Section 142(1) Income Tax Notice

Introduction

After you submit your income tax return online, the Income Tax Department reviews it thoroughly. If the Assessing Officer (AO) requires additional details or clarification on certain points, they may issue a notice under Section 142(1) of the Income Tax Act. This notice is not limited to those who have filed their returns—it can also be issued to individuals who haven’t filed at all. The purpose is to gather necessary information and ensure the accuracy of records. In this guide, we’ll break down what a Section 142(1) notice entails, why you might receive one, and how to respond effectively.

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

A notice under Section 142(1) of the Income Tax Act is a formal request from the Income Tax Department seeking additional information or clarification related to your income tax return. It serves as a tool to ensure accurate and complete disclosure by taxpayers.

This notice may be issued in two situations:

When a Return is Filed: Even after you’ve submitted your income tax return, the Assessing Officer (AO) may require further details to verify specific information. In such cases, a Section 142(1) notice is issued requesting the necessary clarifications or supporting documents.
When a Return is Not Filed: If you have not filed your return, the department can still send a Section 142(1) notice requiring you to furnish the relevant information or file the return. This allows the authorities to proceed with the assessment based on complete records.

In summary, a Section 142(1) notice helps the Income Tax Department obtain comprehensive and accurate data to ensure proper assessment and compliance with tax laws

Authority to Issue a Notice Under Section 142(1) of the Income Tax Act

The power to issue a notice under Section 142(1) lies primarily with the Assessing Officer (AO). Here’s what that means in practical terms:

Assessing Officer’s Authority: Regardless of whether you’ve filed your income tax return under Section 139(1) or not, the AO has the legal authority to issue a notice under Section 142(1). This notice can be used to request additional details or explanations about your return—or to compel you to file one if you haven’t.
Applicable Even After Deadlines: If you miss the deadline for filing your return under Section 139(1), the AO can still issue a Section 142(1) notice, instructing you to file your return within a specified time. Notably, this power extends even beyond the end of the relevant assessment year.
Mandatory Response Required: Even if you’re otherwise not required to file a return, receiving a Section 142(1)(i) notice creates a legal obligation to respond—typically by filing the return or providing the information requested.

In summary, the Assessing Officer plays a central role in initiating the Section 142(1) process, helping ensure that tax assessments are based on complete and accurate information

Purpose of Issuing a Notice Under Section 142(1)

The main objective of a Section 142(1) notice under the Income Tax Act is to enable the Income Tax Department to obtain complete, accurate, and verifiable information for a fair assessment of a taxpayer’s liabilities. Specifically, the notice serves the following purposes:

Seek Clarifications: To request explanations or additional details about certain disclosures in the taxpayer’s return, helping verify the accuracy of reported income and claims.
Gather Financial Documents: To require submission of relevant financial records such as books of accounts, asset details, liabilities, and supporting documents essential for assessment.
Cover Income of Related Individuals: The notice may also pertain to income for which the taxpayer is legally responsible, such as income of a minor child, deceased person, or dependent.
Ensure Proper Tax Assessment: By collecting all necessary information, the tax authorities can conduct a thorough and lawful assessment, ensuring compliance and correct tax computation.

In essence, a notice under Section 142(1) is a tool used to bridge information gaps and ensure transparency and accuracy in the income tax assessment process

Purpose of Notice Under Section 142(1) of the Income Tax Act

A notice under Section 142(1) serves as a formal request from the Income Tax Department to obtain essential information required for accurate assessment. It can be issued for the following key purposes:

1. Filing of Income Tax Return

If you have not filed your income tax return within the stipulated deadline or by the end of the relevant assessment year, the Assessing Officer (AO) may issue a notice requiring you to do so.

Note: After filing, it’s mandatory to e-verify your return within 30 days. If not e-verified, the return is treated as invalid—equivalent to not having filed at all.

2. Submission of Specific Accounts or Documents

Even if your return has been filed, the AO may request additional documentation to validate claims made in the return. This may include:

Proof of deductions claimed
Invoices for expenses
Financial statements and supporting records

3. Furnishing Additional Information or Explanations

The AO may also seek further explanations or detailed breakdowns not included in your return or books of accounts. You might be asked to provide:

A comprehensive statement of assets and liabilities
Clarifications on specific transactions or income sources

Consequences of Not Responding to a Section 142(1) Income Tax Notice

Ignoring or failing to comply with a notice issued under Section 142(1) of the Income Tax Act can lead to serious repercussions. Even if you believe that the requested documents or information are not relevant, compliance is mandatory. Non-compliance may result in the following actions:

1. Monetary Penalty – Section 271(1)(b)

A penalty of up to ₹10,000 may be levied for each instance of failure to respond to the notice as required by the Income Tax Department.

2. Best Judgment Assessment – Section 144

If you do not comply, the Assessing Officer may proceed with a Best Judgment Assessment. This means your tax liability will be determined based on available information—without considering your return or additional explanations. This often results in a higher tax demand.

3. Prosecution – Section 276D

Continued non-compliance can trigger criminal prosecution under Section 276D, which may lead to imprisonment of up to 1 year, with or without a monetary fine.

4. Search and Seizure – Section 132

In extreme cases, a warrant may be issued under Section 132 to conduct a search of your premises, leading to further legal complications and scrutiny

Steps to Follow After Receiving a Section 142(1) Income Tax Notice

To ensure a timely and accurate response to your Section 142(1) notice, follow these key steps:

1. Carefully Review the Notice

Read the notice thoroughly to understand what is being requested. Determine if you need to file your income tax return or provide additional documents and clarifications related to a previously filed return.

2. Identify the Required Action

If you have not yet filed your return, get ready to file it without delay.
If the notice asks for more information or documents, clearly note down the specific items you need to provide.

3. Collect Supporting Documents

Gather all necessary paperwork such as receipts, invoices, bank statements, and any other records mentioned in the notice to support your response

How to File a Response to a Section 142(1) Notice

When you receive a notice under Section 142(1) of the Income Tax Act, you must respond electronically through the ‘e-Proceedings’ feature on your registered e-Filing account. Follow these steps to submit your response:

Log In to the Income Tax Portal
Go to the income tax e-Filing website and log in using your user ID and password.
Navigate to E-Proceedings
Under the ‘Pending Actions’ tab, select ‘E-Proceedings’ to access your notices.
View the Notice
Click on ‘View Notices’ to open the Section 142(1) notice issued to you, then click on ‘Submit Response.’
Choose Response Type
You will be asked to select the type of response:
- Partial Response: If you want to submit some of the requested information now.
- Full Response: If you are ready to provide all the required details and documents.
Attach Required Documents
Upload the supporting documents in accepted formats such as PDF, Excel, or CSV. These may include financial statements, proofs, or any other evidence specified in the notice.
Submit Your Response
Click ‘Continue,’ then check the ‘Declaration and Submit’ box to confirm that your information is accurate and complete. Finally, submit your response.
Receive Confirmation
Once submitted, you will receive a message confirming successful submission. Download the acknowledgement receipt for your records

E-Assessment Under the Faceless Assessment Scheme, 2019

In 2019, the Central Board of Direct Taxes (CBDT) launched the Faceless Assessment Scheme to carry out income tax assessments without any direct, face-to-face interaction between taxpayers and assessing officers, except in limited situations. This fully digital process promotes greater transparency and impartiality.

If the Assessing Officer (AO) is not satisfied with your response to a Section 142(1) notice, they may proceed with a scrutiny assessment through this faceless system. Under this scheme, your case will be reviewed remotely based on the documents and information you have submitted, ensuring a fair, consistent, and standardized tax assessment process

How to Protect Yourself from Section 144(1) Notices

Section 144(1) notices are usually issued when there is unsatisfactory compliance or response to earlier notices. To avoid receiving such notices, taxpayers should take a proactive and disciplined approach toward their tax responsibilities. Here are some practical tips to help you safeguard yourself:

File Your Returns on Time:
Make sure to submit your income tax return before the due date. Late filing can attract additional scrutiny and increase the chances of receiving notices.

Complete E-Verification Promptly:
After filing your return, e-verify it within 30 days. Failure to do so will invalidate your return, which can lead to a best-judgment assessment by the tax authorities.

Maintain Accurate and Organized Records:
Keep all your financial documents—such as receipts, invoices, bank statements, and supporting paperwork—well organized. Accurate records are crucial to substantiate your claims if questioned by the Assessing Officer (AO). Regularly update these records to ensure they are complete and current.

Respond Quickly and Thoroughly to Notices:
If you receive any notice, especially under Section 142(1), respond within the given deadline. Prompt and detailed replies help prevent escalation to a Section 144(1) best-judgment assessment. Always provide clear, honest, and comprehensive information, addressing any inconsistencies in your records.

Stay Informed:
Familiarize yourself with the different notices and assessment procedures under the Income Tax Act. Keeping track of your tax filings and pending actions on the Income Tax portal helps you stay ahead and avoid surprises.

Seek Professional Help When Needed:
If you find tax regulations complex, consider consulting a tax expert. A professional can guide you through compliance requirements, help organize your documents, and assist in drafting timely and accurate responses to any notices you may receive

Need Help Responding to an Income Tax Notice?

If you’ve received an income tax notice, responding within the specified timeframe is essential to avoid penalties or legal consequences. Unsure how to proceed? Don’t worry—IndiaFilings is here to assist.

Our team of experienced tax professionals will guide you through the entire process—from understanding the notice and collecting required documents to submitting a complete and timely response online. With expert support, you can handle your notice with confidence and accuracy

About the Author

Priya

Priya is an experienced legal writer who specializes in simplifying complex legal topics into practical, easy-to-understand insights. Her content equips entrepreneurs with the essential legal knowledge to confidently launch, manage, and grow their businesses while staying compliant with regulatory frameworks manage their businesses with clarity and compliance.

May 29, 2025