Notice Under Section 142(1) of Income Tax Act

A Notice Under Section 142(1) of the Income Tax Act is issued by the Income Tax Department during the assessment process. It is usually sent after an individual files their income tax return. This notice means the Assessing Officer needs additional details to complete the assessment properly. Receiving such a notice is common and does not automatically indicate wrongdoing.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

What Is an Income Tax 142(1) Notice?

An income tax 142 1 notice allows the Assessing Officer to ask the taxpayer for specific information. This may include filing a return, submitting documents, or explaining certain transactions. In some cases, the notice may relate to income of another person, such as a legal heir or guardian. The aim is to ensure that the declared income is accurate and complete.

Why Compliance Is Important

Replying to a notice under Section 142(1) is mandatory. Ignoring it can lead to serious consequences. The tax authority may complete the assessment based on its own judgement. Penalties may also apply, and prosecution is possible in extreme cases. A timely and correct response helps avoid unnecessary trouble and keeps the process smooth.

Faceless Assessment Process

Today, most income tax checks are done online through a faceless system. This means there is no face-to-face meeting with tax officers. All messages are sent through the income tax website. Notices are shared online, and replies must also be sent digitally. This system makes the process fair, clear, and faster.

How to Respond to the Notice

To reply to the notice, you need to log in to the income tax website. After logging in, go to the e-Proceedings section. Open the notice you received and submit the information asked for. You can send a full reply or a partial reply, based on what details you have. Any documents needed can be uploaded online. Once submitted, you will receive a confirmation message.

Choose ELSS mutual funds for disciplined equity investing with the added benefit of tax savings. 

Conclusion

A notice under Section 142(1) is a normal part of the income tax process. If you understand why the notice is sent and reply on time, it helps you follow the rules and avoid penalties.