Section 268 of the Income-tax Act, 2025 allows the Assessing Officer to make inquiries before an assessment. A notice under Section 268(1) may ask you to file a return, produce accounts and documents, or answer a questionnaire. It replaces Section 142(1) of the 1961 Act.
Income Tax, Income-tax Act 2025, across India
Income-tax Act, 2025
This page is for notices and orders under the Income-tax Act, 2025. If yours names the Income-tax Act, 1961, see Scrutiny Notice u/s 143(2) (1961 Act). Not sure which Act applies? The heading of the notice names it, or call us.
What this notice means
This notice is often the working tool of a scrutiny assessment: once a case is selected under Section 270(8), the questions come through Section 268(1). It can also be sent where no return has been filed, asking you to file one. Section 268(5) allows the officer to direct a special audit in some cases.
Common reasons it is issued
- Questions and document requests during a scrutiny assessment
- Non-filing of a return despite reportable transactions
- Request for a statement of assets and liabilities, with the approval the Act requires
- Follow-up on information received from banks, registrars or other agencies
Time limit to respond
Documents to keep ready
- The notice and questionnaire
- Return, computation and audit report, if any
- Books of account, ledgers and bank statements
- Documents for each specific question asked
How we handle it
- Read each question and list the documents needed
- Reconcile figures with the return and the annual information statement
- Draft a numbered reply that answers each question in turn, with annexures
- Upload the reply and keep the acknowledgement
- Track further notices and the show cause notice or draft order
Points to note
- Failure to comply with a Section 268(1) notice can lead to a best judgment assessment under Section 271 and penalty
- Answer what is asked, completely and consistently with earlier replies
- Ask for more time in writing rather than missing the date
What usually comes next
- Scrutiny Notice under Section 270(8) of the Income-tax Act, 2025The scrutiny notice behind the questions
- First Appeal to the Commissioner (Appeals) under Section 357 of the Income-tax Act, 2025Appealing the assessment order
Frequently asked questions
What if I cannot collect everything in time?
File what you have, explain what is pending and ask for a short extension online before the due date.
Is 268(1) the same as 142(1)?
It is the corresponding provision of the 2025 Act. Years up to assessment year 2026-27 will generally still see Section 142(1).
Official sources
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.