Different Types of Income Tax Notices in India

Income Tax Department communications can arise at different stages of return processing, assessment, reassessment, rectification, demand recovery and penalty proceedings. Some communications are statutory notices, while others are intimations, letters or show cause communications. Understanding the type of communication is important because each has a different purpose, statutory basis and consequence.

From 1 April 2026, the Income-tax Act, 2025 applies under the new tax-year framework. Many familiar provisions of the Income-tax Act, 1961 have been renumbered. As a result, taxpayers may continue to search for older sections such as 139(9), 142(1), 143(2), 144, 148, 148A, 154 and 156 even though corresponding provisions under the new Act use different section numbers.

This guide explains the principal types of income tax notices and communications in India, their purpose and the corresponding provisions under the old and new law. For practical guidance after receiving a notice, see How to Respond to an Income Tax Notice in India. For professional representation, see our Income Tax Assessment and Litigation Services in India.

What Are the Main Types of Income Tax Notices in India?

Not Every Department Communication Is Technically a Notice

The Income Tax Department may issue statutory notices, intimations, show cause communications, letters and orders. Although taxpayers commonly refer to all of them as “income tax notices”, their legal effect and required response can differ.

Notices Can Arise Before, During or After Assessment

A communication may relate to a defective return, a proposed adjustment while processing the return, an information request, scrutiny selection, best judgment assessment, reassessment, rectification, demand or penalty proceedings.

The Section Number Helps Identify the Purpose

The statutory section mentioned in the communication is one of the most useful indicators of what the Department is asking the taxpayer to do. The tax year and applicable Act should also be checked because old and new section numbers now coexist during the transition period.

Income-tax Act, 2025 vs Income-tax Act, 1961 Notice Numbers

The New Act Renumbered Many Familiar Sections

The Income-tax Act, 2025 came into force from 1 April 2026 and reorganised the assessment framework. Familiar provisions under the 1961 Act therefore have corresponding sections under the new Act.

Earlier Proceedings May Still Refer to Old Sections

Proceedings relating to earlier periods may continue under the Income-tax Act, 1961 under the applicable transition and savings provisions. A notice issued after 1 April 2026 may therefore still refer to an old section where the proceeding is governed by the earlier law.

The current legislation and comparison tools are available on the official Income-tax Act, 2025 portal.

Quick Comparison of Common Income Tax Notices

Common Old and New Section Mapping

Type of Notice / Communication	Income-tax Act, 2025	Income-tax Act, 1961	Main Purpose
Defective return communication	Section 263(7)	Section 139(9)	Opportunity to correct a defective return
Prima facie adjustment during return processing	Section 270(1)(a)	Section 143(1)(a)	Proposed adjustment while processing the return
Inquiry / information notice before assessment	Section 268(1)	Section 142(1)	Seek return, accounts, documents or information
Scrutiny notice	Section 270(8)	Section 143(2)	Detailed verification of the return
Best judgment assessment notice / show cause	Section 271	Section 144	Proceed where prescribed non-compliance exists
Faceless assessment framework	Section 273	Section 144B	Electronic faceless assessment procedure
Reassessment show cause	Section 281	Section 148A	Pre-notice opportunity in applicable reassessment cases
Reassessment notice	Section 280	Section 148	Require return where income is alleged to have escaped assessment
Rectification communication	Section 284	Section 154	Rectify mistake apparent from record
Notice of demand	Section 289 / Form 103	Section 156 / Form 7	Communicate tax, interest, penalty or other sum payable

Penalty Notices Do Not Have One Single Section

Penalty proceedings can arise under different provisions depending on the alleged default. A penalty show cause notice should therefore be read with the specific charge and section mentioned in that communication.

Defective Return Notice – Section 263(7)

What Is a Defective Return Communication?

Section 263 contains the return filing framework under the Income-tax Act, 2025. A return may be treated as defective where prescribed information, schedules, audit-related particulars or other required elements are incomplete or inconsistent.

Old Section 139(9) Corresponds to Section 263(7)

Taxpayers familiar with a defective return notice under section 139(9) of the Income-tax Act, 1961 should note that the corresponding current provision is section 263(7) of the Income-tax Act, 2025.

Why This Communication Matters

A defective return communication normally gives the taxpayer an opportunity to correct the identified defect within the permitted period. Failure to cure the defect can affect the validity and processing of the return.

Prima Facie Adjustment – Section 270(1)(a)

This Arises During Processing of the Return

A prima facie adjustment communication is generally issued where the return-processing system identifies a proposed adjustment based on the return, accompanying information or tax records available to the Department.

Old Section 143(1)(a) Corresponds to Section 270(1)(a)

The Income Tax Department’s current e-Proceedings guidance specifically identifies prima facie adjustment under section 270(1)(a) of the Income-tax Act, 2025 as the corresponding provision to section 143(1)(a) of the Income-tax Act, 1961.

It Is Different From a Full Scrutiny Assessment

A processing adjustment should not be confused with detailed scrutiny. Scrutiny involves a wider examination of the return and is governed by separate provisions.

Inquiry Notice Before Assessment – Section 268(1)

The Assessing Officer Can Seek Information and Documents

Section 268 forms part of the inquiry-before-assessment framework under the Income-tax Act, 2025. A notice under section 268(1) can require the taxpayer to furnish information relevant to assessment, including material connected with the return and accounts.

It Corresponds Broadly to the Familiar Section 142(1) Notice

Under the earlier Act, section 142(1) was commonly used for notices seeking a return, accounts and information during assessment proceedings. The corresponding current inquiry provision is section 268(1).

A Section 268 Notice Does Not Automatically Mean an Addition

The notice is primarily an information-gathering step. Whether an addition ultimately arises depends on the taxpayer’s facts, documents, explanations and the assessment process that follows.

Scrutiny Assessment Notice – Section 270(8)

Scrutiny Means Detailed Verification of the Return

A scrutiny notice indicates that the return has been selected for examination on one or more issues. The Department may verify income, deductions, expenses, transactions, tax credits or other matters relevant to the return.

Old Section 143(2) Corresponds to Section 270(8)

Under the Income-tax Act, 2025, a scrutiny notice is issued under section 270(8). This performs the role commonly associated with section 143(2) under the Income-tax Act, 1961.

Scrutiny Can Be Conducted Through the Faceless Framework

Where the case falls within the faceless assessment framework, the proceedings can be conducted electronically under section 273 and the applicable Income-tax Rules, 2026.

For detailed guidance, see Scrutiny Assessment under Income Tax.

Best Judgment Assessment Notice – Section 271

Best Judgment Can Follow Specified Non-Compliance

Section 271 of the Income-tax Act, 2025 deals with best judgment assessment where the statutory conditions are satisfied, including specified failures connected with return filing or compliance with assessment notices.

A Show Cause Opportunity May Be Given Before Best Judgment

The faceless assessment procedure under the Income-tax Rules, 2026 provides for service of a notice under section 271 where the assessee has failed to comply with specified notices, giving an opportunity to show cause why assessment should not be completed to the best of judgment.

Old Section 144 Is the Familiar Corresponding Provision

Best judgment assessment under section 271 of the new Act corresponds broadly to section 144 of the Income-tax Act, 1961.

Faceless Assessment Communication – Section 273

Section 273 Is a Procedure Rather Than One Standalone Notice

Faceless assessment is not simply one specific notice. Section 273 provides the framework through which specified assessments, reassessments and recomputations are conducted electronically.

The National Faceless Assessment Centre Can Serve Assessment Notices

Under the faceless framework, notices under provisions such as section 268(1) or section 270(8) can be served electronically and responses are handled through the designated faceless system.

Old Section 144B Corresponds to Section 273

Taxpayers familiar with faceless assessment under section 144B of the Income-tax Act, 1961 should note that the current faceless assessment framework is contained in section 273 of the Income-tax Act, 2025.

For a detailed overview, see Faceless Income Tax Assessment in India.

Reassessment Show Cause Notice – Section 281

This Is the Pre-Notice Stage in Applicable Reassessment Cases

Where the reassessment procedure under section 281 applies, the Assessing Officer provides the taxpayer with an opportunity before issuing the formal reassessment notice under section 280.

The Department Shares Information Suggesting Escaped Income

The current reassessment framework requires the show cause communication to provide the relevant information suggesting that income chargeable to tax has escaped assessment, subject to the exceptions contained in the law.

Old Section 148A Corresponds to Section 281

The pre-notice reassessment procedure under section 281 of the Income-tax Act, 2025 corresponds to section 148A under the Income-tax Act, 1961.

The Income Tax Department has published official guidance on Reassessment Proceedings.

Reassessment Notice – Section 280

Section 280 Is the Formal Reassessment Notice

Before making an assessment, reassessment or recomputation of escaped income under section 279, the Assessing Officer issues the prescribed notice under section 280, subject to section 281.

The Notice Requires a Return for the Relevant Tax Year

Section 280 requires the assessee to furnish a return within the period specified in the notice. The Act states that the period specified in the notice shall not exceed three months from the end of the month in which the notice is issued.

Old Section 148 Corresponds to Section 280

The familiar reassessment notice under section 148 of the Income-tax Act, 1961 corresponds to section 280 of the Income-tax Act, 2025.

For background, see Income Escaping Assessment and Reassessment.

Rectification Notice or Communication – Section 284

Rectification Deals With a Mistake Apparent From the Record

Rectification is intended for mistakes that are apparent from the record rather than issues requiring a full re-examination of disputed facts or complex legal interpretation.

Old Section 154 Corresponds to Section 284

The Income Tax Department’s current e-Proceedings guidance identifies suo-moto rectification under section 284 of the Income-tax Act, 2025 as the corresponding provision to section 154 of the Income-tax Act, 1961.

A Proposed Adverse Rectification Requires Attention

Where a proposed rectification would increase liability, reduce a refund or otherwise operate adversely, the taxpayer should review the computation and underlying record carefully before accepting or disputing the proposal.

Notice of Demand – Section 289 and Form 103

Form 103 Is the Current Notice of Demand

Under the Income-tax Rules, 2026, Form 103 is prescribed for a notice of demand under section 289 of the Income-tax Act, 2025. It notifies the assessee of tax, interest, penalty or another amount payable for a tax year or block period.

Old Section 156 and Form 7 Correspond to Section 289 and Form 103

The official Income Tax Department guidance expressly maps Form 7 under section 156 of the Income-tax Act, 1961 to Form 103 under section 289 of the Income-tax Act, 2025.

The Normal Payment Period Is Generally 30 Days

The Income Tax Department’s Form 103 guidance states that the demand is payable by the date mentioned in the form, with 30 days from service being the normal default period, subject to the Assessing Officer’s statutory power to specify a different period in accordance with law.

Official details are available in the Income Tax Department’s Form 103 Guidance Note.

Penalty Show Cause Notices

Penalty Can Arise From Different Types of Defaults

Penalty proceedings may arise from under-reporting, misreporting, non-compliance with statutory obligations or other defaults depending on the relevant facts and provision.

The Penalty Notice Should Specify the Alleged Default

The taxpayer should identify the exact statutory charge, tax year and factual allegation instead of assuming that every penalty notice merely follows automatically from an assessment addition.

Penalty Proceedings Are Separate From the Assessment Merits

Although a penalty notice may originate from an assessment order, penalty liability requires examination under the specific penalty provision. The assessment response and penalty response should therefore be consistent but should not be treated as identical proceedings.

How Are Income Tax Notices Served and Viewed?

Most Electronic Communications Appear in e-Proceedings

The Income Tax Department’s e-Proceedings service allows registered users and authorised representatives to view and respond to notices, intimations and letters issued by the Assessing Officer, CPC and other Income Tax Authorities.

The Portal Lists Several Common Communication Types

Current e-Proceedings guidance specifically lists defective return communications, prima facie adjustments, suo-moto rectification, notices issued by Income Tax Authorities and clarification communications among the items that can be viewed and responded to electronically.

Notices and Orders Can Be Authenticated Online

Taxpayers can verify Department communications using the official Authenticate Notice or Order Issued by ITD service.

For the practical response process, documents and filing steps, see How to Respond to an Income Tax Notice in India.

Frequently Asked Questions

What are the most common income tax notices in India?

Common communications include defective return notices, prima facie adjustment intimations, inquiry notices, scrutiny notices, best judgment show cause notices, reassessment show cause and reassessment notices, rectification communications, notices of demand and penalty show cause notices.

What replaced section 142(1) under the Income-tax Act, 2025?

The inquiry-before-assessment provision corresponding to the familiar section 142(1) notice is section 268(1) under the Income-tax Act, 2025.

What replaced section 143(2) scrutiny notice?

Scrutiny notice under the new Income-tax Act, 2025 is dealt with under section 270(8), corresponding to section 143(2) of the Income-tax Act, 1961.

What replaced section 148 and section 148A?

The reassessment notice under old section 148 corresponds to section 280, while the pre-notice show cause procedure under old section 148A corresponds to section 281 of the Income-tax Act, 2025.

What replaced section 154 rectification?

Rectification under section 154 of the Income-tax Act, 1961 corresponds to section 284 under the Income-tax Act, 2025.

What replaced section 156 notice of demand?

Notice of demand under section 156 and Form 7 of the old framework corresponds to section 289 and Form 103 under the Income-tax Act, 2025 and Income-tax Rules, 2026.

Does every income tax notice mean tax is payable?

No. Many notices seek information, propose an adjustment, initiate verification or provide an opportunity to explain a matter. Tax becomes payable only where the applicable processing, assessment, penalty or other order results in a legally enforceable demand.

Related Services

• Income Tax Assessment and Litigation Services in India
• How to Respond to an Income Tax Notice in India
• Scrutiny Assessment under Income Tax
• Faceless Income Tax Assessment in India
• Income Escaping Assessment and Reassessment
• Tax and Regulatory Advisory Services in India

Prepared By: EzyBiz India Consulting LLP

Reviewed By:
Anil Agrawal, Chartered Accountant
Founder, EzyBiz India Consulting LLP
20+ Years of Experience in Tax, Regulatory and Business Advisory

Last Updated: 6 September 2026

Disclaimer:
This article is intended for general informational purposes only and does not constitute legal, tax or professional advice. The applicable section, time limit, response requirement and consequence depend on the tax year, nature of communication, facts of the case and law governing the relevant proceeding. The Income-tax Act, 2025 applies from 1 April 2026, while earlier proceedings may continue under the Income-tax Act, 1961 under the applicable transition provisions. Taxpayers should read the actual notice or communication carefully and obtain professional advice where required.