A notice under Section 142(1) of the Income-tax Act, 1961 is not, by itself, a sign that you have done anything wrong. It is the Assessing Officer (AO) saying: before I finalise your assessment, I want something from you — either your return, or your books, or a specific piece of information. Read it that way and it stops being frightening. Ignore it, and a routine query can harden into a best-judgment assessment, a Rs. 10,000 penalty, and in stubborn cases even prosecution.
This guide decodes exactly what a 142(1) notice can and cannot ask for, how it differs from the scrutiny notice under Section 143(2) (people confuse the two constantly), how long you have to reply, and what happens if you don’t. If you would rather have the response drafted for you, our reply to a 142(1) income tax notice tool walks you through it line by line.
What Section 142(1) actually empowers the officer to do
Section 142(1) is titled “Inquiry before assessment.” It is the AO’s information-gathering power, exercisable at the pre-assessment stage. It has three distinct limbs, and it matters which one your notice is invoking, because each carries different obligations.
Limb (i) — File or re-file your return
If you have not filed your return of income for the relevant year (or the time to file under Section 139(1) has expired), the AO can require you to furnish it. This is common where the department has data — an SFT entry, a high-value transaction, TDS in your Form 26AS — but no matching return on record.
Limb (ii) — Produce accounts and documents
The AO can ask you to produce, or cause to be produced, specified accounts and documents — ledgers, bank statements, purchase and sales invoices, the tax audit report, capital-account details, and so on. There is one important protection here: the AO cannot demand accounts relating to a period more than three years prior to the previous year in question.
Limb (iii) — Furnish information and statements
The AO can call for information in the form of statements or notes on specified points — for example a statement of all assets and liabilities, whether or not they appear in your books. Because this limb is intrusive, the law adds a safeguard: to call for a statement of assets and liabilities not already entered in the books of account, the AO must obtain the prior approval of the Joint Commissioner.
A related power sits in Section 142(2A): where the accounts are complex or the interests of revenue require it, the AO — with approval — can direct a special audit by a nominated chartered accountant, at the department’s cost. That is a separate and heavier step; a plain 142(1) notice is not a special-audit direction.
142(1) versus 143(2): the distinction that trips people up
This is the single most useful thing to understand, because the two notices feel similar but sit at very different points in the process.
| Feature | Notice u/s 142(1) | Notice u/s 143(2) |
| Purpose | Inquiry before assessment — gather return, accounts or information | Gateway to scrutiny assessment under Section 143(3) |
| Can it be issued before you file? | Yes — it can require you to file the return itself | No — a return must already be on record |
| What it signals | The AO wants documents/clarification; may or may not lead to scrutiny | Your case has been picked for detailed examination |
| Time limit to issue | No outer limit for the notice itself (issued during assessment) | Within three months from the end of the FY in which the return was filed |
| If ignored | Best-judgment assessment u/s 144 + penalty | Assessment proceeds ex-parte on available material |
Bottom line: a 142(1) notice on its own does not mean you are “under scrutiny.” Scrutiny formally begins only when a valid 143(2) notice is served within its strict time limit. If you receive a 143(1) intimation instead — that is a computer-generated processing summary, not a notice at all; we cover how to read it in our guide on the 143(1) intimation.
How long you have to respond
Unlike the notice-issue timelines, the response deadline is not fixed by statute — it is stated on the notice itself. Under the faceless e-Proceedings system, a 142(1) notice typically gives you around 15 days, though the window varies. The date and time are printed clearly on the notice under “Response to be submitted by.” Diarise it. If you genuinely need more time, you can seek an adjournment through the portal with a reason before the deadline lapses — a request made before the due date is treated very differently from silence.
What non-compliance actually costs you
This is where a casual attitude becomes expensive. Failing to comply with a 142(1) notice can trigger a stack of consequences, and they compound.
Best-judgment assessment under Section 144
The most immediate risk. If you don’t respond, the AO is empowered to complete the assessment “to the best of his judgment” — meaning he estimates your income on the material he has, without the benefit of your explanation. In practice that estimate is rarely in your favour, and the resulting demand is difficult to dislodge later because you forfeited your chance to be heard.
Penalty of Rs. 10,000 per default under Section 272A(1)(d)
For failures on or after 1 April 2017, non-compliance with a notice under Section 142(1) attracts a penalty of Rs. 10,000 for each such failure under Section 272A(1)(d). Note this is per default — miss two separate notices and you can face two penalties. (Older material still cites Section 271(1)(b); for current defaults the operative provision is 272A(1)(d).)
Prosecution under Section 276D
Wilful failure to produce accounts and documents as required under Section 142(1) can, in serious cases, lead to prosecution under Section 276D — rigorous imprisonment of up to one year, with a fine. This is reserved for persistent, deliberate defiance, but it exists on the statute book and the department does invoke it.
A worked example: how ignoring one notice snowballs
Take Mr. Rao, a consultant who did not file his return for AY 2025-26. His Form 26AS showed professional receipts of Rs. 18,00,000 with TDS of Rs. 1,80,000 deducted under Section 194J. The AO issues a 142(1) notice under limb (i) asking him to file the return.
| Scenario | If he responds | If he ignores the notice |
| Income assessed | Net profit after genuine expenses, say Rs. 11,00,000 | Gross receipts of Rs. 18,00,000 estimated as income u/s 144 |
| Tax outcome | Regular tax; Rs. 1,80,000 TDS credited; refund/small demand | Tax on the higher estimate; interest u/s 234A/234B added |
| Penalty | Nil | Rs. 10,000 u/s 272A(1)(d), plus penalty exposure u/s 270A |
| Ability to argue expenses | Full opportunity | Lost — assessment is ex-parte |
The difference between the two columns is tens of thousands of rupees — created entirely by whether or not he opened the portal and replied. You can sanity-check the tax on your own figures using our Income Tax Calculator before you file the return the notice asks for.
How to respond, step by step
Everything now runs through the income-tax e-filing portal under faceless assessment. There is no physical visit to an officer.
1. Read the notice carefully
Identify the assessment year, the Document Identification Number (DIN) — a valid notice must carry one — the limb being invoked, the exact documents or information sought, and the response deadline. If there is no DIN, the notice is non-est (invalid); flag it.
2. Gather the specific documents
Pull together only what is asked — the relevant bank statements, invoices, the computation, Form 26AS, AIS and the audit report if applicable. Reconcile your figures with your 26AS/AIS first so your reply is internally consistent.
3. Submit through e-Proceedings
Log in at incometax.gov.in, go to Pending Actions → e-Proceedings, open the notice, and select Submit Response. You can file a full or partial response and attach PDFs, Excel or CSV files. Keep each attachment within the portal’s size limit and label them clearly.
4. Keep the acknowledgement
Save the transaction ID and acknowledgement the portal generates. That is your proof of compliance if any question arises later.
Key takeaways
- A 142(1) notice is an inquiry before assessment — it asks you to file a return, produce accounts, or furnish information. It is not, by itself, scrutiny.
- Scrutiny proper begins only with a valid 143(2) notice, which must be served within three months of the FY-end in which you filed. A 143(1) intimation is neither — it is just a processing summary.
- The AO cannot call for accounts older than three years prior to the previous year, and needs Joint Commissioner approval to demand a statement of assets/liabilities outside your books.
- Ignoring the notice invites a best-judgment assessment u/s 144, a Rs. 10,000 penalty u/s 272A(1)(d) per default, and, in wilful cases, prosecution u/s 276D.
- Respond within the stated deadline through e-Proceedings, attach only what is asked, reconcile with 26AS/AIS first, and preserve the acknowledgement.
Frequently Asked Questions
Does a Section 142(1) notice mean my return has been selected for scrutiny?
No. Section 142(1) is an inquiry before assessment and can be issued for something as routine as a return you haven’t filed. Scrutiny formally begins only when a valid notice under Section 143(2) is served within its statutory time limit. Many 142(1) notices are resolved with a simple document submission and never proceed to scrutiny.
Is there a time limit for the department to issue a 142(1) notice?
There is no fixed outer limit on the 142(1) notice itself, because it is issued in the course of an ongoing assessment — it can even arrive after the assessment year has ended. What is time-barred is the assessment as a whole and, separately, the 143(2) scrutiny notice, which must be served within three months from the end of the financial year in which the return was filed.
What is the penalty if I don’t respond to a 142(1) notice?
Each failure to comply attracts a penalty of Rs. 10,000 under Section 272A(1)(d). More importantly, the AO can complete a best-judgment assessment under Section 144 on the material available, which usually produces a higher demand, and wilful non-production of documents can be prosecuted under Section 276D.
Can I ask for more time to reply?
Yes. If you cannot meet the deadline, file an adjournment request through the e-Proceedings portal before the due date, stating a genuine reason. A timely request is viewed very differently from simply missing the date, which is treated as non-compliance.
The notice asks for bank statements from six years ago — do I have to provide them?
Not under limb (ii). Section 142(1) does not permit the AO to require accounts relating to a period more than three years before the relevant previous year. If a notice reaches back further than that, you can respectfully point out the statutory limit in your reply while complying with whatever falls inside it.
This article is general information for FY 2025-26 (AY 2026-27) under the Income-tax Act, 1961 and is not a substitute for advice on your specific facts. For a response tailored to your notice, consult a chartered accountant.