Income Tax Notice: 7 Key Notices for Salaried Class & Essential Rules Update

Introduction

Receiving an income tax notice can feel alarming for salaried employees, but most are routine checks triggered by data mismatches or minor errors. With enhanced digital monitoring through Form 26AS, AIS, and TIS, the Income Tax Department frequently flags discrepancies in income tax notices for salaried employees. Common issues include unreported interest, excess deductions, or TDS mismatches. Understanding these 7 types of income tax notices and the latest rules helps you respond promptly, avoid penalties, and maintain compliance. This guide breaks down each notice, why it’s issued to employed individuals, and how to handle it effectively under current regulations.

7 Common Types of Income Tax Notices for Salaried Employees

1. Section 143(1) – Intimation Notice This automated preliminary assessment compares your ITR with department records. It may confirm acceptance, issue a refund, or demand additional tax due to mismatches like unreported salary or interest. Response: Check e-filing portal; pay demand or file rectification if incorrect.
2. Section 139(9) – Defective Return Notice Issued when your ITR is incomplete, inconsistent, or uses the wrong form (e.g., missing details or excess claims). Response: Revise and resubmit within 15 days to avoid invalidation.

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1. Section 142(1) – Preliminary Inquiry Notice Requests documents or information for assessment, often if return not filed or clarifications needed on income/deductions. Response: Submit required details online or in person promptly.
2. Section 143(2) – Scrutiny Notice Selects your return for detailed verification, often due to high-value transactions or questionable claims. Response: Provide supporting documents; attend hearings if required.
3. Section 148 – Reassessment Notice Sent if income believed escaped assessment (e.g., unreported bank interest or previous employer salary). Response: File revised return or explain with proof.
4. Section 156 – Demand Notice Demands payment of outstanding tax, interest, or penalty from prior assessments. Response: Pay within 30 days or appeal if disputed.
5. Section 245 – Refund Adjustment Notice Adjusts your current refund against past dues; common for salaried with old arrears. Response: Agree or contest within 30 days via portal.

Conclusion

Income tax notices for employed people are increasingly common due to better data integration, but timely response resolves most without issues. Always verify notices on the e-filing portal, reconcile with Form 16/26AS/AIS, and keep records. New rules emphasize faster digital compliance—ignoring notices can lead to penalties or best judgment assessments. Stay proactive: cross-check your ITR before filing to minimize risks. If unsure, consult a tax expert for peace of mind.

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