Income Tax Notices Explained: Types, Time Limits, and Key Details Every Taxpayer Must Know

Paying income tax is a civic duty, but filing your return is only one part of the process. The Income Tax Department of India keeps a close watch to ensure that taxpayers declare their income correctly and pay the right amount of tax. If the department notices discrepancies, or if it requires clarification, it issues an income tax notice . For many, receiving a notice from the Income Tax Department can be stressful. However, not every notice means you are in trouble. Sometimes, it is just a request for additional information or a correction of small mistakes. What matters most is understanding the type of notice, the reason behind it, and how to respond on time. This article explains the different types of income tax notices, their time limits, and what you should do after receiving one . Why Does the Income Tax Department Issue Notices? The Income Tax Department has the power, under the Income Tax Act, 1961 , to issue notices for several reasons: Mismatch of informati...