ITR Filing 2025: A Quick Guide to Handling Tax Notices and Avoiding Penalties

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Filing your Income Tax Return (ITR) on time isn’t the end of the road. Sometimes, even after timely filing, the Income Tax Department may send a notice or intimation - and while it can be alarming, most of these are routine and manageable.


Here’s a clear, no-stress guide to understanding and handling income tax notices in 2025.

First Things First: Know What You’ve Received
Not all communications from the tax department mean trouble.


  • “An intimation shares processing details and may not need a response, but a notice requires your attention.”
  • Always verify the notice’s authenticity on the e-filing portal .
  • Navigate to the ‘e-Proceedings’ section to view and respond.

What Triggers a Notice?

  • Mismatched TDS entries
  • Undisclosed income
  • Errors in return filing
  • High-value transactions
  • Past tax dues

Siddharth Maurya advises: “To handle an income tax notice, log into the e-filing portal and head to the ‘e-Proceedings’ section. This is where you can view and respond electronically. Make sure to gather all key documents, including Form 16, bank statements, and investment proofs.”


General Rules to Follow

  • Don’t ignore it – Every notice has a response timeline. Missing it can mean penalties.
  • Use Form 26AS & AIS – Reconcile your income and TDS details to avoid mismatches.
  • Act fast – Even minor issues can grow bigger if delayed.
  • Stay accurate – Incomplete or incorrect info invites more scrutiny.
  • Seek expert help – Complex cases call for a tax professional.

Common Notices and How to Respond

Section 143(1): Intimation after processing

  • Sent for TDS mismatches, late filing, or errors.
  • Action: Review and pay dues (if any) within 30 days or file a rectification.

Section 245: Adjustment of refund against old dues
  • Action: Respond within 15 days. Silence = agreement.

Section 142(1): Information request before assessment

  • Issued if you haven’t filed or if more data is needed.
  • Action: File the pending return or submit documents on time.

Section 139(9): Defective return

  • Points out missing or incorrect details in your return.
  • Action: Correct and re-file within 15 days.

Section 133(6): Query on financial transactions


  • Usually relates to high-value actions like property purchases.
  • Action: Submit bank statements, agreements, or other proofs.

HRA & TDS mismatch

  • Happens when claimed HRA doesn’t match records.
  • Action: Keep rent receipts and landlord PAN. If needed, file an updated return.

Section 143(2): Scrutiny notice

  • Means your return is being examined in detail.
  • Action: Submit all income and deduction proofs. Non-response leads to estimated tax.

Section 148: Income escaping assessment

  • Triggered if unreported income is found.
  • Action: Provide explanations or file a revised return.

Section 271AAC(1): Penalty for unexplained income

  • Applied to sudden, unexplained money inflows.
  • Action: Share valid income source proofs — penalties can go up to 60%.

“Differentiate between an intimation and a notice.” Most notices are procedural, not punitive. Timely, accurate responses backed by proper documentation can save you from stress, fines, and legal complications. When in doubt, don't hesitate to consult a tax expert.

Stay alert. Stay informed. And make 2025 your smoothest tax year yet.