As taxpayers rush to meet the deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2026-27, another development has caught many by surprise. Thousands of taxpayers have recently received notices under Section 143(2) of the Income-tax Act, 1961, along with intimations under Section 144B, in respect of returns filed for AY 2025-26.
For many, the immediate reaction is concern. Does the notice mean the return was incorrect? Is a tax demand on the way? Could penalties follow? Not necessarily.