Could you get an income tax notice by June 30? Don't panic, here's how to respond

Published 22 June 2026 · india

Many taxpayers are currently focused on the upcoming income tax return filing deadline. But there is another important date that deserves attention, i.e., June 30

Many taxpayers are currently focused on the upcoming income tax return filing deadline. But there is another important date that deserves attention, i.e., June 30. While it may not matter to everyone, it is significant for those who have already filed their returns and could be selected for scrutiny by the Income Tax Department. Receiving a tax notice can sound worrying, but it does not automatically mean you have done something wrong. In many cases, the department simply wants to verify certain details mentioned in your return. Understanding why a notice is issued and how to respond can help avoid unnecessary stress. Read Full Story WHY IS JUNE 30 SIGNIFICANT FOR TAXPAYERS? June 30 is the last date by which the Income Tax Department can issue a scrutiny notice under Section 143(2) for returns filed during FY 2025-26. A scrutiny assessment begins when tax officials want to examine specific details in a taxpayer's return. This may include checking income disclosures, deductions claimed, tax payments, or certain financial transactions. The purpose is to ensure that the information provided in the return is accurate and complete.

WHO IS MORE LIKELY TO RECEIVE A SCRUTINY NOTICE? A notice may be issued when the assessing officer finds discrepancies or unusual patterns in a taxpayer's return. One of the most common reasons is a mismatch between the income reported in the return and the details available in Form 26AS or the Annual Information Statement (AIS). In some cases, turnover reported in GST records may not match the figures disclosed in tax filings. Taxpayers who claim deductions that appear unusually high compared to their income may also attract attention. The tax department may also seek clarification if high-value transactions reflected in official records have not been reported in the return. Similarly, property sale transactions recorded with registration authorities but missing from the tax return can trigger scrutiny. With the increasing use of technology, the department now has access to a wide range of financial and digital transaction data. Advanced analytics and artificial intelligence tools are being used to identify returns that may require closer examination. Meanwhile, mistakes can happen while filing tax returns. If you discover an error after submitting your ITR, it does not necessarily mean a scrutiny notice will follow.

Taxpayers have the option of correcting certain errors by filing an Updated Return (ITR-U), subject to applicable conditions and additional tax liability. Tax experts often suggest fixing genuine mistakes voluntarily rather than waiting for the department to raise questions later. HOW CAN YOU RESPOND IF YOU RECEIVE A NOTICE? A scrutiny notice is usually sent to the taxpayer's registered email address and may also be delivered to the registered postal address. Taxpayers can also check for notices by logging into the income tax e-filing portal. Once logged in, the notice can be accessed through the e-Proceedings section. The taxpayer can review the details and submit a response online. Depending on the nature of the notice, supporting documents or explanations may need to be uploaded. After the response is submitted successfully, the portal generates a transaction number as confirmation. WHAT HAPPENS IF YOU IGNORE THE NOTICE? Tax experts at B S Sridhar & Co., Chartered Accountants, warn that failing to respond to a notice issued under Section 133(6) can have serious consequences. The Income-tax Act allows the department to impose penalties if a taxpayer does not provide the information or documents requested.