How To · Income Tax · Notices
How to Respond to an Income Tax Inquiry Notice Under Section 142(1)
A notice under section 142(1) of the Income Tax Act is an inquiry notice. The Assessing Officer sends it either to ask you to file a return you have not filed, or to ask for accounts, documents or a written explanation before your assessment is completed. It is not a demand for tax by itself, but you must reply, and you reply online through the e-Proceedings tab on the income tax e-filing portal at incometax.gov.in. This page explains how to read the notice, how to upload your response, what documents to keep ready, the deadline the notice sets, what happens if you ignore it, and the appeal route if the final assessment order goes against you. Last verified October 2026.
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01What a 142(1) notice means
Section 142(1) lets the Assessing Officer make an inquiry before completing your assessment. The notice will do one of two things:
- Ask you to file a return. If you have not filed a return for the year, the officer can require you to file one by a stated date.
- Ask for accounts or information. The officer can ask you to produce accounts, documents, or a written note on specified points, such as a large deposit, a mismatch with your AIS or Form 26AS, or a deduction claimed.
A 142(1) notice is the start of a conversation, not a penalty. But it is a legal requirement, so a calm, complete and on-time reply is what keeps the matter small.
02First steps when you get one
Do these before you draft anything:
- Read the notice fully. Note the assessment year, the Document Identification Number (DIN), the exact points raised, and the response deadline.
- Check it is genuine. Use the "Authenticate notice/order issued by ITD" service on the e-filing portal to confirm the DIN. Ignore any message asking you to pay or share an OTP on a link; the department never collects tax outside the portal.
- Match the points to your records. Pull your filed return (if any), Form 26AS, the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS) for that year, and line them up against what the officer has asked.
03How to reply on the portal
Most 142(1) notices are now faceless, so the reply is filed online:
- Log in at incometax.gov.in with your PAN and password.
- Open Pending Actions > e-Proceedings. Find the proceeding for the right assessment year and open the 142(1) notice.
- Click Submit Response. Answer each point in the text box, and attach supporting files (PDF) for each item.
- If the notice asked you to file a return, file the return first under the correct section, then respond in e-Proceedings noting that it is filed.
- Submit and download the acknowledgement. Keep the transaction ID.
If you cannot meet the date, use the portal to seek an adjournment with a short reason before the deadline passes, rather than letting it lapse.
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04Documents to keep ready
What you attach depends on the points raised, but a 142(1) reply usually needs some of these:
| Point raised | What usually answers it |
|---|---|
| Large bank deposit or cash | Bank statement, source of funds, sale deed, loan confirmation |
| Mismatch with AIS / 26AS | Reconciliation showing the correct figure and why the statement differs |
| Deduction or exemption claimed | Proof of investment, rent receipts, loan interest certificate, donation receipt |
| Business income or turnover | Books of account, profit and loss, balance sheet, GST returns if any |
| Return not filed | The return itself, filed under the correct section |
Label each file clearly so the officer can map it to the point it answers. Keep the originals; you upload copies.
05Deadlines and what if you ignore it
Reply by the date in the notice. Ignoring a 142(1) notice has real consequences:
- Best judgment assessment. Under section 144 the officer can assess your income on his own estimate, which is usually higher.
- Penalty. A penalty under section 272A can apply for non-compliance with the notice.
- Prosecution risk in serious cases of continued default.
So even a short, honest reply asking for a little more time is far better than silence.
06If the assessment goes against you
A 142(1) notice ends in an assessment order. If that order raises a demand you believe is wrong, you are not stuck with it. The appeal ladder is:
- First appeal. File an appeal to the Commissioner of Income Tax (Appeals), or CIT(A), in Form 35 on the e-filing portal, normally within 30 days of the order, after paying any admitted tax.
- Second appeal. If CIT(A) still goes against you, appeal to the Income Tax Appellate Tribunal (ITAT), the independent tribunal that hears income tax appeals, normally within 60 days.
- Further. On a question of law, the matter can go to the High Court and then the Supreme Court.
You can also seek rectification under section 154 for a plain mistake, and a stay of demand while the appeal is pending.
07Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
Once a 142(1) inquiry turns into a demand and then an appeal, the matter leaves the e-filing portal and moves to the CIT(A) and, after that, to the Income Tax Appellate Tribunal (ITAT). That is where tracking matters. Claw covers ITAT benches alongside 9,102 courts, benches and forums in all, so you can create a FREE Claw account and follow your appeal by appellant name or appeal number, see the cause list and the next date, and read the order when it is passed. Its judgment search spans 30 crore+ decisions, with Supreme Court rulings from 1950 and High Court rulings from 1990, which helps you and your counsel find how similar additions were treated. Results return in under 5 seconds, and Claw does not use your case details or documents to train its AI models. Claw tracks the matter and surfaces the law; it is not a substitute for a chartered accountant or tax counsel on your specific assessment.
08Sources and further reading
- Income Tax e-filing portal (e-Proceedings, Form 35): incometax.gov.in
- Income Tax Department (the Act and circulars): incometaxindia.gov.in
- Income Tax Appellate Tribunal: itat.gov.in
- Claw: clawlaw.in
This page is general information for Indian taxpayers, not legal or tax advice. Section numbers are current as of the date above; confirm the exact deadline and form against the notice and the portal.
09Frequently asked questions
Is a section 142(1) notice a tax demand?
No. It is an inquiry before assessment. The officer is either asking you to file a return or to produce accounts, documents or an explanation. A demand only arises later, in the assessment order, if additions are made.
How do I reply to a 142(1) notice?
Log in at incometax.gov.in, open Pending Actions and then e-Proceedings, find the proceeding for the correct assessment year, click Submit Response, answer each point and attach supporting PDFs, then submit and save the acknowledgement.
What if I cannot reply by the date in the notice?
Use the portal to seek an adjournment with a short reason before the deadline passes. That is far safer than missing the date, which can lead to a best judgment assessment under section 144 and a penalty.
What happens if I ignore the notice?
The Assessing Officer can complete a best judgment assessment under section 144 on his own estimate, usually higher, impose a penalty under section 272A, and in serious cases pursue prosecution. Always reply, even briefly.
Can I challenge the assessment that follows?
Yes. You can file a first appeal to the Commissioner of Income Tax (Appeals) in Form 35 within about 30 days, and if needed a second appeal to the Income Tax Appellate Tribunal (ITAT) within about 60 days. A plain mistake can also be rectified under section 154.
What is ITAT?
The Income Tax Appellate Tribunal is the independent tribunal that hears appeals against orders of the CIT(A). It is the final fact-finding stage; further appeal lies to the High Court only on a question of law.