What exactly is a Section 148 notice (and why you shouldn’t panic)
A Section 148 notice is the Income Tax Department’s formal start to a reassessment. Before this, the officer usually issues a Section 148A(b) show-cause notice to give you an opportunity of being heard. If, after considering your reply, the officer concludes reassessment is warranted, the officer issues a Section 148 notice asking you to furnish a return for that year. Since 1-Sep-2024, the law clearly sets outer time limits for both the show-cause stage and for filing the return after a Section 148 notice (details below).
The 2025 step-by-step response timeline (what to do and when)
Day 0–1: Verify authenticity before anything else
- Authenticate the notice/DIN online (no login needed). On the e-Filing portal, use “Authenticate Notice/Order issued by ITD”. If the document has no DIN, it’s invalid.
- Open e-Proceedings on the portal to see the proceeding and due dates.
If you confirm it’s genuine, treat the Section 148 notice clock as already ticking.
Day 1–3: Read the fine print and set up your strategy
- Identify whether you’ve got a Section 148A(b) show-cause (pre-148 stage) or an actual Section 148 notice (return required).
- Calendar the due date printed on the notice (see legal time windows below).
- Decide whether you will reply yourself or authorize a representative on the portal (use “Authorised Representative” in your profile).
Day 2–7: Gather and reconcile
- Pull ITR(s), Form 26AS/AIS/TIS, books/ledgers, bank statements, contracts/invoices involved in the flagged items, and proofs for deductions/exemptions.
- If it’s a Section 148A(b) show-cause, start drafting your factual & legal reply with attachments. A crisp, evidence-backed reply can avoid a Section 148 notice altogether.
By the printed due date on 148A(b): File your reply (7–30 days window)
- Law requires the notice to allow not less than 7 days and not more than 30 days from date of issue to reply; you can seek extension online in deserving cases.
- The AO must then pass a 148A(d) order (fit/not fit to issue 148) within one month from the end of the month in which your reply period ends.
If a Section 148 notice is issued: File the return within the permitted window
- A Section 148 notice requires you to furnish a return within the time specified in the notice, not exceeding 3 months from the end of the month in which the notice is issued (this is the outer cap).
- You file this return through the e-Filing portal > e-Proceedings (the system creates the correct context).
After filing your 148 return
- Upload a comprehensive submission explaining positions, annexing reconciliations and proofs.
- Monitor further queries on e-Proceedings and respond within the portal-stated deadlines.
Statutory time windows at a glance (2025)
| Stage | What the officer/you must do | Legal time window you should know | Practical takeaway |
|---|---|---|---|
| Section 148A(b) show-cause | You get an opportunity of being heard before 148 | Reply window: 7–30 days from date of issue (extension possible) | Don’t miss this. A strong reply can prevent a Section 148 notice. |
| 148A(d) order | AO decides if it’s a fit case to issue 148 | Within 1 month from end of the month in which your reply time ends | Expect speed after your reply window closes. |
| Section 148 notice (return) | You must furnish a return for the relevant AY | Within period specified, capped at 3 months from end of the month of issue | If notice is dated 12-Aug-2025, outer cap is 30-Nov-2025. |
| Issuance time bar (Sec. 149) | Time limit to issue a 148 notice | Up to 3 years normally; up to 5 years if escaped income ≥ ₹50 lakh represented in asset/ specified items | Very old years are generally off-limits unless the ₹50L-asset condition applies. |
Worked examples with real dates
Example A: 148A(b) issued on 10-Aug-2025
- Minimum legal reply time: 7 days ⇒ 17-Aug-2025 earliest due.
- Maximum typical window: up to 30 days ⇒ 09-Sep-2025 (unless extension granted). Income Tax India
- 148A(d) order due by: Within one month from the end of September 2025 (i.e., by 31-Oct-2025). Income Tax India
Example B: Section 148 notice issued on 25-Aug-2025
- Your return must be filed within the time specified in the notice, but in any case no later than 30-Nov-2025 (three months from end of August). Income Tax India
How to file your reply/return online
- Go to the Income Tax e-Filing portal → e-Proceedings (the Department’s official workflow for notices & responses).
- To verify the Section 148 notice first, use Authenticate Notice/Order (pre-login service) and confirm the DIN.
- Inside e-Proceedings, open the proceeding (148A/148), upload your PDF reply, attach evidence, and submit. The system records acknowledgments and due dates.
Those two official portal resources (e-Proceedings + Authenticate Notice/Order) are your “application links” to act fast and keep everything on record.
What to include in your reply to a Section 148 notice (or 148A(b))
- Cover note summarising issues raised and your stand.
- Reconciliations (books ↔ AIS/TIS ↔ Form 26AS).
- Evidence (bank statements, invoices, contracts, TDS proofs, brokerage notes, property documents).
- Legal support (brief citations where necessary).
- Annexures with index and page numbering.
- Prayer (e.g., drop proceedings / accept returned income / grant relief).
A complete, paginated PDF bundle makes your Section 148 notice response easy to follow—and it shows credibility.
Common reasons behind a Section 148 notice (so you can address them head-on)
- High-value asset transactions not reconciled to returned income.
- AIS/TIS showing credits not reflected in ITR.
- Claimed losses/deductions without trail.
- Share capital/loans/investments that look unexplained.
- Mismatch in TDS/TCS vis-a-vis receipts.
These are classic triggers for Section 148 notice or for the preceding Section 148A(b) show-cause.
The law—what really matters in 2025
- 148A(b) window: Not less than 7 days, not more than 30 days; AO’s decision under 148A(d) within one month from end of month when your reply time ends.
- 148 return timeline: Time specified in notice, capped at 3 months from end of month of issue.
- 149 outer limits: Issue of a Section 148 notice is generally barred after 3 years, except up to 5 years where suspected escaped income (in the form of asset/expenditure/entries) is ₹50 lakh or more. The section also has March-end “deeming” and exclusion rules.
Bottom line: the Department must move within the Section 149 time grid; you must move within the 148A/148 response grids.
Penalties, interest & how to keep them minimal
If your Section 148 notice culminates in additions, here’s what typically bites—and how to plan:
- Interest: 234A/234B/234C apply based on late filing/short advance tax. These are statutory and non-discretionary. Income Tax India
- Penalty (Section 270A):
- Under-reporting: 50% of tax on under-reported income.
- Misreporting: 200% of tax (harsher bucket).
- Immunity (Section 270AA): Consider applying for immunity from 270A penalty & prosecution if you accept the assessment/reassessment and pay tax + interest within the demand period and don’t appeal (file Form 68 on the portal). Timing and eligibility matter.
Strategy tip: A precise, well-evidenced reply at 148A(b) stage is the cheapest way to avoid downstream 148 additions (and therefore penalty exposure).
Handy one-page checklist for your Section 148 notice
| Item | Why it matters |
|---|---|
| Authenticate notice/DIN | Invalid DIN = notice is non-est per CBDT; don’t waste time on fakes. |
| Calendar due dates | 7–30 days for 148A(b); 148 return within notice time, capped at 3 months from month-end. |
| Pull AIS/TIS/26AS & books | Most mismatches start here; reconcile before drafting. |
| Draft reply with annexures | Use headings, page numbers, and an index for clarity. |
| Upload via e-Proceedings | Keeps an official trail; watch for fresh queries. |
| Consider 270AA (Form 68) | If you accept outcome, immunity may cap damage. |
FAQs for Section 148 notice
1) What if my Section 148 notice asks for a return in 15 days—can I get more time?
The officer can specify a period, but the outer legal cap is 3 months from the end of the month of issue. Seek a short extension within the system if you genuinely need it; don’t assume it’s automatic.
2) Can I avoid a Section 148 notice by replying strongly to 148A(b)?
Yes—that’s the whole design. You have 7–30 days to make your case; the AO must consider your reply before deciding under 148A(d).
3) How old can the Department go?
Generally 3 years; up to 5 years if they have evidence of escaped income ≥ ₹50 lakh represented in asset/expenditure/entries.
4) Where exactly do I upload my Section 148 notice reply?
e-Filing portal → e-Proceedings (official workflow for notices).
5) How do I confirm the notice is genuine?
Use Authenticate Notice/Order (pre-login) and verify the DIN.
6) If I end up with additions, what’s my penalty exposure?
Typically 50% of tax for under-reporting; 200% for misreporting (Sec. 270A). Consider 270AA immunity (Form 68) where eligible.
7) Do I still need to respond if I think the Section 148 notice is time-barred?
Yes—respond and raise limitation as a legal ground in your reply. Don’t ignore the notice; non-response risks an ex-parte order.
Pro drafting tips (from the trenches)
- Use headings mirroring the issues in the notice.
- Lead with facts, follow with law, end with a clear prayer.
- Attach source-sorted annexures (AIS/26AS, bank, invoices, agreements).
- Where numbers differ, provide reconciliation tables (before/after).
- Keep all communication inside e-Proceedings—one reliable record.
Summary you can copy-paste for your file note
You received a Section 148 notice. First, authenticate the DIN and open e-Proceedings. If it’s a 148A(b) show-cause, reply within 7–30 days with evidence; the AO must decide under 148A(d) within one month from end of that month. If a Section 148 notice follows, furnish the return within the notice period (never beyond 3 months from end of the month). Mind Section 149 time bars (3 years; up to 5 years for ≥ ₹50L asset/expenditure cases). If additions finally stick, know your 270A penalty ranges and consider 270AA immunity (Form 68) where available.
Final word
Handled calmly and methodically, a Section 148 notice is manageable. Use your first 48 hours to verify, plan, and gather proofs. Use your 7–30 day window wisely at 148A(b). If a Section 148 notice still arrives, file a complete return within time and keep everything on the record through e-Proceedings.
In case of handling the assessment or responding to a Section 148/149 notice, contact Indefine for professional assistance.
