ITR
Penalty for not replying to Section 142(1) notices
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Yes. Under the 1961 Act, failure to comply with a Sec 142(1) or 143(2) notice can attract a penalty of ₹10,000 for each failure, after a chance to be heard.
Provisions and law
- Sec 272A(1)(d), Income-tax Act 1961Penalty of ₹10,000 for each failure to comply with a notice under Sec 142(1) or 143(2) (2025 Act number to be confirmed).
- Sec 142(1), Income-tax Act 1961 (now Sec 268(1))The officer can ask you to file a return or produce accounts, documents and information.
Analysis
If three notices went unanswered, the exposure can be ₹30,000, separate from tax on the assessed income. A good reason, such as illness or the notice going to a wrong address, can be pleaded when the penalty notice comes. Replying now reduces the chance of more defaults being counted.
Conclusion
- Count the notices you missed.
- Reply to the pending notice now.
- Keep proof of any reason for earlier delay.
- When a penalty show-cause comes, reply with that reason.
- Appeal if a penalty order is passed unfairly.
A Savvy can do this for you
Best judgment assessment, Sec 144 (now 271)
₹4,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.