A Section 133(6) notice is a written request from the income tax department asking you to furnish specific information or documents by a stated date, without requiring personal appearance. Reply online via the e-filing portal before the deadline with supporting documents. Non-compliance attracts a Rs 10,000 penalty under Section 272A(1)(d) and may result in adverse additions to your income.
Section 133(6) Notice: How to Reply and Consequences
A Section 133(6) notice is the income tax department’s written information call. Unlike a Section 131 summons that requires you to physically appear before an officer, a Section 133(6) notice simply asks you to furnish specific information or documents in writing by a stated date. It is one of the most commonly used notices in the income tax department’s toolkit — issued both to the assessee whose return is under scrutiny and to third parties such as banks, NBFCs, employers, buyers, sellers, and government agencies who hold information relevant to the assessee’s tax affairs. If you receive a Section 133(6) notice, understanding what it requires, how to reply, and what happens if you do not reply can prevent a minor query from escalating into a major tax dispute.
Section 133(6) Notice: Key Facts
- What it asks: Furnish specific information or produce documents in writing by a specified date. No personal appearance required.
- Who receives it: The assessee, OR any third party (bank, employer, buyer, seller, financial institution) who holds relevant information
- When it can be issued: During a pending proceeding (always permitted), or without a pending proceeding with prior PCIT/CIT approval (since Finance Act 2014 amendment)
- Standard response time: Usually 15 to 30 days from the date of the notice; the notice specifies the deadline
- Online response: For assessees, replies are typically filed on the incometax.gov.in e-filing portal under e-Proceedings
- Penalty for non-compliance: Rs 10,000 per default under Section 272A(1)(d)
- No criminal prosecution: Unlike Section 131, there is no criminal prosecution provision under Section 276D for Section 133(6) non-compliance
What Is Section 133(6) and When Can the AO Issue It?
Section 133(6) empowers income tax authorities to require any person, including any officer of a banking company, to furnish information in relation to such points or matters as may be specified in the notice and to produce such books of account or other documents as may be specified.
The original provision required that a proceeding must be pending before the notice could be issued. The Finance Act 2014 amendment (effective 1 October 2014) expanded this by allowing notices to be issued even when no proceeding is pending, provided prior approval of the Principal Commissioner or Commissioner of Income Tax is obtained. This expansion made Section 133(6) one of the most powerful information-gathering tools in the department’s arsenal.
Situations When a Section 133(6) Notice Is Typically Issued
- During Section 143(2) scrutiny: The AO issues a Section 133(6) notice along with or after the initial questionnaire under Section 142(1), asking for specific information about high-value transactions, investments, or cash deposits
- AIS/TIS discrepancy follow-up: The AO identifies a discrepancy between the assessee’s Annual Information Statement (AIS) and their filed return, and issues a Section 133(6) notice asking the assessee to explain the transaction
- Third-party verification: The AO issues a Section 133(6) notice to a bank asking for account statements, or to an employer asking for Form 16 and salary details, to cross-verify information in the return
- Non-filer monitoring: Where the PCIT/CIT approves, a Section 133(6) notice can be issued even to persons who have not filed a return, to gather information about potential high-income individuals
- High-value transaction inquiry: Following AIR/SFT (Statement of Financial Transactions) data showing a property purchase, large cash deposit, or investment, a Section 133(6) notice is issued asking for source of funds explanation
Who Can Issue a Section 133(6) Notice?
| Authority | Can Issue Under Section 133(6)? | Without Pending Proceeding? |
|---|---|---|
| Assessing Officer (AO) | Yes | With PCIT/CIT approval only |
| Commissioner of Income Tax (CIT) | Yes | Yes (they are the approving authority) |
| Director of Income Tax | Yes | Yes |
| CIT(A) / NFAC | Yes (during appeal proceedings) | Not applicable (appeal is a pending proceeding) |
What Information Is Typically Sought in a Section 133(6) Notice?
The specific information sought depends on the context, but the most common categories include:
| Category | What Is Typically Asked | Recipient |
|---|---|---|
| Cash deposits | Source of cash deposits in specified bank account; details of cash deposits above Rs 10 lakh during demonetisation or otherwise | Assessee |
| Property purchase | Source of funds for immovable property purchase; explain discrepancy between purchase price and income declared | Assessee and/or property buyer |
| Bank account details | Account statements for specified period; details of all transactions above a threshold; identify account holder details | Bank |
| Business transactions | Details of purchases from / sales to a specific party; copies of invoices and payment records | Buyer or seller |
| Salary / employment | Form 16, salary TDS details, employment dates for a specific employee | Employer |
| Investment / loan | Details of mutual fund investments, demat account transactions, loan disbursements above threshold | Mutual fund AMC, broker, NBFC |
How to Reply to a Section 133(6) Notice?
For assessees, the reply to a Section 133(6) notice during a pending assessment is filed online on the income tax e-filing portal (incometax.gov.in) under the “Pending Actions” or “e-Proceedings” section. For third parties (banks, employers), the reply is typically submitted by mail or by uploading on the portal if they have a PAN-linked login.
Step-by-Step: Replying to a Section 133(6) Notice
- Read the notice completely: Identify each item of information or document requested. Understand the specific transaction, account, or year to which each query relates.
- Gather supporting documents: Collect bank statements, invoices, agreements, Form 16, property registration documents, or any other document that supports your explanation. Index each document to the specific query it answers.
- Prepare a factual reply: For each query, give a clear, factual explanation. State: (a) what the transaction was; (b) how it arose; (c) how it is reflected in your return (which head of income, which AY). Keep answers concise and accurate. Do not speculate or include irrelevant information.
- File before the deadline: File the reply on the e-filing portal before the due date specified in the notice. Upload all supporting documents as PDFs. If you need more time, request an extension in writing before the deadline — do not simply miss the date.
- Retain a copy: Keep a copy of the filed reply and all attachments. Download the acknowledgement from the portal. The AO may raise follow-up queries citing your reply, so having a complete record is essential.
What Are the Consequences of Not Replying to a Section 133(6) Notice?
Consequences of Non-Compliance
- Section 272A(1)(d) penalty: Rs 10,000 per default — Each un-replied notice is a separate default. The penalty is imposed by a JCIT or above after a show cause notice.
- Adverse inferences in assessment: If the AO issues a Section 133(6) notice during scrutiny and you do not reply, the AO may proceed to make an addition to your income on the basis of the unexplained transaction. The AO need not give you another opportunity if the notice was given and ignored.
- Best judgment assessment under Section 144: In extreme cases where multiple notices have gone un-replied, the AO can complete the assessment on a best judgment basis under Section 144, which invariably results in higher additions and a higher demand.
- Impact on third parties: If a bank or employer does not reply to a Section 133(6) notice, the bank/employer is liable for the Section 272A penalty. Banks and financial institutions have internal procedures for handling these notices and generally comply within the stated time.
Section 133(6) vs Other Information Notices: Quick Comparison
| Feature | Section 133(6) | Section 142(1) | Section 131 |
|---|---|---|---|
| Response form | Written / online | Written / online | Physical appearance |
| Examination on oath | No | No | Yes |
| Document impoundment | No | No | Yes (Section 131(2)) |
| Criminal prosecution | No | No | Yes (Section 276D) |
| Penalty per default | Rs 10,000 | Rs 10,000 | Rs 10,000 + imprisonment |
What Are the Most Common Questions About Section 133(6) Notices?
What is the difference between a Section 133(6) notice and a Section 131 summons?
A Section 133(6) notice requires written submission of information or documents; no personal appearance is needed. A Section 131 summons requires physical appearance before the authority and allows examination on oath. Section 131 also allows impoundment of documents produced. Both carry Rs 10,000 per default penalty under Section 272A, but Section 131 additionally allows criminal prosecution under Section 276D for wilful non-compliance. In practice, AOs use Section 133(6) for routine information calls and reserve Section 131 for cases where sworn oral testimony is specifically needed.
Can the AO issue a Section 133(6) notice to a bank without the assessee’s knowledge?
Yes. Section 133(6) is specifically designed to allow third-party information calls. The AO can issue a notice to any bank, NBFC, mutual fund, or other institution requiring it to produce account statements, transaction details, or information about a specific account holder, without informing the assessee in advance. The assessee typically learns of the bank notice only when the AO issues a follow-up scrutiny questionnaire citing the bank-provided information.
What happens if I do not reply to a Section 133(6) notice?
Non-reply attracts Rs 10,000 penalty per default under Section 272A(1)(d). Beyond the penalty, the AO may make adverse inferences and add income on the basis of the unexplained transaction. If multiple notices go un-replied, the AO can complete a best judgment assessment under Section 144. Always reply by the due date; if you need more time, request an extension in writing before the deadline.
Can a Section 133(6) notice be issued without any pending assessment proceeding?
Yes, since the Finance Act 2014 amendment (effective 1 October 2014). Section 133(6) now allows notices to be issued without any pending proceeding, provided prior approval of the Principal Commissioner or Commissioner of Income Tax is obtained. If you receive a Section 133(6) notice when no assessment proceeding is pending, ask your CA to verify that the required PCIT/CIT approval was obtained. If the approval was not obtained, the notice may be without jurisdiction and can be challenged.
What documents should I include in my reply to a Section 133(6) notice?
Your reply should directly address each specific item in the notice. For each transaction or amount: identify it by date, amount, and counterparty; provide the source document (bank statement, invoice, agreement); state how it was reflected in your return; attach supporting documents indexed to the relevant question. Keep the reply factual and document-backed. Do not include speculation or unsolicited information about transactions not mentioned in the notice. File before the due date and retain a copy of the reply and all attachments.
For help drafting a reply to a Section 133(6) notice or handling a scrutiny assessment, contact the Tradeviser team. See also our guides on Section 142(1) inquiry notice, Section 143(2) scrutiny notice, and the income tax notices hub.
CA Madhusmita Padal is a Practicing Chartered Accountant with firms based in Odisha and Chennai. She specializes in taxation, company law, and auditing. She is passionate about simplifying complex concepts and making knowledge accessible to all.