NOTICE UNDER SECTION 144 OF THE INCOME TAX ACT

You got the notice. Now what?

There’s a different kind of tension when you see this one.

Not confusion. Not curiosity.
More like… “okay, something’s not right.”

A Section 144 notice doesn’t usually come out of nowhere.

It shows up when something has already been missed.

And that’s exactly why it feels heavier than other notices.

What does a Section 144 notice really mean?

Let’s try to understand this.

A Section 144 notice under the Income Tax Act, 1961, represents a "Best Judgment Assessment," where the Assessing Officer (AO) estimates your tax liability due to non-submission of returns, non-response to notices, and non-submission of documents. You need to respond immediately to the show cause notice within the due date to avoid estimated tax, interest, and penalty.

Why is this notice issued?

This is where things get real.

A Section 144 notice is not the first step. It’s usually the result of earlier gaps.

Common triggers:

• You didn’t file your return
• You ignored a previous notice 
• You didn’t submit documents when asked
• Your compliance record looks incomplete
• You failed to respond to communication from the department

Here’s what most people overlook.

This notice is basically the department saying:

“We gave you chances. Now we’ll decide.”

What does “Best Judgment Assessment” really mean?

Under section, the assessment of a taxpayer is normally based on the details you provide.

But here?

The Assessing Officer doesn’t wait for you anymore.

Instead, they estimate your income based on:

• Available data
• Bank transactions
• Third-party reports
• Past returns
• Industry assumptions

And yes… they usually take a conservative  estimate.

What does the notice include?

• The notice issued under Section 144 is an official notice sent by the Income Tax Department. The notice issued under Section 144 includes the following:
  Reference to Section 144 of the Income-tax Act,
• Reason for proposed best judgment assessment
• Details of non-compliance
• Show-cause notice asking for explanation
• Deadline to respond

Sometimes, it may also mention:

• Earlier notices issued
• Lack of response history
• Missing documents

It’s basically a final warning before they proceed.

The deadline is not flexible

This part… don’t ignore it.

You will be given a specific timeline to respond.

And unlike other notices, delays here can directly impact your tax calculation.

Because once the deadline passes, the Assessing Officer can proceed without you.

Let that sink in.

Without your input.

What happens if you don’t respond?

Short answer?

They move ahead.

Long answer:

• Your income is estimated
• Higher tax liability may be calculated
• Interest gets added
• Penalties may apply
• You lose the chance to explain your side

And fixing it later?

Way more complicated.

How to respond?

You don’t need to panic. You need to act.

Practical steps:

• Read the notice carefully
• Identify what is missing
• Gather documents (returns, proofs, statements)
• Log into the tax portal
• Submit your response before deadline
• Attach clear explanations

That’s it.

No overthinking.

Just clarity and timing.

Can you avoid best judgment assessment?

Yes.

But only if you act in time.

Even after receiving a Section 144 notice, you still have a chance to:

• File pending returns
• Submit required documents
• Explain discrepancies
• Correct mistakes

And if your response is accepted, the department may not proceed with estimation.

So yes — this is still a window.

Common mistakes people make here

This is where things go wrong for most people.

• Ignoring the notice thinking it’s “just another email”
• Waiting till the last day
• Submitting incomplete response
• Not understanding what is asked
• Assuming income estimate will be “close enough”

It won’t be.

One thing you should really understand

A Section 144 notice is not random.

It’s a consequence.

But also… a final opportunity.

You can still fix things at this stage.

But only if you respond.

Final thoughts 

Tax notices feel stressful mostly because of uncertainty.

But when you actually read and respond to them, they become manageable.

What Section 144 means is that they're ready to move forward without you. You need to step in.

And if you're unsure of how to respond or what documents to submit, proper guidance can make all the difference. Platforms like Callmyca.com can help you handle the situation practically, without confusion or unnecessary stress.

Because at this stage… clarity matters more than anything.