Receiving a notice from the income-tax department is unsettling, but the right response depends entirely on which notice it is. A notice under Section 142(1) is a request for information or a return; a notice under Section 148 relates to income that may have escaped assessment; and a demand notice asks you to pay an amount the department says is due. Here's what each one means and how to deal with it.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-15
Quick answer
Not every income-tax notice means the same thing. A 142(1) asks for information, a 148 reopens an assessment, and a demand notice asks you to pay. Here's how to tell them apart and respond.
A notice under Section 142(1) is essentially the department asking you for something — to file a return if you have not, or to produce accounts, documents or particulars it wants for an assessment. It is an inquiry step, not a finding against you. The right response is to read exactly what is being asked, gather the specific information or documents, and respond within the time given, usually through the e-filing portal. Treat it as a documentation exercise: answer precisely what is sought, neither less nor more, and keep a copy of what you submit.
A notice under Section 148 relates to income the department believes may have escaped assessment, and it asks you to file a return for the relevant year so the matter can be looked at. This is more serious than a 142(1) because it reopens a year. There is a defined procedure and there are time limits around when such a notice can be issued, and you generally have the right to know the basis on which the year is being reopened. Because the stakes and the procedure are higher, this is the kind of notice where it is worth getting professional help rather than responding casually.
A demand notice tells you that an amount is payable — often after a return is processed or an assessment is completed and the department's figure differs from yours. The notice should specify the amount and the basis. Your options are to pay it if it is correct, or to dispute it if you believe it is wrong, through the route the notice or the portal provides. What you should not do is ignore it: an unpaid, undisputed demand can attract further interest and recovery action, so even if you intend to contest it, respond within the window.
Whatever the section, the first job is the same: identify the notice type, the assessment year, the issuing authority, the deadline and exactly what is being asked. Notices are now largely delivered and answered online, so check your registered email and e-filing account, and make sure your contact details there are current. Verify the notice is genuine and matches your records before you act. A surprising number of anxious responses come from misreading what the notice actually wants, so slow down and read it fully first.
Across all three, the principles are consistent: respond within the deadline, answer precisely what is asked, support your position with documents, and keep a complete record of the correspondence. For a 142(1), that usually means supplying information; for a 148, it means filing the return and engaging with the reopening carefully; for a demand, it means paying or formally disputing. If you are unsure which category you are in or how strong your position is, get advice early — the cost of a measured response is far lower than the cost of letting a notice escalate.
It is the department asking you for information or for a return — an inquiry step, not a finding against you. Read what is being asked, gather the specific documents or particulars, and respond within the time given, usually through the e-filing portal.
More serious than a routine information notice, because it relates to income that may have escaped assessment and reopens a year. There is a defined procedure and time limits, and you generally have the right to know the basis for reopening, so it is worth getting professional help.
No — even if you intend to dispute it, you should respond within the window. A demand notice can be paid if correct or formally disputed if wrong, but an unpaid, undisputed demand can attract further interest and recovery action.
Received an income-tax notice and not sure what it means or how to reply? Write to the firm with the notice and we'll tell you what it is and respond for you.