{"id":70512,"date":"2025-11-21T18:30:00","date_gmt":"2025-11-21T13:00:00","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=70512"},"modified":"2025-11-24T18:01:03","modified_gmt":"2025-11-24T12:31:03","slug":"income-tax-section-142-1-notice-guide","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/","title":{"rendered":"Income Tax Notice Under Section 142 (1)"},"content":{"rendered":"\n<p>Once the&nbsp;assessee&nbsp;files the income tax return, the Income Tax Department scrutinises his return and issues assessment intimations and scrutiny notices. This applies even if the&nbsp;assessee&nbsp;fails to&nbsp;file their income tax return. However, the Department may request&nbsp;additional&nbsp;information to ensure everything is in its records.&nbsp;Timely&nbsp;<a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" target=\"_blank\" rel=\"noreferrer noopener\">income tax return filing<\/a>&nbsp;is mandatory to stay compliant.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In this guide,&nbsp;we\u2019ll&nbsp;explain what an income tax notice under section 142 (1) means, the reasons behind issuing it,&nbsp;and&nbsp;the process to effectively file&nbsp;a&nbsp;response.&nbsp;&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Understanding_Income_Tax_Notice_Under_Section_142_1\" >Understanding&nbsp;Income Tax&nbsp;Notice Under Section 142 (1)&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Purpose_of_the_Income_Tax_Notice_Under_Section_142_1\" >Purpose of the Income Tax Notice Under Section 142 (1)&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#What_are_the_Reasons_for_Receiving_Income_Tax_Notice_under_Section_142_1\" >What are the Reasons for Receiving Income Tax Notice under Section 142 (1)?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Talk_To_Expert\" >Talk To Expert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Income_Tax_Notice_Under_Section_142_1_to_Corpbiz_experts_now\" >Income Tax Notice Under Section 142 (1) to Corpbiz experts now.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#When_Can_a_Notice_Under_Section_142_1_be_Issued\" >When Can a Notice Under Section&nbsp;142 (1)&nbsp;be Issued?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Who_Can_Issue_a_Notice_under_Section_142_1_of_the_Income_Tax_Act\" >Who&nbsp;Can&nbsp;Issue a&nbsp;Notice under Section 142 (1) of&nbsp;the Income Tax Act?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Steps_to_be_Taken_After_Receiving_an_Income_Tax_Notice\" >Steps to be Taken After Receiving an Income Tax Notice&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#How_to_File_a_Response_to_Section_142_1_Notice\" >How to File a Response to Section 142 (1) Notice?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Mandatory_Compliance_under_Section_142_1_of_the_Income_Tax_Act\" >Mandatory Compliance under Section 142 (1) of&nbsp;the&nbsp;Income Tax Act&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Consequences_for_Non-Compliance_with_Section_142_1_Income_Tax_Notice\" >Consequences for Non-Compliance with Section 142 (1) Income&nbsp;Tax Notice&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Time_Limit_to_Serve_Respond_to_the_Income_Tax_Notice\" >Time Limit to Serve&nbsp;&amp; Respond to the&nbsp;Income Tax Notice&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#To_Wrap_Up\" >To Wrap Up&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/corpbiz.io\/learning\/income-tax-section-142-1-notice-guide\/#Top_Questions_Regarding_Income_Tax_Notice\" >Top Questions Regarding Income Tax Notice<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Income_Tax_Notice_Under_Section_142_1\"><\/span>Understanding&nbsp;Income Tax&nbsp;Notice Under Section 142 (1)&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An income tax notice under&nbsp;section 142 (1) of the Income Tax Act, 1961,&nbsp;is issued by the&nbsp;Assessing Officer (AO) to&nbsp;collect&nbsp;additional&nbsp;information&nbsp;required&nbsp;for completing an assessment. It also&nbsp;furnishes&nbsp;a return of income and provides&nbsp;clarification on any aspect of your filed return for assessment purposes.&nbsp;However, this notice is typically issued before the assessment is completed and does not&nbsp;necessarily&nbsp;indicate&nbsp;tax&nbsp;evasion.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The income tax notice under section 142(1) is served via email, SMS, or\u00a0the e-filing portal, and taxpayers usually have 15 days to respond\u00a0to income tax notice, though an extension may be requested if needed.<\/p>\n\n\n\n<p><strong>Read more:- \u00a0\u00a0<a href=\"https:\/\/corpbiz.io\/learning\/what-are-the-different-types-of-income-tax-notices\/\">What are the Different Types of Income Tax Notices? <\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_the_Income_Tax_Notice_Under_Section_142_1\"><\/span>Purpose of the Income Tax Notice Under Section 142 (1)&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The income tax notice, which is a standard part of the assessment process under section 142 (1) of the Income Tax Act, must be filed for the following reasons:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Request to file the income tax return&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Ensure proper assessment of the taxpayer\u2019s liability&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Obtain clarifications and explanations&nbsp;regarding&nbsp;certain disclosures&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Collect comprehensive financial data and transactions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Cover multiple incomes of any individual who is legally responsible&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Facilitate&nbsp;accurate&nbsp;and fair tax assessments&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Submission of specific accounts and documents&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Produce accounts or documents to make an assessment&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Reasons_for_Receiving_Income_Tax_Notice_under_Section_142_1\"><\/span>What are the Reasons for Receiving Income Tax Notice under Section 142 (1)?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The income tax notice is an official request from tax authorities for certain records, information, or clarifications about your financial situation. Hence, it can be&nbsp;mainly issued&nbsp;due to the following reasons:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Non-filing of Income Tax Return:<\/strong>&nbsp;To curb any inconsistencies in the income tax return for the relevant assessment year, the income tax notice under section 142 (1) is received.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>High-Value Transactions:<\/strong>&nbsp;You receive the income tax notice if there is any requirement to know the source of funds and details of high-value transactions by the tax authorities.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Inconsistencies in Income or Financial Data:<\/strong>&nbsp;Receiving an income tax return under section 142 (1) is a reminder to find discrepancies between the income reported in the ITR and other available information.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Tax Audit Requirement:<\/strong>&nbsp;It is&nbsp;required&nbsp;in case the tax department wants to inspect the audit report or connected financial information.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Random Scrutiny or Regular Assessment:<\/strong>&nbsp;You can receive an income tax notice if any&nbsp;additional&nbsp;information is required for further scrutiny or regular assessment.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Talk_To_Expert\"><\/span>Talk To Expert<span class=\"ez-toc-section-end\"><\/span><\/h2><div class=\"calling-person blog_cta my-4\"> \n\n  \n\n    <div class=\"row\"> \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-12\"> \n\n            <div class=\"d-flex flex-nowrap\"> \n\n                <div class=\"user-online\"> <img decoding=\"async\" src=\"https:\/\/corpbiz.io\/img\/user.jpg\" alt=\"corpbiz\"> <\/div> \n\n                <div class=\"user-online-details ms-3 align-self-center\"> \n\n                    <h2 class=\"text-white mt-0\"><span class=\"ez-toc-section\" id=\"Income_Tax_Notice_Under_Section_142_1_to_Corpbiz_experts_now\"><\/span>Income Tax Notice Under Section 142 (1) to Corpbiz experts now. <span class=\"ez-toc-section-end\"><\/span><\/h2> \n\n                    <p class=\"mt-3\"><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i \n\n                            class=\"fa fa-star\"><\/i><i class=\"fa fa-star-half-full\"><\/i><span \n\n                            class=\"ms-2 text-white\">(4.8)<\/span><\/p> \n\n                <\/div> \n\n            <\/div> \n\n          \n\n        <\/div> \n\n     \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-8 mx-auto\"> \n\n            <div class=\"d-flex justify-content-between call-chat\"> <a href=\"tel:919121230280\"> <span>Call Now \n\n            <\/span><img decoding=\"async\" class=\"ms-2\" src=\"https:\/\/corpbiz.io\/admin\/style\/images\/userfiles\/image\/new_call_icon.png\" \n\n                alt=\"Call With \" width=\"32px\"> \n\n        <\/a> <a href=\"https:\/\/api.whatsapp.com\/send?phone=919289379709&#038;text=Hi%20Corpbiz\" target=\"_blank\" rel=\"noopener\"> <span>Chat With Us<\/span><img decoding=\"async\" class=\"ms-2\" \n\n                src=\"https:\/\/corpbiz.io\/img\/chat-with-expert.png\" alt=\"Chat With \" width=\"32px\"> <\/a> <\/div> \n\n        <\/div> \n\n    <\/div> \n\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Can_a_Notice_Under_Section_142_1_be_Issued\"><\/span>When Can a Notice Under Section&nbsp;142 (1)&nbsp;be Issued?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The two scenarios when an income tax notice under section 142 (1) can be issued are as discussed below:&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>When a Return is Filed:&nbsp;<\/strong>Even after you have&nbsp;submitted&nbsp;your return, the Department might need further details to verify certain information.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>When a Return is not Filed:&nbsp;<\/strong>If you&nbsp;haven\u2019t&nbsp;filed a return, the Department can still issue a notice to request the necessary information.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_Issue_a_Notice_under_Section_142_1_of_the_Income_Tax_Act\"><\/span>Who&nbsp;Can&nbsp;Issue a&nbsp;Notice under Section 142 (1) of&nbsp;the Income Tax Act?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The notice under section 142 (1) of the Income Tax Act can be issued&nbsp;in situations where you&nbsp;file&nbsp;an&nbsp;income tax return under section 139 (1).&nbsp;&nbsp;<\/p>\n\n\n\n<p>In situations where you&nbsp;haven\u2019t&nbsp;filed your return within the time limit specified under Section 139(1), the Assessing Officer (AO) is authorised to issue a notice to file a return within the specified&nbsp;time period.&nbsp;This notice can be issued after the end of the relevant assessment year. Moreover, it can&nbsp;be issued when the Income Tax Department needs&nbsp;additional&nbsp;information,&nbsp;whether or not&nbsp;tax returns have been filed.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_be_Taken_After_Receiving_an_Income_Tax_Notice\"><\/span>Steps to be Taken After Receiving an Income Tax Notice&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After receiving your income tax return, do not panic or ignore it; rather, follow a well-structured approach. Below are the steps you need to&nbsp;comply with&nbsp;after receiving an income tax return:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Carefully Read the Notice:<\/strong>&nbsp;The applicants must thoroughly review their notice to understand whether it requires them to file a return or&nbsp;submit&nbsp;clarifications&nbsp;regarding&nbsp;their filed return.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Determine&nbsp;Required Action:<\/strong>&nbsp;If you&nbsp;haven\u2019t&nbsp;filed your return, you need to prepare and file it along with&nbsp;additional&nbsp;information (if&nbsp;requested).&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Gather Mandatory Documents:<\/strong>&nbsp;You can gather all necessary documents, including records, receipts, invoices, bank statements, and any other supporting documents as mentioned in the notice.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Prepare Response:<\/strong>&nbsp;For this step, you need to consider help from professionals to organize information and prepare a response in the required format.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Submit on Time:<\/strong>&nbsp;Compliance with the specified deadline for filing a response to the income tax notice under section 142 (1) is mandatory.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_File_a_Response_to_Section_142_1_Notice\"><\/span>How to File a Response to Section 142 (1) Notice?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Upon receiving an income tax notice under section 142 (1), you need to&nbsp;immediately&nbsp;respond by employing an electronic or e-proceeding utility available in your registered e-filing account. The step-by-step guide explaining the entire process for filing a response to section 142 (1) income tax notice is as discussed below:&nbsp;<\/p>\n\n\n\n<p><strong>Step 1: Log in to the Portal:&nbsp;<\/strong>First, visit the income tax portal and log in to your e-filing account using your credentials.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Step 2: Access e-Proceedings:&nbsp;<\/strong>Next,&nbsp;move&nbsp;to the pending actions tab and access e-proceedings.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Step 3: View Notices:&nbsp;<\/strong>You&nbsp;are further required to&nbsp;click View Notices to view and&nbsp;submit&nbsp;a response to the notice under section 142(1).&nbsp;<\/p>\n\n\n\n<p><strong>Step 4: Select Response Type:&nbsp;<\/strong>Next, you are directed to a page prompting you to select the Response Type of Notice.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Step 5: File Partial or Full Response:&nbsp;<\/strong>If you intend to provide some of the requested information&nbsp;immediately, file a partial response; if you are ready to&nbsp;submit&nbsp;all required documents, file a full response.&nbsp;<\/p>\n\n\n\n<p><strong>Step 6: Attach Documents:&nbsp;<\/strong>Next, upload the required documents in supported formats, such as PDF, Excel, or CSV.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Step 7:&nbsp;Submit&nbsp;Your Response:&nbsp;<\/strong>Next, click continue to declare and&nbsp;submit&nbsp;your response for the income tax notice under section 142 (1).&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Step 8: Receive Confirmation of Response:\u00a0<\/strong>After submission, you see a message confirming that your response was successfully\u00a0submitted. Hence, you can now download the receipt or confirmation of your records.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>Read more:-<\/strong> <strong><a href=\"https:\/\/corpbiz.io\/learning\/analysis-of-reduction-or-waiver-of-income-tax-penalty\/\">Analysis of Reduction or Waiver of Income Tax Penalty<\/a><\/strong> <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Compliance_under_Section_142_1_of_the_Income_Tax_Act\"><\/span>Mandatory Compliance under Section 142 (1) of&nbsp;the&nbsp;Income Tax Act&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Compliance under section 142 (1) of the Income Tax Act is mandatory even if the taxpayer is of the opinion that the documents requested are relevant.&nbsp;The taxpayers planning to safeguard themselves from receiving an income tax notice under section 142 (1) must&nbsp;comply with&nbsp;the following preventive measures, as discussed below:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Ensure&nbsp;timely&nbsp;filing of the income tax return before the due date&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Complete e-verification within&nbsp;30 days&nbsp;of filing their return&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Maintain&nbsp;financial documents for at least 7 years&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Familiarise&nbsp;yourself with various notices &amp; assessments under the Income Tax Act&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Regularly check the Income Tax portal for any pending actions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Promptly respond to address any tax notices within the given&nbsp;time frame&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Seek advice from tax professionals dealing with complex issues&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_for_Non-Compliance_with_Section_142_1_Income_Tax_Notice\"><\/span>Consequences for Non-Compliance with Section 142 (1) Income&nbsp;Tax Notice&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any&nbsp;non-compliance with&nbsp;the provisions of section 142 (1)&nbsp;of the Income Tax Act attracts the following consequences, as discussed below:&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li>Assess income and income tax liability using the information based on their&nbsp;best judgment&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Penalised&nbsp;under section 271 (1) (b), i.e., Rs. 10,000 for each failure&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Prosecution under Section 276D, which may extend up to 1 year, or without a fine&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Issuance of a warrant for the search of premises&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Increase the scope of security for future returns&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Upon satisfaction of the documents or supporting evidence, the return filed by you will be accepted, and proceedings will be closed.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time_Limit_to_Serve_Respond_to_the_Income_Tax_Notice\"><\/span>Time Limit to Serve&nbsp;&amp; Respond to the&nbsp;Income Tax Notice&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Generally, there&nbsp;is no specific time limit for serving an income tax notice under section 142 (1). This implies that if the tax authorities need&nbsp;additional&nbsp;details to verify your return, this notice may be served at any time during the assessment year or during scrutiny assessments. However, a response to the income tax notice must be filed within 30 days from the date of its receipt, excluding extensions received upon a written request to the assessing officer.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_Wrap_Up\"><\/span>To Wrap Up&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is crucial for everyone to ensure compliance with their mandatory tax obligations and to promptly respond to income tax notices issued under section 142(1). This approach not only helps you in the short term but also offers long-term benefits, including&nbsp;accurate&nbsp;and compliant tax filings.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Dealing with the tax matters might be stressful for you. Connect\u00a0with\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/corpbiz.io\/\" target=\"_blank\">Corpbiz<\/a>\u00a0team\u00a0for quick and efficient filing of a response to the income tax notice under section 142 (1) of the Income Tax Act.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>Read more:- <a href=\"https:\/\/corpbiz.io\/learning\/assessment-of-income-tax-notice\/\">An Overall Assessment of Income Tax Notice <\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Questions_Regarding_Income_Tax_Notice\"><\/span>Top Questions Regarding Income Tax Notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>What do I do when I receive a 142(1) notice from the income tax\u00a0department?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">Upon receiving a notice under section 142 (1) of the Income Tax Act, you must file an electronic response through the official e-filing portal within the specified\u00a0timeframe.\u00a0\u00a0<\/p><li style=\"list-style-type: none\"><h3>What can I expect after\u00a0the submission\u00a0of my ITR u\/s 142(1)?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">Once you\u00a0submit\u00a0your income tax return in response to the notice under section 142 (1) of the Income Tax Act, you must wait until the processing department reviews your submission and the assessing officer finds your response satisfactory. However, in case the assessing officers do not find your reply satisfactory, they may issue another notice for the initiation of a scrutiny assessment under section 143 (2).\u00a0\u00a0<\/p><li style=\"list-style-type: none\"><h3>What is the time limit to issue the notice under Section 142(1)?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">There is no specific time limit for the issuance of notice under section 142 (1) of the Income Tax Act. However, it ensures that the notice can be issued even after the end of the relevant assessment year.\u00a0\u00a0<\/p><li style=\"list-style-type: none\"><h3>What is the difference between a notice u\/s 142(1) and 143(2)?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">The notice issued under section 142 (1) is an inquiry before the final assessment of accounts and documents,\u00a0whereas\u00a0the notice issued under section 143 (2) is\u00a0an initial\u00a0inquiry by the assessing officer, ensuring a more detailed scrutiny.\u00a0\u00a0<\/p><li style=\"list-style-type: none\"><h3>Who can issue the notice under Section 142(1)?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">The notice under section 142(1) of the Income Tax Act can be issued by the Assessing Officer, who is the primary authority empowered under the Income Tax Act to issue it as a preliminary inquiry before a final assessment is made.\u00a0\u00a0<\/p><li style=\"list-style-type: none\"><h3>What is the penalty for non-compliance with a 142(1) notice?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">Any failure to\u00a0comply with\u00a0the filing of a reply to the notice issued under section 142 (1) of the Income Tax Act imposes the following penalties, as provided below:\u00a0<br><br>1. Assess income tax liability using the information based on their best judgment\u00a0\u00a0<br>2. Penalized under section 271 (1) (b), i.e., Rs. 10,000 for each failure\u00a0<br>3. Prosecution under Section 276D, which may extend up to 1 year, or without a fine\u00a0<br>4. Issuance of a warrant for the search of premises\u00a0<br>5. Increase the scope of security for future returns\u00a0<\/p><li style=\"list-style-type: none\"><h3>Can Income Tax send a notice after 10 years?\u00a0<\/h3><p class=\"saswp-faq-answer-text\">Yes, the Income Tax Department is competent to send a notice even after 10 years of filing the income tax return. However, it is only possible for cases involving significant undeclared or escaped income.\u00a0\u00a0<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Once the&nbsp;assessee&nbsp;files the income tax return, the Income Tax Department scrutinises his return and issues assessment intimations and scrutiny notices. This applies even if the&nbsp;assessee&nbsp;fails to&nbsp;file their income tax return. However, the Department may request&nbsp;additional&nbsp;information to ensure everything is in its records.&nbsp;Timely&nbsp;income tax return filing&nbsp;is mandatory to stay compliant.&nbsp;&nbsp; In this guide,&nbsp;we\u2019ll&nbsp;explain what an income [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":70522,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"acf":{"service_id":"403"},"authorName":"Ishan Joshi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/fav.png","authorDescription":"Ishan Joshi is an experienced writer with more than 7 years of proven expertise and 350+ blogs to his name. His write-ups are admired by CEOs and industry experts in the startup ecosystem. He wrote blogs for 10+ industries, including SaaS, LegalTech, FinTech, Hospitality, RegTech, Sustainability, Manufacturing, etc.","postViews":1774,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70512"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=70512"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70512\/revisions"}],"predecessor-version":[{"id":70524,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70512\/revisions\/70524"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/70522"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=70512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=70512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=70512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}