Income Tax Notice - How To Check And Authenticate?

An Income Tax Notice is an official communication from the Income Tax Department alerting a taxpayer to discrepancies, missing information, overdue filing, or unreported income. Notice can be issued to the taxpayer irrespective of whether returns are filed or not. 

It is important to understand the type of notice, primary issue involed, and the time limit for response to stay compliant and avoid adverse consequences.

What is Income Tax Notice?

An income tax notice is an official communication issued by the Income Tax Department to a taxpayer regarding discrepancies, non-compliance, or additional information required related to their Income Tax Return (ITR). Each notice is issued under a specific section of the Income Tax Act and requires timely action to avoid penalties or legal consequences. It may be sent for reasons such as:

• Non-filing of returns 
• Mismatch in reported income 
• Verification of claims
• Demand for outstanding tax. 

Popular Notices issued under the Income Tax Act

Section number	Notice
Section 142(1)	Inquiry before assessment
Section 143(1)	Intimation
Section 143(2)	Notice for scrutiny assessment
Section 148	Income Escaping Assessment
Section 245	Demand notice

How to Verify or Authenticate Income Tax Notices?

Before responding to any notice or order from the Income Tax Department, it is crucial to verify its authenticity. You can check whether the income tax notice is genuine by using the ‘Authenticate Notice/Order’ feature on the Income Tax e-filing portal. This tool allows you to confirm if the communication was officially issued by the department, helping you avoid fraud or phishing attempts.

1. Visit the income tax e-filing portal. On the home page, under ‘Quick Links’ click on ‘Authenticate notice/order issued by ITD.
2. You can authenticate using either:
   1. PAN, document type, assessment year, issue date, and mobile number (for notice/order/letter issued for AY 2011-12 and subsequent years only) or
   2. Document Identification Number and mobile number (for all assessment years)
3. If you want to authenticate by PAN, document type, assessment year, issue date, and mobile number, select the option and enter all the details.
4. After filling in all the details, you will receive an OTP. Enter the OTP received.
   Once the OTP is validated, the Document Identification Number (DIN) of the notice issued, along with the date of issue of the notice, will be displayed.
5. If the notice is not issued by the ITD, it will display a message – No record found for the given criteria.
6. Another alternative is to authenticate using the Document Identification Number (DIN) and mobile number.
7. Enter DIN and mobile number and continue. You will receive an OTP. Validate using OTP.
8. If the notice/order is issued by the income tax authority, it will display a success message.

Otherwise, it will show No record found for the given Document Number.

What to do when you Receive an Income Tax Notice?

Follow the below steps to understand how to respond to Income Tax Notices:

1. Read the notice carefully and understand the reason for which the notice has been issued. 
2. You can also verify the authenticity of the notice through the Income Tax Portal. 
3. Once you understand the reason, collect all the necessary information and documents such as Form 16, bank statements, investment proofs, transaction details, or any other related records.
4. Log in to your Income Tax Portal and navigate to Pending Action > e-Proceedings to view the notice.
5. Prepare your response. Write a clear explanation and attach all the required proofs to support your claims. 
6. Submit your reply online through the portal and save or download the acknowledgement ID or receipt for further reference. 
7. Make sure to track the portal and email for further communications from the Income Tax Department.

What are the Most Common Reasons for Receiving Notice? 

The most common causes for which you might receive an income tax notice include the following:

1. Inconsistency in the amount of TDS reported
2. An inaccuracy on your tax return
3. Failure to submit all required papers
4. Failure to file your tax returns
5. When you make investments in your spouse's name but fail to report them on your income tax returns.
6. If high-value transactions occurred during the fiscal year but were not correctly disclosed on the income tax return
7. If the assessing officer randomly examines your income tax return
8. When long-term capital gains from stock investments are not properly disclosed
9. If the taxpayer fails to declare any income
10. If the incorrect income tax return form is used to file the income tax return.

Types of Notices/Intimations

The following are some of the popular notices issued under the Income Tax Act: