Income Tax Notice to Salaried Individuals – What You Need to Know
August 8, 2025
Introduction
In the evolving landscape of tax compliance in India, salaried individuals are increasingly facing scrutiny due to technological advancements used by the Income Tax Department. Notices may now arrive for reasons such as incorrect deductions, unreported income, or high-value transactions. Understanding the types of notices, their implications, and the best course of action is essential to remain compliant.
What is an Income Tax Notice?
An Income Tax Notice is an official communication from the tax department requesting clarification, rectification, or disclosure about specific elements of a taxpayer’s return. It may indicate a mismatch in income, deductions, or information as per Form 26AS or AIS.
Reasons Why Salaried Employees Receive Notices
- Discrepancies in income between ITR and employer/TDS filings
- Claiming fake deductions (e.g., HRA with false rent receipts)
- High-value transactions not declared in ITR
- Non-reporting of side income or moonlighting
- Mismatches with Form 26AS or AIS
- Non-filing or delayed filing of return
- Use of fake documents for tax saving claims
- Failure to respond to earlier notices
Types of Income Tax Notices
- Section 143(1): Intimation of tax computation
- Section 142(1): Seeking additional details or compliance
- Section 148: Income escaping assessment
- Section 139(9): Defective return notice
- Section 143(2): Scrutiny assessment
- Section 156: Demand notice
- Section 245: Refund adjustment notice
How to Respond to a Notice
- Read the notice thoroughly
- Collect supporting documentation (Form 16, 26AS, rent receipts, bank statements, etc.)
- Respond within the stipulated time on the e-Filing portal
- Seek help from a tax consultant or Chartered Accountant
- Keep track of acknowledgment and reply status
What Can Be Done to Avoid Notices?
- File timely and accurate returns
- Report all sources of income
- Avoid fake deductions
- Match ITR data with Form 26AS and AIS
- Maintain proof of every claim
- Regularly check emails and SMS from IT Department
- Hire professionals to file returns and respond to notices
Connect With Zentax
Zentax Business Consultants LLP, based in Hyderabad, offers expert support in handling income tax notices, scrutiny matters, and tax filing. Whether you’re responding to a Section 143(1) intimation or need assistance for scrutiny under Section 143(2), our Chartered Accountants ensure accuracy and compliance. You can consult us directly through our website plugin or reach us at +91-7995570999
Conclusion
The income tax landscape is rapidly transforming, and salaried individuals must take proactive steps to stay compliant. With AI-based scrutiny increasing, it’s best to ensure accuracy and consult professionals. If you’ve received a notice or want to avoid one, Zentax is here to help.
Get in Touch
Email: hello@zentax.com
Phone: +91-7995510999
Tags :
Income Tax
Share This :
