Got a Tax Notice? Here is what to do next

July 16, 2025

Akash Roy

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That Ping From the Tax Department?

It’s not always a red flag.
But it is a moment to pause, act smart, and avoid the most common founder mistakes.

We’ve handled hundreds of tax notices—from scrutiny assessments to high-value transaction mismatches—and here’s the first thing we tell clients:

“It’s not a crisis. It’s a system talking to you. Just don’t ignore it.”

Why Do Tax Notices Even Come?

Contrary to what most believe, notices ≠ tax evasion.

Here are some of the most common triggers:

📌 Scrutiny Under Section 143(2)

The department wants to examine your return more closely. It’s routine—especially for founders or high-income professionals.

📌 Mismatch in 26AS or AIS

Your return doesn’t match reported TDS, income, or asset data. Could be as simple as an FD you forgot to declare.

📌 Suspicion Around High-Value Spends

Buying property, trading crypto, or spending big on credit cards without matching declared income? The system notices.

None of these are criminal.
But mishandling them can get expensive.

Tax Notice – Mistakes Founders Commonly Make

When that email or SMS lands, we see a few knee-jerk reactions:

🚫 Ignore the notice.
Hoping it’ll go away = one-way ticket to penalty land.

🚫 Fire off a rushed reply.
Emotion, panic, or templated responses often do more harm.

🚫 Blame the CA.
This doesn’t help—especially when timelines are ticking.

What We Do at Pitchers Global

Here’s how we handle tax notices for our clients—from solo founders to high-growth companies:

✅ Download Full Case Docs From e-Filing

We pull all documents—notice details, previous returns, and digital communication history.

✅ Check Timelines

Most notices give you 15–30 days. We plot that out, set internal deadlines, and prep accordingly.

✅ Draft A Section-Wise Response

Backed by logic, prior case rulings, and income data—not emotion or vague justifications.

✅ Escalate Only If Necessary

We avoid litigation unless essential. Resolution > reaction.

Case Study: ₹8L Penalty, Reduced to ₹0

One founder approached us with a demand notice of ₹8 lakhs.
The original CA had filed a hasty response, which only worsened things.

We:

  • Pulled full section references
  • Quoted relevant judgments
  • Submitted a rebuttal under correct procedural rules

Final outcome? ₹8,00,000 penalty reversed. Clean slate.

The Golden Rule: Don’t Say “I Didn’t Know”

The tax department doesn’t want stories.
It wants data, timelines, and accountability.

And here’s the truth:

80% of tax litigation isn’t about fraud. It’s about founders missing the strategy layer.

Tax Notice – Bonus Tip:

Review Your AIS (Annual Information Statement) Quarterly
Your AIS contains every financial move you’ve made—from stocks and dividends to salary and rent.

One mismatch = one notice.
Review quarterly = peace of mind.

We’ve Got Your Back—Even in Front of the Taxman

At Pitchers Global, we’re not just your back office when things are smooth.
We show up when things get rough.

Tax notices? Scrutiny assessments? Litigation letters?
We decode them, draft responses, and defend your side—with clarity and calm.

Want Help Now?

Send us your notice. No jargon, no bill.

Tax Notice – Final Word

Notices are just a test of process.
If you stay calm, act strategically, and have the right team, they’re manageable—not monstrous.

Let Pitchers Global be your firewall when tax calls.

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