Answer

1. F

   Facts

   A Sec 142(1) notice is an inquiry before assessment. The officer either asks you to file a return or asks for documents, accounts or information to complete an assessment. Under the Income-tax Act 2025 the same power sits in Sec 268(1), but a notice about FY 2025-26 or earlier stays under the 1961 Act.

2. P

   Provisions and law

   • Sec 268(1), Income-tax Act 2025 (old Sec 142(1))Officer can call for a return, accounts, documents or information before making an assessment
   • Sec 271, Income-tax Act 2025 (old Sec 144)Best judgment assessment if the notice is not complied with
3. A

   Analysis

   It is not a penalty or a demand by itself. It means your case is being examined, often after a scrutiny selection or because a return was not filed though AIS shows income. A full and timely reply usually keeps the matter to a normal assessment. Ignoring it can lead to a best judgment assessment, a ₹10,000 penalty for each failure and, in serious cases, prosecution.

4. C

   Conclusion

   1. 1Open the notice under Pending Actions > e-Proceedings and check the DIN, section and assessment year
   2. 2List exactly what is asked and the due date
   3. 3Collect documents and prepare a short covering reply
   4. 4Submit before the due date or ask for adjournment

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.