Received a tax notice? Here is exactly what it means and what to do next.

Yes, a 143(1) intimation becomes a demand notice under section 156 if you do not respond within 30 days. The most common cause: your Form 26AS shows less TDS than you claimed in the ITR, or the CPC applied a different deduction amount. Log in to the Income Tax e-Filing portal, view the computation, and decide: if the adjustment is correct, pay the demand; if incorrect, file a rectification request u/s 154 or a revised ITR. The ₹18,000 does not compound automatically — it becomes due only after the 30-day response window closes without action.

Typically: bank statements for all accounts for the relevant AY, salary slips or Form 16, investment proofs (80C, 80D, HRA landlord PAN etc.), property purchase/sale documents if capital gains are involved, and — if you have business income — books of accounts. The AO's notice will specify. Under CBDT's Faceless Assessment Scheme (launched 2020), most scrutiny proceedings are conducted online via the portal. You submit documents as PDFs with an index. The AO cannot call you to the office in a faceless assessment.

It depends on which window governs AY 2019-20. Because that assessment year began before 1 April 2021, the pre-Finance Act 2021 limits continue to apply: under s.149(1)(b) as it then stood, the AO had up to 6 years from the end of the relevant assessment year — i.e. until 31 March 2026 — to issue a 148 notice where the income escaping assessment was ₹1 lakh or more. The new 3-year limit (extended to 10 years only where escaped income exceeds ₹50 lakh AND the AO holds information from a specified authority) applies to assessment years beginning on or after 1 April 2021. A 148 notice for AY 2019-20 served after 31 March 2026 without a higher escape basis is time-barred and can be challenged. Your first step: check the date of service and review the AO's "reason to believe" at the s.148A stage.

No — s.271(1)(c) is a civil penalty, not a criminal prosecution. The penalty ranges from 100% to 300% of the tax evaded. It is levied after the assessment is completed and an addition is confirmed. The key defence: if you have a "bona fide" explanation for the discrepancy (an honest mistake, an interpretation question, a computational error), courts have consistently held that penalty is not automatic. The AO must prove concealment or furnishing of inaccurate particulars — the burden of proof shifts. A good CA response at the 143(3) stage often prevents the 271(1)(c) notice from ever being issued.

Under s.73(8) read with Rule 142 of the CGST Rules, if you pay the tax with interest within 30 days of the date of service of the DRC-01 — via Form GST DRC-03 — the proceedings close without penalty. If you contest the demand instead, you file a reply in Form GST DRC-06 within the period stated in the notice, with your GSTR-2A/2B-vs-books reconciliation attached. Under s.74(8), payment within 30 days of the notice still attracts a reduced 25% penalty. Missing these windows allows the proper officer to pass an ex-parte order confirming the demand — after which you would need to appeal to the Appellate Authority, a longer and more expensive process. A practical note: always reply formally within the stated period, even if only to say the detailed response is being prepared.