Income Tax Notice Under Section 142(1)
Meaning, Reasons, Documents Required and How to Respond
Received a Section 142(1) notice from the Income Tax Department? Understand why the Assessing Officer can issue it, what information may be requested, which documents you should prepare and how to submit a clear response before the stated deadline.
Receiving a communication from the Income Tax Department can feel concerning. However, a notice under Section 142(1) of the Income-tax Act, 1961 is an inquiry before assessment. Depending on the case, the Assessing Officer may ask you to file a return, produce accounts or documents, or provide specific information needed for the assessment. The notice itself does not automatically mean that wrongdoing or tax evasion has been established.
This guide explains what an income tax notice under Section 142(1) means, why it may be issued, what information the Assessing Officer can request, what can happen if you do not respond, and how to prepare and submit your response through the Income Tax e-Filing portal.
What This Guide Will Help You Understand
Follow the sections below in order to understand the notice before preparing your response.
Which Tax Law Applies to Your Section 142(1) Notice?
India moved to the Income-tax Act, 2025 from 1 April 2026, but older assessment years continue to be governed by the Income-tax Act, 1961. That distinction is important when you read or respond to a notice.
Income-tax Act, 1961
Proceedings relating to AY 2026–27 and earlier Assessment Years continue under the 1961 Act, even when the notice, assessment or follow-up proceeding happens after 1 April 2026.
Section 142(1) remains relevantIncome-tax Act, 2025
Income earned from 1 April 2026 onward falls under the new Act and uses the Tax Year concept instead of the old Previous Year / Assessment Year structure.
Section 268 — Inquiry Before AssessmentIf your notice refers to Section 142(1) and relates to AY 2026–27 or an earlier Assessment Year, the Income-tax Act, 1961 continues to govern that proceeding. The fact that the Income-tax Act, 2025 is now in force does not automatically convert an older proceeding into the new section numbering.
The Income Tax Department's transition guidance specifically confirms that assessments, reassessments, appeals and other proceedings relating to earlier years can continue under the old Act until they are finally resolved.
Suppose you receive a notice in October 2026 relating to AY 2025–26. Even though the notice is received after the new Act has commenced, the proceeding still relates to an older Assessment Year and can therefore continue under the Income-tax Act, 1961 using provisions such as Section 142(1).
How this guide is written: this article primarily explains Section 142(1) under the Income-tax Act, 1961 because taxpayers can continue to receive and respond to proceedings under that provision for AY 2026–27 and earlier years. Where useful, we will also identify the corresponding provision under the Income-tax Act, 2025.
What Is an Income Tax Notice Under Section 142(1)?
A Section 142(1) notice is an inquiry notice used by the Assessing Officer while making an assessment. Depending on your case, it can require you to file a return that has not been filed, produce specified accounts or documents, or provide written information on particular matters. It is not, by itself, a penalty or a finding that you have done something wrong. :chatgpt-content-reference{index="1"}
Key Takeaways
A Section 142(1) notice is primarily an information or compliance request used during assessment, not a punishment by itself.
It can be issued to a taxpayer who has already filed a return, and it can also be used in specified cases where the time for filing the return has expired and the required return has not been filed. :chatgpt-content-reference{index="2"}
The notice itself specifies the date by which the requested return, documents or information must be furnished. Use the deadline written in your actual notice. :chatgpt-content-reference{index="3"}
Failure to comply can lead to a best-judgment assessment under Section 144 and, depending on the nature of the default, applicable penalty or prosecution consequences under the 1961 Act. :chatgpt-content-reference{index="4"}
The practical approach: read the full notice, identify exactly what the Assessing Officer has asked for, collect the supporting records and submit a complete response within the stated time. A clear, documented response can often prevent avoidable follow-up queries.
Section 142(1) Notice Meaning Explained
A notice under Section 142(1) of the Income-tax Act, 1961 is a formal inquiry issued for the purpose of making an assessment. It allows the Assessing Officer to obtain the return, records or information needed to examine the taxpayer's income or loss.
In simple terms: the Assessing Officer is asking you to provide something needed for the assessment. What you must provide depends on the clause mentioned in the notice and the exact information requested.
What Can the Assessing Officer Ask Under Section 142(1)?
The provision broadly gives the Assessing Officer three different ways to seek compliance or information.
Where the required return has not been filed within the relevant statutory period, the notice can require the taxpayer to furnish the return of income in the prescribed form and manner.
Example: the due period has passed but the return required for the relevant assessment year has not been furnished.The Assessing Officer can require you to produce specified books, accounts or documents that are relevant to the assessment.
Examples: bank statements, ledgers, invoices, broker records, agreements or other supporting documents relevant to the issue being examined.The notice can require written and verified information on specified points or matters. This can also include a statement of assets and liabilities where the statutory conditions are satisfied.
Examples: explanation of a transaction, source of an amount, reconciliation of income, or clarification of figures appearing in the return.Remember: Section 142(1) is a fact-finding and information-gathering provision used during assessment. Receiving the notice is not, by itself, a penalty or a finding of tax evasion. But once the notice is issued, the taxpayer should respond to the specific requirements within the date stated in the communication.
Who Can Issue a Notice Under Section 142(1)?
Section 142(1) gives the Assessing Officer the power to seek the return, accounts, documents or information required for making an assessment.
The authority to issue a Section 142(1) notice rests with the Assessing Officer (AO). The provision can be used where a return has already been filed and additional documents or information are needed, and it can also operate in an appropriate non-filer case after the relevant Section 139(1) filing period has expired.
Two Important Points to Understand
The AO's power is broad enough to obtain necessary information, but it is still governed by the conditions and limits written into the law.
Under Section 142(1)(i), where the statutory conditions are satisfied and the required return has not been filed within the relevant period, the Assessing Officer can require the taxpayer to furnish the return by the date specified in the notice.
Under clauses (ii) and (iii), the AO can ask for specified accounts, documents and written information needed for the assessment. These powers are subject to the limits and safeguards prescribed in Section 142.
If you receive a valid notice under Section 142(1)(i) requiring a return, do not assume that the expiry of the original Section 139(1) due date means no return can now be required. The notice itself can require the return to be furnished by the date specified in it. :chatgpt-content-reference{index="1"}
Why Is a Section 142(1) Notice Issued?
The basic purpose of Section 142(1) is to give the Assessing Officer enough reliable information to make the assessment correctly. In practice, the notice generally asks for one of three types of compliance or information.
Where the statutory conditions are met and the return has not been furnished within the relevant period, the AO can require the taxpayer to file the return by the date specified in the notice.
AO typically wants: the return of income for the relevant assessment year.The AO can require specified accounts or documents that are relevant to the assessment and help verify the figures reported by the taxpayer.
Examples: bank statements, ledgers, invoices, broker statements, agreements or supporting tax records.The AO can ask the taxpayer to furnish written and verified information on specified matters connected with the assessment.
Examples: source of funds, explanation of a transaction, reconciliation of income, assets or liabilities, or a calculation appearing in the return.Common Situations Where Additional Information May Be Needed
What to Do After Receiving a Section 142(1) Income Tax Notice
A structured first review makes the eventual response much easier. Before preparing any explanation, identify exactly what the Assessing Officer has asked for and organise the records for the correct year.
Do not start by drafting a reply. First note the notice section, Assessment Year, DIN, response date and the exact return, documents or information requested. Section 142(1) itself requires compliance by the date specified in the notice.
Read the Entire Notice
Identify whether the Assessing Officer is asking you to file a return, produce accounts or documents, or furnish written information. Read the annexures and individual queries as carefully as the main notice.
Note the Exact Response Deadline
The notice specifies the date by which compliance is required. Record that date immediately and allow enough time for document collection, reconciliation and review before submitting the response.
Confirm the Correct Assessment Year
Make sure every document and tax calculation belongs to the Assessment Year stated in the notice. Do not mix bank statements, broker reports, invoices or return data from another year.
Gather Only the Relevant Documents
Collect the records specifically connected to the questions raised — such as bank statements, income proofs, ledgers, invoices, investment records, deduction proofs or transaction statements. Organise them so each document supports a specific answer.
A simple document request may be manageable independently if you clearly understand the query and have the records. Consider professional review where the notice involves unexplained transactions, large amounts, multiple income sources, prior-year issues or questions you cannot confidently reconcile.
Common Section 142(1) Notice Scenarios
Section 142(1) can be used in different assessment situations. These simplified examples show the type of information or compliance the Assessing Officer may seek.
Illustrative examples only: a transaction does not automatically result in a Section 142(1) notice. The actual scope of your response depends on the notice issued, the Assessment Year involved and the specific questions raised by the Assessing Officer.
Large Bank Deposit Needs Explanation
A salaried taxpayer's assessment includes a significant bank deposit whose source is not clear from the information already available. The AO may ask the taxpayer to explain the source and provide supporting documents.
Bank statement, sale document, loan confirmation, gift documentation or other records that genuinely explain the source of the amount.
Required Return Was Not Filed
A taxpayer has not furnished the required return within the relevant statutory period. Where the conditions of Section 142(1)(i) are satisfied, a notice may require the return to be furnished by the date specified.
Prepare and furnish the return in accordance with the notice and complete any applicable verification requirements through the prescribed process.
Deduction or Expense Needs Evidence
A taxpayer has claimed a deduction, exemption or business expense, but the records already available are not enough for the AO to verify the claim. The notice may ask for specific supporting documents.
Investment proofs, invoices, receipts, payment records, agreements, ledgers or other documents directly connected with the claim being examined.
Capital Gains or Transaction Figures Do Not Reconcile
Suppose the assessment records show a share, mutual-fund or property transaction, but the figures reported in the return do not clearly reconcile with the available transaction data. The AO may seek the computation and supporting records needed to understand the difference.
Reconcile the sale consideration, cost, acquisition records, broker or RTA statements, exemption claims and the capital-gains schedule. If this is the issue in your case, also see our guide on a notice for capital gains mismatch.
What Happens If You Do Not Respond to a Section 142(1) Notice?
A Section 142(1) notice should not be ignored. Failure to comply can lead to a monetary penalty, a best-judgment assessment and, in certain cases of wilful non-compliance, prosecution. The exact consequence depends on the nature of the default and the facts of the case.
Important: not every late or incomplete response automatically leads to all of the consequences below. Monetary penalty, best-judgment assessment and prosecution are separate legal consequences with different conditions.
For assessment years to which this provision applies, failure to comply with a notice under Section 142(1) can attract a statutory penalty.
₹10,000 for each default or failure.If a taxpayer fails to comply with all the terms of a Section 142(1) notice, the Assessing Officer can proceed to determine the taxpayer's total income or loss on the basis of relevant material available to the Department.
The assessment may proceed without the benefit of records or explanations you failed to provide.Section 276D is narrower than a general failure to reply. It deals with wilful failure to produce accounts or documents required by a Section 142(1) notice or wilful failure to comply with a direction under Section 142(2A).
Rigorous imprisonment may extend to one year, along with fine, where the statutory conditions are satisfied.Section 273B provides an important safeguard: the penalty for a failure covered by Section 272A(1)(d) is not imposable where the taxpayer proves that there was reasonable cause for the failure. This does not mean every delay is automatically excused; the circumstances and supporting evidence matter.
If the response date has not passed: review every query now, collect the requested records and submit a complete response within the time stated in the notice.
If the deadline has already passed: do not ignore the proceeding. Review the portal status, preserve evidence explaining the delay, and respond or seek professional advice based on the current stage of the case.
If you are also dealing with an information request or transaction-verification enquiry under Section 133(6), read our detailed guide on what to do if you get a Section 133(6) notice to understand the verification, document-reconciliation and online-response process for that separate type of communication.
How to Reply to an Income Tax Notice Under Section 142(1) Online
A notice issued by an Assessing Officer can generally be viewed and responded to through the e-Proceedings service on the Income Tax e-Filing portal. Read the notice and prepare your explanation and supporting documents before starting the final submission.
Log In to the Official e-Filing Portal
Sign in using your registered e-Filing credentials. Make sure you are accessing the official Income Tax e-Filing account connected with the PAN to which the notice was issued.
Open Pending Actions → e-Proceedings
From the dashboard, open Pending Actions → e-Proceedings and select Self when you are responding to a proceeding issued to your own PAN.
Open and Download the Relevant Notice
Locate the relevant proceeding and use View Notice. Open or download the notice PDF and verify the section, Assessment Year, response date and every individual question before preparing the reply.
Click Submit Response and Choose the Response Type
After reviewing the notice, click Submit Response. The portal may allow you to choose between a Partial Response and a Full Response depending on how you intend to submit the requested information.
Add Your Written Response and Supporting Documents
Enter a clear issue-wise explanation and attach the documents required for the relevant categories. Make sure each attachment is legible and directly supports the point you are answering.
Review Everything Before Final Submission
Check your explanation, Assessment Year, figures and uploaded files before clicking the final submit button. A submitted e-Proceedings response cannot be edited afterward.
Save the Transaction ID and Acknowledgment
After successful submission, the portal displays a success message with a Transaction ID and Acknowledgment Number. Save these details and retain a copy of the response and every attachment submitted for your records.
Because a submitted response cannot currently be edited, check names, dates, figures, Assessment Year, explanations and attachments carefully before final submission.
If the proceeding requires you to submit an income tax return, the portal can display a filing message and ask you to proceed by selecting the appropriate ITR type. Follow the workflow displayed for your specific notice rather than using a generic filing route.
When to Self-Respond vs. When to Consult a CA After a Section 142(1) Notice
Not every notice under Section 142(1) (Now Section 268(1)) requires professional representation. If the Assessing Officer requests straightforward information and your financial records are complete, you may be able to respond yourself. However, where a notice involves complex transactions, unexplained differences or technical tax issues, consulting a Chartered Accountant may help you prepare an accurate and properly supported response.
Self-Response May Be Practical
You can consider preparing the reply yourself when the notice is clear, the information is readily available and the relevant figures can be explained with supporting documents.
- The notice asks for a specific document you already have, such as a bank statement, salary statement or investment record.
- The notice requires you to file a return and your income sources and tax computation are straightforward.
- The query concerns a transaction whose source and tax treatment you understand and can support with documents.
- Your ITR, income records, tax-credit details and supporting statements reconcile without material unexplained differences.
- You understand the questions raised by the Assessing Officer and have sufficient time to prepare, verify and submit the complete response.
Simple document requests, routine clarifications and well-documented transactions that do not require complex legal or accounting analysis.
Professional Review May Be Helpful
Consider a Chartered Accountant where the notice requires substantial reconciliation, accounting analysis or interpretation of income-tax provisions before submitting a reply.
- The notice involves large or unexplained bank deposits, property transactions, investments or business receipts.
- Several income sources, business activities or multiple Assessment Years or Tax Years require detailed examination.
- Your ITR materially differs from AIS, Form 26AS (Now Form 168), bank statements or accounting records.
- Supporting documents are missing, inconsistent or difficult to reconcile with the explanation being prepared.
- You are unsure about the correct tax treatment, taxable income calculation or legal implications of a particular statement.
- The response deadline is close, significant information remains outstanding or the case has progressed to further assessment proceedings.
Material discrepancies, complex business records, unexplained financial transactions or cases requiring a carefully documented legal and factual response.
Ask yourself: "Can I explain every important figure mentioned in this notice and support my explanation with records that match my return and financial information?" If the answer is yes, self-response may be manageable. If substantial differences remain unexplained or you are uncertain about the applicable tax treatment, professional review may help reduce avoidable mistakes.
Can a Chartered Accountant Submit the Reply on Your Behalf?
Yes. The Income Tax Department's e-Proceedings facility allows a taxpayer to authorise an eligible representative to respond to supported notices on their behalf.
Where available for the proceeding, use Pending Actions → e-Proceedings → Add / View Authorized Representative. You should use the official authorisation process rather than sharing your e-Filing password or OTP with another person.
A CA is not mandatory in every case, and professional assistance does not guarantee a particular assessment outcome.
Under Section 144 (Now Section 271), failure to comply with all the terms of a notice under Section 142(1) (Now Section 268(1)) can lead to a best-judgment assessment when the statutory conditions are met. The Assessing Officer must follow the applicable legal procedure and consider relevant available material.
If you cannot collect all documents before the deadline, consider submitting the information currently available with an accurate explanation and requesting additional time through the applicable e-Proceedings facility. An adjournment request is not automatically approved.
A Section 142(1) notice generally concerns inquiry before assessment, while Section 148A (Now Section 281) concerns the procedure before possible reassessment. If your communication relates to income that may have escaped assessment, read our guide on what to do if you get a Section 148A notice to understand the procedure, response requirements and taxpayer safeguards.
Simple document request? Self-response may be sufficient. Complex financial or legal issue? Professional review may be useful. The most important requirement is not who prepares the reply, but whether your response is accurate, complete, supported by genuine records and submitted within the applicable deadline. For AY 2026–27 and earlier years, the relevant provisions of the Income-tax Act, 1961 continue to apply. For Tax Year 2026–27 onwards, refer to the corresponding provisions of the Income-tax Act, 2025.
Common Mistakes When Responding to a Section 142(1) Notice
Even when the underlying query is simple, avoidable mistakes in the response can create additional questions. Before submitting anything, check the deadline, documents, figures and final attachments carefully.
Do not leave document collection until the last moment. Use the response date stated in your actual notice and keep enough time for review before submission.
Match every query with the relevant supporting evidence. Do not assume that one bank statement, invoice or explanation answers several separate questions.
More text does not automatically make a stronger reply. Answer the exact question raised, state the relevant facts and link those facts to the documents being submitted.
Check that the amounts in your response agree with the relevant ITR, books, bank statements, tax records and transaction documents. Explain genuine differences rather than leaving them unresolved.
Make sure every statement, computation and attachment belongs to the Assessment Year mentioned in the notice. Records from another year can create unnecessary confusion.
A response submitted through e-Proceedings cannot currently be edited after submission. Review the written reply and every uploaded file before clicking the final submit button.
If your Section 142(1) proceeding requires you to file an income tax return, remember that filing and verification of the ITR are separate steps. Complete the applicable verification requirement within the prescribed period.
Keep the submitted response, attachments, Transaction ID and Acknowledgment Number safely. These records can be useful if the Department sends a follow-up query later.
An income tax return must be verified in accordance with the applicable return-filing rules. The Income Tax portal currently states that an unverified ITR can be treated as invalid. However, a response submitted through the e-Proceedings service itself does not require separate e-Verification.
How Easy Return Can Help With Your Section 142(1) Notice
A good response starts with understanding what the Assessing Officer is actually asking. Easy Return's tax team can help review the notice, organise the underlying facts and prepare a structured response supported by the relevant documents.
FAQs About Income Tax Notice Under Section 142(1)
These answers cover the most common questions taxpayers have after receiving a Section 142(1) notice under the Income-tax Act, 1961.
Is a Section 142(1) notice the same as a penalty?
No. A Section 142(1) notice is an inquiry before assessment. Depending on the case, it can require a return, specified accounts or documents, or written information. The notice itself is not a penalty. Separate consequences can arise if a taxpayer fails to comply with a valid notice.
Can I receive a Section 142(1) notice even if I have already filed my return?
Yes. Section 142(1) can be used after a return has been filed where the Assessing Officer requires accounts, documents or written information for the purpose of making the assessment.
What if I believe I was not otherwise required to file an income tax return?
Do not ignore the notice on that assumption. Where the statutory conditions of Section 142(1)(i) are satisfied and a valid notice requires a return to be furnished, review the requirement and comply with the direction by the date specified in the notice. If you believe the notice does not apply to your circumstances, consider professional review before taking a contrary position.
How long do I have to respond to a Section 142(1) notice?
There is no single response period that should be assumed for every notice. Section 142(1) requires compliance by the date specified in the notice. Check that date immediately and plan your document collection and response accordingly.
Can I reply to a Section 142(1) notice online?
Where the proceeding is available electronically, responses are generally handled through the Income Tax e-Filing portal under Pending Actions → e-Proceedings. Always follow the workflow and submission method displayed for your specific proceeding or stated in your notice.
What is the penalty for not responding to a Section 142(1) notice?
Under the Income-tax Act, 1961, Section 272A(1)(d) provides a penalty of ₹10,000 for each failure or default to comply with a notice under Section 142(1), subject to the applicable law and facts. Section 273B can provide relief from that penalty where reasonable cause for the failure is proved.
Separately, failure to comply with all the terms of the notice can allow a best-judgment assessment under Section 144. Wilful failure to produce accounts or documents can, where the statutory conditions are satisfied, also engage the prosecution provision in Section 276D.
Does the Income-tax Act, 2025 affect my Section 142(1) notice?
If the proceeding relates to AY 2026–27 or an earlier Assessment Year, the relevant proceeding can continue under the Income-tax Act, 1961 even after 1 April 2026.
Income earned from 1 April 2026 onward falls under the Income-tax Act, 2025 and uses the new Tax Year framework. Under that Act, the corresponding inquiry-before-assessment provision is Section 268.
Do I need to e-Verify my e-Proceedings response?
The e-Proceedings response itself does not currently require a separate e-Verification step. However, if the notice requires you to file an income tax return, the return must separately satisfy the applicable verification requirements for ITR filing.
Can I change my response after submitting it?
The current e-Proceedings workflow states that a response cannot be edited after it has been submitted. Review the written explanation, figures and attachments carefully before final submission, and retain the acknowledgment and submitted records afterward.
A Section 142(1) Notice Needs a Clear, Timely and Documented Response
A notice under Section 142(1) of the Income-tax Act, 1961 is an inquiry-before-assessment communication, not a penalty by itself. The right first step is to understand exactly what the Assessing Officer wants, identify the applicable Assessment Year and deadline, and reconcile the requested information with your tax records.
Your response should be factual, relevant to each query and supported by appropriate documents. Ignoring a valid notice can create separate compliance, penalty or assessment consequences, while an incomplete or unsupported response may result in further questions.
CA Sagar Batra
ICAI Registered Chartered Accountant · 10+ Years of Professional Experience · 12,000+ Tax Filings
Chartered Accountant with experience in taxation, compliance and business advisory. His work covers Income Tax, GST, TDS, tax notices, business compliance and financial documentation for individuals and businesses across India.