Receiving income tax notices can be stressful, especially if you are not sure what it means or what action is required from your side. Many taxpayers panic the moment they see an email or SMS from the Income Tax Department. However, not every income tax notice is bad news. Some notices are purely informational, while others require quick action to avoid penalties or delays in refunds.
Among the most common notices issued by the Income Tax Department are Section 143(1), Section 139(9), and Section 245 notices. These notices are generated automatically after you file your income tax return through the income tax e-filing portal.
In this article, we will explain each of these notices in simple language, why you receive them, how to respond online, and what happens if you ignore them.
What Is an Income Tax Notice?
An income tax notice is an official communication sent by the Income Tax Department to a taxpayer. It can be sent for various reasons such as:
• Mismatch in income details
• Missing information in the return
• Tax demand or adjustment
• Verification of filed data
Notices are usually sent via email and are also available on the income tax e-filing portal under your account.
Official portal link:
https://www.incometax.gov.in
Types of Income Tax Notices Covered in This Article
This guide focuses on the three most frequently issued notices:
Section 143(1) – Intimation after processing of return
Section 139(9) – Defective return notice
Section 245 – Adjustment of refund against outstanding demand
Understanding these notices will help you take correct action and avoid unnecessary stress.
also read: https://gstandtax.com/complete-guide-to-income-tax-e-filing-portal/
Section 143(1) Notice Explained
What Is a Section 143(1) Notice?
A 143(1) notice is an intimation sent after the Income Tax Department processes your income tax return. It is not a scrutiny notice. It simply informs you whether the return filed by you matches the department’s calculations.
This notice is generated automatically by the system.
When Is Section 143(1) Issued?
You may receive a 143(1) intimation in the following cases:
• Return accepted as filed
• Refund determined
• Tax payable identified
• Minor mismatch corrected by department
Types of Outcomes in 143(1) Notice
There are three possible outcomes:
No Demand No Refund
Your return is correct. No action required.Refund Determined
Refund amount is approved and will be credited.Tax Demand Raised
A small tax liability is identified due to mismatch.
Common Reasons for Tax Demand in 143(1)
• Difference between Form 16 and ITR
• Mismatch with Form 26AS or AIS
• Calculation errors
• Claiming excess deductions
You can check Form 26AS here:
https://www.incometax.gov.in/iec/foportal/help/26as
also read: https://gstandtax.com/how-do-i-file-intimation-about-voluntary-payment/
How to Respond to Section 143(1) Notice
If you agree with the demand, you should pay the tax online.
If you disagree, you can file a rectification request on the income tax e-filing portal.
Official rectification guide:
https://www.incometax.gov.in/iec/foportal/help/rectification
Section 139(9) Notice Explained
What Is a Section 139(9) Notice?
A 139(9) notice is issued when the income tax return filed by you is considered defective. This means some important information is missing or incorrect.
A defective return is treated as invalid if not corrected within the given time.
Common Reasons for 139(9) Defective Return Notice
• Missing balance sheet or P&L (for business cases)
• Invalid ITR form selection
• Missing tax payment details
• Mismatch between income and tax paid
• Not filing mandatory schedules
Time Limit to Respond to 139(9) Notice
You usually get 15 days to correct the defect. The deadline is clearly mentioned in the notice.
If you do not respond within the time limit, your return may be treated as not filed, which can lead to penalties and loss of benefits.
also read: https://gstandtax.com/silver-vs-gold-investment-returns-which-is-the-better-choice-for-investors/
How to Respond to Section 139(9) Notice Online
Steps to respond:
Log in to the income tax e-filing portal
Go to e-Proceedings
Select the 139(9) notice
Upload corrected return
Submit response
Official help page:
https://www.incometax.gov.in/iec/foportal/help/defective-return
Important Tip for 139(9) Notices
Always download the notice PDF and carefully read the defect code mentioned. Each defect code has a specific correction requirement.
Section 245 Notice Explained
What Is a Section 245 Notice?
A Section 245 notice is issued when the Income Tax Department plans to adjust your refund against an outstanding tax demand of a previous year.
This notice is sent before making the adjustment and gives you an opportunity to respond.
Why Do You Receive a Section 245 Notice?
• Old tax demand pending
• Demand raised due to earlier mismatch
• Demand created by CPC
• Demand transferred from earlier records
Example of Section 245 Adjustment
If you are eligible for a ₹10,000 refund this year and there is an old demand of ₹3,000, the department may adjust the refund and release ₹7,000 after adjustment.
How to Respond to Section 245 Notice
You have two options:
Agree with the demand
Refund will be adjusted automatically.Disagree with the demand
You must provide reasons and supporting documents.
Response process guide:
https://www.incometax.gov.in/iec/foportal/help/refund-adjustment
What Happens If You Ignore a 245 Notice?
If you do not respond within the specified time, the department may proceed with refund adjustment automatically.
Key Differences Between 143(1), 139(9) and 245 Notices
| Section | Purpose | Action Required |
|---|---|---|
| 143(1) | Intimation after processing | Review and pay or rectify if needed |
| 139(9) | Defective return | Mandatory correction |
| 245 | Refund adjustment | Agree or disagree |
How to Check Income Tax Notices Online
All notices can be accessed online through the income tax portal:
Steps:
• Login
• Go to Pending Actions
• Click e-Proceedings
• View notice
Important Do’s and Don’ts After Receiving a Notice
Do’s
• Read notice carefully
• Respond within deadline
• Keep documents ready
• Use official portal only
Don’ts
• Do not ignore the notice
• Do not panic
• Do not share login details with unknown persons
Final Thoughts
Income tax notices under Sections 143(1), 139(9), and 245 are very common and mostly system-generated. Receiving a notice does not mean you have committed any wrongdoing. In most cases, it only requires clarification or minor correction.
By understanding what each notice means and responding correctly on the income tax e-filing portal, you can resolve issues smoothly without penalties or refund delays.
Staying informed and proactive is the key to stress-free income tax compliance.
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