A Section 142(1) notice can arrive for two very different reasons - either you haven't filed your return at all, or the department simply wants more information before processing one you already filed. Knowing which situation you're in changes everything about how to respond.
What Is Section 142(1)?
Section 142(1) of the Income Tax Act empowers an Assessing Officer (AO) to issue a notice for "inquiry before assessment". This notice can be issued in two distinct scenarios:
- You have not filed your ITR for a particular assessment year, and the AO requires you to file it (this can be for the relevant AY or, in certain cases, even for an earlier year).
- You have filed your ITR, but the AO requires additional information, documents, or accounts to verify the return before processing it further (often before issuing a scrutiny notice under Section 143(2), or in connection with a 143(2)/144 assessment already underway).
This is a preliminary, fact-finding notice - it does not by itself mean your return will be scrutinised or that you owe additional tax. However, ignoring it can escalate the matter significantly.
What the Notice Can Demand
Under Section 142(1), the AO can require you to:
- File a return of income, if not already filed, in the prescribed form
- Produce accounts, documents, or records the AO considers necessary
- Furnish information on specified points, including a statement of assets and liabilities (whether or not included in the books of account)
- Provide details in such form and verified in such manner as may be prescribed (e.g., through the e-proceedings facility on the income tax portal)
Common Triggers for a 142(1) Notice
| Trigger | What It Usually Means |
|---|
| High-value transactions reported in AIS/SFT but no ITR filed | Department wants you to explain the income source or file a return |
| ITR filed but selected for scrutiny/limited scrutiny | AO is gathering documents before formal assessment proceedings |
| Mismatch between ITR figures and third-party data (TDS, AIS) | AO seeks clarification/supporting documents before processing |
| Return filed claiming large refund or deductions | Verification of supporting documents before refund is released |
How to Respond
1. Check the Notice on the e-Filing Portal
Most 142(1) notices today are issued electronically under Faceless Assessment. Log in to incometax.gov.in, go to "Pending Actions" → "e-Proceedings" to view the notice, the specific queries raised, and the response deadline.
2. Respond Within the Stipulated Time
The notice will specify a date by which you must respond - typically a few weeks. Responses, along with supporting documents, are usually submitted electronically through the e-proceedings module.
3. If You Haven't Filed a Return
If the notice requires you to file a return that is overdue, do so promptly through the e-filing portal, attaching all relevant disclosures (income, deductions, assets/liabilities as required).
Documentation checklistBank statements, Form 16/16A, capital gains statements, property documents, loan statements, and any other records relevant to the specific query raised - organise these before drafting your response.
Consequences of Non-Compliance
Failing to comply with a Section 142(1) notice can result in:
- Best judgment assessment under Section 144 - the AO can complete the assessment based on available information and their own estimate, which is often less favourable to the taxpayer.
- Penalty under Section 272A - ₹10,000 for each failure to comply with the notice.
- Prosecution under Section 276D in serious cases of wilful failure (imprisonment up to 1 year, with or without fine), though this is rare and reserved for egregious non-compliance.
Frequently Asked Questions
Is a Section 142(1) notice the same as a scrutiny notice? ▼
Not necessarily. A 142(1) notice is a preliminary inquiry that can be issued either to ask you to file a pending return or to gather information/documents - sometimes in connection with scrutiny under Section 143(2), but it is not itself a scrutiny notice. However, it should always be taken seriously and responded to on time.
Can I request more time to respond to a Section 142(1) notice? ▼
Yes, in many cases you can request an adjournment or extension through the e-proceedings module on the income tax portal, explaining the reason for the delay. Approval is at the discretion of the Assessing Officer, so it's best to respond as early as possible rather than waiting until the deadline.
What happens if I ignore a Section 142(1) notice completely? ▼
The Assessing Officer can proceed with a best judgment assessment under Section 144 based on available information, which often results in a higher tax demand than if you had cooperated. You may also face a penalty of Rs 10,000 under Section 272A for non-compliance.