Salaried Employee Income Tax Notice: Reasons & How to Reply
Received an income tax notice despite earning mainly from salary? Understand why salaried taxpayers receive notices, which records to check, what common mismatches mean and how to prepare a clear response.
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Filing your ITR on time and having TDS deducted from salary does not always mean you will never receive an Income Tax Department communication.
A salaried employee may still receive an intimation, clarification request or notice where the Department needs to verify information reported in the return, reconcile tax credit, examine another source of income or obtain supporting documents.
That does not automatically mean that tax evasion or wrongdoing has been established. The first step is to identify which section has been mentioned, the Assessment Year involved, the issue raised and the response deadline.
What You’ll Learn Before Responding
Received a Notice and Not Sure What It Means?
Easy Return's tax team can review the notice context and help you understand the issue, documents required and appropriate next steps.
Income Tax Notices at a Glance
Not all income-tax notices mean the same thing. Some relate to routine return processing, while others require supporting documents, scrutiny, reassessment or payment of outstanding tax. This quick comparison explains seven common notices, their meaning, required action and response deadlines for taxpayers in 2026 and upcoming years.
| Notice Type & Section | What It Means | What You Should Do | Response Deadline |
|---|---|---|---|
| ITR Processing Intimation Section 143(1) (Now Section 270(1)) | Your income-tax return has been processed. The intimation may show a refund, tax payable, an adjustment or no difference from your filed return. | Compare the processed computation with your filed ITR, tax credits and claimed deductions. Respond to a separate proposed adjustment communication, if received, or use the appropriate remedy for an incorrect final intimation. | 30 Days For a proposed adjustment communication, not every final intimation. |
| Inquiry Before Assessment Section 142(1) (Now Section 268(1)) | The Assessing Officer requires you to file a return, provide specified documents or furnish information relevant to an assessment. | Read every question and submit the return, documents or explanations requested. Reconcile your information with your ITR and supporting financial records. | As Per Notice Follow the specified response date. |
| Scrutiny Assessment Notice Section 143(2) (Now Section 270(8)) | Your filed return has been selected for scrutiny to examine the correctness of declared income, losses, deductions or tax paid. | Review the issues being examined and furnish appropriate financial records, explanations and evidence supporting your ITR. | As Per Notice Check the hearing or response date. |
| Reassessment Notice Section 148 (Now Section 280) | The Department is proceeding with reassessment because information suggests taxable income may have escaped assessment, subject to the applicable legal requirements. | Furnish the return required by the notice and examine the basis of the proposed reassessment. The preliminary Section 148A notice for income escaping assessment (Now Section 281) generally provides an earlier opportunity to respond, subject to statutory exceptions. | As Per Notice Check the period allowed for filing the required return. |
| Defective Return Notice Section 139(9) (Now Section 263(7)) | The Department has identified a defect in the filed income-tax return that needs to be corrected. An unresolved defect may cause the return to be treated as invalid. | Identify the precise defect and submit the required correction through the prescribed e-Filing process. Request additional time where necessary and permitted. | Generally 15 Days From intimation of the defect, or further time allowed. |
| Income Tax Demand Notice Section 156 (Now Section 289) | The Department has communicated an amount payable as tax, interest, penalty or another statutory sum. | Verify the demand against your return, tax payments and relevant assessment order. Pay a valid demand within the applicable period or pursue rectification, appeal or another permitted remedy where justified. | Generally 30 Days From service of the demand, subject to applicable exceptions or directions. |
| Refund Adjustment Intimation Section 245 (Now Section 438) | The Department proposes to adjust all or part of an income-tax refund against an outstanding amount payable under the applicable law. | Check whether the outstanding demand is correct. Review the proposed adjustment and use the applicable portal workflow to agree, dispute or clarify the demand. | Follow Portal Date Check the specific communication and response instructions. |
Identify the Notice → Verify the Section and Year → Check the Deadline → Review the Issue → Submit the Correct Response. An income-tax notice does not automatically mean that you have committed a violation or that additional tax is payable. Each notice has a different legal purpose. Understanding the applicable section, reviewing the underlying information and responding accurately within the specified period can help prevent avoidable disputes and delays.
What an Income Tax Notice for Salaried Employees Means
An income tax notice or communication means the Department needs you to review, explain, correct or support a particular part of your tax record. The exact meaning depends on the section, Assessment Year and issue mentioned in the communication.
Receiving a notice does not automatically mean that you have concealed income, made a fraudulent claim or committed a tax violation. Some communications arise during return processing, while others seek clarification, supporting documents or a more detailed examination of the return.
For a salaried employee, the issue may relate to salary and TDS, but it can also involve interest income, investments, deductions, house property, capital gains or another transaction appearing in the taxpayer's records.
The useful first question is not “Why am I in trouble?” but “What exactly is the Department asking me to explain or provide?” Read the full communication before deciding how serious the issue is.
A Notice or Clarification May Be About:
Salary and TDS Figures Need Reconciliation
Suppose a software employee has filed an ITR using the salary details available to them, but the TDS information appearing in Form 26AS and the figures reported in the return do not reconcile clearly. The Department may seek clarification or supporting information depending on the type of proceeding.
The correct response is not simply to upload Form 16 and assume the issue is finished. The taxpayer should first compare the Form 16, filed ITR, Form 26AS and relevant salary or tax-credit figures and identify the actual reason for the difference.
A tax communication is a request that must be understood before it is answered—not automatically an accusation. Check the section, year, deadline and exact issue, then support your response with records that explain the facts.
Is an Income Tax Notice Serious? When to Worry and When Not To
Not every Income Tax Department communication has the same level of urgency. The right approach is to identify what the communication actually says, whether it asks for action and what could happen if the response is missed.
Review Carefully, But Do Not Panic
These communications may be relatively straightforward when the figures are correct and no substantial dispute exists.
- A Section 143(1) processing intimation showing that the return was processed without a material issue.
- A small or readily explainable tax-credit or income mismatch where the supporting records are available.
- A communication seeking a limited document or clarification that you can clearly provide.
Needs Prompt and Careful Action
These proceedings can directly affect assessment, tax liability or your ability to explain the return.
- A Section 143(2) scrutiny notice requiring evidence for income, deductions, exemptions or other figures in the return.
- A Section 148 reassessment notice relating to income considered to have escaped assessment under the applicable 1961 Act framework.
- A Section 156 notice of demand showing tax, interest, penalty or another amount as payable.
- A notice involving substantial unexplained transactions, incomplete records or a deadline that is already close.
The Income Tax Department provides a pre-login “Authenticate Notice / Order issued by ITD” service on the official e-Filing portal. You do not need to log in merely to use this authentication service.
You can verify the communication using either its Document Identification Number (DIN) and a mobile number, or by entering the requested PAN/document/year/date details and completing OTP verification.
Match the care and urgency of your response to the actual proceeding in front of you. The section number, deadline, amount involved, documents requested and potential consequence matter far more than the word “notice” by itself.
Why Salaried Employees Get Income Tax Notices
Salary may be your main source of income, but your tax return can also contain interest, investments, deductions, property income and other transactions. A notice may arise when the Department needs to reconcile, verify or obtain more information about one of these items.
Salary, taxable income or TDS reported in your return may not clearly match your Form 16 ( Now Form 130 ), Form 26AS or employer records. The difference should be identified before responding.
AIS can contain TDS/TCS, SFT information, tax payments, refunds or demands and other information received by the Department. A difference does not automatically mean the AIS value is taxable, but it may require reconciliation.
Savings or fixed-deposit interest, rent, dividends, freelance receipts, share or mutual-fund gains and property gains can be missed when salary is treated as the only income source. If the issue specifically relates to investment or property gains, see our guide on a capital gains tax notice.
A mid-year job change can create reporting errors if salary from the previous employer, related TDS or other employment income was not properly included in the final return.
A deduction, HRA exemption, medical-insurance deduction or another tax claim may require supporting records where the Department seeks verification during a proceeding.
Property transactions, substantial investments, certain deposits or other reported financial transactions may need clarification when they do not readily reconcile with the return or known sources.
Where a return was required but was not furnished within the applicable period, the Department may initiate the relevant compliance or assessment process depending on the facts and year involved.
The tax credit claimed in the ITR may differ from the TDS actually reflected against your PAN. Check whether the employer or other deductor reported the deduction correctly before deciding how to respond.
Depending on residential status and the facts, foreign income, foreign bank accounts, shares or other overseas assets can create additional disclosure or tax-reporting requirements.
If an earlier query, adjustment, outstanding demand or proceeding remains unresolved, the Department may issue further communication or continue the relevant proceeding. Check the complete history in your e-Filing account.
Before filing—or before replying to a notice—review more than salary alone. Compare your salary certificate, Form 26AS, AIS, bank interest, investments, property transactions and other income sources. Good reconciliation can reduce avoidable reporting errors, but it cannot guarantee that the Department will never seek clarification.
Form 26AS and AIS Mismatch Explained
Form 26AS and the Annual Information Statement are useful reconciliation tools, but they are not the same statement and they do not contain the same information. Understanding the difference helps you identify why the figures in your ITR may not match the Department's records.
Use it primarily to verify tax deducted or collected against your PAN and whether the credit claimed in your return agrees with the Department's TDS/TCS records.
AIS can include TDS/TCS, SFT information, tax payments, refund/demand information and other reported data received by the Department.
TIS sits within the AIS framework and presents aggregated information at the information-source level to make reconciliation easier.
Before filing—or before responding to a notice—compare these records with your own bank statements, interest certificates, salary records, broker statements and other source documents.
An AIS figure is not automatically the amount that must be offered to tax. Information can sometimes be duplicated, incorrectly reported or require a different tax treatment. If a reported AIS transaction is inaccurate, the AIS system also allows the taxpayer to submit feedback.
The ₹7,000 difference does not automatically mean that a notice will be issued or that ₹7,000 is necessarily additional taxable income. First check the underlying bank records. The difference could represent omitted income, duplicate reporting, incorrect information or another reconciliation issue.
What to Do When AIS, Form 26AS and Your ITR Do Not Match
For a step-by-step comparison, read our Form 26AS vs AIS vs ITR computation guide. If you have already received a Department communication, see what to check after an AIS mismatch email or SMS.
Types of Income Tax Notices and What Each Means
Different Income Tax Department communications serve very different purposes. Before replying, identify the section, Assessment Year, issue raised and deadline instead of treating every notice the same way.
Intimation After Processing
CPC processes the filed return and computes the result after making the adjustments permitted by law. The intimation may show no difference, a refund, a demand or an adjustment.
Compare the computation with your filed ITR. If there is a mistake apparent from the record, Section 154 rectification may be available; otherwise use the appropriate response or remedy for the issue.
Inquiry Before Assessment
The Assessing Officer may require a return, specified accounts or documents, or written information needed for making the assessment.
Answer each query and provide the exact records requested. Failure to comply with all the terms can lead to a best-judgment assessment under Section 144.
Scrutiny / Detailed Examination
The return is being examined to ensure that income has not been understated, loss has not been overstated and tax has not been underpaid.
Prepare supporting evidence for the income, deductions, exemptions and other figures being examined. The notice specifies the date for compliance.
Income Escaping Assessment
This notice forms part of the reassessment framework where the statutory conditions concerning income that has escaped assessment are considered satisfied.
Review the underlying reassessment material and furnish the return required by the notice within the permitted period. Significant cases may warrant professional review.
Defect in the Filed ITR
The Department has identified a defect in the return that must be corrected for the return to remain valid.
Correct the specific defect mentioned in the communication. If it is not rectified within the permitted period, the return can be treated as an invalid return.
Notice of Demand
A tax, interest, penalty, fine or another amount has been determined as payable in consequence of an order under the Act.
Verify the underlying order and demand. Depending on the facts, you may need to pay, seek rectification, respond to the demand or pursue the appropriate appeal/remedy.
Refund Set-Off Against an Outstanding Demand
Where a refund is due, the Department can propose to set off all or part of that refund against an amount that remains payable under the Act. Section 245 requires written intimation of the proposed action before the set-off.
Check whether the old demand is actually correct and use the applicable portal workflow to agree or dispute it. Follow the deadline shown in your communication or e-Filing account rather than assuming a universal 30-day period.
What to Do Immediately After Receiving an Income Tax Notice
Do not rush into writing a reply. A better approach is to verify the communication, understand exactly what has been asked, reconcile the relevant records and then submit a clear, documented response before the applicable deadline.
Use the official Income Tax e-Filing portal's “Authenticate Notice / Order issued by ITD” service. The service is available before login and can authenticate a communication using its DIN or the other identifying details requested by the portal.
Confirm that the document appears in the Department's official authentication system before relying on links, payment instructions or document requests contained in an unexpected email or message.
Note the section number, Assessment Year or Tax Year, date of issue and response due date. These details determine what proceeding you are dealing with and what response route applies.
Do not rely only on the email subject line or first page. Read the complete PDF, annexures and individual questions so you know exactly what information or explanation is being requested.
Compare the filed ITR with your Form 16 ( Now Form 130 ), Form 26AS, AIS, bank statements and other relevant records. Identify the real source of any difference before preparing an explanation.
Gather only documents relevant to the queries raised: salary records, interest certificates, deduction proofs, bank statements, broker records, property documents or other evidence as applicable.
Answer each point separately. Use clear facts, figures and document references instead of sending a long generic explanation that does not directly address the Department's query.
Recheck names, figures, Assessment Year, remarks and every attachment before submitting. Under the current e-Proceedings workflow, a response cannot be edited after it has been submitted.
Notices available through e-Proceedings can generally be accessed under Dashboard → Pending Actions → e-Proceedings → For Your Action. Follow the workflow displayed for your specific communication.
Keep the submitted response, attachments, Transaction ID, Acknowledgment Number and confirmation email where generated. Continue checking e-Proceedings for any further query or communication.
Consider professional assistance where the notice involves scrutiny, reassessment, substantial demand, unexplained transactions, incomplete records or a tax position you are not confident interpreting.
The portal submission window can depend on the type and status of the proceeding. For some e-Proceedings, the Income Tax Authority can also close or control the online submission window. Use the deadline and status shown in your actual proceeding and prepare the response early enough to review it properly.
Accuracy and timeliness matter more than speed alone. Do not ignore the deadline, but also do not submit an unsupported or incomplete explanation simply to respond immediately. Understand the issue first, support your position with records and then submit a reviewed response.
Documents You May Need to Respond to an Income Tax Notice
A good notice response is easier to prepare when the supporting records are organised by issue. You do not need to upload every tax document you own — collect the records that actually support the questions raised in your notice.
Keep the complete notice, annexures, filed ITR, acknowledgment and relevant computation together so you can compare the Department's query with what was actually reported.
For salary or TDS-related queries, collect your Form 16 ( Now Form 130 ), salary slips, Form 26AS, AIS and relevant employer records.
Where the notice questions a deduction or exemption, organise the evidence directly connected to that claim. This may include investment records, insurance receipts, rent evidence, housing-loan records or donation proofs.
If the query concerns shares, mutual funds or property, collect the records needed to explain purchase cost, sale consideration, dates, tax treatment and any exemption claimed.
Depending on the issue, you may need bank-interest certificates, rent records, freelance-income evidence, arrears-relief records or documents relating to foreign income and assets.
For unexplained deposit or transaction queries, collect the bank statement and the documents that genuinely establish the source of the amount — for example sale proceeds, loan evidence, transfer records or other supporting documents.
Keep clear digital copies and use descriptive file names such as “Query-2-Bank-Statement-April-to-March.pdf” instead of generic names like “scan1.pdf”. This makes your own review—and the connection between a query and its evidence—much easier to follow.
How to Reply to an Income Tax Notice on the e-Filing Portal
Many Income Tax Department notices, intimations and letters can be viewed and answered electronically through e-Proceedings. The exact screen and response options vary by proceeding, so follow the workflow displayed for your specific notice.
Sign in using the credentials for the PAN to which the communication was issued. Make sure you are using the official Income Tax e-Filing portal rather than a link from an unverified message.
Open the proceeding listed under For Your Action. The portal can display notices, intimations, letters and other communications that currently require a response.
Read the PDF, annexures and individual questions. Confirm the section, Assessment Year or Tax Year, issue date, response deadline and exact information requested.
The available options depend on the communication. For example, one proceeding may ask you to Agree or Disagree, while an Assessing Officer notice may provide a written response field and document-upload categories.
Prepare a factual, issue-wise response and attach the documents that directly support it. For AO notices, the current portal manual permits written remarks and category-based attachments.
Check every amount, date, remark and attachment before final submission. A response submitted through e-Proceedings cannot currently be edited afterward.
Submit through the portal workflow shown for your proceeding. A normal e-Proceedings response does not require a separate Aadhaar OTP, EVC or DSC e-Verification step.
On successful submission, save the confirmation details. Depending on the proceeding, the portal can generate a Transaction ID and, for applicable AO responses, an Acknowledgment Number. Retain copies of the response and every attachment.
If a proceeding requires you to file an income tax return, that ITR must follow the applicable return-verification rules. But the e-Proceedings response itself does not currently require separate e-Verification.
Keep your answer focused on the exact issue raised. The portal may allow attachments and written remarks, but sending more material than necessary does not automatically make a response stronger. Submit relevant evidence, review it carefully and keep a complete copy of what was filed.
Income Tax Notice Deadlines and Penalties You Should Know
There is no single deadline for every income tax notice. Response periods depend on the proceeding, and some consequences relate to the underlying tax or filing default rather than simply the fact that a notice was received.
An amount specified in a Section 156 notice of demand is generally payable within 30 days from service of the notice under Section 220(1).
A shorter period can be directed in the circumstances permitted by Section 220(1), so always check the notice.Section 245 permits a refund to be set off against an outstanding amount after written intimation of the proposed action is given to the taxpayer.
Section 245 itself does not create one universal 30-day response deadline. Follow the date shown in the portal communication.A taxpayer is generally given 15 days from the date of intimation to rectify the defect, or such further period as the Assessing Officer may allow.
If the defect is not rectified within the permitted period, the return can be treated as an invalid return.These notices specify the date or period within which the taxpayer must provide the requested return, documents, information or evidence.
Do not assume a standard 15-day or 30-day period for these proceedings.Failure to comply with a notice under Section 142(1) or Section 143(2), or a direction under Section 142(2A), can attract a statutory penalty under Section 272A(1)(d).
Current 1961 Act amount: ₹10,000 for each failure/default.Failure to comply with all the terms of a Section 142(1) notice can allow the Assessing Officer to proceed with a best-judgment assessment on the basis of available material.
This is separate from the monetary penalty for non-compliance.These provisions relate to separate tax defaults. Section 234A deals with delay or default in filing the return where tax remains payable; Section 234B concerns insufficient advance tax; and Section 234C concerns deferment or shortfall in advance-tax instalments. They do not arise merely because a notice response was submitted late.
Do not miss a deadline, but do not guess the consequence either. A delayed notice response, unpaid demand, defective return, under-reported income and advance-tax shortfall are different defaults with different legal consequences. Check the proceeding first, then respond under the rule that actually applies to your case.
Common Mistakes Salaried Employees Make With Income Tax Notices
A notice can become harder to handle when the taxpayer misses a deadline, responds without reconciling the figures or submits documents that do not support the explanation. These are the mistakes worth avoiding.
A processing intimation should not be dismissed simply because it is computer-generated. It can show an adjustment, refund, tax payable or another difference from the filed return.
Better approach: compare the CPC computation with your filed ITR and tax credits before deciding whether any action is required.Different proceedings have different timelines. Waiting until the final day can leave too little time to collect documents, reconcile figures or correct a portal submission problem.
Better approach: record the deadline as soon as the notice is received and start preparing the response early.Do not rely on salary figures alone. Compare your ITR against Form 16 ( Now Form 130 ), Form 26AS, AIS, TIS and your own source records where relevant.
Better approach: identify the reason for every material difference before explaining it to the Department.A deduction or exemption may need supporting evidence if it is examined. Investment receipts, insurance records, rent evidence or home-loan documents should match the claim actually made.
Better approach: retain the documents that substantiate the amount and eligibility of each material claim.Long explanations can still be weak if they do not answer the actual query. Unnecessary facts can also make the response harder to understand.
Better approach: answer each question separately and connect each factual statement to the supporting document.AIS contains information reported to the Department, but it can require reconciliation and the portal allows taxpayer feedback on reported transactions.
Better approach: verify the underlying bank, broker, employer or other source record instead of changing the ITR merely to match AIS. :chatgpt-content-reference{index="1"}A notice response, revised return, demand response, rectification and appeal are different procedures. Section 154, for example, is designed for a mistake apparent from the record, not every disagreement with the Department.
Better approach: identify the legal issue first, then use the remedy actually available for that proceeding.Scrutiny, reassessment, substantial demands or unexplained transactions may require more technical analysis than a straightforward document request.
Better approach: consider professional review where the tax treatment, evidence or legal response is unclear.Section 143(1) is the processing of the return by CPC. The Department's own guidance explains that this stage checks matters such as arithmetic, apparent errors, tax calculation and tax payments; it is not itself a detailed verification of the taxpayer's income. :chatgpt-content-reference{index="2"}
The safest response is usually the one that is timely, relevant, reconciled and supported by evidence. Do not assume that every mistake creates a penalty, but do not ignore a valid communication either. Read the proceeding, identify what is actually required and respond on the facts.
How to Reduce the Risk of Future Income Tax Notices
You cannot guarantee that the Income Tax Department will never seek clarification, but good filing habits can reduce avoidable mismatches, incomplete reporting and documentation problems.
Avoid preparing the return at the last minute. Starting early gives you time to identify missing records, incorrect tax credit and income that may have been overlooked.
Better habit: collect salary, bank, investment and tax records before beginning the final return.Compare Form 26AS, AIS and TIS with the underlying employer, bank, broker and investment records before filing. Do not copy a figure simply because it appears in an information statement.
Better habit: investigate material differences before submitting the ITR.Include income that applies to your case, such as savings interest, fixed-deposit interest, dividends, rent, freelance income and taxable capital gains. Do not assume salary is the only income that matters.
Better habit: review bank accounts, investments and property activity before finalising the return.Maintain documents that support deductions, exemptions and other material tax positions claimed in the return. The evidence should support both eligibility and the amount claimed.
Better habit: keep organised digital copies instead of searching for proof only after a query is received.AIS is designed to show information available with the Department and lets taxpayers provide feedback on reported transactions. Use that facility where the underlying information is genuinely incorrect.
Better habit: correct the source or submit appropriate AIS feedback instead of ignoring an obvious discrepancy.Check communications appearing in your e-Filing account and identify whether they are informational or require action. If a response is required, record the deadline immediately.
Better habit: do not wait until the final day to investigate a mismatch or collect evidence.For older years this may be Form 16; for the new Act framework, salary TDS certification moves to Form 130. Compare the certificate with the salary and TDS actually reported in the return.
Better habit: resolve salary/TDS differences before filing rather than explaining them later.Save the filed ITR, acknowledgment, computation, relevant tax statements and supporting records used to prepare the return.
Better habit: retain one organised folder for each Assessment Year or Tax Year.The Income Tax Department states that AIS contains the information currently available with it, but other taxpayer transactions may not appear in AIS. The taxpayer is still expected to check all relevant information and report complete and accurate details in the ITR. AIS also provides an online feedback facility for reported information. :chatgpt-content-reference{index="1"}
Good compliance reduces avoidable problems; it does not eliminate every possible tax notice. Complete income reporting, careful reconciliation, supporting records and timely responses make it much easier to explain your return if the Department later seeks clarification.
When Should You Seek Professional Help for an Income Tax Notice?
Not every income tax notice needs a Chartered Accountant. The better question is whether you can understand the issue, reconcile the figures, support your position with documents and choose the correct response procedure with confidence.
A clear Section 143(1) computation difference or a Section 139(9) defect may be manageable yourself if you understand the issue and have the records needed to correct it. These communications are not automatically “simple” in every case.
Self-response may be reasonable where the correction is clear and no material tax dispute exists.Scrutiny can involve examination of income, deductions, exemptions, losses or other figures reported in the return. The response may require detailed reconciliations and documentary evidence.
Consider professional review where multiple issues or significant amounts are being examined.Section 148 forms part of the reassessment framework where income is considered to have escaped assessment. These proceedings can involve prior-year facts, statutory timelines and technical reassessment issues.
Professional review is often useful before filing the response or taking a substantive position.If a Section 156 demand is substantial or you believe the underlying order is incorrect, first determine whether the proper route is payment, demand response, rectification, appeal or another remedy.
Get the remedy checked before paying or disputing a material demand.Professional input can be valuable where the notice involves complex capital gains, foreign income or assets, unexplained deposits, multiple employers, business or freelance income, or several years of records.
Seek help where tax treatment itself is unclear, not merely because a notice exists.If a penalty proceeding has begun, important documents are missing, the portal response window has closed or the deadline has already passed, the next step may require more than a routine notice reply.
Get the current procedural position reviewed before making assumptions or submitting an unsupported explanation.Ask yourself: “Can I explain every material figure, identify the correct legal response route and support my explanation with documents?” If yes, a self-response may be practical. If the answer is uncertain on any material point, professional review can help reduce avoidable response errors.
Not Sure Whether Your Notice Needs Expert Review?
Easy Return's tax team can review the notice context, identify the issues involved and help you understand the documents and response route that may be appropriate.
Professional assistance can improve the quality and organisation of a response, but it does not guarantee a particular assessment, demand, penalty or proceeding outcome.
How to Verify If an Income Tax Notice Is Genuine
Before uploading tax records, making a payment or responding to an unexpected communication, authenticate it through the Income Tax Department's official e-Filing portal. Email appearance, logos and urgent wording should never be your only authenticity checks.
The Income Tax Department provides this as a pre-login service, so you do not need to sign in simply to verify a notice, order, summons, letter or other Department communication.
Communications issued by Income Tax authorities on or after 1 October 2019 are ordinarily required to carry a unique Document Identification Number. Use the Department's authentication service to validate it.
Best check: rely on the portal authentication result, not merely the fact that a DIN-looking number appears in the PDF.Log in independently to the official portal and check the relevant notice, compliance or e-Proceedings area where applicable. Do not reach the portal through an unexpected email link.
Important: portal visibility is a useful supporting check, but use the official authentication service as the primary test.Confirm that the PAN, document type, Assessment Year or Tax Year, issue date and other identifying information correspond with the communication you received.
If details differ: verify through the portal before sharing documents or making any payment.Check whether the communication clearly identifies what proceeding or action it relates to and what response is being requested. An unfamiliar section by itself does not prove that a communication is fake.
Do not guess: authenticate first, then investigate the legal meaning of the section.A communication may contain officer details, electronic authentication or other official-looking elements, but those visual elements should not replace portal authentication.
Safer approach: validate the communication using ITD's authentication service even when the PDF looks official.If tax is genuinely payable, access the payment facility by opening the official e-Filing portal yourself. Avoid paying through personal bank accounts, unknown QR codes or third-party links sent in an unexpected message.
Safer approach: navigate independently to the official portal and use its tax-payment service.The Income Tax Department specifically warns taxpayers not to disclose PINs, passwords or similar access information for bank, card or financial accounts through email.
Red flag: any message asking you to send passwords, card PINs or banking login credentials should not be trusted.Inspect the sender carefully for misspellings or strange domains, but do not assume an email is genuine merely because the displayed sender name or domain looks official.
Best practice: authenticate the actual notice independently on the e-Filing portal.Verify first, respond second. Do not send sensitive tax records or make a payment merely because an email or PDF looks convincing. Authenticate the communication through the Department's official service, then log in to your e-Filing account independently and follow the genuine proceeding from there.
TDS Mismatch for Salaried Employees: Common Causes and How to Fix It
A TDS mismatch occurs when the tax credit claimed in your ITR does not agree with the TDS information available against your PAN. This can affect return processing and may create a tax credit difference that needs correction or reconciliation.
When you change jobs during the year, salary and TDS from the previous employer can be missed while preparing the final ITR. This can leave total salary or tax credit incorrectly reported.
Check: combine salary and TDS details from all employers and reconcile them with the return. If the filed ITR is incorrect, use the correction route legally available for that year.A bank may deduct TDS on interest while the related interest income is omitted or reported at a different amount in the ITR. TDS deduction does not replace the requirement to report the correct taxable income.
Check: reconcile the bank interest certificate, bank statement, AIS where relevant, Form 26AS and the income actually taxable for the year.TDS credit may fail to reflect correctly if the deductor has reported incorrect PAN details or made an error in the TDS statement.
Fix: contact the employer or other deductor and ask them to correct the TDS statement. The Income Tax portal specifically advises deductor correction where a TDS mismatch exists.Your salary certificate may show tax deducted, while the same credit is missing or lower in Form 26AS because the deductor's statement has not been correctly filed, processed or corrected.
Fix: first get the deductor reporting corrected. If CPC has already processed the return with a tax-credit mismatch, review whether the portal's applicable rectification procedure is available.A deduction can be reported late or against an incorrect period, creating a mismatch between the year in which the related income is taxable and the year in which the deductor's reporting appears.
Check: do not shift the TDS credit merely because it appears in Form 26AS later. First determine the year in which the underlying income is assessable and correct the deductor reporting where necessary.A wrong TAN, deductor details, amount or other TDS entry in the filed ITR can itself create a mismatch even when the deductor has reported the credit correctly.
Fix: compare the TDS schedule in the filed return with Form 26AS and use the appropriate correction procedure if the ITR entry is wrong.Under the Income-tax Act, 1961 framework, Rule 37BA generally allows TDS credit for the Assessment Year in which the corresponding income is assessable. Where income is assessable over more than one year, the credit is allocated proportionately across those years. Therefore, the correct year is not determined solely by when an entry happens to become visible in Form 26AS.
The Income Tax e-Filing portal provides a Tax Credit Mismatch service where you can select the relevant Assessment Year and compare TDS/TCS or other tax-credit details claimed in the return with the information reflected in Form 26AS. If TDS is mismatched, the Department's guidance says to contact the employer or deductor so the TDS statement can be corrected.
Match both the income and the TDS—not just the tax-credit number. Before filing, compare the salary or other income actually taxable with your salary certificate, Form 26AS, AIS where relevant and source records. If something does not match, identify whether the problem is in the ITR, the deductor's reporting or the underlying income figure before making a correction.
Frequently Asked Questions About Income Tax Notices for Salaried Employees
These answers cover common questions about notice reasons, deadlines, TDS mismatches, online responses and when professional review may be useful.
Why do salaried employees receive income tax notices?
A salaried taxpayer can receive a communication where the Department needs to process, reconcile, verify or obtain more information about the return.
Common issues can include salary or TDS differences, omitted bank interest, income from a previous employer, deductions, investments, property transactions or other income not clearly reconciled with the return. The exact reason depends on the communication received.
Is an income tax notice always a sign that something is seriously wrong?
No. The word “notice” covers several different types of communications. A Section 143(1) intimation, for example, is generated during return processing and can show no difference, a refund, an adjustment or a demand.
Proceedings such as scrutiny under Section 143(2) or reassessment under Section 148 generally require more detailed attention, but the seriousness should be judged from the actual section, issue and amount involved.
How do I check whether an Income Tax Department notice is genuine?
Use the official e-Filing portal's “Authenticate Notice / Order issued by ITD” service. It is available before login and can verify the communication using its DIN or the requested PAN/document/year/date details.
Communications issued on or after 1 October 2019 are ordinarily required to carry a DIN. Checking your e-Proceedings account is also useful, but the official authentication service is the stronger verification step.
How many days do I get to respond to an income tax notice?
There is no universal deadline for every notice. Always use the due date stated in your actual communication or portal proceeding.
A defective-return notice under Section 139(9) generally allows 15 days from receipt or the period specified in the notice, and an extension can be requested. A Section 156 demand is generally payable within 30 days from service, subject to the applicable statutory conditions. Section 245 itself does not prescribe one universal 30-day response period.
How should a salaried employee reply to an income tax notice online?
Log in independently to the official e-Filing portal and check Dashboard → Pending Actions → e-Proceedings → For Your Action.
Open the complete communication, identify the section and deadline, reconcile the relevant records, prepare an issue-wise explanation and upload the supporting documents requested. Review everything before submitting because an e-Proceedings response cannot currently be edited after submission.
What can happen if I ignore an income tax notice?
The consequence depends on the proceeding. There is no single penalty that applies whenever any notice is ignored.
For example, failure to rectify a Section 139(9) defect can result in the return being treated as invalid. Failure to comply with all terms of a Section 142(1) notice can contribute to a best-judgment assessment under Section 144 and can also attract the applicable non-compliance provisions.
Why did I receive a notice when my employer already deducted TDS?
TDS deducted by your employer is only one part of your tax return. The return can still contain salary, interest, investments, deductions, property income, capital gains or other items that need reconciliation.
Compare the filed ITR with your Form 16 ( Now Form 130 ), Form 26AS, AIS and underlying source records to identify the actual difference.
Does receiving an income tax notice affect my CIBIL score or employment?
An Income Tax Department notice is not itself a CIBIL scoring factor. CIBIL describes its credit report and score as being based on credit information supplied by banks and financial institutions, including factors such as repayment history, credit utilisation, credit age and enquiries.
There is also no standard rule under which an ordinary tax notice automatically affects employment. However, specific employers, regulated roles, lending decisions or serious unresolved legal/tax proceedings can involve separate disclosure or risk-assessment considerations.
Can I respond to an income tax notice myself?
Yes, where you clearly understand the issue and have the records needed to support the response. A straightforward processing difference, tax-credit reconciliation or defective-return correction may be manageable without representation.
Consider professional review where the proceeding involves scrutiny, reassessment, a substantial disputed demand, foreign assets, complex transactions, incomplete records or a tax position you cannot confidently explain.
Why do I still see sections from the Income-tax Act, 1961 after April 2026?
Proceedings relating to AY 2026–27 and earlier years can continue under the Income-tax Act, 1961 even after the Income-tax Act, 2025 came into force from 1 April 2026.
That is why taxpayers can still encounter older references such as Sections 143(1), 142(1), 139(9), 148, 156 and 245 when dealing with earlier Assessment Years.
Final Word: Understand the Notice, Then Respond on the Facts
Receiving an income tax notice can be concerning, but the section, issue and response required matter far more than the word “notice” itself.
A communication from the Income Tax Department does not automatically mean that wrongdoing, under-reporting or a penalty has been established. Processing intimations, clarification requests, scrutiny, reassessment and demand proceedings all serve different purposes and need different responses.
The practical approach remains consistent: authenticate the communication, identify the section and deadline, understand the exact issue, reconcile the relevant records and submit a factual response supported by appropriate documents.
Before final submission, review the response carefully. Where the proceeding is handled through e-Proceedings, a submitted response cannot currently be edited afterward, so accuracy before clicking Submit matters.
Received a Notice and Still Not Sure What to Do?
Easy Return's tax team can review the notice context, identify the issue involved and help you organise the documents and response required for your case.
This guide is for general informational purposes. The appropriate response depends on the notice, Assessment Year or Tax Year, underlying facts and law applicable to your case. Professional assistance does not guarantee a particular tax or proceeding outcome.
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.