Income Tax Notice Section 142(1): Documents and Information to Keep Ready

The Income Tax Department has been increasingly using Section 142(1) notices to verify income details, deductions claimed, and other disclosures made in income tax returns. If you’ve received one, don’t panic. This notice is part of the routine assessment process and is essentially a request for more information before finalising your tax assessment.

The section empowers the Assessing Officer (AO) to ask for any books of accounts, statements, and supporting documents that they may consider necessary. However, since the law does not prescribe a fixed checklist, the type of information requested will vary from case to case. It largely depends on the sources of income you have disclosed, deductions claimed, and details appearing in your AIS, TIS, and Form 26AS.

To help you stay prepared and respond accurately, here’s a compiled list of documents and information that are commonly required when a 142(1) notice is issued.

Common Documents Required for Responding to Section 142(1) Notice

1. Computation of Income

Prepare a full computation sheet showing your total income, deductions claimed, and taxable income. This should reconcile with your ITR.

2. Bank Account Statements

Include statements for all bank accounts held during the financial year. These help verify:

  • Salary credits

  • Investment transactions

  • Cash deposits or large withdrawals

  • Contributions to schemes like NPS or political parties

3. Income Source Proofs

Depending on your income heads, provide supporting documents. For example:

  • Salary: Form 16 and salary slips

  • Capital Gains: Contract notes, Demat statements, and capital gains working sheets for shares or mutual funds

4. Investment and Deduction Proofs

To justify deductions claimed under various sections:

  • 80C: EPF passbook, LIC premium, ELSS proof, tuition fee receipts

  • 80CCD(1B): NPS account (PRAN) statement for additional ₹50,000 contribution

  • 80GGC: Receipt for political contributions along with matching bank entry

  • 80D: Mediclaim policy documents and premium payment receipts

  • 80TTA: Savings account interest statement/passbook

5. Dividend and Interest Income

Provide breakup and supporting documents for dividends received and interest earned—especially if such income is visible in AIS or 26AS.

6. HRA and Rent Receipts

If you’ve claimed House Rent Allowance, maintain:

  • Rent receipts

  • Rent agreement

  • Landlord’s PAN (if rent exceeds ₹1 lakh annually)

  • Bank proof of rent paid

7. Foreign Assets (if applicable)

If you hold any foreign assets or income:

  • Disclose them in Schedule FA

  • Use ITR-2 or ITR-3, as ITR-1 and ITR-4 do not support foreign asset disclosure

A Few Things to Note

  • Always ensure that the documents submitted match the claims made in your return.

  • Compare your data with AIS, TIS, and Form 26AS to catch any mismatches early.

  • If a certain document is unavailable, submit a written explanation.

  • Respond within the timeline specified in the notice to avoid escalation to best judgment assessment under Section 144.

Final Thoughts

Getting a notice under Section 142(1) does not mean you’ve done something wrong. It is just a way for the Assessing Officer to seek clarity or confirmation before proceeding with the assessment. Staying organised and submitting the right documents on time can resolve the matter efficiently.

Need Expert Help to Respond to a 142(1) Notice?

At Tradeviser, we assist individuals and businesses with income tax notice handling, document collation, and accurate submissions. Whether it’s a simple clarification or a complex case involving multiple incomes, we’ve got your back.

Reach out now to ensure your response is accurate, timely, and stress-free.