When you receive an Indian income tax notice, first confirm it is genuine by logging in to the official e-filing portal and checking the pending actions and its document identification number. Then identify the section under which it is issued and the due date, gather documents showing your residential status and the source of the transaction, and submit a reply online through e-Proceedings or the compliance portal within time. If you cannot meet the date, request an adjournment before it passes.
Step 1: Verify that the notice is real
Fraudulent emails and messages imitating the tax department are common. A genuine notice carries a document identification number and appears in your account on the e-filing portal under pending actions or e-Proceedings. Do not click links in emails; type the portal address yourself. If you have never registered, do so with your PAN, using an Indian or overseas mobile number or email for the one-time password. If you cannot access the PAN-linked email or phone, there is a procedure to update contact details.
Step 2: Read what kind of notice it is
| What it says | What it means | Urgency |
|---|---|---|
| Intimation after processing; adjustment proposed | The system found a mismatch in income, deduction or tax credit | Respond in 30 days or the adjustment is made |
| Defective return | Something is missing or inconsistent in the return filed | Correct within 15 days |
| Compliance or e-campaign message about a "significant transaction" | Third-party data shows a purchase, deposit or investment with no matching return | Respond on the compliance portal |
| Notice calling for return or documents | Enquiry before assessment | Reply by the date given |
| Scrutiny notice | Your return has been picked for detailed examination | Engage fully; faceless assessment follows |
| Show-cause before reassessment | The department believes income escaped assessment in an earlier year | Serious; object in detail within the time allowed |
| Demand notice | Tax is said to be payable | Pay, rectify or appeal within 30 days |
Earlier years are still governed by the Income-tax Act, 1961, so notices may quote its section numbers; matters for tax year 2026-27 onwards cite the Income-tax Act, 2025.
Step 3: Work out why you received it
For NRIs the usual triggers are: registration of a property purchase or sale; cash or large deposits in a bank account; tax deducted at source on rent, interest or a sale with no return filed; mutual fund or share transactions; and a return filed as "resident" by mistake. Download your Annual Information Statement and tax credit statement from the portal. They show exactly what data the department holds and nearly always explain the notice.
Step 4: Assemble the documents
- Passport pages with entry and exit stamps for the year, to establish non-resident status.
- Bank statements for NRE and NRO accounts.
- For a property purchase: the deed and the trail of funds from your overseas account.
- For a sale: purchase and sale deeds, cost records, tax deduction certificates.
- Overseas tax returns or pay slips showing the source of money remitted to India.
- Tax residency certificate if claiming treaty benefit.
Step 5: Reply online, on time
Responses are uploaded through the portal: e-Proceedings for notices in assessment and reassessment, the compliance portal for transaction queries, and the rectification or "response to outstanding demand" options for intimations and demands. Write a concise covering reply that states your residential status, addresses each item raised and lists the attachments. If you need more time, file an adjournment request through the portal before the due date. You can add an authorised representative to your account so that a professional can respond without your password.
If no return was filed for the year and one was due, it may be possible to file a belated or updated return within the permitted period, which often resolves the query. For substantive notices, representation is advisable: see income tax notices and appeals.
What happens if you do nothing
The officer may assess income on a best-judgment basis, treat unexplained investments as income taxed at a punitive rate, levy penalties and interest, adjust future refunds and, in persistent cases, start prosecution for failure to comply. An outstanding demand can also block a lower deduction certificate when you later sell property and complicate repatriation. All of that is far harder to unwind than answering the first notice.
- Verify the notice on the official e-filing portal before doing anything else.
- The section quoted tells you the type of notice and the deadline.
- Your Annual Information Statement usually reveals the trigger.
- Reply online within time, or seek an adjournment; never ignore it.
Frequently asked questions
Why did I get a tax notice when I have no income in India?
Probably because a transaction in your PAN, such as a property registration, deposit or investment, was reported and no return explains it. A reply showing your non-resident status and the source of funds normally settles it.
Can I reply to an Indian tax notice from abroad?
Yes. All responses are submitted electronically through the e-filing portal, and video hearings are available in faceless assessments.
What if the due date has already passed?
Respond immediately with an explanation for the delay, and check whether an order has been passed. If it has, remedies include rectification, appeal within thirty days or, in some cases, a writ petition.
Do I need to file a return every year as an NRI?
Only if your Indian income exceeds the exemption limit, you have gains taxed at special rates, or you want a refund. Filing in a year with a large transaction is prudent even if no tax is due.
How do I know the email is not a scam?
Genuine communications appear in your portal account and carry a document identification number that can be verified on the portal. The department does not ask for card details or payment through links.
