Business: Not every notice detects tax evasion. The Income Tax Department is also sending notices to show the right path to the taxpayers and to get the information corrected. A Delhi businessman got a notice from the Income Tax Department after depositing Rs 8 lakh in his bank account. Many have received notices on wrong returns or inconsistency in information. There is a common belief that the Income Tax Department sends a notice when it detects tax evasion, but now it is not necessary.

So far in 2025, more than 15 lakh e-notices have been issued. In the last few months, many salaried employees and businessmen have reported receiving income tax notices. These notices are not issued as harassment, but as part of a shift in the tax system towards predictable compliance.

The Income Tax Department is now including the data received from banks, property registry offices, stock exchanges and GST filings in the Annual Information Statement (AIS). Automatic alerts are generated when there is mismatch between the income declared by the taxpayer and the data collected from third parties, and taxpayers are informed to rectify the compliance errors.

In the digital age, the Income Tax Department knows more about you. Therefore, the notice does not mean that you have done anything wrong. This means that the department’s figures are not matching your information, and this is your chance to clarify. Therefore, your task is not to be afraid, but to react timely and accurately.

What to do if notice comes

• Verify notice on Income Tax Portal
• Understand the section and response period, read the notice carefully.
• Match your data with AIS, TDS and bank statements
• Consult a Chartered Accountant
• Common reasons for notice
• Mismatch between Form 26AS/AIS/TIS data and file ITR
• PAN-Aadhaar not linked
• Share, property or MF transactions
• cash information by banks
• Late or defective filing, especially under section 139(9)
• Claiming wrong tax exemption on education loan, HRA, donation etc.

These reasons have led to a record increase in e-notices issued under sections 143(1) (summary information) and 142(1) (preliminary enquiry) of the Income Tax Act. Most of these can be dealt with through digital means.

Get your records ready
The increase in e-notices is a sign of a big change. India’s tax system is now moving from reactive audit to proactive transparency. Today, more than 80 per cent of e-notices are resolved without a physical hearing. The smartest taxpayer today is not the one who hides his evasion well, but the one who complies correctly. The new tax planning of today’s digital era is transparency. Respond correctly, keep your records ready, then see how you will be ahead of the system, always – Yatindra Khemka, Chartered Accountant

Digital Dashboard New Tax Command Center
The Income Tax e-Filing portal is now completely transformed into your personal compliance console. Before you get any notice, let us know how it works- Log in to www.incometax.gov.in. Go to Pending Actions and then e-Proceedings to see all the notices and time-period.

• Use ‘Authenticate Notice/Order’ to check whether the e-mail or SMS is genuine.
• Click on ‘Compliance Portal’ to view high value transactions reported based on your PAN.
• Download your AIS (Annual Information Statement) and TIS regularly – it shows the government’s view of your income.
• View the dashboard as your tax health report – check it every month, not once a year, like a health checkup.