Income Tax Notice To Salaried Employees: All You Need To Know

Getting an income-tax notice can be scary — but for most salaried taxpayers it’s routine and resolvable. This guide explains the common types of notices you might get, why they’re issued, what the notice actually means, how and where notices are served/verified, exactly how to respond (with a ready checklist and short templates), deadlines, and what happens if you ignore it.

Immediate Actions (first 24–48 hours)

1. Don’t panic. Most notices are simple mismatches or requests for documents.
2. Authenticate the notice on the Income-tax e-filing portal to confirm it’s genuine. 
3. Log in to e-filing → Pending Actions → e-Proceedings / Response to Outstanding Demand and download the PDF. (Most official notices are also uploaded there.)
4. Read the notice carefully — note the Section, the claimed issue, the deadline and the DIN/Demand Reference.
5. Gather documents (Form-16, Form-26AS, payslips, bank statements, investment proofs, rent receipts) and prepare a short reply.

Income tax slab for AY 2025-26 for salaried person

Income Tax Slabs for FY 2025-26 under New Tax Regime 

A tabular version of the slab rates are given below.

Rebate: Due to the increase in rebate to Rs. 60,000 under the new regime, the total tax for an income up to Rs. 12 lakhs is NIL. This rebate is not applicable for special tax income such as capital gains, crypto income, online gaming income, etc.

Income Tax Slabs for FY 2025-26 under Old Tax Regime 

The income tax slab under the old tax regime has not changed. The income tax slabs under the old tax regime are as follows:

1.Income Tax Slabs for Individuals below 60 Years, NRI and HUF

Popular Deductions Allowed under Old Tax Regime

• 80C, 80D, 80G, 80TTA
• HRA, LTA, home loan interest (Section 24)
• Education loan interest (Section 80E), etc.

Common notices salaried taxpayers receive (what they are + what they mean)

Intimation under Section 143(1)

A processing intimation after your ITR is processed by CPC. It can show: (a) refund, (b) no change, or (c) a demand (tax shortfall) or adjustment. It’s usually automated and flags arithmetic/TDS mismatches. Check details and Form-26AS. 

Notice under Section 139(9) — Defective return

If your filed ITR lacks required information or has defects, the department issues this notice and normally gives 15 days(or the period in the notice) to rectify. If you do not reply, your return may be treated as invalid and you can lose carry-forwards/exemptions. 

Notice under Section 142(1) — Pre-assessment inquiry / information call

This is an initial notice asking for documents, explanations, or a missing/required return. It’s an inquiry — not yet a full scrutiny — but must be answered within the time the notice specifies (typically 15–30 days, but check the notice). 

Notice under Section 143(2) — Scrutiny / selection for detailed assessment

This means your return has been selected for scrutiny. Important: the law limits issuance of 143(2) notices — they must be issued within 3 months from the end of the financial year in which the return was filed (so late notices can be invalid). The notice will specify the documentary/appearance requirements. 

Notices under Section 148 / 148A (re-assessment-related)

When the department believes income has escaped assessment, it can reopen assessment. Since 2021 the law requires a pre-inquiry step (Section 148A) — the AO gives you a chance to explain (usually 7–30 days) before issuing a formal notice under Section 148. Don’t ignore an 148A — your explanation can stop a reassessment. 

Demand under Section 156 — Notice of demand / pay up

If an order/assessment (or an intimation) results in tax/interest/penalty payable, Section 156 is the formal demand. Typically the due date is specified (often 30 days). You can pay, seek adjustment, or respond/dispute via the e-filing “Response to Outstanding Demand” flow. 

Why salaried employees commonly get notices?

• TDS / tax-credit mismatch (Form-16 vs Form-26AS) — most common. 
• Missed income: bank FDs interest, capital gains (sale of shares/FDs), ESOP income not reported.
• Incorrect claim / documentary gap: HRA, 80C proof mismatch, home loan interest proof missing.
• Defective or late ITR filing (e.g., missing PAN/Aadhaar details).
• High-value transactions flagged (property sale, large bank deposits, etc.).
  (Always cross-check Form-26AS / AIS / TDS certificate when a notice arises.) 

How the notice is delivered & how to verify it is genuine?

• Most official notices are sent electronically (email/SMS) and uploaded on the Income-tax e-filing portal under “e-Proceedings” / “Pending Actions”. You can authenticate a notice on the portal without logging in. If the notice is not on the portal, be cautious — it could be phishing. 

Exact step-by-step: How to handle a notice (practical workflow)

Step A — Verify & download

1. Use the Authenticate Notice/Order link on the e-filing portal. If genuine, log in and download the notice (DIN/reference no.).

Step B — Read the notice carefully

1. Note: Section invoked, assessment year, deadline, AO contact, and what exactly is asked (documents/appear).
2. Check whether it’s an intimation (143(1)) or a notice requiring explanation/appearance (142/143/148A/156).

Step C — Quick analysis

1. Check your Form-26AS / Tax Credit and Form-16 for mismatch; check payroll/TDS entries and bank statements. (Mismatch is the most frequent cause.)

Step D — Prepare a response

1. Put together a short cover reply (facts + attachments). Keep it factual and documentary.
2. Common attachments: Form-16, payslips, bank statements, 26AS, investment proofs (80C, ELSS receipts), rent receipts, sale deed or capital gains workings (if property/shares involved), Form-16A/Form-16B if required.

Step E — File reply online

1. Go to e-filing → Pending Actions → e-Proceedings (or Response to Outstanding Demand for 156). Use “Submit Response”. You can upload documents, request adjournment/extension when needed. 

Step F — If you agree with demand

1. Pay via Challan ITNS-280 on the e-filing portal or choose the “Pay Now” option in the outstanding-demand screen. 

Step G — If you disagree

1. Submit a detailed reply through e-proceedings stating reasons and evidence (e.g., TDS already reflected in 26AS). If demand remains, you can reply via “Disagree with demand” and then appeal. 

Deadlines you must know (common ones)

• Section 139(9) (defective return) — 15 days (unless notice gives a different period). 
• Notice issuance for Section 143(2) — AO must issue it within 3 months from the end of the financial year in which return was filed. (If you receive a notice after that, check validity.) 
• Section 148A (pre-reassessment) — AO normally gives 7–30 days to explain before issuing notice under 148. 
• Section 156 demand — usually payment is due within 30 days of the demand (check the notice).
• Appeal to Commissioner (Appeals) — generally 30 days from service of order/demand (Form 35 / CIT(A)). If you miss this, you can request condonation of delay — but do not rely on that. 

What happens if you don’t respond?

• For 139(9): your return can be treated as invalid → loss of carry-forward of losses, exemptions, etc. 
• For 142/143 non-response: AO may complete assessment under best-judgment (Section 144) and levy penalties. 
• For Section 156 (demand) non-payment: if you don’t respond/pay, demand may be confirmed and recovery proceedings (attachment, garnishee, certificate) can follow and interest/penalty may accrue. The earlier you dispute through the portal or appeal, the better. 

Practical checklist — documents to keep ready (for most salaried notices)

• Form-16 (employer TDS statement) and salary breakup.
• Form-26AS / Tax Credit statement and Form-16A (if any). 
• Bank statements (esp. for months where interest/credits appear).
• Investment proofs (80C, insurance, ELSS), rent receipts (HRA), house-loan interest certificates.
• Sale deed / transfer docs / capital gains computation (if property/shares involved).
• Proof of TDS for any non-salary payments (Form-16A).
• A dated, signed cover letter summarising your reply (attach documents with clear file names).

Short reply templates (copy + paste and customise)

A — TDS mismatch (common)

Subject: Response to Notice dated [date], DIN/Ref: [ref no.]
Respected Sir/Madam,
I have received the notice relating to AY [year]. The query appears to be a TDS mismatch. I enclose: (1) Form-16, (2) Form-26AS screenshot, (3) Bank statement showing credited interest, (4) Employer’s TDS certificate. The tax has already been deducted/paid as shown in Form-26AS. Request you to kindly verify and drop the demand.
Regards,
[Name, PAN, contact]

B — Defective return (139(9)) — missing info

Subject: Submission in response to Notice u/s 139(9) dated [date] (PAN: ______)
Please find attached revised/rectified details — corrected fields highlighted — and supporting proofs. Kindly treat the return as rectified.
Regards, [Name, PAN]

C — Demand but you disagree

Subject: Response to Notice u/s 156 dated [date] — Disagreement of demand
I disagree with the demand shown for AY [year] because [state reason: e.g., TDS already reflected in Form-26AS / income already offered]. Attached proofs: [list]. Request re-verification and withdrawal of demand.
Regards, [Name, PAN]

(Always attach clearly indexed exhibits.)

If it’s complicated — escalation & appeal routes

• Ask for extension using e-proceedings (AO discretion).
• If AO doesn’t accept your reply: you can appeal to CIT(A) (Form 35) — usually within 30 days of the order/demand. 
• If huge amounts / reassessment / suspected fraud — consult a practising CA or tax lawyer immediately.

How to spot fake / phishing notices?

Fraudsters send fake SMS/emails demanding immediate payment. Do not pay from links in an email/SMS. Instead:

1. Authenticate the notice using the e-filing portal tool. 
2. Check the notice PDF after logging into your account — genuine notices appear under your PAN in Pending Actions.

Quick examples of likely outcomes (realistic)

• TDS mismatch → reply with Form-16/Form-26AS → demand dropped / intimation corrected.
• Missing small interest income → file revised return or explain & pay tax + interest → case closed.
• Serious undisclosed income flagged after 148A → if explanation unsatisfactory → notice under 148 may be issued and reassessment + penalties may follow. Prompt professional help advised. 

Useful official links (where to act right away)

• Income-tax e-filing portal — login & e-Proceedings / Pending Actions (download/authenticate notices).
• Response to Outstanding Demand / user manual (how to file disagreement / pay). 
• FAQs — Defective return (139(9)) — timelines and consequences. 

Final — short checklist for right now

1. Authenticate the notice on the e-filing portal. 
2. Download notice + note deadline. 
3. Check Form-26AS & Form-16. 
4. Draft a short, evidence-based reply and upload via e-Proceedings (or pay if you accept the demand). 
5. If unsure or the amount is material, talk to a CA — better to spend a little now than suffer penalty + recovery later.

Read More: ITAT Third Member Deletes Demand of Rs 549 Cr Against Microsoft India Citing Limitation Ground