Most income tax notices that salaried employees receive are not about tax evasion. They come from mismatches between your return and the data the department already has: Form 16, Form 26AS and the Annual Information Statement (AIS). Typical causes are FD interest you didn't report, a second employer's salary, or HRA and 80C claims your employer didn't allow.
The most common communications are:
- 143(1) intimation: your return has been processed.
- 143(1)(a) proposal: the department plans an adjustment; reply within 30 days.
- 139(9) defective return: your return needs correcting; reply within 15 days.
This guide explains each notice, how to reply on the portal, what happens if you don't, and how to avoid notices next year.
First: check the notice is genuine
Every genuine notice carries a Document Identification Number (DIN), and you can verify it on incometax.gov.in. Genuine notices also appear after login under Pending Actions → e-Proceedings. Never pay through a link in an email or SMS. See how to authenticate an income tax notice.
Types of notices salaried employees get
| Section (Income-tax Act, 1961) | What it is | Time to respond | If ignored |
|---|---|---|---|
| 143(1) | Intimation after processing | No reply needed if correct; rectification under section 154 if wrong | Any demand becomes payable, with interest |
| 143(1)(a) | Proposed adjustment for a mismatch | 30 days | The adjustment is made without your input |
| 139(9) | Defective return | 15 days (extension possible) | The return is treated as never filed |
| 245 | Refund set off against an old demand | 30 days | The refund is adjusted |
| 156 | Notice of demand | 30 days to pay or contest | Interest, and recovery action |
| 142(1) | Request for information or documents, or to file a return | As stated in the notice | Penalty of ₹10,000 (271(1)(b)); best-judgement assessment |
| 143(2) | Scrutiny assessment | As stated in the notice | Penalty and best-judgement assessment |
| 148A / 148 | Reassessment: income may have escaped tax | As stated in the show-cause notice | Reassessment, tax, interest and penalty |
Reassessment is generally limited to 3 years from the end of the assessment year. It extends to 5 years where the escaped income is ₹50 lakh or more. For tax year 2026-27 onwards, notices are issued under the Income-tax Act, 2025, with new section numbers, but the process is similar.
Why salaried employees get notices
- Savings or FD interest in AIS not reported in the return
- Two employers in one year, with only one Form 16 reported
- TDS in Form 26AS different from the return (wrong PAN, deductor delay)
- HRA or 80C/80D claims in the return that the employer did not allow, without proof
- Capital gains, dividends or ESOP/RSU income missing
- High-value transactions in AIS (cash deposits, property, investments) not matching income
- Not filing a return although income or TDS required it
The department matches your return against AIS and Form 26AS automatically, so even small gaps, like ₹5,000 of interest, can produce a 143(1)(a) proposal or a demand. See TDS mismatch notices for the most common case.
How to respond on the portal
- Log in at incometax.gov.in and open Pending Actions → e-Proceedings. Intimations and orders are under Pending Actions → Worklist and in your registered email.
- Read the notice: section, assessment year, the issue raised, and the deadline.
- Compare your return with Form 16, Form 26AS and AIS to see whether the department is right.
- Choose your response:
- agree and pay;
- disagree with reasons and proof;
- file a rectification under section 154, for an error in an intimation;
- file a revised return, if still within the time limit; for AY 2026-27 this runs until 31 March 2027, with a fee after 31 December 2026;
- for a defective return, file the corrected return in response to the 139(9) notice.
- Upload documents as clear PDFs: Form 16, interest certificates, rent receipts with your landlord's PAN, investment proofs, bank statements.
- Submit and save the acknowledgement. If you need more time for a 142(1) or 143(2) notice, request an adjournment online before the deadline.
I have reviewed the proposed adjustment of ₹8,200 relating to savings bank interest shown in AIS. I agree that this interest was not included in my return due to an oversight. I accept the adjustment and the resulting tax, and have attached the bank interest certificate.
[Name] · [Mobile] · [Email]
For scrutiny (143(2)) or reassessment (148A/148) notices, take advice from a chartered accountant before replying. What you say becomes part of the assessment record.
What happens if you ignore a notice
- Interest: 1% a month under sections 234A, 234B and 234C on any tax that turns out to be due.
- Non-compliance penalty: ₹10,000 under section 271(1)(b) for not complying with a 142(1) or 143(2) notice.
- Under-reporting penalty: 50% of the tax on under-reported income under section 270A, or 200% for misreporting, such as fake claims.
- Best-judgement assessment: the officer can assess your income without your input under section 144.
- Prosecution: possible only in serious cases of wilful evasion or wilful failure to file. It is rare for honest salaried taxpayers who respond.
How to avoid notices next year
- Download AIS and Form 26AS before filing and match every entry. Give feedback on AIS entries you disagree with.
- Report all interest: savings, FD, RD and income-tax refund interest.
- If you changed jobs, include both employers' salary and TDS. Two employers each giving the basic exemption often leaves tax unpaid.
- Keep proof for every claim. For HRA, keep rent receipts and your landlord's PAN if rent exceeds ₹1 lakh a year. HRA, 80C and 80D apply only under the old regime.
- Declare RSUs and ESOPs and any foreign assets in Schedule FA. Many MNC employees miss this.
- File by the due date and e-verify within 30 days. See how to file ITR online.
- Keep records for at least 6–7 years: returns, Form 16, proofs and acknowledgements.
Frequently asked questions
Why did I, a salaried employee, get an income tax notice?
Usually because something in your return doesn't match Form 16, Form 26AS or AIS. Common causes are unreported interest, a second employer's salary, or claims without proof.
Is a 143(1) intimation a notice I must reply to?
Not if it shows no change or a refund. If it shows a demand you believe is wrong, file a rectification under section 154 or respond to the demand online.
How many days do I get to reply?
15 days for a defective return (139(9)), 30 days for a 143(1)(a) proposal or a refund adjustment (245), and the date stated in the notice for 142(1), 143(2) and 148A.
What is the penalty for not replying?
₹10,000 for not complying with a 142(1) or 143(2) notice, plus interest, a possible best-judgement assessment, and penalties of 50% or 200% on any under-reported tax.
Can I revise my return after a notice?
Yes, within the revised-return window and before assessment is completed. For AY 2026-27, that is up to 31 March 2027. For a 139(9) notice, file the corrected return as your response.
Will a salaried employee go to jail for a tax notice?
Not for a mismatch or a mistake. Prosecution is reserved for wilful evasion or wilful non-filing, and responding properly to notices avoids it.
Related guides
- ITR processed (143(1) intimation) explained
- How the department tracks cash transactions
- Form 16 explained
Sources
Updated October 2026. Section numbers refer to the Income-tax Act, 1961; similar provisions apply under the Income-tax Act, 2025 from tax year 2026-27. This is general information, not tax advice.