Last updated: 14 Oct 2026

Virtual Auditor

Income Tax Notice Reply

Last updated: 14 Oct 2026

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Income tax notices are issued by the Assessing Officer or CIT for various purposes: information requests (Section 142(1)), scrutiny assessment (Section 143(2)), reassessment (Section 148), penalty proceedings (Section 271/270A), and revision (Section 263). Each requires a different response strategy. Virtual Auditor handles all notice types — from simple information requests to complex scrutiny assessments — with CA-led response drafting, document compilation, and personal hearing representation. Quick Answer: Income Tax Notice Reply — Income tax notice reply by CA firm. Sections 142(1), 143(2), 148, 263 notices. Scrutiny assessment defence. Demand reduction. Virtual Auditor.

Regulatory Framework

Regulatory basis: Income Tax Act, 1961. Income Tax Rules, 1962. Finance Act (as amended). CBDT Circulars and Notifications.

Income Tax Notices — Section-wise Guide

SectionPurposeResponse Time
142(1)Information request15 days (extendable)
143(2)Scrutiny assessment30 days from notice
148/148AReassessment (escaped income)30 days + objections
156Demand notice30 days (pay or appeal)
245Set-off of refund against demand30 days to object

Engagement terms — reviewed 25 October 2026

  • Fee: ITR filing from ₹2,999 + 18% GST. Tax audit under section 44AB from ₹35,000 + 18% GST. Reply to a notice from ₹15,000 + 18% GST. Appeal to CIT(A) from ₹35,000 + 18% GST, with the statutory appeal fee (₹250 to ₹1,000 under section 249) extra.
  • Extra / not included: Stay petitions, rectification under section 154 after the appeal, and ITAT appeals are separate engagements. No outcome is guaranteed.
  • Turnaround: Notice replies within 7 working days from receipt of complete information and the advance payment and before the compliance date; returns and audit reports by the statutory due date when data is received at least 10 working days before it.
  • Who signs: Filings and replies are prepared and signed by V. Viswanathan FCA or another qualified Chartered Accountant of the practice, depending on the engagement.
  • Entity: Tax audit reports (Form 3CA/3CB and 3CD) are engaged and invoiced by V Viswanathan & Associates, Chartered Accountants (FRN 013713S); return filing, notice replies and appeal drafting are engaged and invoiced by Virtual Auditor Private Limited.
  • What to send first: Send the notice or order with its date of service, Form 26AS/AIS, the return and computation for the year, and the income-tax portal login.
  • Next step: Send your enquiry on WhatsApp to +91 99622 60333; we confirm the scope, fee and timeline in writing before work starts.

Step-by-Step Process

    Step 1

    Read notice carefully — identify section and response date

      Step 2

      Collect all documents referenced in the notice

        Step 3

        Prepare point-wise response with evidence

          Step 4

          File response on e-filing portal

            Step 5

            Attend hearing (video conference for faceless)

              Step 6

              Follow up for order and next steps

              Latest Regulatory Updates (FY 2025-26)

              This page has been updated to reflect changes introduced in Budget 2025, recent notifications from CBDT, CBIC, MCA, SEBI, and RBI, and evolving compliance requirements for FY 2025-26. Virtual Auditor continuously monitors regulatory developments to ensure all advice and filings are current and compliant with the latest provisions.

              When Is Income Tax Notice Reply Not Required?

              Professional response to income tax notice may not be required when: (a) the notice is a routine intimation under Section 143(1) with a small adjustment that can be accepted, (b) the notice requires only basic information that you can provide without professional computation, (c) the notice is a reminder for return filing resolvable by filing the pending return, or (d) the demand is clearly erroneous and can be resolved through the online rectification facility. Notices under Sections 148 (reassessment), 143(2) (scrutiny), and 263 (revision) always warrant professional representation.

              If you are unsure whether your situation requires income tax notice reply, contact us for a free preliminary assessment. We will advise you honestly — including telling you if you do not need our services.

              Documents Required

              The following documents are needed to initiate the income tax notice reply process:

              PAN card of the assessee, Aadhaar card (linked with PAN), Form 16/16A from all deductors, bank statements for all accounts held during the year, investment proofs for deductions under Chapter VI-A, capital gains computation with purchase/sale documents, Form 26AS and Annual Information Statement (AIS) download, and TDS certificates for any payments received.

              We provide a personalised document checklist after the initial consultation, tailored to your specific entity type and situation. Documents can be shared securely via email or our client portal.

              What You Receive

              Upon completion of the income tax notice reply engagement, you will receive: Completed tax return/form filing acknowledgment, detailed computation of tax liability with supporting schedules, reconciliation statements (26AS, AIS/TIS), advisory note on tax-saving opportunities identified, and a compliance calendar for future filing due dates.

              All deliverables are reviewed by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) before release to ensure accuracy and regulatory compliance.

              What has changed in the law — reviewed October 2026

              • Income-tax Act, 2025: assented to on 21 August 2025 and in force from 1 April 2026, it replaces the Income-tax Act, 1961 for tax year 2026-27 onward, and the Income-tax Rules, 2026 (notified 20 March 2026) replace the 1962 Rules. Section and rule numbers on this page are those of the 1961 Act and 1962 Rules, which continue to govern assessments, appeals and pending proceedings for assessment years up to 2026-27; for tax year 2026-27 onward the corresponding provisions of the 2025 Act apply, and our engagement letters quote both.

              Frequently Asked Questions

              I received a Section 143(1) intimation. Is this a notice?
              Section 143(1) is an automated processing intimation, not a notice. It shows the tax department computed result vs. your filed return. If there is a demand, you can either accept (pay) or file a rectification request (Section 154) if you disagree.
              What is a Section 148 notice?
              A reassessment notice — the AO believes income has escaped assessment. You must file a return in response. We evaluate the validity of the notice (was proper procedure followed?) and draft the response/return accordingly.
              How quickly must I respond to an IT notice?
              Varies by notice type. Section 142(1): typically 15-30 days. Section 143(2): as specified (usually 15-21 days). Section 148: 30 days to file return. Always respond within the deadline — non-response can lead to ex-parte assessment.
              What types of IT notices can I receive?
              Section 142(1): information/return filing. Section 143(2): scrutiny. Section 148/148A: reassessment. Section 156: demand. Section 245: set-off of refund. Each has different response timeline and implications.
              What is the time limit to respond to IT notice?
              Section 142(1): 15 days (extendable). Section 143(2): 30 days. Section 148A: 7-30 days. Non-response: assessment completed on best judgment basis, penalties imposed. Always respond within time even if requesting extension.
              Can I respond to IT notices myself?
              You can, but not recommended for 143(2) scrutiny or 148 reassessment. AO questions require strategic responses — admitting one point may create liability on another. Professional representation protects against self-incriminating responses.
              What is faceless assessment?
              Since 2020, most IT assessments are faceless (no physical meetings). National Faceless Assessment Centre issues notices and orders electronically. Response filed on e-portal. Video conferencing for hearings. Reduces corruption but requires precise written responses.
              What happens if I ignore an IT notice?
              Section 144: best judgment assessment (AO estimates income at high levels). Section 271(1)(b): penalty of ₹5,999 (professional fees only; govt fees and stamp duty extra) for non-compliance. Prosecution possible under Section 276D. Tax demand created without your input. Never ignore.
              What does this income-tax notice require, and what should I submit?
              First identify the notice: an intimation of adjustments after processing (section 143(1)), a scrutiny notice (section 143(2)) with questions under section 142(1), a reassessment notice (sections 148A and 148), or a demand or penalty notice (the Income-tax Act, 1961 for tax years up to 2025-26; the corresponding provisions of the Income-tax Act, 2025 from tax year 2026-27). Check the assessment year, the Document Identification Number, the date of service and the deadline. Then gather what is asked for, reconcile the department’s figures with your return and AIS, and reply on the e-filing portal, asking for an adjournment or a hearing where needed. Ignoring a notice can lead to a best-judgement assessment and penalties. We review the notice confidentially and prepare the reply and supporting schedule.
              When is income tax return due in India?
              Non-audit cases: July 31. Audit cases (companies, firms requiring audit): October 31. Transfer pricing: November 30. Belated returns: December 31 with ₹5,000 late fee.
              What is TDS and who must deduct it?
              Tax Deducted at Source — every person making specified payments (salary, rent, professional fees, interest, contractor payments) must deduct TDS at prescribed rates and deposit with the government.

              Available Across India

              Income Tax Filing Services in every state and major city. Click to view location-specific details, fees, and regulatory information.

              States (28)
              Andhra PradeshArunachal PradeshAssamBiharChhattisgarhGoaGujaratHaryanaHimachal PradeshJharkhandKarnatakaKeralaMadhya PradeshMaharashtraManipurMeghalayaMizoramNagalandOdishaPunjabRajasthanSikkimTamil NaduTelanganaTripuraUttar PradeshUttarakhandWest Bengal
              Union Territories (8)
              Andaman & NicobarChandigarhDadra Nagar Haveli & Daman DiuDelhiJammu & KashmirLadakhLakshadweepPuducherry
              Cities (80)
              Adyar, ChennaiAgraAhmedabadAmbattur, ChennaiAmritsarAndheri, MumbaiAnna Salai, ChennaiAurangabadBannerghatta Road, BangaloreBhopalBhubaneswarBKC, MumbaiChandigarh CityCoimbatoreDehradunElectronic City, BangaloreFaridabadFort Churchgate, MumbaiGhaziabadGoa CityGoregaon, MumbaiGuindy, ChennaiGurugramGuwahatiHebbal, BangaloreHSR Layout, BangaloreHubli DharwadHyderabadIndiranagar, BangaloreIndoreJaipurJammuJayanagar, BangaloreJodhpurKanpurKochiKolkataKoramangala, BangaloreLower Parel, MumbaiLucknowLudhianaMaduraiMalad, MumbaiMangaloreMarathahalli, BangaloreMeerutMG Road, BangaloreMylapore, ChennaiMysuruNagpurNariman Point, MumbaiNashikNavi Mumbai, MumbaiNew DelhiNoidaNungambakkam, ChennaiOMR, ChennaiPanajiPatnaPorur, ChennaiPowai, MumbaiPuneRaipurRajkotRanchiSalemShimlaSuratT Nagar, ChennaiThane CityThane, MumbaiThiruvananthapuramTiruchirappalliUdaipurVadodaraVaranasiVelachery, ChennaiVijayawadaVisakhapatnamWhitefield, Bangalore

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              Income Tax Appeal ServicesITAT Appeal Filing Chartered AccountantIncome Tax Appeal BangaloreIncome Tax Appeal MumbaiIncome Tax Appeal CIT(A) ChennaiSection 271 Penalty AppealWrit PetitionAngel Tax — Section 56(2)(x) Assessment Defence

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