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Income Tax Notices 2026: A Guide to Compliance Under the New Act
Understanding Your Notice Under the 2025 Act
NEW DELHI — The Income-tax Act, 2025 officially takes effect on April 1, 2026. Specifically, this law simplifies many old sections but changes their numbers. Therefore, taxpayers must recognize these new codes to avoid errors. If you receive a letter, do not panic. Instead, follow these steps to stay compliant.
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1. Section 139(9): Defective Returns
A Section 139(9) notice triggers when your ITR contains errors. For instance, a mismatch in the Annual Information Statement (AIS) often causes this.
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Timeline: You have exactly 15 days to act.
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Risk: If you miss the deadline, the department treats your return as “Invalid.”
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Action: Log in to the portal. Then, upload a corrected ITR file.
2. Section 143(1): Digital Intimation
This notice is an automated check of your return. Notably, the 2026 system uses advanced AI to process these letters faster.
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Types: You might receive an Intimation (matches), a Refund (extra tax paid), or a Demand (shortfall).
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Action: If the department demands money, you must pay within 30 days. Otherwise, you will face monthly interest charges.
3. Section 148: Reassessment Safeguards
The Section 148 notice is very serious. Specifically, it means the officer found hidden income. However, the 2026 rules add a new safeguard called Section 148A.
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The Process: The officer must first send a “Show Cause Notice.” Next, you get 7 to 30 days to explain yourself.
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The Opportunity: Under the Finance Act 2026, you can settle early. Specifically, you can file an “Updated Return” and pay a 10% premium to end the case.
4. Section 245: Refund Adjustments
The department sends this notice if you owe old taxes but have a new refund due. Essentially, they want to use your refund to pay your debt.
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Action: Review the notice. If the old debt is wrong, you must click “Disagree” on the portal. Consequently, this protects your current refund.
Quick Reference: New Deadlines & Forms (Effective April 2026)
| Feature | Old System (Pre-2026) | New System (Post-April 2026) |
| Salaried TDS Form | Form 16 | Form 130 |
| Tax Credit Statement | Form 26AS | Form 168 |
| Revised Return Deadline | 9 Months from Year End | 12 Months from Year End |
| Reassessment Limit | Up to 10 Years | 5 Years & 3 Months |
How to Respond via the Portal
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Login: Use your PAN or Aadhaar on the tax portal.
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Access: Go to the “Pending Actions” tab. Then, select “e-Proceedings.”
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Review: Choose the notice and read the error codes.
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Reply: Choose “Agree” to pay or “Disagree” to explain. Furthermore, you should upload PDF evidence for your claims.
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Finalize: You must e-verify the response with an Aadhaar OTP.
In summary, the 2026 tax laws prioritize speed and digital proof. Thus, you must monitor your email for alerts. Promptly answering these notices prevents fines and keeps your record clean.
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