Scrutiny, defective return, intimation

Category: Income Tax. From ₹3,999. Typical timeline: 7–14 days.

Overview

Income tax notice response covers the professional handling of communications from the tax department — intimations under Section 143(1), defective return notices under Section 139(9), scrutiny notices under Section 143(2), or reassessment notices under Section 148 — each of which carries a specific deadline and a specific line of response required to avoid an adverse order. Timely, well-documented replies filed through the income tax portal or the faceless assessment system typically resolve these matters without escalation to appeal.

Who needs it

• Taxpayers who received a demand notice under Section 143(1) after return processing
• Individuals or businesses selected for scrutiny assessment under Section 143(2)
• Anyone served a defective return notice under Section 139(9) requiring correction and refiling
• Taxpayers facing reassessment proceedings under Section 148 for an earlier assessment year

Eligibility

• Any taxpayer who has received a notice, intimation or communication from the Income Tax Department
• Individuals and businesses facing scrutiny, reassessment or defective return notices
• Taxpayers with a demand raised under intimation who need to verify or contest the computation

Documents required

• Copy of the notice received along with the Document Identification Number (DIN)
• Income tax return and computation for the relevant assessment year
• Supporting documents relevant to the specific query raised — bank statements, investment proofs, purchase deeds, etc.
• Form 26AS, AIS and TIS for the relevant year
• Prior correspondence with the department, if any, on the same matter

Process

1. Notice analysis — Review the notice type, the specific section invoked, and the exact deadline for response.
2. Root cause identification — Compare the return filed against AIS/26AS/TIS data to identify the mismatch or issue triggering the notice.
3. Response drafting — Prepare a reasoned response with supporting documents addressing each point raised in the notice.
4. Portal submission — File the response through the income tax e-filing portal or e-proceedings module within the stipulated time.
5. Follow-up and closure — Track the case until a rectification, closure or final order is issued, escalating to appeal only if necessary.

Government fees

• Response filing (e-Proceedings portal): Nil — no government fee for filing a response to a notice
• Appeal filing fee (Form 35, CIT(A)), if escalated: ₹250 to ₹1,000 depending on the assessed income, or ₹250 for other cases

Professional fee

Professional fee starts at ₹3,999 for reviewing and responding to a straightforward intimation or defective return notice, with scrutiny and reassessment matters quoted based on complexity.

Timeline

Most notice responses are drafted and filed within 7-14 working days depending on the complexity of the query and how quickly supporting documents are made available.

Deliverables

• Formal response filed on the income tax portal with supporting documents
• Rectified return, where a defective return notice requires refiling
• Written summary of the issue and recommended course of action
• Tracking until the notice is closed or a final order is passed

Frequently asked questions

What happens if I ignore a Section 143(1) intimation with a demand?

The demand becomes payable and can attract interest, and continued non-payment may lead to recovery proceedings, so it should either be paid or contested with a rectification request within the specified time.

How much time do I get to respond to a defective return notice under Section 139(9)?

Typically 15 days from the date of the notice, though this period can be extended on request to the assessing officer before it lapses.

Is physical appearance required for a scrutiny notice?

Most scrutiny assessments now proceed through the faceless assessment system, with responses filed electronically and no in-person hearing in the ordinary course.

Common mistakes

• Missing the response deadline stated in the notice, which can result in an ex-parte or best-judgment order
• Responding without reconciling the return against AIS/26AS first, leading to an incomplete or incorrect reply
• Ignoring a low-value intimation demand, letting interest accumulate on an amount that could have been corrected
• Not preserving the Document Identification Number (DIN) and notice copy needed for tracking the case

Penalties for non-compliance

• Best-judgment assessment under Section 144 if a scrutiny notice is not responded to within the time allowed
• Penalty under Section 271(1)(b) for non-compliance with a notice issued during assessment proceedings
• Interest on unpaid demand accumulating until the amount is paid or the demand is set aside

Legal references

• Income Tax Act, 1961, Section 143(1) — intimation after processing of return
• Section 139(9) — defective return notice
• Section 143(2) and 143(3) — scrutiny assessment
• Section 148 — reassessment of income escaping assessment
• Faceless Assessment Scheme, 2019 — procedure for electronic assessment proceedings