your most important opportunity — a strong response here can close the case before reassessment begins
• Address the specific information flagged — explain its source, nature, and why it does not represent undisclosed income
• Attach documents that directly prove your explanation: gift deeds, sale agreements, loan documents, ITR of source person
• Cite Section 205 if TDS credit is the issue; cite time limitation if notice is time-barred
• Engage a CA for this notice — the stakes are high and the response needs to be precise

Section 148A Process — Complete Reassessment Guide

For Section 156 — Demand Notice

• If demand is correct: pay through e-Pay Tax within 30 days to avoid interest accumulation
• If demand is wrong: file rectification (Section 154) or appeal (Section 246A) within 30 days of the assessment order
• You can apply for a stay of demand while appeal is pending — submit application to the AO

• 1Go to the Notice in e-Proceedings
  Pending Actions → e-Proceedings → click on the specific notice
• 2Click “Submit Response”
  The portal shows the type of response required — some notices have specific fields to fill, others allow free-text explanation plus document upload
• 3Type Your Explanation
  Write your response clearly addressing each query. Keep it factual and structured. Reference each document you are attaching by name.
• 4Upload Documents
  Accepted formats: PDF, JPEG, PNG. File size: typically up to 5 MB per file (check portal for current limits). Rename files clearly — “Bank_Statement_Apr2025_Mar2026.pdf” is better than “scan001.pdf”. Multiple files can be uploaded.
• 5Preview and Submit
  Review the response before submitting. Once submitted, it cannot be easily modified — treat the submission as final.
• 6Download Acknowledgement
  After submission, download the acknowledgement immediately. This is your proof of response with timestamp. Save it permanently — you will need it if the matter escalates to appeal.

If you need more time to gather documents or prepare your response:

• Go to the notice in e-Proceedings → click “Request Extension” (available on most notice types)
• State the reason clearly — “Additional time needed to collect bank statements from branch” is better than “more time needed”
• Extensions are generally granted for genuine reasons, typically 15–30 additional days
• Request the extension before the original deadline expires — not after. Post-deadline extension requests are much harder to get approved
• Once granted, the new deadline appears in your e-Proceedings dashboard

The Income Tax Act 2025 came into force on April 1, 2026. For notices issued on or after this date, be aware of these changes:

The e-Proceedings portal infrastructure remains the same — digital submissions, same interface. Only the section numbers and terminology differ.

The Situation

Suresh (Delhi trader, AY 2026-27) received Section 143(2) followed by a 142(1) questionnaire asking: (a) Explain ₹18 lakh cash deposits in current account, (b) Provide purchase invoices for claimed business expenses of ₹6 lakh, (c) Reconcile GST turnover with ITR income.

Suresh’s Response — Organised by Query

Query (a) — Cash deposits ₹18 lakh:

• Uploaded monthly sales summary showing ₹18 lakh from retail customers (cash sales)
• Cash book extracts for each month
• GST returns (GSTR-1) showing corresponding taxable turnover
• Explanation note: “₹18 lakh represents daily cash sales from our retail garment shop at Lajpat Nagar, all of which has been declared as business income in Schedule BP of ITR-3.”

Query (b) — Purchase invoices ₹6 lakh:

• Uploaded all supplier invoices above ₹5,000
• Purchase register extract
• GSTR-2B showing corresponding ITC — cross-referencing purchases

Query (c) — GST vs ITR reconciliation:

• Prepared a simple reconciliation statement: GSTR-1 turnover ₹42 lakh → ITR business income ₹42 lakh → difference nil
• Explained ₹50,000 timing difference (one December invoice reflected in next year’s GSTR-1)

Outcome

Assessment completed with no additions. The organised, query-by-query response with supporting documents resolved the case without escalation to a Show Cause Notice stage.

Mistake 1 — Missing the deadline:
Missing a response deadline in e-Proceedings can result in an ex-parte assessment — the AO proceeds based only on available information, almost always unfavourable. Set a calendar alert for 5 days before the notice deadline.

Mistake 2 — Generic responses without documents:
“All income is correctly declared” without supporting documents is routinely ignored. Every claim needs a corresponding document. Structure your response: assertion + document + brief explanation.

Mistake 3 — Not downloading the acknowledgement:
The acknowledgement with timestamp is your proof of response. Many taxpayers forget to download it immediately after submission. If the portal later shows “no response received” — this acknowledgement is your evidence.

Mistake 4 — Not mentioning the notice reference number in the response:
Always include the notice DIN and date in your written response text — for proper tracking and in case the submission needs to be referenced later in appeal proceedings.

Mistake 5 — Handling high-stakes notices alone:
Section 143(1) mismatches can often be handled by the taxpayer directly. Section 143(2) scrutiny, Section 148A, and reassessment notices should always involve a CA experienced in faceless proceedings. The stakes and complexity justify professional help.
Faceless Assessment — How to Respond Effectively