If you’re an NRI who has just received an income tax notice from India, the first thing to know is that the section numbers have changed. Notices issued on or after 1 April 2026 no longer cite Section 148 or 148A — they cite Section 280 and 281 under the Income Tax Act, 2025. If your notice still says “148A,” it was issued before that date and the old procedure applies to it. Getting this distinction right matters because your response should be drafted using the correct framework.
Section 280 and 281 — What Replaced Section 148 and 148A
Under the old Income Tax Act, 1961, a reassessment notice under Section 148 could only be issued after the Assessing Officer followed a mandatory pre-notice procedure under Section 148A — a show-cause notice explaining why the department believes income escaped assessment, followed by your chance to respond before any formal notice is issued. Under the Income Tax Act, 2025, this exact procedure continues, just renumbered: Section 281 is the pre-notice inquiry (erstwhile 148A), and Section 280 is the formal reassessment notice itself (erstwhile 148). The safeguards are unchanged — only the citations are different.
If you already have a notice in hand dated before 1 April 2026, do not switch terminology — your reply should still reference Section 148/148A, since that notice was issued and is being processed under the old Act. Mixing old and new section numbers in a single reply is a common, avoidable mistake that signals to the tax officer that whoever drafted it hasn’t tracked the transition.
Why NRIs Get These Notices More Often Than You’d Expect
NRIs are disproportionately likely to trigger a reassessment flag, usually for reasons that have nothing to do with intentional non-disclosure: a property sale where the buyer’s TDS filing (Form 144) doesn’t match what you reported in your ITR; a large NRO-to-NRE or NRO-to-foreign remittance that shows up in AIS/TIS without a corresponding income entry; interest income on NRO fixed deposits that the bank reported but you didn’t include; or simply not filing an ITR at all in a year where TDS was deducted, on the assumption that TDS already “covered” the liability.
The Timeline You’re Working Against
A reassessment notice can normally be issued within 3 years and 3 months from the end of the relevant assessment year, extended to 5 years and 3 months where the escaped income is ₹50 lakh or more. Once you receive the Section 281 (erstwhile 148A) show-cause notice, you typically get between 7 and 30 days to respond — this is not a deadline to negotiate casually. A weak or late response makes it far more likely the Assessing Officer proceeds straight to the formal Section 280 notice and a full reassessment.
What Not to Do When You Get a Notice
Do not ignore it on the assumption that being abroad puts you out of reach — unresolved reassessments can freeze refunds, block future remittance approvals, and complicate property transactions in India. Do not respond yourself without reviewing your AIS/TIS and Form 26AS first — many notices are triggered by a data mismatch that has a simple factual explanation, but only if you can actually show the reconciliation. And do not file a fresh Updated Return (Section 139(8A) equivalent) reflexively before understanding whether that’s even the right response — Budget 2025 restricts this option once a Section 281/148A notice has already been issued beyond a certain window.
How NRI Tax CA Handles Notice Responses
We review your AIS, TIS, Form 26AS, and the specific transaction the notice references, identify whether it’s a genuine mismatch or a real disclosure gap, and draft a reasoned reply citing the correct section — 280/281 or the old 148/148A, depending on when your notice was issued. If the matter needs a formal objection or appeal, we prepare that too. Every case is reviewed personally by a Fellow Chartered Accountant, in writing, over WhatsApp or email — send us a copy of your notice at hello@nritaxca.com or via WhatsApp and we’ll tell you plainly what it means before you decide anything.
This article is for general information purposes only and does not constitute legal or tax advice. Reassessment procedures involve strict timelines — consult a qualified CA before responding to any notice.
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