An income tax notice is issued by the Income Tax Department for several reasons, such as failure to file returns, mismatches in return details, incomplete disclosures, underreported income, suspected tax evasion, reassessment proceedings, limitation-related matters, and other compliance issues.

A notice under Section 142(1) is specifically sent when a taxpayer has not filed an income tax return or when the department requires additional information related to the details already disclosed. This guide explains the meaning of a notice under Section 142(1), its purpose, and the appropriate way to respond.

What is Section 142(1) of the Income Tax Act?

Section 142(1) of the Income Tax Act, 1961 empowers income tax authorities to issue notices seeking further details, explanations, or clarifications in relation to an income tax return.

This section is applicable whether the taxpayer has already filed the return under Section 139(1) or has not filed it at all.

Who Can Issue an Income Tax Notice u/s 142(1)?

A notice under Section 142(1) may be issued irrespective of whether the income tax return has been filed under Section 139(1).

If a taxpayer fails to submit the return within the prescribed time under Section 139(1), the Assessing Officer can issue a notice directing the taxpayer to file the return within the timeframe mentioned in the notice.

Such a notice can also be issued after the completion of the relevant Assessment Year.

Even individuals who are otherwise not required to file an income tax return under the Income Tax Act, 1961 must comply and file a return if they receive a notice under Section 142(1)(i).

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When Is a Notice Under Section 142(1) Issued?

A notice under Section 142(1) can be issued in cases where a taxpayer has filed the return under Section 139(1), as well as in situations where the return has not been filed and the due date has already expired.

If the assessee has not submitted the return within the prescribed period, the Assessing Officer may issue a notice requiring the return to be filed within the period specified in the notice. This notice may also be served even after the relevant Assessment Year has ended.

If a notice under Section 142(1)(i) is served on a person who is not otherwise obligated to file a return under the Income Tax Act, 1961, filing the return in response to the notice becomes mandatory.

The notice may also be issued when the Income Tax Department requires additional information, whether or not the return has already been filed.

Notice to File Income Tax Return

If a taxpayer does not file the income tax return within the stipulated time or before the end of the relevant assessment year, a notice under Section 142(1) may be issued, directing them to file the return. This acts as both a reminder and a statutory obligation to complete tax compliance. The last date to file ITR for non-audit cases without penalty is 15th September 2025. File today.

Request for Specific Books of Accounts and Documents

After reviewing the filed return, the Assessing Officer may ask the taxpayer to submit specific books of accounts or documents relevant to the assessment. This may include proof of deductions claimed, invoices for expenses declared under different income heads such as business or professional income, and similar records.

Any Other Information, Notes, or Workings Required by the AO

The Assessing Officer may also require the taxpayer to provide written explanations, notes, or detailed workings on specific issues, in the prescribed format. These details may or may not be part of the regular books of accounts. For example, the officer may ask for a statement showing assets and liabilities.

Purpose of Notice under Section 142(1)
The main purpose of issuing a notice under Section 142(1) of the Income Tax Act is to:

• Cover not only the taxpayer’s own income but also the income of another person for whom the taxpayer is legally accountable, such as a legal heir, guardian, or representative of a deceased person.
• Require submission of relevant books of accounts and supporting documents to enable proper assessment.
• Seek written details on specific matters, including a comprehensive statement of assets and liabilities as on a particular date.

Penalty for Non-Compliance with Notice under Section 142(1)
If a taxpayer fails to comply with a notice issued under Section 142(1):

• A penalty of ₹10,000 may be levied under Section 271(1)(b).
• The case may be taken up for “Best Judgment Assessment” under Section 144, where the Assessing Officer completes the assessment based on available information.
• Prosecution proceedings may be initiated under Section 276D, which may result in imprisonment of up to one year, with or without a fine.
• A search warrant may also be issued under Section 132.

Steps to Submit an Online Response to Notice under Section 142(1)
You can respond to a Section 142(1) notice online using the ‘e-Proceedings’ option on the Income Tax portal by following these steps:

• Log in to the Income Tax e-filing portal.
• Go to the “Pending Actions” tab and select “E-Proceedings.”
• Click on the ‘View Notices’ option.
• Select ‘Submit Response’ to proceed further.
• Choose ‘Select Response Type for Notice.’
• Submit either a ‘Partial Response’ or a ‘Full Response,’ as applicable.

E-Assessment Scheme, 2019
The Central Board of Direct Taxes (CBDT) has renamed the e-Assessment Scheme, 2019 as the Faceless Assessment Scheme, 2019. Under this scheme, all income tax assessments are carried out without physical interaction between taxpayers and tax authorities.

How to File a Response under Section 142(1)?
A reply to a notice under Section 142(1) can be submitted electronically through the e-proceedings facility available in the assessee’s registered e-filing account. The process is as follows:

• Log in to the income tax portal at www.incometax.gov.in.
• Go to the ‘Pending Actions’ section and click on ‘E-Proceedings.’
• Select ‘View Notices’ and then click on ‘Submit Response.’
• Choose the response type for the notice.
• Select either ‘Partial Response’ or ‘Full Response.’

Note: Attachments can be uploaded in PDF, Excel, or CSV formats.

• Click on ‘Continue,’ tick the ‘Declaration and Submit’ checkbox, and submit the response.
• A confirmation message stating ‘Submitted Successfully’ will appear.
• Download and save the acknowledgement for future reference.

If you receive an income tax notice, ensure that you respond within the prescribed timeline to avoid penalties and legal action. If you are uncertain about the process or need support, professional assistance can help you respond correctly, compile the required documents, and prevent further complications or penalties.

Why Did You Receive an Income Tax Notice Under Section 142(1)?
An income tax notice under Section 142(1) is a formal communication from the tax department requesting specific documents, details, or explanations related to your financial affairs. This notice can be issued regardless of whether you have already filed your income tax return. The common reasons for receiving such a notice include:

• Non-filing of Income Tax Return: It serves as a reminder to submit the income tax return for the applicable assessment year.
• Mismatch in Income or Financial Information: If differences are noticed between the income declared in the ITR and data available from sources like Form 26AS, banks, or other third parties.
• High-Value Transactions: The tax authorities may seek clarification on the source of funds or details of significant transactions such as large bank deposits, investments in the stock market, or property transactions.
• Random Scrutiny or Routine Assessment: The case may be selected to obtain additional information for verification purposes.
• Tax Audit Requirement: When the department wants to examine the tax audit report or related financial records.

Time Limit for Issuing Notice Under Section 142(1)
There is no defined time limit for issuing a notice under Section 142(1). If the income tax authorities require further information to verify the return, the notice can be issued at any stage during the assessment year or even during scrutiny proceedings.

Time Limit to Respond
Generally, a response to the notice must be submitted within 30 days from the date of receiving it. However, an extension may be granted if a written request is made to the Assessing Officer, along with a valid reason explaining the delay in submitting the response.

Key Details in an Income Tax Notice Under Section 142(1)

An income tax notice issued under Section 142(1) generally contains the following important information:

• PAN and Assessment Year: The notice clearly mentions the Permanent Account Number (PAN) of the taxpayer along with the relevant assessment year to which the notice relates.
• Type of Notice: It specifies whether the notice has been issued for filing the income tax return or for furnishing additional information, explanations, or supporting documents.
• Time Limit for Response: The notice states the deadline within which the taxpayer must submit the required response or information.
• Details to Be Submitted: It outlines the exact documents, records, or clarifications that the taxpayer is required to provide.
• Mode of Submission: The notice mentions the manner in which the response must be submitted, usually through the online e-filing or e-proceedings portal.
• Consequences of Non-Compliance: It highlights the possible penalties, legal actions, or assessment consequences that may arise if the taxpayer fails to respond within the prescribed time.

Consequences of Not Responding

Non-compliance with a notice under Section 142(1) may result in:

• A penalty of ₹10,000.
• Imprisonment for up to one year, with or without a fine.
• Issuance of a search warrant.
• Increased scrutiny of future income tax returns.
• Assessment of income and tax liability by the Assessing Officer based on available information and best judgment.

Conclusion
Being aware of your tax responsibilities and replying to income tax notices within the prescribed time is essential for addressing any concerns raised by the tax authorities. This not only helps resolve matters promptly but also supports long-term compliance through accurate and proper tax filings.

A qualified financial advisor can help you handle income tax notices efficiently and without complications. For assistance with your income tax notice, download the 1 Finance app and schedule a consultation with a qualified financial advisor for a smooth and stress-free tax experience.

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