A “Notice” is an official query from the department seeking clarification on discrepancies like income mismatches, excess ITC claims, or late filings. A “Reply” is a formal legal submission backed by evidence (reconciliations, invoices, ledgers) to satisfy the officer’s query. In 2026, replies are primarily Faceless, meaning your written words and uploaded documents are the only thing standing between you and a heavy tax demand.
Eligibility & Criteria
- Turnover/Limits: There is no turnover limit for receiving a notice; anyone from a small freelancer to a billion-dollar corp can be flagged by the Risk Management System (RMS).
- Penalty for Non-Reply:
- Income Tax: Up to ₹10,000 per failure (Section 272A) + Best Judgment Assessment (where the officer decides your tax without your input).
- GST: Cancellation of Registration, Seizure of goods, and 100% penalty of the tax amount involved.
- Our Value-Added Service: Pre-emptive Reconciliation. We use AI tools to run a “Mock Scrutiny” on your data every month, fixing errors before the department notices them.