Attention taxpayers! Here's what you should do after receiving a notice from the I-T department — Stepwise guide

The income-tax department has till date notified all ITR forms for assessment year 2026-27 i.e. financial year 2025-26 (AY27 / FY26) and enabled Excel Utility for ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam), ITR-5 and ITR-7 online forms. You can access them here — https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns

Taxpayers can register / login on the e-filing portal (https://www.incometax.gov.in/) and use excel utility to prepare their returns offline before uploading the file digitally. The deadline to file your taxes has been extended to 31 August and now is the ideal time to file your returns comfortably to avoid last-minute rush and any possibility of technical or calculation glitches too close to the last date.

Today, we take a look at what taxpayers should do if they receive a notice from the I-T department. Overall, the online process has become quicker but can be daunting for first-time filers. Salaried individuals overwhelmed by the process can use this guide to ensure they are following the proper process.

When and why do taxpayers get I-T notice?

Notably, you can file a delayed ITR till 31 December 2026, but this would cost you extra based on your taxable amount and duration of delay — attracting penalties between ₹1,000 and ₹10,000. Also, please note that the more you delay your ITR filing, such returns may lose out on certain deductions for lower tax, and would likely be subject to increased scrutiny from the tax department.

An I-T notice is a formal communication from the tax department which is sent for a number of reasons either before or after you file returns. It does not automatically mean a taxpayer is in default and could simply be sent for correction of mistake(s) in your documentation.

Some common reasons you could receive an I-T notice include: Non-filing of ITR, use of incorrect ITR form when filing your returns, misreported or incorrect TDS amount in ITR, inaccuracies in your ITR, random assessment of ITR filing by an officer, failure to declare any income during the fiscal / assessment year in ITR, oversight in submission of relevant papers with ITR, non-disclosure or misreporting of capital gains during the fiscal / assessment year in ITR, and failure to correctly report investments for self, spouse or children, non-disclosure of high-value transactions during the fiscal / assessment year in ITR.

ITR: How to verify tax notice?

It is advisable to first verify the authenticity of a notice before you respond. This can be easily done through the authentication feature on the official income-tax e-filing portal here (https://www.incometax.gov.in/iec/foportal/). You will need to keep you PAN Card, tax documents, Document Identification Number (DIN), and phone ready for the process.

Once you have verified that the tax notice is genuine, check for the Income-Tax Act section referred to in the communication to understand what prompted the action. It is best to respond promptly to avoid penalties.

• Section 142(1): Inquiry before assessment
• Section 143(1): Intimation letter
• Section 143(2): Notice for scrutiny of assessment
• Section 148: Notice for escaping assessment
• Section 245: Demand notice for taxpayer

What to do when you receive an I-T notice — Stepwise guide

• Read through the notice, check the section and understand what is being asked of you.
• Based on the request or demand, you must gather necessary documents and related records to be submitted to the I-T department. This could include your bank statements, Form 16, investment proof, ID proof, transaction details, etc.
• Log into your account on the I-T portal and click on Pending Action, followed by e-Proceedings.
• The notice will load and you can respond to it with your explanation and the required supporting proof documents.
• Once you submit your reply, the acknowledgement can be download to your device for future reference and proof.
• Ensure that your response is prompt and track the website / email for follow-up communication from the tax department.
• Alternatively, if you have a financial advisor or Chartered Accountant, inform them of the notice and they will handle the process for you.