Income tax notices in India arrive by email and on the e-Filing portal, and they cover everything from a routine processing result to a scrutiny summons or a penalty show-cause. Most are not accusations. Many are data mismatches that a Chartered Accountant (CA) can answer with documents, but every one has a clock. This guide explains the main types, how the 1961 and 2025 Acts split the work, and how an NRI or a U.S.- or Canada-based owner of an Indian entity should respond.
Which Act governs your notice?
The CBDT's transition FAQs state that the 1961 Act continues to apply to any proceeding pending on 1 April 2026 and to proceedings started after that date for tax years beginning before it, including notices, assessment, reassessment, rectification, penalty, revision and appeals. A scrutiny notice for AY 2026-27 or any earlier year is therefore handled under the 1961 Act. Notices for tax year 2026-27 onwards, which will mostly arrive from 2027, follow the Income-tax Act, 2025. Faceless assessment and the existing portal continue under both.
What types of income tax notices in India might you receive?
| Communication | What it means | 1961 Act | 2025 Act |
|---|---|---|---|
| Intimation after processing | Result of the portal's processing: refund, demand or no change | 143(1) | 270(1) |
| Defective return notice | The return is incomplete and must be corrected | 139(9) | Under the 2025 Act's return rules |
| Scrutiny notice | The return is selected for detailed examination | 143(2) | 270(8) |
| Reassessment notice | Income is believed to have escaped assessment | 148A and 148 | 281 and 280 |
| Rectification | A mistake apparent from the record | 154 | 287 |
| Notice of demand | Tax, interest or fee to pay | 156 | 289 |
| Penalty show-cause | The officer proposes a penalty | For example 270A | 439 and 471 |
| Information or outreach message | Mismatch with AIS, TIS or a third-party report | E-campaign | Same |
The 2025 Act numbers come from the Act as amended by the Finance Act, 2026, and the 1961 Act numbers are the ones the Department's own FAQs use; your CA confirms the exact section for the year in question. Other messages include requests to respond to preliminary information in the AIS, e-campaign messages and notices on TDS defaults.
How to respond to a notice online, step by step
- Check it is genuine. The portal offers an "Authenticate notice/order issued by ITD" option, and the Department states it never asks for PINs, passwords or card details by email. See scam alerts for IRS, CRA and India.
- Identify the section, year and deadline. The deadline is in the notice. If a notice has no clear year or section, ask your CA.
- Log in to the e-Filing portal and open the pending-action or "Comply to Notice" area. The menu path changes with portal updates, so follow the notice's own instructions.
- Collect the facts. Pull Form 26AS and the AIS (see the AIS and Form 26AS guide), bank statements, contracts, foreign tax proofs and the return itself.
- Prepare the response with your CA. Answer each question, attach numbered documents and avoid new claims you cannot support.
- Submit, e-verify and save the acknowledgement. Keep a dated record of every upload.
- Track the next step. A response can lead to closure, a further query, an order or a demand.
Time limits that matter
| Event | Limit |
|---|---|
| Adjustment before an intimation | Written communication first, then 30 days to respond (2025 Act) |
| Intimation | No later than nine months from the end of the financial year of the return (2025 Act) |
| Scrutiny notice | Within three months from the end of the financial year in which the return was filed (2025 Act) |
| Demand payment | Within 30 days of the notice, or less if stated; interest of 1% a month after that (2025 Act) |
| Appeal to the first appellate authority | 30 days |
| Reassessment notices (1961 Act, for AY 2026-27 and earlier) | Generally within 3 years and 3 months, or 5 years and 3 months where escaped income is Rs 50 lakh or more |
The reassessment limits above come from the CBDT's FAQ on the 1961 Act after the Finance Act, 2025, and they are measured from the end of the assessment year.
What if you are an NRI or a U.S.-based owner?
You can respond from abroad, but practical details decide how smoothly. Keep your Indian mobile number and email current on the portal, make sure your PAN is operative, and choose a verification route you can use from overseas (the portal supports electronic verification codes and digital signatures). A CA can be authorised as your representative on the portal, and for scrutiny matters an authorised representative is almost always sensible: replies are legal submissions, they build the record for any appeal, and time zones make a missed upload easy. Our firm does not represent clients before Indian tax authorities; we coordinate with your Indian CA so the response matches your U.S. filings, including any foreign-income and asset disclosures. For the mechanics of authorising a representative in each country, see authorized representatives by country.
A worked example
A Toronto-based NRI receives an intimation in November 2026 for AY 2026-27 showing a demand of Rs 60,000 because Rs 60,000 of TDS on a property sale is missing from her Form 26AS. Her CA checks the AIS and the buyer's statement, asks the buyer to file a correction statement, and files a rectification request with the Form 26QB acknowledgement. The demand stays on the portal until it is rectified, so the CA also decides whether paying under protest is sensible. She keeps all papers for the U.S. return.
Mistakes to avoid
- Ignoring an email notice because it looks routine
- Responding to an unverified message or paying through a link
- Uploading documents without a covering index
- Missing the 30-day appeal limit after an order
- Letting a CA reply without telling the U.S. preparer
How we can help
From Aurora, Illinois, we help clients read an Indian notice alongside their U.S. and Canadian filings and prepare the U.S. side of the answer. We coordinate with your Indian Chartered Accountant, who responds on the e-Filing portal and represents you in India. We do not represent clients before Indian tax authorities. See cross-border tax and IRS and state tax representation. Browse the Notices, Penalties and Disputes hub.
Frequently asked questions
What should I do first when I get an Indian income tax notice?
Confirm it is genuine, note the section, year and deadline, and send it to your Indian CA the same day.
Can I reply to an Indian income tax notice from the United States?
Yes. Replies go through the e-Filing portal, so you can respond from anywhere with portal access, though a CA is wise.
Does a notice mean I did something wrong?
Not necessarily. Many arise from data mismatches in TDS, AIS or foreign income reporting.
Which Act applies to an AY 2026-27 notice?
The Income-tax Act, 1961, because the proceeding concerns a year that began before 1 April 2026.
How long do I have to pay a demand?
Generally 30 days from the notice, or less if the notice says so, with interest of 1% a month after that period.
Official sources
- Income Tax Department: FAQs on interplay and transition to the Income-tax Act, 2025
- Income Tax Department: Income-tax Act, 2025 as amended by the Finance Act, 2026
- e-Filing portal home page (Comply to Notice, Authenticate notice, quick links)
- e-Filing portal: income tax returns FAQ
- Income Tax Department: home page and public notices
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.