Income tax · Notice
Penalty show-cause notice (Section 274)
A show-cause notice before a penalty under Chapter XXI. What to do: read which penalty section the notice relies on, then file the reply in e-Proceedings by the date in the notice. The notice states the date — read it from the document.
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Key facts
A show-cause notice before a penalty under Chapter XXI. No penalty order can be made unless you have been heard or given a reasonable opportunity of being heard by way of a show-cause notice. The notice names the penalty section (for example 270A, 271AAC or 272A); pick that entry from the list for its detail.
| Notice | Penalty show-cause notice (Section 274) |
|---|---|
| Issued by | The Income Tax Department (the authority named on the notice) |
| Issued under | Section 274(1), Income-tax Act 1961 |
| Income-tax Act 2025 | Section 471(1), Income-tax Act 2025 |
| What it asks of you | A reply, within the time allowed |
| Your time to act | The notice states the date — read it from the document. |
| If it is ignored | After the opportunity lapses the penalty order is passed; a notice of demand under Section 156 follows, payable within 30 days of service (Section 220(1)). |
Time allowed
The notice states the date — read it from the document. The Act fixes no reply period: the show-cause notice sets the date (Section 274(1)).
The date stated on your notice always wins.
More time: If the date cannot be met, use "Seek/View Adjournment" in e-Proceedings before it passes: it asks for the date sought and the reason, and issues a Transaction ID. Under faceless assessment the time may be extended on an application (Section 144B(1)(v)).
What to do now
Read which penalty section the notice relies on
The section decides the amount and the defences. Prior approval of the Joint Commissioner is needed where an Income-tax Officer imposes more than ₹10,000 or an Assistant or Deputy Commissioner more than ₹20,000 (Section 274(2)).
File the reply in e-Proceedings by the date in the notice
On the e-filing portal go to Dashboard > Pending Actions > e-Proceedings, open View Notice, then Submit Response (partial or full, with remarks and attachments). A response cannot be edited or withdrawn after submission; a Transaction ID and an e-mail confirm it.
Check the Document Identification Number (DIN)
Every notice, order or letter should be referenced by a computer-generated DIN, in its body, in a covering document or in the covering e-mail (CBDT Circular 4/2026, which withdrew Circular 19/2019). A missing DIN is a point to raise with our expert team; by itself it does not invalidate an assessment that is referenced by a DIN in any manner (Section 292BA).
What a reply contains
A reply usually covers the points below. This is an outline, not a draft: our expert team writes it on your own records.
- Reference: the notice's reference number and date, your PAN and the period it covers.
- An answer to each point the notice raises, in the same order, saying what you accept and what you dispute.
- Evidence for each point: the returns, books and documents each answer relies on.
- Where it is filed: e-Proceedings on the income-tax e-filing portal.
If it is ignored
- After the opportunity lapses the penalty order is passed; a notice of demand under Section 156 follows, payable within 30 days of service (Section 220(1)).
- A penalty order under Chapter XXI is appealable to the JCIT(A) / CIT(A) within 30 days of service of the demand notice (Sections 246A(1)(q), 249(2)(b)).
Official sources
Sources checked on 22 October 2026.
- Income-tax Act 1961, section 274 · read 22 October 2026
- e-filing portal help: responding to e-Proceedings · read 22 October 2026
Frequently asked questions
What is an income-tax Section 274 notice?
A show-cause notice before a penalty under Chapter XXI. No penalty order can be made unless you have been heard or given a reasonable opportunity of being heard by way of a show-cause notice. The notice names the penalty section (for example 270A, 271AAC or 272A); pick that entry from the list for its detail.
How much time do I have to act on an income-tax Section 274 notice?
The notice states the date — read it from the document. The Act fixes no reply period: the show-cause notice sets the date (Section 274(1)). The date stated on your notice always wins. If the date cannot be met, use "Seek/View Adjournment" in e-Proceedings before it passes: it asks for the date sought and the reason, and issues a Transaction ID. Under faceless assessment the time may be extended on an application (Section 144B(1)(v)).
What happens if I ignore an income-tax Section 274 notice?
After the opportunity lapses the penalty order is passed; a notice of demand under Section 156 follows, payable within 30 days of service (Section 220(1)). A penalty order under Chapter XXI is appealable to the JCIT(A) / CIT(A) within 30 days of service of the demand notice (Sections 246A(1)(q), 249(2)(b)).
Related guides
General information from the provisions this notice is issued under, not legal advice. The dates and periods stated on your notice always win. Our expert team can read the full notice with you.