Income Tax Notice Reply Format: How to Draft an Effective Response

Receiving an income tax notice from the Income Tax Department can be stressful, especially if you’re unsure about the next steps. Whether it’s a notice under Section 139(9), 142(1), 143(1), 143(2), or 245, your first response should be calm and well-informed. Knowing how to reply appropriately is crucial to avoid penalties, reassessment, or unnecessary scrutiny.

This article explains the income tax notice reply format, outlines common notice types, and walks you through how to frame a strong response.

Why Is a Proper Reply Format Important?

An income tax notice is not always a sign of wrongdoing. Often, it’s simply a request for clarification or missing documentation. However, the way you respond and the format you use plays a key role in resolving the matter smoothly.

An improper or delayed reply can lead to:

  • Penalties under Section 271

  • Prolonged scrutiny or reassessment

  • Adjustments or disallowance of deductions

  • Legal proceedings in serious cases

Common Types of Income Tax Notices

Before drafting your reply, it’s essential to identify the section under which the notice has been issued. Some of the most frequently issued notices include:

  • Section 139(9) – Defective return

  • Section 142(1) – Inquiry before assessment

  • Section 143(1) – Intimation of adjustments

  • Section 143(2) – Scrutiny notice

  • Section 245 – Adjustment of refund against outstanding demand

  • Section 148 – Income escaping assessment

Each of these notices requires a different approach to reply.

General Guidelines for Replying to Income Tax Notices

  1. Read the notice carefully – Understand the nature, reason, and the section invoked.

  2. Note the due date – Delayed responses can lead to penalties.

  3. Gather supporting documents – Income proofs, bank statements, Form 16, investment proofs, etc.

  4. Use the official income tax portal – Most notices now require online response through www.incometax.gov.in.

  5. Avoid emotional or aggressive language – Be concise, professional, and fact-based.

Standard Income Tax Notice Reply Format (Sample Template)

While each case is unique, below is a sample reply format you can follow:

To
The Assessing Officer
Income Tax Department
[Address of AO or jurisdiction]

Subject: Reply to Income Tax Notice under Section [Mention Section No.]

PAN: [Your PAN]
Assessment Year: [AY]
Notice Reference Number: [Ref. No. from Notice]
Date of Notice: [DD/MM/YYYY]

Respected Sir/Madam,

I am in receipt of the notice issued under Section [mention section] of the Income Tax Act, 1961, dated [notice date], in connection with the assessment year [year].

In response to the same, please find below my submissions:

  1. Background: (Briefly explain your case or the nature of the notice.)

  2. Response:

    • [Clarification point 1]

    • [Clarification point 2]

  3. Documents Enclosed:

    • Copy of ITR acknowledgement

    • Form 16

    • AIS/Form 26AS

    • Bank statements

    • Other relevant supporting documents

I respectfully submit that the return filed was correct and complete to the best of my knowledge. I hope the documents provided will clarify the matter. Please let me know in case any further information or clarification is required.

Thanking You,

Yours sincerely,
[Full Name]
[PAN]
[Mobile No.]
[Email ID]
[Signature, if physical]

Where and How to Submit the Reply?

  1. Login to the Income Tax E-filing Portal: https://www.incometax.gov.in/

  2. Navigate to ‘e-Proceedings’

  3. Select the correct notice reference

  4. Click on ‘Submit Response’ or ‘Submit Documents’

  5. Upload PDF copies of your reply and supporting documents

  6. Acknowledge the submission and save the receipt

For certain cases like refund adjustment under Section 245, you may also find the response tab in the ‘Pending Actions’ section.

Documents Commonly Required in Replies

  • ITR Acknowledgement and Computation Sheet

  • Form 16 / 16A

  • AIS and Form 26AS

  • Investment Proofs (80C, 80D, etc.)

  • Rent receipts (for HRA claims)

  • Capital gains calculations (if applicable)

  • Bank Statements

  • Other supporting invoices or contracts

Always ensure that the documents match the entries in your return and AIS.

Tips for Drafting an Effective Reply

  • Stay objective: Stick to facts, avoid unnecessary explanations.

  • Be concise: Don’t overload the officer with unrelated details.

  • Double-check figures: Cross-verify your reply with Form 26AS, AIS, and TIS.

  • Maintain professionalism: Use a courteous tone, even if the notice seems unjustified.

  • Seek expert help: If you’re unsure about how to draft your reply or interpret the notice, consult a Chartered Accountant.

10 FAQs on Income Tax Notice Reply Format

  1. Can I reply to an income tax notice offline?
    In most cases today, replies are expected online via the income tax portal.

  2. Is there a penalty for not replying?
    Yes, non-response may lead to penalties or reopening of your case.

  3. Do I need a lawyer or CA to reply to a notice?
    Not mandatory, but professional guidance can help avoid errors in complex cases.

  4. What if I make a mistake in my reply?
    You can file a revised response before the deadline or clarify via a follow-up reply.

  5. Is a signature mandatory in online replies?
    No physical signature is needed. Login and digital submission serve as authentication.

  6. Can a salaried employee handle a Section 143(1) notice alone?
    Yes, if it’s only an intimation and doesn’t involve scrutiny or reassessment.

  7. How long does it take for the department to respond after my reply?
    It varies. Some cases get closed immediately; others may take weeks or months.

  8. Can I request an extension for submitting a reply?
    Yes, through a written request or e-filing message, but approval depends on the AO.

  9. Should I attach original or scanned copies of documents?
    Only scanned copies (PDF) are required on the portal.

  10. Can replying to a notice trigger further scrutiny?
    Not if your response is complete and consistent with available information.

Need Help Replying to an Income Tax Notice?

At Tradeviser, we assist taxpayers in handling income tax notices professionally—from drafting replies to representation before the department. Don’t risk a penalty due to a missed or mishandled notice.

Talk to our experts today and respond to your tax notice with confidence.