From 1 April 2026, ignoring a faceless assessment notice can cost you ₹10,000 to ₹1,00,000 — a standalone penalty under the Income-tax Act, 2025, separate from any tax demand that may arise from the assessment itself. We covered the legal framework in our piece on Section 532; this article is a practical, checklist-driven guide to making sure you never trigger this penalty.
Based on the provisions discussed in our overview of Section 532, the new non-response penalty (₹10,000 to ₹1,00,000) can apply when a taxpayer:
This is separate from — and in addition to — any tax demand, interest, or other penalty that may result from the underlying assessment itself. In other words, even if your tax position turns out to be correct, simply failing to respond to the process can attract this penalty.
Faceless notices are communicated primarily through the income tax e-filing portal and the email/mobile number registered with your PAN. Action: Log into the e-filing portal at least once a month (more often during the assessment season) and verify your registered email and mobile number are current and actively monitored.
Action: Enable SMS and email notifications for portal communications. If you use a CA or tax professional, ensure they have access to monitor your portal account, or that notices are also copied to them.
Faceless notices come with specific response deadlines — often shorter than people expect (sometimes as little as 7-15 days). Action: The moment you receive a notice, calendar the deadline with a reminder at least 3 days before, to allow time for document collection.
If you cannot meet a deadline, the worst response is no response. Action: File a request for adjournment/extension through the portal before the deadline lapses, citing a genuine reason (document collection time, professional availability, etc.). A timely extension request, even if not guaranteed to be granted, demonstrates engagement with the process.
Action: Read the notice carefully for the specific documents requested and the format (PDF, specific schedules, etc.). Partial or incorrectly formatted uploads can sometimes be treated as non-compliance — when in doubt, include a covering note explaining what's attached and why.
Action: Video-conferencing hearings under the faceless system require advance technical preparation (stable internet, working camera/microphone, the right portal link). If you genuinely cannot attend, request rescheduling through the portal in advance — don't simply not log in.
Action: Keep a simple log (even a spreadsheet) of every notice received, the date, the deadline, and the date/method of your response. If a penalty is ever proposed for alleged non-response, this log is your primary evidence of compliance.
For companies and larger taxpayers, faceless notices can sometimes get lost between the finance team, company secretary, and external CA — each assuming the other is monitoring the portal. Action: Designate one person (or role) as the primary owner of portal monitoring, with a documented escalation process to the CA/tax team within 24 hours of any new notice.
If you realise you've missed a response deadline, don't wait further. Submit your response immediately along with an explanation for the delay (illness, travel, technical issues, etc.) and a request for condonation. While this doesn't guarantee the penalty won't be considered, a late-but-genuine response with a reasonable explanation is materially better than continued silence, both for the underlying assessment and for any penalty proceedings.