Intimations, defective returns, scrutiny and reassessment — answered through the faceless portal, on time.
Almost all income tax communication now arrives electronically, and almost all of it is generated by data matching rather than by a human reading your return. That has two consequences: most notices are answerable with documents you already hold, and the deadline is enforced mechanically. We respond through the e-proceedings facility on the income tax portal, with the reply and evidence on record.
What each notice means
Section
What it is
Response window
143(1)
Intimation after processing — arithmetic, mismatch with Form 26AS or AIS, or a disallowed claim
15 days, extendable on request; the return is treated as invalid if not cured
142(1)
Enquiry before assessment — call for documents, accounts or a return not filed
As specified in the notice
143(2)
Scrutiny assessment selected — limited or complete
Served within three months of the end of the financial year in which the return is filed
148 / 148A
Income escaping assessment — 148A(b) show cause first, then 148 if reopened
Usually two weeks for the 148A reply; act immediately
156
Demand notice following an order
30 days to pay or to apply for stay pending appeal
245
Intimation of adjustment of refund against an earlier demand
30 days to object
e-Campaign
Compliance portal message on high-value transactions in the AIS
Respond on the portal; not a formal notice but ignoring it invites one
Check the AIS and Form 26AS before you reply to anything. The overwhelming majority of intimations under 143(1) and e-campaign messages come from a mismatch between the return and the Annual Information Statement — a mutual fund redemption, an interest credit, a property transaction or a credit card spend that was reported but not reconciled. Where the AIS itself is wrong, feedback can be submitted against the specific entry, and that feedback is the answer to the notice.
How we handle it
Identify the section and the trigger. A reassessment notice under 148 needs a jurisdictional response about limitation and the sanctioning authority; an intimation under 143(1) needs a reconciliation. Treating them alike wastes the one reply you get.
Reconcile the return with 26AS, AIS and TIS for the year concerned, and with the books where a business is involved.
Assemble evidence. Bank statements, contract notes, sale deeds, loan confirmations, and the identity, creditworthiness and genuineness trail for any credit questioned under Section 68.
File through e-proceedings within the window, with a written submission and indexed annexures rather than a bare upload.
Video conference hearing attended where the faceless unit offers one, and a written note of submissions filed afterwards.
Updated return — ITR-U
Where income was genuinely missed, an updated return is usually a better outcome than waiting for the department to find it. The window has been extended: an updated return can now be filed within 48 months from the end of the relevant assessment year, with additional tax rising the longer you wait.
Filed within
Additional tax on the tax and interest payable
12 months from the end of the assessment year
25%
24 months
50%
36 months
60%
48 months
70%
An updated return cannot be filed to claim or increase a refund, to reduce tax liability, or to report a loss. It also cannot be filed for a year where search or survey proceedings have been initiated, or where an assessment is pending. Filing one after a 148A notice has issued does not stop the reassessment, though it does affect penalty exposure.
Penalties worth knowing about
Section 270A — 50% of tax on under-reported income, rising to 200% where the under-reporting is treated as misreporting
Section 271AAC — 10% on income taxed under Section 115BBE, on top of a 60% tax rate and surcharge
Section 234F — late filing fee, and interest under 234A, 234B and 234C on shortfalls
Immunity under Section 270AA is available where tax and interest on an assessment order are paid and no appeal is filed — a route worth evaluating before reflexively appealing
Most notices we see in Chennai trace back to a return filed without reconciling the AIS. Getting the return right is the cheaper end of this — see income tax return filing and TDS return filing.
Frequently asked questions
Check what the adjustment is first. A large share of these are TDS credit mismatches where the deductor filed late, and the demand disappears once the credit appears in 26AS. Paying an incorrect demand is recoverable only through a rectification request under Section 154, which takes longer than responding correctly in the first place.
Under the current reassessment scheme the ordinary limitation is shorter than it used to be, with an extended period available only where the escaped income crosses the prescribed monetary threshold and the specified sanctioning authority approves. Limitation and sanction are often the strongest grounds in a reopening, so the 148A(b) reply should address them explicitly rather than only arguing the merits.
Not for a year where assessment, reassessment, search or survey proceedings are pending or have been initiated. If a 148A notice has been issued for that year, the ITR-U route is closed for it. If the notice relates to a different year, the updated return remains available for the untouched years.
No. Faceless assessment is conducted entirely through the portal, with an option to request a video conference hearing. There is no jurisdictional officer to meet, and anyone offering to settle a faceless assessment through personal contact should be treated with suspicion.