The first 48 hours after any notice
Most notices that go badly do so because of something done or missed in the first two days, not because of the merits. Before anyone drafts a reply, do these six things.
- Check that it is genuine. Income-tax communications carry a Document Identification Number (DIN, CBDT Circular 19/2019); check it under Authenticate notice/order issued by ITD on the e-filing portal, and confirm the notice also sits under Pending Actions. GST notices issued through the common portal appear under Services > User Services > View Notices and Orders; central GST officers quote a CBIC DIN. MCA adjudication notices can be matched on the e-adjudication section of the MCA portal. If an email or letter has no DIN, is not on the portal, or asks you to pay to an account, treat it as suspect until verified.
- Write down the three dates: the date of the notice, the date you received or were served it (portal upload date counts), and the due date for reply or hearing. Put the due date in two calendars and with whoever signs.
- Identify the section and the period. The section tells you the officer's power and the consequences; the period (financial year, tax year, quarter) tells you which returns, books and law apply. Notices under the Income-tax Act 2025 for periods before 1 April 2026 often cite both Acts.
- Pull the underlying filings for that period: the returns, the acknowledgements, any earlier correspondence on the same issue. Many notices are answered by the filings themselves.
- Decide whether you need more time. If the reply cannot be complete by the due date, ask for an adjournment before the date, in writing, through the same portal, with a short reason and a proposed date. An adjournment request filed after the date is weak; silence is worse.
- Never ignore it. An unanswered notice usually ends in an ex parte order, a demand that is harder to undo on appeal, or a daily penalty. Even a notice you believe is wrong needs a reply that says why.
Keep one folder per notice: the notice, the acknowledgement of each reply, every annexure exactly as filed, and a short log of calls and hearings. The next officer, the auditor or an IPO lead manager will ask for it.
Detailed guides
| Notice | What it is | Usual time to reply | Guide |
|---|---|---|---|
| GST ASMT-10 (s.61 scrutiny) | The officer has compared your returns and found discrepancies; asks you to explain or pay | 30 days, or the further period the officer allows (Rule 99) | How to reply to ASMT-10 |
| Income-tax notice calling for information (s.252(1)(a) [133(6)]) | The department wants information from you, often about someone else's transactions | As stated in the notice, usually 7 to 15 days | Replying to a s.133(6) notice |
| AD bank reminder on EDPMS or IDPMS entries | Shipping bills or import bills are open past their due date in RBI's monitoring systems | As stated by the bank; caution-listing risk for exporters | Closing EDPMS and IDPMS entries |
Other common notices
| Notice | What it means | Time limit to watch |
|---|---|---|
| GST DRC-01A (Rule 142(1A)) | Pre-show-cause intimation of tax the officer thinks is payable. Since October 2024 it is optional for the officer. You can pay in Part B (no penalty under s.73) or file objections. | The period in the intimation. Paying now avoids penalty in non-fraud cases. |
| GST DRC-01B and DRC-01C (Rules 88C, 88D) | System intimations: GSTR-1 liability higher than GSTR-3B (01B), or ITC in GSTR-3B higher than GSTR-2B (01C), beyond the set tolerance. | 7 days to pay or explain in Part B, or the next GSTR-1 or GSTR-3B is blocked. |
| GST DRC-01 show cause notice, s.73 or s.74 | Formal demand for FY 2023-24 and earlier: s.73 where there is no fraud, s.74 for fraud or suppression. | Reply in DRC-06, usually within 30 days. s.73: order within 3 years of the annual-return due date (SCN at least 3 months before). s.74: 5 years (SCN at least 6 months before). |
| GST DRC-01 under s.74A | Single demand section for FY 2024-25 onwards, fraud and non-fraud alike. | SCN within 42 months of the annual-return due date; order within 12 months of the SCN, extendable by 6 months. Non-fraud: pay tax and interest within 60 days of the SCN and no penalty. |
| Income-tax intimation, s.270(1) [143(1)] | Computer processing of your return; shows any adjustment, demand or refund. A proposed adjustment is first sent for your response. | 30 days to respond to a proposed adjustment. Disagree with the final intimation: rectification or appeal. |
| Income-tax scrutiny notice, s.270(8) [143(2)] | Your return has been picked for a full assessment, handled through faceless e-proceedings. | Valid only if served within 3 months from the end of the financial year in which the return was filed (s.270(9)). Reply dates are set in each notice. |
| TDS default intimation from TRACES, s.399 [200A] | Processing of a TDS statement found short deduction, short payment, late-payment interest or late-filing fee. | Correct by a revised statement or pay; the department's processing window is one year from the end of the financial year of filing verify. |
| TDS assessee in default order [201] (1961 Act reference) | Order treating the deductor as in default for TDS not deducted or not paid, with interest. | Appeal within the time stated in the order. |
| ROC adjudication notice, Companies Act s.454 | Adjudicating officer (usually the Registrar) proposes a penalty for a default such as a late filing or a missing disclosure; now run on the MCA e-adjudication platform. | Reply within the period in the notice verify; appeal to the Regional Director within 60 days of the order (s.454(5)). |
| RBI or AD bank query (FEMA) | Request for documents on an outstanding export or import entry, an overseas investment or FDI report, or a late-reporting matter that may need a late submission fee or compounding. | As stated by the bank. Delay converts a document problem into a contravention. |
GST demand time limits run from the due date of the annual return for the year in question. Income-tax section numbers are from the Income-tax Act 2025 with the 1961 section in brackets; notices for earlier years may cite the 1961 Act.
How a good reply looks
- Quote the notice reference, DIN, period and section in the first lines.
- Answer each point in the notice in the same order and numbering. Do not merge points.
- For each point: accept (and show the payment), explain (with a reconciliation), or contest (with the legal basis). Say which.
- Attach only what supports the point being answered, labelled by annexure number.
- Keep the tone factual. Do not argue the officer's motives; argue the numbers and the section.
- Ask for a personal hearing in writing if any point is contested and a demand may follow.
When to bring in help
Bring in a CA, CS or advocate early if the notice alleges fraud or suppression (GST s.74 or s.74A with fraud, or penalty for concealment), proposes a demand above your materiality level, involves a search or survey, or concerns a period where the books themselves are in doubt. For an IPO-bound company, every open notice ends up in the offer document as outstanding litigation, so closing them early matters. See the SME IPO readiness guide.