Key Highlights
- Notice and assessment provisions under Chapter XVI (Sections 279–301), ITA 2025
- All notices now issued through the Income Tax Portal under faceless scheme (Section 532)
- Section 287: Intimation (most common — automatic after ITR processing)
- Section 289: Scrutiny (detailed examination of return)
- Section 280: Reassessment of escaped income
- Section 281: Defective return — rectify within 15 days
- Scrutiny notice time limit: 3 months from end of Tax Year in which ITR filed
- Reassessment time limit: 3 years (10 years if escaped income >₹50 lakh)
1. Overview
The Income Tax Department uses notices to communicate with taxpayers — to request additional information, point out discrepancies, propose tax demands, or initiate detailed scrutiny. Under the Income Tax Act, 2025, the faceless assessment scheme (Section 532) means all such communication happens electronically through the IT portal, making it more transparent and efficient.
2. Section 281 — Defective Return Notice
When issued: Your ITR has technical defects — missing information, wrong ITR form, incomplete schedule, PAN-Aadhaar mismatch, digital signature issues.
Response deadline: 15 days from receipt of notice.
Action: File a corrected return addressing all defects. Failure to respond treats the return as not filed.
3. Section 287 — Intimation (Most Common)
When issued: Automatically after CPC processes your ITR. Three possible outcomes:
- No demand, no refund: ITR accepted. No action needed.
- Tax demand: CPC computed higher tax. Check if correct — pay or contest within 30 days.
- Refund: CPC computed lower tax — refund credited to bank account.
How to contest wrong demand: File rectification under Section 288 of ITA 2025 on the IT portal if it is a computation error. If substantive disagreement, file appeal before CIT(A) under Section 359.
4. Section 289 — Scrutiny Notice
When issued: Return selected for detailed examination due to high deductions, large income, AIS mismatch, specific industry flags, or random selection.
Time limit for notice: Must be issued within 3 months from end of the Tax Year in which ITR was filed.
Response: All communication through the Compliance Portal. Submit documents electronically. Engage a CA for scrutiny notices.
5. Section 280 — Reassessment Notice
When issued: Department has information suggesting income escaped assessment in a completed assessment. Common triggers: SFT data from banks, property registrar, stock broker reports; AIS mismatches; foreign asset intelligence.
| Situation | Time Limit |
|---|---|
| General escaped income | 3 years from end of Tax Year |
| Escaped income > ₹50 lakh | 10 years from end of Tax Year |
| Search & seizure cases | 10 years from year of search |
New safeguard under ITA 2025: Before issuing Section 280 reassessment notice, the AO must obtain prior approval from the specified authority. The notice must contain the specific reason for reassessment.
6. Section 251 — Survey Notice
Survey is conducted at business premises to verify stock, documents, and cash. Cooperation is required. Voluntarily disclosing undisclosed income during survey can reduce penalties. Engage a CA immediately.
7. Section 247 — Search and Seizure
The most serious action — search warrant issued and premises searched. Undisclosed assets and income found are assessed. Penalty can be up to 60% of undisclosed income. Full professional representation is critical.
8. How to Respond to Any Notice
- Log in to incometaxindia.gov.in → Pending Actions → Compliance Portal
- Download and read the notice completely
- Note the response deadline
- Gather all supporting documents mentioned in the notice
- Prepare a point-by-point response
- Submit online through the Compliance Portal
- Download acknowledgement of submission
9. Faceless Assessment: Your Rights Under Section 532
- Right to know what information the department has (via AIS/SFT data)
- Right to respond electronically without physical appearance
- Right to personal hearing if requested (via video call)
- Right to appeal before CIT(A) within 30 days of assessment order
10. Latest Updates Under ITA 2025
- Faceless assessment given statutory backing under Section 532
- Reassessment procedure aligned with Supreme Court rulings on prior approval
- AIS-driven notices increasing — reconcile AIS before filing ITR
- Section 281 defective return continues; rectification under Section 288
11. Penalties for Non-Response
| Default | Penalty | Section |
|---|---|---|
| Non-response to scrutiny | Best judgment assessment | 292 |
| Non-production of records | ₹25,000 | 444 |
| Obstructing survey | Prosecution | 481 |
12. Why TaxClue
Tax notices require professional, timely responses. TaxClue's tax advocates and CAs handle all types of notices — from routine Section 287 intimations to complex reassessments. Contact us immediately on receiving any income tax notice.
13. Resources & Checklist
- ☐ Check IT portal inbox regularly
- ☐ Note deadline on each notice
- ☐ For Section 287: verify against ITR and pay/contest within 30 days
- ☐ For Section 289/280: engage CA immediately
- ☐ Keep all financial documents for 8+ years
14. Contact Us
Received an income tax notice? Do not panic, but do not delay. Contact us for expert notice handling under ITA 2025.