Income Tax
What to do when you receive a tax notice
CA Suraj Soni · 6 min read
Read the provision, not just the subject line
Notices are issued under specific provisions, and the provision determines what is being asked, what the department already holds, and what an adequate response looks like. Two notices that read similarly can require very different replies.
Note the response window immediately
Every notice states a period within which a response is expected. Missing it narrows the options available later. Diarise the date before doing anything else.
Reconstruct the record before drafting
A reply supported by bank statements, ledgers, invoices and reconciliations carries weight. An explanation without a record rarely does. Where books are behind, bringing them current is usually the first task.
Do not share portal credentials
No professional engagement requires you to share income tax or GST portal passwords, OTPs or banking credentials over e-mail or messaging. Information required for a response can be obtained through legitimate means.
This material is intended for general informational purposes and should not be treated as professional advice for a specific situation.