India › Tax Notices

India · Tax Notices

Income Tax and GST Notices: What Each One Means and How to Reply

A plain guide to the notices we see every week, from a scrutiny notice under section 143(2) to a GST show cause notice in Form DRC-01, with the deadline and what a good reply contains.

Overview

Read the notice for four things before you reply.

Most tax notices in India ask for an explanation, not money, and most go wrong because the deadline is missed or the reply has no documents. Check four things first: the section the notice is issued under, the year it relates to, the date by which you must respond, and the Document Identification Number that shows it is genuine. Notices for years before April 2026 still cite the Income-tax Act, 1961, because those years are assessed under the old law.

◆Individuals and NRIs with a scrutiny, reassessment or information notice
◆Companies and firms facing a GST scrutiny notice, audit or show cause notice
◆Businesses that have received a summons from the income tax department or the DGGI
◆Anyone with a demand, a refund adjustment or a penalty notice they do not agree with
What’s Included

From the first reading of the notice to the reply on the portal.

◆

Notice review

We read the notice, confirm it is genuine, identify the section, the year and the time limit, and tell you within a day what it is really asking.

◆

Reply and evidence

We prepare the reply with reconciliations and documents, so the officer can close the point from the file without a second notice.

◆

Adjournments

Where the time given is too short, we ask for more time in writing before the date, on the portal, with reasons.

◆

Reassessment objections

For a show cause notice before reopening, we reply on the information relied on, the time limit and the approval required.

◆

GST notices

Replies to ASMT-10, audit observations, DRC-01A intimations and DRC-01 show cause notices, with the ledger and return reconciliation built.

◆

When it becomes a dispute

If the reply is not accepted, the same team takes the matter into income tax litigation or GST litigation.

How We Work

How a notice is handled.

01

Verify

Check the DIN or the portal, the section, the year and whether the time limit for the notice itself has expired.

02

Diagnose

Work out what triggered it: a data mismatch, a third-party report, a survey finding or a risk flag.

03

Reply

File a complete, documented reply by the date, or seek time before the date.

04

Follow through

Track the outcome, rectify errors in the order, and decide on appeal within the limitation period.

Why LexVerge

A notice answered well rarely becomes a dispute.

Section 143(2)Section 148ASection 148Section 142(1)Section 133(6)Section 131 summonsASMT-10DRC-01ADRC-01Section 70 summons

We reply as if the file will be read on appeal, because the reply usually is.

FAQ

Tax notices, answered.

What should I do first when I receive an income tax notice?
Confirm it is genuine using the Document Identification Number or the Authenticate Notice service on the income tax e-filing portal, note the section, the assessment or tax year and the response date, and log in to the portal to see the full notice. Then collect the documents it asks for. Do not ignore it: an unanswered notice usually ends in an order made on the officer’s own estimate.
Is a notice under section 143(2) serious?
It means the return has been selected for scrutiny, so the officer will examine it in detail and may make additions. It is not an allegation of evasion. It must be served within three months from the end of the financial year in which the return was filed. For tax year 2026-27 onwards the equivalent is section 270(8) of the Income-tax Act, 2025.
How far back can the income tax department reopen an assessment?
For notices issued from 1 September 2024 under the 1961 Act, a reassessment notice under section 148 can be issued within three years and three months from the end of the assessment year, or up to five years and three months where the escaped income is Rs 50 lakh or more. A show cause notice under section 148A must come first. From tax year 2026-27 the Income-tax Act, 2025 sets longer limits in section 282.
Can I ask for more time to reply to a notice?
Yes. Both the income tax and GST portals allow an adjournment request. Ask before the due date, give a specific reason and propose a date. Time is not a right, so file what you can by the date and ask for time only for the rest.
Is the GST pre-show cause intimation in DRC-01A mandatory?
No. Rule 142(1A) says the officer may communicate the proposed liability in Part A of DRC-01A before issuing a show cause notice. If you receive one, it is a chance to pay or object before the notice. If you do not, the show cause notice is not invalid for that reason alone.
What is a GST notice?
A GST notice is a formal communication from a tax officer under the CGST Act, issued and answered on the GST portal. It can ask for a missing return (GSTR-3A), an explanation of differences in your returns (ASMT-10), or tax, interest and penalty through a show cause notice (DRC-01). The form number tells you the stage the matter has reached and what reply is due.
What happens if I ignore a GST notice?
The officer can decide the matter on the record without hearing you, confirm the demand with interest and penalty, and start recovery, including attaching bank accounts. A missed reply also weakens the appeal, because the appellate authority sees that no explanation was given when it was asked for.
Do I need a chartered accountant or a lawyer to reply to a notice?
You can reply yourself. Chartered accountants and advocates are both authorised to represent taxpayers before income tax and GST authorities. Where a notice raises a summons, a search or a possible prosecution, involve an adviser before the first appearance.
In detail

The notices, the sections and the time to respond

Income tax notices

Assessments for years up to tax year 2025-26 (assessment year 2026-27) are made under the Income-tax Act, 1961, so the notices you receive in 2026 and 2027 will mostly cite the old sections. The second column gives the corresponding section of the Income-tax Act, 2025, which applies from tax year 2026-27. Where we have not confirmed a new number, the table says so.

Notice (1961 Act)2025 ActWhat it meansUsual response
143(1)(a) intimation270(1)The processing centre proposes an adjustment to your return, such as a mismatch with Form 26AS or the AIS.Within 30 days of the intimation, online
139(9) defective returnNot listed hereThe return is treated as defective, for example income declared without the matching schedule or audit report.Usually 15 days; otherwise the return is treated as invalid
142(1) inquiry268(1)The Assessing Officer asks for accounts, documents, information or a return before assessment.The date in the notice, often 7 to 15 days
143(2) scrutiny270(8)The return is selected for detailed scrutiny assessment, now usually faceless.The date in the notice; the notice itself must issue within three months from the end of the financial year of filing
148A show cause281Before reopening, the officer shares the information suggesting income escaped assessment and asks why the case should not be reopened.The date in the notice; reply on the information, the time limit and the approval
148 reassessment280The assessment is reopened. You must file a return for that year.The date in the notice
131 summons246Attendance on oath to give evidence or produce books, often during an investigation.The date and time stated; ask for another date in writing if needed
133(6) information252A call for information, often about bank deposits, property deals or high-value transactions reported by third parties.The date in the notice
156 demandNot listed hereA demand for tax, interest or penalty following an order.Pay within 30 days, or appeal and apply for stay
245 refund adjustmentNot listed hereThe department proposes to set a refund against an outstanding demand.Respond online within 30 days
274 read with 270A penalty439Show cause before a penalty of 50% of tax on under-reported income, or 200% where it is misreported.The date in the notice
263 revision377The Principal Commissioner proposes to revise an assessment order as erroneous and prejudicial to revenue.The date in the notice; revision is barred two years after the end of the financial year of the order

GST notices

GST notices are issued and answered on the GST portal under the CGST Act, 2017 and the CGST Rules. The form number tells you the stage the matter has reached.

FormProvisionWhat it meansUsual response
GSTR-3ASection 46A return has not been filed.File the return within 15 days, or the officer may assess on best judgment
REG-03Rule 9Clarification or documents sought on a registration application.Reply in REG-04 within 7 working days
REG-31Rule 21ARegistration suspended, often for a mismatch between returns.Respond within 30 days
REG-17Section 29Show cause notice for cancellation of registration.Reply in REG-18 within 7 working days
ASMT-10Section 61Discrepancies found on scrutiny of returns.Reply in ASMT-11 within 30 days or the time allowed
ADT-01Section 65Notice of departmental audit of your books.Produce records on the dates fixed; findings come in ADT-02
INS-01Section 67Authorisation for inspection, search or seizure.On the spot; record what is seized and ask for copies
SummonsSection 70Appearance to give a statement or produce documents, usually by the DGGI or an anti-evasion unit.The date stated; verify the DIN
DRC-01ARule 142(1A)Optional intimation of the tax the officer proposes to demand, before a show cause notice.Pay or object in Part B by the date given
DRC-01Sections 73, 74 or 74AShow cause notice demanding tax, interest and penalty.Reply in DRC-06 by the date in the notice, usually 30 days
DRC-07Rule 142(5)Summary of the order confirming a demand.Appeal within three months
DRC-13Section 79Notice to your bank or customer to pay the department instead of you.Act at once: appeal and seek stay or file objections
DRC-22Section 83Provisional attachment of a bank account or property during proceedings.Object in DRC-22A within 7 days; the attachment lapses after one year

Five checks before you reply

  1. Is it genuine? Every notice from the income tax department or CBIC must carry a Document Identification Number. Check it on the e-filing portal or the CBIC website.
  2. Which law and which year? A notice for an old year is governed by the law of that year. The section quoted decides the officer’s powers and the time limit.
  3. Is the notice itself in time? Scrutiny, reassessment and GST show cause notices all have outer time limits. A notice issued after the limit can be challenged on that ground alone.
  4. What exactly is asked? Answer the question asked, with documents. A long reply that misses the point invites a second notice.
  5. What is the real exposure? Work out the tax, interest and penalty at stake before you decide how far to contest.

What a good reply contains

  • A short statement of facts and the answer to each point raised, in the order raised
  • Reconciliations: bank statements to books, returns to books, AIS or GSTR-2B to the return
  • Supporting documents, indexed and referred to by page
  • The legal position, with the provision and any binding decision, where the point is one of law
  • A request for a personal hearing where the officer proposes an adverse view

When a notice turns into a dispute

If the officer does not accept the reply, the order is appealable. For income tax the first appeal lies to the Commissioner (Appeals) within 30 days of the demand notice; for GST, to the Appellate Authority within three months of the order. The steps after that are set out in income tax litigation and GST litigation. We have step-by-step guides to replying to a section 148A notice and replying to a DRC-01. Summons are covered in our guide to a DGGI summons under section 70.

Prepared by the LexVerge editorial team and reviewed by Vijay Dhawan, Managing Partner, on 11 October 2026. Facts checked against the Acts, rules, regulations and judgments cited on this page on 11 October 2026. General information, not legal advice: deadlines run from the date of your notice or order, so confirm them for your matter.

India · LexVerge

Send us the notice.

Share the notice and the date on it. A partner will tell you what it is asking, the deadline and what the reply needs.

Speak with a Partner →