Types of Section 142 Notices

Reminder for Missed Deadline

Under Section 142(1)(i), the assessing officer (AO) may send a notice if you’ve missed your Income Tax return filing deadline. For non-audit cases, this deadline is July 31, while audit-mandated filings are due by October 31.

As per an expert, “This notice is both a reminder and a statutory requirement.” If you receive one, you must file your return in the prescribed form at once.

Requesting Documents or Evidence

Clauses (ii) and (iii) of Section 142 allow the AO to request books and statements or even summon you or your accountant for questioning. This can happen even if you’ve already filed your returns.

Tax specialists note that such notices typically follow the discovery of potential discrepancies through third-party data like Statement of Financial Transactions (SFTs) or bank statements. When your return comes under scrutiny this way, you’ll need to submit supporting evidence for deductions, invoices, and other financial records.

Three-Year Limit

It’s important to know that there are limitations on what the AO can request. According to legal experts, “The AO cannot demand documents older than three years from the end of the previous year.”

For example, if you receive a notice covering FY24, only FY24 and the three prior years can be examined. If you’re asked for older records, you should mention this overreach in your written response, noting that it’s beyond the three-year limit.

Filing Your Response

Compliance through the electronic-filing portal is now mandatory. Here’s how to respond correctly:

• Log in at www.incometax.gov.in
• Navigate to Pending Actions, then E Proceedings. View Notices, then Submit Response
• Select ‘Full’ or ‘Partial Response,’ tick the declaration box and click Continue
• Attach your documents (PDF/Excel/CSV; maximum 10 files of 5 MB each)
• Name your files clearly, e.g., Income Tax Return – FY 2023- 24.pdf.
• Download the acknowledgement or take a screenshot of the confirmation
• If you need more time, use the “Seek Adjournment” option (up to 15 days)

Consequences of Non-Response

Tax advisors warn that failing to respond to a Section 142 notice can result in serious consequences. The AO might issue a larger tax demand, and your options for appeal could be reduced.

The AO has 12 months from the end of the assessment year (for years starting April 1, 2022, onward) to pass an order—and may do so without a hearing if a Section 142 notice has already been issued.

Financial advisers advise acting quickly, being accurate in your communication and keeping up with all deadlines. Whether you have an order of “best judgment” against you, you still have the right to appeal to a higher authority.

Remember that addressing these notices properly when they arrive can save you from more complex tax issues down the road.