Getting an income tax notice can feel overwhelming, especially if you’re unsure what triggered it or how to respond correctly. However, not all notices are reasons to panic — many are routine or informational. What matters is how quickly and accurately you respond. Fortunately, TaxBuddy’s DIY platform makes it easier than ever to handle tax notices without needing a Chartered Accountant or a long email trail.
In this guide, we’ll explore how to identify the type of notice you’ve received and how TaxBuddy can help you respond to it using their intuitive self-service platform.
Understanding Why Income Tax Notices Are Issued
The Income Tax Department sends out notices for various reasons. Some of the most common include:
- Mismatch in reported income or TDS
- Non-filing or delayed filing of ITR
- High-value transactions not disclosed
- Incorrect claims under deductions or exemptions
- Routine scrutiny or verification
Notices are sent under different sections of the Income Tax Act, such as Section 139(9), 143(1), 143(2), 148, or 245. Identifying the correct section helps in preparing a relevant and timely response.
What You Should Do First When You Receive a Notice
Step one is to not ignore the notice. Most notices come with a deadline, and failing to respond can lead to penalties or further legal action.
Step two is to log into your Income Tax account at incometax.gov.in and download the notice from the e-Proceedings or Worklist section.
Step three — and where TaxBuddy comes in — is to upload and respond through a platform that simplifies the process, even if you’re not a tax expert.
How TaxBuddy’s DIY Platform Helps You Handle Tax Notices
TaxBuddy’s DIY tool is designed not just for filing your return but also to help you manage follow-up activities like verifying mismatches, replying to notices, and updating your tax data when needed.
Here’s how it supports you:
1. Smart Dashboard with Notice Upload Option
Once you log in to your TaxBuddy dashboard, you can upload your notice under the ‘Notices & Response’ section. The platform doesn’t require legal knowledge — just upload the PDF or enter the notice reference number.
TaxBuddy reads the section and highlights the nature of the notice — for example, defective return under Section 139(9) or mismatch under Section 143(1). This gives you a clear starting point.
2. Match Notice Details with ITR & Form 26AS Automatically
For many users, tax notices arise due to a mismatch between what was filed in the ITR and what’s reported in Form 26AS or AIS (Annual Information Statement). TaxBuddy’s platform helps you reconcile this by comparing your original filing details with AIS/26AS — all in one place.
For example:
- If you missed reporting an FD interest
- If your TDS was deducted but not claimed
- If a capital gain was left out
TaxBuddy flags such mismatches and suggests how to rectify them — either by filing a revised return or responding with justification.
3. Step-by-Step Guidance on Response Filing
If the notice requires a reply — such as defective return or intimation under Section 143(1) — TaxBuddy provides a guided form with pre-filled data. You just review the suggested response and confirm or edit before submission.
For certain notices like:
- Section 139(9): You can fix the errors in your original return and submit a corrected version
- Section 143(1): You can accept or reject adjustments, depending on your case
- Section 245: If there’s a refund adjustment, the platform helps you verify if the previous year’s tax was truly due
While some high-complexity notices like scrutiny under Section 143(2) may still require expert help, TaxBuddy’s DIY tool covers basic to moderately complex notices through a clear workflow.
4. Option to Switch to Expert Help at Any Point
If you’re unsure at any step or if the notice feels too complex to handle alone, TaxBuddy lets you upgrade to expert-assisted filing. This ensures continuity — you don’t need to explain everything again. Their CA team picks up from where you left off on the DIY dashboard.
This flexible switch option is especially useful for users who want to start DIY but might need expert validation before submitting an official response.
5. Document Support and Draft Submission
TaxBuddy allows you to attach necessary supporting documents while responding to notices. For example:
- Revised Form 16
- Corrected Form 26AS
- Proof of deduction claimed (e.g., LIC premium, rent receipts)
- FD interest certificate from the bank
You can upload these and preview your response before submission.
6. Regular Reminders and Status Tracking
Once you’ve filed a response through the TaxBuddy platform, it tracks your submission and sends reminders or alerts when further action is required. This reduces your risk of missing deadlines or skipping follow-ups.
Who Can Use This Feature in DIY Mode?
TaxBuddy’s DIY notice response feature is ideal for:
- Salaried individuals who receive mismatch notices
- Freelancers or consultants who underreported income unknowingly
- First-time filers who made minor errors
- Individuals who filed returns late and received a compliance notice
- Taxpayers with TDS discrepancies visible in AIS/26AS
Benefits of Using TaxBuddy Over Manual Response
Responding to a tax notice manually via the IT portal can be technical and confusing. You have to know which section applies, how to format your reply, and what supporting documents are required.
TaxBuddy makes it easier by:
- Translating the notice into understandable language
- Suggesting the most likely cause and fix
- Giving you a structured, guided response format
- Keeping a digital record of what was submitted
- Offering backup expert help if things get complicated
Conclusion
Getting a notice from the Income Tax Department might seem scary, but most issues can be resolved with a clear, timely response. With platforms like TaxBuddy, you no longer need to guess your next step or fear errors in your reply. Whether it’s a simple correction or an adjustment mismatch, TaxBuddy’s DIY tool gives you the confidence to handle it on your own — with the option to seek expert help if needed.
So if you’ve received a tax notice, log in to your TaxBuddy account, upload the document, and follow the guided steps to resolve it efficiently. It’s time to take control of your taxes — confidently and independently.