How to Respond to Income Tax Notice from the Income Tax Department: A 2025 Guide

You can respond to the notice online through the official income tax portal. Log in, go to “e-proceedings,” and then respond to the notice. Write a detailed reply explaining that you disagree with the demand notice and attach supporting documents to prove your point.

You can file a “Revised Return” by logging into the income tax portal online. Go to “e-File” > “Income Tax Return” > “File Revised Return” to make the necessary changes.

If you have committed a mistake in the ITR filing, you might receive a notice from the Income Tax Department asking you to rectify the error. If not rectified on time, it may result in a penalty or scrutiny from an Assessing Officer.

Yes. If you make high-value transactions like big cash deposits, credit card payments, or large investments and don't include them in your ITR, the Income Tax Department may send a notice asking for clarification.

There is no fixed format, but your reply should include:
A reference to the notice
A short explanation of your case
Supporting documents (if any)
Your contact details and signature
You must submit it in the official income tax portal to verify it online.

Here are some simple tips:
File your ITR on time.
Report all your income honestly.
Match the TDS details with Form 26AS.
Avoid cash transactions for big purchases.
Keep all the necessary documents and proof ready.
Take help from a professional tax consultant when you feel unsure.