Can you get an Income Tax notice despite TDS deductions? Here's exactly why it happens and what you can do next

Millions of salaried employees assume TDS means they're done with the tax department. They're wrong. India's income tax system now uses AI and automated cross-checking to flag even the smallest mismatches, and a notice can land in your inbox for reasons as simple as a spelling difference in your name.

Your ITR doesn't match Form 26AS. You switched jobs and forgot to report the old employer's TDS. You earned savings account interest but didn't declare it. You claimed deductions that don't match your actual investments. Or you simply never filed, assuming TDS was enough. Any one of these can trigger a notice.

This is the most common income tax notice salaried employees receive. It's issued after your ITR is processed and simply flags a difference between what you filed and what the department calculated. It could mean a small tax demand, a refund due, or just an acknowledgement. Most cases are resolved with a quick online response, no officer visit needed.

This is a reopening notice. The tax department believes income escaped assessment in a previous year. Triggers include unreported income found through third-party data, large cash deposits with no matching income, or excessive deductions. You have just 30 days to respond with full documentation — and this one demands serious attention.

When you change employers, both companies report your salary and TDS to the department. If you didn't consolidate both income figures in your ITR, or claimed deductions twice, the system catches it automatically. A Section 142(1) or 143(2) notice may follow, asking you to explain the discrepancy with supporting documents.

A Section 139(9) notice means your ITR has a technical problem, incomplete information, a mismatch between TDS claimed and income declared, or missing fields. It does not mean you've done anything dishonest. But the fix deadline is tight: 15 days from receipt. File a revised return or respond through the e-filing portal immediately.

Under Section 245, the tax department can set off your current year's refund against any outstanding demand from previous years, without asking you first. They do send an intimation, but many taxpayers miss it. Log in to the e-filing portal, go to Pending Actions, and check "Response to Outstanding Demand" to see what happened to your money.

*Read the notice carefully and note the deadline.
*Identify which section it falls under, that tells you exactly what's being asked.
*Gather Form 16, bank statements, investment proofs, and previous ITRs.
*Respond through the e-filing portal, not by post. Be specific and attach documents.
*For serious notices under Section 143(2) or 148, consult a Chartered Accountant before responding.

1.File your ITR on time every year, even if no tax is payable.
2.Check Form 26AS before filing and ensure every TDS entry matches.
3.Declare all income, including savings interest and dividends.
4.Keep investment proofs for every deduction you claim.
5.Update your PAN details consistently across all banks and employers.
6.Never ignore any communication from the tax department, even if you think it's wrong.