Section 142(1) Notice: Documents, Deadline & Reply Guide | Income Tax

What Is a Section 142(1) Notice?

Under Section 142(1) of the Income Tax Act, 1961, an Assessing Officer has the authority to:

1. Ask you to file your income tax return — if you haven't done so within the time allowed under Section 139(1). This applies even if your total income was below the taxable threshold in some cases. Once the notice is issued, filing becomes a statutory obligation, not a choice.

2. Ask for books of account, documents, or written information — if you've already filed your return and the AO needs additional material to make an accurate assessment. This could mean your bank statements, investment proofs, business records, or detailed explanations of specific entries.

One thing that surprises many taxpayers: a Section 142(1) notice can be issued at virtually any point. There is no maximum statutory time limit for issuing this notice. The AO can ask for documents even after the assessment year has ended, as long as the assessment itself is still in progress.

Under the new Income Tax Act, 2025 (effective from 1 April 2026), Section 142(1) has been renumbered as Section 268(1). For all matters relating to AY 2025-26 and earlier, Section 142(1) under the 1961 Act continues to apply.

Two Situations That Lead to a Section 142(1) Notice

Situation 1: You Haven't Filed Your ITR

If your income tax return for a particular assessment year was never filed, the Assessing Officer can issue a 142(1) notice requiring you to file it within a specified deadline.

This happens more often than people expect — particularly for individuals who crossed the taxable income threshold mid-career, business owners who missed a filing due to personal circumstances, or those who received income they didn't realise was taxable (rental income from an inherited property, for instance).

If you receive this type of 142(1) notice, your response is to file the return as soon as possible — ideally well before the deadline mentioned in the notice.

Situation 2: You Filed Your ITR, but the AO Wants More

This is the more common scenario, especially for taxpayers with business income, capital gains, multiple income sources, or large deduction claims.

Your return was filed. The Assessing Officer reviewed it and found something that needs clarification or supporting documentation. The notice will tell you specifically what's being asked for — this might be:

• Bank statements for one or more accounts
• Salary slips and Form 16 from one or more employers
• Investment proof for deductions claimed under 80C, 80D, or other sections
• Capital gains computation with cost of acquisition and indexation details
• Books of accounts, P&L statement, and balance sheet (for business assessee)
• Property documents for the house property income claimed
• Explanation for high-value transactions that appeared in AIS

What Documents Are Commonly Requested in a 142(1) Notice

The notice itself will specify exactly what the AO wants. But the most frequently requested documents fall into these categories:

For salaried individuals: Form 16 from all employers, bank statements of salary credit account, investment certificates for deductions claimed (PPF, ELSS, LIC, NPS), and rent receipts or HRA documentation if applicable.

For business owners and self-employed professionals: Complete books of accounts (trial balance, P&L, balance sheet), bank statements for all savings and current accounts used for the business, GST returns for reconciliation with income declared in ITR, and TDS certificates received.

For investors and traders: Capital gains statement from broker, contract notes for high-value transactions, purchase records with dates and cost for property sales, and details of mutual fund redemptions.

Across categories: AIS/Form 26AS reconciliation statement showing why declared income differs from amounts reported by third parties, and written explanations for any specific entry the AO has flagged.

One important principle here — and this is a mistake people make more often than you'd think: respond to exactly what is asked, and nothing more.

Providing additional documents beyond what was requested can unintentionally open new lines of inquiry. If the notice asks for bank statements of Account A, don't attach statements for Account B "just to be thorough." Answer the question. No more, no less.

Section 142(1) vs Section 143(2): What's the Difference — and Which Is More Serious?

This is one of the most searched questions about income tax notices, and for good reason — people want to know how worried to be.

Here's a clear breakdown:

A 142(1) notice is not a scrutiny notice. However, it can escalate into one. If the AO finds your response to a 142(1) unsatisfactory — incomplete documentation, inconsistencies in your explanation, or figures that don't reconcile — they can issue a Section 143(2) scrutiny notice. Think of 142(1) as the preliminary round. A good response closes the matter. A poor or absent response pushes it further.

How to Respond to a Section 142(1) Notice Online

All responses to 142(1) notices go through the e-Proceedings section of the income tax portal. Here's how:

Step 1: Log in to incometax.gov.in using your PAN and password.

Step 2: Go to Pending Actions → e-Proceedings → For Your Action → View Notices.

Step 3: Locate the 142(1) notice. Click on it to read the specific requirement.

Step 4: Click Submit Response.

Step 5: Depending on what's being asked, you'll either upload supporting documents (PDFs, maximum 5MB per file) or type your written explanation in the response field — or both.

Step 6: Submit and download the acknowledgement. Keep this. If there's ever a dispute about whether you responded, this is your proof.

If you need more time than the deadline allows, you can request an adjournment through the same portal before the deadline expires. This is not guaranteed to be granted, but in practice, AOs do extend timelines for genuine cases. Always make the request proactively — never after the deadline has passed.

What Happens if You Ignore a Section 142(1) Notice

The consequences of non-compliance with a 142(1) notice escalate in a very specific way, and none of the steps is good.

₹10,000 penalty per failure under Section 271(1)(b). This applies to each instance of non-compliance — meaning if the AO sent two separate requirements under 142(1) and you ignored both, the penalty is ₹20,000.

Best Judgment Assessment under Section 144. This is the outcome most taxpayers want to avoid. If you don't respond, the AO doesn't just close the case — they proceed to complete the assessment using whatever information they have. The AO exercises their "best judgment" to estimate your income, and those estimates tend to be unfavourable. The resulting demand can be significantly higher than what your actual liability would have been.

Prosecution under Section 276D. In cases of persistent non-compliance, the department can initiate prosecution proceedings that carry a potential imprisonment of up to one year. This is rare in practice for individual taxpayers, but it is a real legal provision.

Search warrant under Section 132. In extreme cases involving high-value transactions and complete silence from the taxpayer, a search and seizure can be authorised.

A partial response within the deadline is always better than no response. If you don't have all the documents ready, submit what you have and explain what's pending. Silence is the worst option.

Section 142(1) Income Tax Notice

What is the time limit for issuing a Section 142(1) notice? There is no maximum statutory time limit. A 142(1) notice can be issued at any stage of the assessment process, including after the relevant assessment year has ended. However, in practice, it is typically issued before the assessment is completed.

Is a Section 142(1) notice the same as a scrutiny notice? No. A 142(1) notice is a pre-assessment inquiry — the department is gathering information. A scrutiny notice under Section 143(2) means your return has been formally selected for detailed examination. The two are different in nature, though 142(1) can lead to 143(2) if the response is unsatisfactory.

Can a 142(1) notice be issued even if I've never filed a return? Yes. In fact, one of the two main purposes of a 142(1) notice is to direct a non-filer to file their income tax return. The notice is not conditional on a return having been filed.

What is the penalty for not responding to a 142(1) notice? ₹10,000 per failure under Section 271(1)(b), plus risk of a Best Judgment Assessment under Section 144 and prosecution under Section 276D.

How much time do I have to respond to a 142(1) notice? The deadline is specified in the notice itself — typically 15 to 30 days. There's no universal statutory period, so read the notice carefully and mark the deadline. You can request an extension through the portal before the deadline expires.

Can a 142(1) notice lead to a 143(2) scrutiny notice? Yes. If the AO finds your response to a 142(1) insufficient or discovers discrepancies while reviewing your documents, they can issue a 143(2) scrutiny notice to initiate a detailed assessment.

Real Questions in People Mind

"I already filed my return and paid all my taxes. Why am I still getting a 142(1) notice?" Filing and paying taxes doesn't prevent a 142(1) notice. The AO still needs to verify specific entries — especially if there's a mismatch between your return and third-party data like AIS, Form 26AS, or GST records. Your filing is the starting point, not the end point, of assessment.

"The notice is asking for documents from 3 years ago. I don't have everything. What do I do?" Gather what you can. Submit what's available. For documents you genuinely no longer have, include a written explanation in your response — who issued the document, the approximate amounts involved, and why the original is unavailable. Don't just leave gaps without explanation. An incomplete, honest response is far better than silence.

"My CA filed the return. Should I still respond, or should my CA handle this?" Technically, you are the assesses — the legal obligation to respond is yours. In practice, most people with a CA authorise their CA to respond through the portal using a representative login. Either way, make sure someone responds within the deadline. Don't assume your CA is handling it without confirming.

"I'm worried that if I submit my bank statements, they'll find something new to question." This is a legitimate concern, and it's exactly why you should respond only to what's specifically asked. Submit the account and the period mentioned in the notice. Don't proactively attach extra statements or documents. Answer the question on the table, close that inquiry as cleanly as possible, and move on.

"I got this notice, but I don't understand what they're asking for. The language is very technical." Read the notice once for the overall context, then focus on the specific document list or questions. If the language is unclear, look for the AY mentioned, the section being referenced, and any specific income head or transaction being questioned. That usually makes the ask clear. If it's still confusing, a CA can clarify the requirement quickly — sometimes in a single call.

Received a 142(1) notice and need help identifying which documents apply to your specific situation? Upload your notice to our AI tool — it reads the requirement, maps it to your income type, and builds a response-ready document checklist in minutes.