Have you just opened your inbox to find an income tax notice section 142(1)? Many taxpayers feel a rush of worry when they see this official communication. The income tax notice section 142(1) is a formal request from the Income Tax Department seeking more information about your tax filing. While it might seem scary at first, understanding what this notice means can help you respond properly and avoid penalties.
The Income Tax Department issues this notice when they need more details about your income, deductions, or other financial matters. Getting an income tax notice section 142(1) does not automatically mean you are in trouble. It simply indicates that the tax authorities need extra information to complete their assessment of your tax situation.
CBDT extends last date of filing of Income Tax Returns (ITRs) due for filing by 31st July 2025 to 15 September 2025
On 27 May 2025, the Central Board of Direct Taxes (CBDT) announced that the due date to file Income Tax Returns (ITRs) for Assessment Year 2025-26 has been extended. Originally set for 31 July 2025, the deadline is now 15 September 2025. This decision was made to accommodate significant changes in the ITR forms and to give the tax system enough time to implement and test updated utilities. These revisions aim to make the filing process easier and more transparent. The delay will also ensure taxpayers have time to claim Tax Deducted at Source (TDS) credits, which become visible from early June. This extension is intended to address concerns from taxpayers and provide enough time for accurate filing.
This article will explain everything you need to know about the income tax notice section 142(1), including what it means, who can issue it, why it might be sent to you, and most importantly, how to respond correctly to avoid penalties.
What is the notice under Section 142(1) of Income Tax Act?
The income tax notice section 142(1) is an official request from the Income Tax Department asking for more information about your tax filing before the Assessing Officer makes their final assessment. This notice can be issued whether you have filed your tax return or not. Issued by the Assessing Officer, it is the first step in investigating any mismatch between the information available to them and the ITR filed by the assessee.
When you receive an income tax notice section 142(1), the tax department might ask you to:
- File your income tax return if you have not already done so
- Provide specific documents or accounts to verify your tax details
- Give explanations about certain transactions or claims in your return
The income tax notice section 142(1) is not necessarily a sign of wrongdoing. It simply means the tax authorities need more information to complete their assessment of your tax liability.
Who has the power to issue an Income Tax Notice u/s 142(1)?
Filing your income tax return before the due date offers many benefits:
| Issuing authority | Power and scope |
| Assessing Officer (AO) | The primary authority who can issue an income tax notice section 142(1). |
| Joint Commissioner | Can issue the notice in special cases requiring higher authority |
| Commissioner | Has the power to issue notices for complex cases |
The Assessing Officer is the main authority who issues the income tax notice section 142(1). They have the power to request additional information even after the end of the assessment year. The AO can demand that you file a return even if you are not normally required to do so under other provisions of the Income Tax Act.
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When is notice under Section 142(1) issued?
A notice under Section 142(1) can be issued whether you have filed your income tax return under Section 139(1) or have failed to do so within the prescribed time. If you do not file your return on time, the assessing officer may issue a notice asking you to submit it within a specified period. This notice can even be sent after the end of the relevant Assessment Year. Additionally, if you were not originally required to file a return, you must still respond and file one if a notice is issued. It may also be issued if the Income Tax Department needs more information related to your filed or unfiled return.
Purpose of Section 142(1) Income Tax Notice
| Main purposes | Details |
| Request to file return | If you have not filed your return within the specified time |
| Document verification | To verify the accuracy of information provided in your return |
| Additional information | To seek clarification on specific points in your return |
| Comprehensive assessment | To ensure all income is properly declared and assessed |
The Income Tax Notice Section 142(1) helps the Income Tax Department gather complete information for proper assessment. The notice might ask you to provide specific accounts, documents, or explanations about particular entries in your return.
The Income Tax Notice Section 142(1) may request details about your assets, liabilities, and financial transactions to ensure all relevant data is available for assessment. This careful verification process is similar to how Bajaj Finserv verifies your home loan application documents to ensure a smooth approval process. Planning to purchase a home? Check your eligibility for a Bajaj Housing Finance Home Loan today. You may already be eligible, find out by entering your mobile number and OTP.
Penalty for non-compliance with Section 142(1) Tax Notice
Section 234F of the Income Tax Act sets out the late fees structure:
| Penalty type | Amount/ consequence |
| Penalty under Section 271(1)(b) | Rs 10,000 |
| Best Judgment Assessment | Assessment based on available information, often higher. |
| Prosecution under Section 276D | Imprisonment up to 1 year with or without fine. |
| Search and Seizure | Possible issuance of warrant under Section 132. |
Ignoring an income tax notice section 142(1) can lead to serious consequences. Even if you think the requested documents are not relevant, you must comply with the notice.
If you fail to respond to an income tax notice section 142(1), the tax department may conduct a "Best Judgment Assessment." This means they will assess your tax liability based on whatever information they have, which could result in a higher tax demand.
Just as missing home loan EMI payments can lead to penalties, not responding to an income tax notice section 142(1) can result in fines and legal action. Bajaj Finserv offers flexible repayment options to help you avoid such situations with your home loan. Ready to secure your dream home with affordable EMIs? Check your Bajaj Housing Finance Home Loan offers now. You may already be eligible, find out by entering your mobile number and OTP.
What to do after getting a Section 142(1) Income Tax Notice?
| Steps | Action required |
| Read carefully | Understand if you need to file a return or submit documents |
| Gather documents | Collect all relevant financial records and supporting papers |
| Seek professional help | Consider consulting a tax expert if needed |
| Prepare response | Organise your information in the required format |
| Submit on time | Ensure you meet the deadline specified in the notice |
The first step after receiving an Income Tax Notice Section 142(1) is to read it carefully. Understand whether you need to file a return or provide additional documents about your filed return.
Gather all necessary documents mentioned in the income tax notice section 142(1). This may include bank statements, investment proofs, property papers, and business records.
Respond to the income tax notice section 142(1) within the given timeframe to avoid penalties. Just as prompt documentation speeds up home loan approvals with Bajaj Finserv, quick response to tax notices helps resolve tax matters efficiently. Looking for quick home loan approval? Check your eligibility for a Bajaj Housing Finance Home Loan with approval in just 48 hours. You may already be eligible, find out by entering your mobile number and OTP.
The process to file a response to the section 142(1) notice?
| Step | Process |
| Log in to portal | Rs. 5,000 as penalty for late filing of ITR |
| Access e-Proceedings | Navigate to the 'Pending Actions' tab and select 'E-Proceedings' |
| View and select notice | Click on 'View Notices' and select the income tax notice section 142(1) |
| Choose response type | Select either 'Partial Response' or 'Full Response' |
| Upload documents | Attach all required documents in PDF, Excel, or CSV format |
| Submit | Click 'Continue', check the declaration box, and submit |
| Download acknowledgement | Save the response acknowledgement for your records |
To respond to an income tax notice section 142(1), you must use the 'e-Proceedings' utility in your registered e-filing account. This electronic process ensures proper documentation and tracking of your response.
When responding to an income tax notice section 142(1), you can choose between a partial response (if you need more time to gather all documents) or a full response (if you have all required information ready).
Make sure all documents uploaded in response to the income tax notice section 142(1) are clear and readable. Similar attention to detail is required when applying for a Bajaj Housing Finance Home Loan, where proper documentation leads to faster approval.
After submitting your response to the income tax notice section 142(1), download and keep the acknowledgement for future reference. This proof of submission is important if any questions arise later.
E-assessment under the faceless assessment scheme, 2019
| Key features | Description |
| No physical interaction | Assessment conducted electronically without face-to-face meetings |
| Transparent process | Standardised objective approach to assessment. |
| Digital documentation | All submissions and communications done electronically. |
| Team-based review | Multiple officers may review your case for fairness |
The Central Board of Direct Taxes (CBDT) has renamed the ‘e-Assessment Scheme, 2019’ as the ‘Faceless Assessment Scheme, 2019’. Under this system, most income tax assessments will now be carried out digitally, without any physical interaction between taxpayers and tax officers. The aim is to ensure more transparency, reduce bias, and improve efficiency. The National e-Assessment Centre (NeAC) is responsible for handling and passing all assessment orders under this scheme. Only a few exceptions exist, but overall, this marks a significant move towards digitisation in tax assessment procedures in India.
The Faceless Assessment Scheme introduced in 2019 has changed how income tax notice section 142(1) cases are handled. Assessments are now conducted electronically without direct interaction between taxpayers and officers.
If the Assessing Officer is not satisfied with your response to the income tax notice section 142(1), they may initiate a scrutiny assessment through the faceless process. Your case will be evaluated based on submitted documents.
This digital assessment approach for income tax notice section 142(1) responses ensures fair and unbiased reviews. Similarly, Bajaj Finserv has modernised their home loan application process, allowing online submissions for greater convenience. Start your home buying journey with a hassle-free digital application. Check your eligibility now for a Bajaj Housing Finance Home Loan. You may already be eligible, find out by entering your mobile number and OTP.
How to safeguard yourself against section 142(1) notices?
| Preventative measures | Details |
| Timely filing | File your income tax return before the due date |
| Complete e-verification | Verify your return within 30 days of filing |
| Maintain good records | Keep organised financial documents for at least 7 years |
| Respond promptly | Address any tax notices immediately |
| Seek expert advice | Consult tax professionals when dealing with complex issues |
The best way to avoid escalation from an income tax notice section 142(1) to a Section 144(1) notice is to file your returns on time and keep complete records. E-verify your return within 30 days of filing to ensure it is considered valid.
Maintain organised financial records that can support the claims in your tax return. If you receive an income tax notice section 142(1), respond within the given timeframe with complete and accurate information.
Just as maintaining a good credit score helps you secure better home loan terms with Bajaj Finserv, maintaining proper tax compliance helps you avoid problematic tax notices and penalties.
Here are some important aspects of Section 142(1) notices to keep in mind:
Demand for accounts and statements
Section 142(1)(i) empowers the Assessing Officer to request financial accounts, documents, and a statement of assets and liabilities, even if these details are not included in your regular accounts.
Prior approval requirement
Before asking for a statement of assets and liabilities outside of the normal accounts, the Assessing Officer must obtain prior approval from the Joint Commissioner. This protects taxpayers against unnecessary harassment.
Time limitation
The Assessing Officer cannot demand accounts relating to a period more than three years prior to the previous year. This ensures that only recent and relevant financial information is sought.
Application to all taxpayers
A notice under Section 142(1)(i) can be issued to any taxpayer, whether or not they have filed their income tax return, reinforcing the broad applicability of this provision.
Time limit for notice under section 142(1) of income tax act
| Aspect | Time limit |
| Issuance of notice | No specific time limit mentioned in the Act |
| Can be issued after assessment year | Yes, even after the relevant assessment year ends |
| Response time | Usually 30 days from the date of receiving the notice |
| Extension requests | Possible if valid reasons are provided |
There is no specific time limit for issuing an income tax notice section 142(1). The tax department can send this notice even after the relevant assessment year has ended.
While there is no time limit for the tax department to issue an income tax notice section 142(1), you typically have 30 days to respond once you receive it. This response window is similar to the 48-hour approval time that Bajaj Finserv offers for home loan applications.
If you need more time to respond to an income tax notice section 142(1), you can request an extension. However, it is best to respond as quickly as possible to avoid complications.
Difference between 142(1) and 143(2)
| Parameter | Section 142(1) | Section 143(2) |
| Purpose | Inquiry before assessment | Detailed scrutiny assessment |
| Stage | Initial information gathering | Secondary detailed examination |
| Scope | Specific documents or return filing | Comprehensive scrutiny of return |
| Timeline | No specific time limit | Must be issued within 6 months of filing |
The income tax notice section 142(1) is primarily an inquiry notice asking for specific information or documents. In contrast, a notice under Section 143(2) initiates a detailed scrutiny assessment.
The income tax notice section 142(1) can be issued even if you have not filed your return, whereas a notice under Section 143(2) is issued only after you have filed your return and the tax department wants to conduct a detailed examination, potentially impacting your tax liability based on your income tax slab.
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Understanding the difference between these notices helps you prepare the appropriate response, ensuring compliance with tax laws and accurate calculations according to your income tax slab. Similarly, understanding the difference between various home loan options from Bajaj Finserv helps you choose the best one for your needs, considering factors like interest rates and repayment terms that fit your financial situation and tax bracket calculation with Income Tax Calculator.
Procedure of conducting faceless assessment
- The National e-Assessment Centre (NeAC) sends a notice to the taxpayer (assessee), who must reply within 15 days.
- Once the reply is received, the NeAC assigns the case to an Assessment Unit (AU) located in one of the Regional e-Assessment Centres (ReAC) using an automated system.
- The AU may request the NeAC to gather further documents, carry out an inquiry through the Verification Unit (VU), or get expert input via the Technical Unit (TU).
- Based on these needs, the NeAC sends appropriate notices to the taxpayer and forwards the request to the VU and TU.
- After receiving the taxpayer's response and the required reports, NeAC sends the information to the AU for examination.
- If the taxpayer fails to respond, the NeAC may issue a fresh notice under Section 144 asking why an assessment shouldn’t be made using best judgment.
- The taxpayer must respond again within the given time. If they do not, NeAC uses automated tools and risk management systems to review the case.
- The NeAC can:
- Finalise the assessment;
- Provide the taxpayer another chance if changes are proposed
Forward the draft order to a Review Unit (RU) for further evaluation.
The RU reviews the draft assessment and may either agree or suggest changes. These suggestions are then sent back to the NeAC.
If the RU suggests changes, the NeAC reassigns the case to a different AU (not the one who created the original draft) through an automated process.
This new AU considers the suggestions and prepares a fresh draft, which is sent back to the NeAC.
The NeAC then decides whether to finalise the order or take further action based on the nature of the changes.
If a Show Cause Notice (SCN) is issued, the taxpayer must reply within a given period.
If no reply is received, the NeAC finalises the order based on the existing draft.
If a reply is submitted, the NeAC sends it to the AU for consideration. The AU may then prepare a revised draft and return it to the NeAC.
If the revisions are not against the taxpayer's interest, NeAC finalises the order.
If the revisions may negatively impact the taxpayer, they are given a chance to present their side before a final decision is made.
This cycle continues until the assessment is either finalised or all review and hearing opportunities are completed.
Conclusion
Understanding how to respond to an income tax notice section 142(1) is crucial for all taxpayers. Prompt and accurate response can help you avoid penalties and further complications. Remember to read the notice carefully, gather all required documents, and submit your response within the given timeframe.
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