Section 142(1) income tax notice: what it means and how to reply

A Section 142(1) income tax notice is one of the few that can land in your inbox before you’ve even filed a return, which is exactly what makes it feel alarming. In most cases it isn’t: it’s an information request, not an accusation, and the actual risk is in not responding, not in receiving it.

What a Section 142(1) notice actually is

Section 142(1) of the Income Tax Act gives an Assessing Officer the authority to demand additional details, documents, or an explanation from a taxpayer. It shows up in two distinct situations. If you haven’t filed a return and the deadline has passed, it can be the department’s way of directing you to file one. If you have filed, it’s a request for specific supporting material the Assessing Officer needs before completing an assessment: books of account, proof of a deduction claimed, bank statements, or similar records.

Why you’d receive one

The two triggers map to the two situations above: either the department has no return on file for you past the due date and wants one, or your Assessing Officer has specific, unresolved questions about a return you’ve already filed, most often around a deduction, exemption, or figure that needs documentary backing before assessment can proceed.

Deadline and how to respond

The notice specifies exactly what’s being asked for and the deadline to respond, typically 15–30 days. Log into the e-filing portal directly (not a link from an SMS or email) to confirm the notice is genuine and to submit your response, whether that’s filing the outstanding return or uploading the requested documents. Answer exactly what was asked for; a focused, on-time response resolves this far more cleanly than an exhaustive one filed late.

What happens if you ignore it

Ignoring a 142(1) notice is the mistake that actually creates a problem. The Assessing Officer can proceed to a “best judgment” assessment under Section 144 using whatever information is already available, which is rarely in the taxpayer’s favour since it’s built without the context or documentation you’d have provided. Non-compliance can also attract its own penalty, entirely separate from whatever the underlying return turns out to owe.