A reply to an income tax notice is filed electronically through the e-proceedings facility on the income-tax e-filing portal, against the notice's own reference, within the time the notice allows. You log in to the portal, open the notice under the pending actions or e-proceedings page, read the specific query, upload the reply with the supporting documents, and submit it, so that the response is recorded against the notice and the assessment year. Replying on the portal, and not only by post or email, is what creates the official record on which the assessing officer acts.
First, identify the notice
Not every notice is the same, and the reply differs with the provision under which it is issued. Read the heading and the section:
- A defective-return notice, where the return has to be corrected and refiled.
- A notice calling for documents or information, issued to verify the return under the enquiry power of the assessing officer.
- A scrutiny notice, where the case has been selected for scrutiny.
- A reassessment notice, where income that escaped assessment is being brought in.
- A notice of demand, where tax or interest is said to be payable.
- A penalty notice, where the officer proposes a penalty and asks for your explanation.
Note the assessment year, the deadline and the Document Identification Number quoted on the notice, because these decide what you attach and when it is due.
Documents you will usually need
- The notice itself and any annexure listing the queries.
- The acknowledgement of the return filed for that year, and the computation of income.
- Bank statements and the ledger or account extracts for the period in question.
- Proof for the items questioned, such as sale deeds, invoices, receipts or the TDS certificates.
- Challans or receipts for the taxes and interest already paid.
- The earlier reply, if this is a follow-up notice on the same points.
- A covering note that answers each query in order, with the annexures marked.
Steps, in order
- Log in to the e-filing portal with your account and open the pending actions and e-proceedings page.
- Open the notice for the correct assessment year, and read the queries and the due date.
- Classify the notice under the right provision, because the reply must address what that provision asks.
- Draft a point-by-point reply, with the supporting documents numbered and referenced.
- Upload the reply and the documents against the notice on the portal, and submit before the deadline.
- Save the acknowledgement and the submission reference the portal generates.
- If a hearing is scheduled, attend it or file the written submission as directed, and keep a copy of everything filed.
- If more time is needed, apply for an adjournment on the portal before the deadline rather than after it.
Time limits and what happens if you miss them
The notice states the date by which the reply is due, and that date, read with the provision, controls. Where you cannot reply in time, the portal and the officer allow an adjournment on a request made before the deadline; asking after it has passed is far weaker. A failure to reply may lead to the officer deciding on the material available, to a best-judgment assessment, or to the demand or penalty being confirmed, and in a reassessment matter the case may move to the next stage. Do not assume a figure for the period; work from the notice and the section, and confirm from the portal what the officer has allowed in your case. Keep the acknowledgement of each submission, because later notices in the same year often refer back to what was filed earlier.
Common mistakes
- Replying by post or email only, so that the reply is not on the portal record.
- Answering the wrong notice, or the right notice for the wrong assessment year.
- Ignoring the Document Identification Number or the notice reference, so the reply cannot be matched.
- Supplying figures that do not tally with the return or the bank statements.
- Attaching unmarked or illegible documents without a covering note linking each to a query.
- Missing the deadline and then seeking an adjournment that could have been asked for earlier.
How we can help
Income-tax notices turn on the provision and the figures, so the reply should be prepared against the notice and not from a template. Our tax law service handles income-tax and GST notices, assessments, appeals and refunds, and if you need a starting point for a written submission, our legal formats section has common drafts. Raise a specific notice with us through the tax law page or by contacting the office, and bring the notice, the return and the accounts. Our published consultation and appearance fees are set out on our pricing page.
Questions we are asked
Is it enough to reply on the portal?
The portal is the proper channel and the reply must be there to be on record. Keep a copy of what you uploaded and the acknowledgement, because the officer acts on the material on the portal.
Can I reply late?
You can request an adjournment, but the request should be made before the deadline. A late reply may still be considered, but you then risk the officer proceeding on the material already available.
Do I need a chartered accountant?
For a simple missing-document query you may manage the reply yourself. For a scrutiny or reassessment notice, or where the figures are large or reconciled across years, professional help is advisable before you commit to a position.
What if I ignore the notice?
The officer may proceed to assess or confirm the demand or penalty on the basis of the record, and the matter may then pass to appeal. Ignoring it narrows your options and costs time.