The Income Tax Department issued over 44,000 notices to crypto traders who never declared their gains. At the same time, cybercriminals launched phishing campaigns using fabricated Document Identification Numbers, fake government portals, and malware-laced PDFs, timed perfectly to exploit that fear.
That combination created a dangerous situation. A crypto investor who ignores a real notice past its deadline faces a best judgement assessment under Section 144, with interest piling up under Sections 234A and 234B. One who clicks a link in a fake notice risks installing a Remote Access Trojan on their device and losing PAN and banking credentials.
The first step is neither panic nor action. It is verification. This guide shows you how to confirm whether a notice is genuine, identify a fake one before you touch it, and respond correctly within the deadline.
Key Takeaways
- Every legitimate ITD notice issued on or after 1st October 2019 carries a unique Document Identification Number (DIN).
- A notice without a DIN is invalid in law and requires no response whatsoever.
- DIN verification is a pre-login service on the ITD portal, no account or password is needed.
- Fake ITD notices use fabricated DINs, unofficial email domains, and malware-laced PDFs. Active campaigns were recorded as recently as April 2026.
- Ignoring a verified real notice past its deadline triggers a best judgement assessment under Section 144.
- The ITD never asks for passwords, OTPs, or bank details through any notice, email, or call.
What Is a DIN?
Every communication the Income Tax Department sends, notices, orders, summons, letters, carries a computer-generated unique identifier called a Document Identification Number, or DIN. No two communications share the same number. It is the ITD’s way of creating a verifiable paper trail for every correspondence it issues.
The DIN system became mandatory on 1st October 2019, following CBDT Circular No. 19/2019. Before that date, notices were issued manually and were harder to authenticate. Since then, every legitimate communication from any Income Tax Authority must carry a DIN, without exception.
How to Verify an Income Tax Notice Online Using DIN?
Learning that a DIN exists is one thing. But knowing where and how to check it is what actually protects you. The ITD provides a dedicated authentication tool on its e-filing portal, and it does not require you to log in. Anyone, registered or not, can use it.
Where Do You Go to Verify a Notice?
Visit incometax.gov.in. On the homepage, locate and click “Authenticate Notice / Order Issued by ITD.” The tool opens immediately without requiring any login. You will be offered two methods of verification, choosing the one that best matches the information available on your notice.
Method 1: Verify Using PAN and Notice Details
This method works when you have the notice in hand but want to cross-check using your own PAN details rather than the DIN alone:
- Select PAN, Document Type, Assessment Year, Date of Issue, and enter your mobile number
- Click Continue
- Enter the 6-digit OTP sent to the mobile number you provided
- The OTP is valid for 15 minutes. You have 3 attempts to enter it correctly
- If the notice is genuine, the document number and date of issue will appear on screen
- If nothing is found, the portal displays: “No record found for the given criteria”
Method 2: Verify Using DIN Directly
This is the faster method if the DIN is clearly printed on the notice:
- Select Document Identification Number and Mobile Number
- Enter the DIN exactly as it appears on the notice, along with your mobile number
- Enter the 6-digit OTP received on your phone
- A success message confirms the notice is genuine
- If the DIN is fabricated, the portal displays: “No record found for the given Document Number“
What Does "No Record Found" Mean?
It means the ITD has no record of ever issuing that communication. The notice is either fabricated, contains a printing error, or has been tampered with. In any of these cases, do not respond to it, do not click any link it contains, and do not provide any personal information. Report it immediately.
How to Check If an Income Tax Notice Is Fake?
The DIN verification tool is definitive, but fake notices are designed to look convincing before you even reach that step. Cybercriminals have spent considerable effort replicating the visual appearance of real ITD communications. Knowing what to look for at first glance saves you from making a costly mistake before you even open a browser.
What Does a Fake ITD Notice Look Like?
Cybercriminals active since October 2025 have put significant effort into making their notices look real. They use the Government of India emblem, formal headers, fabricated DIN numbers, and strict compliance deadlines. A quick visual scan will not help you, these notices are designed to pass that test.
What gives them away is behaviour, not appearance. A real ITD notice does not ask you to download anything from an external link. It does not land in your inbox with an embedded image instead of text. It does not threaten immediate legal action unless you act within the hour.
What Are the Red Flags in the Email?
Check each of these before taking any action:
- The sender’s email address is not from @incometax.gov.in
- The email body contains no readable text, only an image designed to look like a notice
- The notice asks you to download a ZIP file or a PDF from a link outside the ITD portal
- The language creates extreme urgency: “respond within 24 hours or face arrest”
- The notice asks for your OTP, password, PAN details, or bank information
What Do Fake Notices Ask You to Do?
Fake notices typically direct you to a fraudulent portal that looks almost identical to the real ITD website. The moment you click the link, an automatic download begins, usually a compressed archive file containing malware. Campaigns recorded through April 2026 have delivered Remote Access Trojans this way, giving attackers persistent access to the victim’s device.
What Should You Do If You Suspect a Fake Notice?
Act on each point below before doing anything else:
- Do not click any link or download any attached file
- Do not enter personal details on any website, the notice directs you to
- Run the DIN through the ITD authentication tool
- Report the phishing attempt to the ITD helpline: 1800 103 0025
- File a cybercrime complaint at cybercrime.gov.in
What Should You Do in the First 48 Hours After Receiving a Real Notice?
Once you have confirmed that a notice is genuine, the nature of your response matters as much as its speed. A rushed, incomplete reply can invite further scrutiny. A well-prepared one, submitted within the deadline, often closes the matter cleanly.
How Do You Find the Notice on the ITD Portal?
Log in to incometax.gov.in. Go to “Pending Actions” and then “e-Proceedings.” Every genuine notice issued to your PAN will appear here with the response deadline clearly stated. If a notice does not appear here, that alone is reason to question its authenticity.
What Happens If You Miss the Response Deadline?
The Assessing Officer proceeds under Section 144, a best judgement assessment based on whatever information the ITD holds. This almost always results in a higher tax demand than the original notice. Interest under Sections 234A and 234B accrues from the original due date, compounding the liability.
Should You Respond Yourself or Through a CA?
For a Section 143(1) intimation, you can often respond directly on the portal, it is largely a data correction exercise. For a Section 143(2) scrutiny notice, a Section 148A income escaping assessment, or any crypto-related demand, engage a qualified CA before submitting anything. An incomplete or poorly worded response can turn a routine query into a prolonged examination.
What Are the Most Common Income Tax Notices Crypto Investors Receive?
With the context of verification and first response in place, it helps to understand which specific notice you are holding. Each type is issued under a different section, carries a different implication, and requires a different response. Misreading the notice type is one of the most common errors crypto investors make.
A Section 143(1) intimation is the most common communication crypto investors receive after filing. It is not a demand, it is the ITD’s automated comparison of your filed return against its own computation. Understanding what triggered it is the first step to resolving it.
Common Triggers for Crypto Investors:
- Mismatch between Schedule VDA figures and AIS data from exchange TDS filings
- Gross trading volume reported by exchanges in SFT data treated as income
- TDS credits in Form 26AS not matched to a corresponding Schedule VDA entry
- Arithmetic errors in reported gain calculations
- Missing disposal entries for tokens received as salary, freelance fees, or referral rewards
How To Respond?
Most Section 143(1) intimations can be resolved with a reconciliation response and supporting transaction records. They do not automatically escalate unless you respond within the stated deadline.
What Is a Section 143(2) Scrutiny Notice?
A Section 143(2) notice means the ITD has moved beyond an automated check. Your return has been selected for a detailed, manual examination. This is a more serious communication than a 143(1) intimation, and the response requires considerably more preparation.
Common Triggers for Crypto Investors:
- High transaction volumes flagged as inconsistent with declared income
- Significant AIS mismatches not addressed in the original filing
- Undisclosed P2P trading activity on foreign platforms
- Unexplained cash credits under Section 68 from unverified counterparties
- Large capital gains declared without corresponding TDS credits in Form 26AS
- Crypto income classified under the wrong income head in the ITR
How To Respond?
Do not submit anything without a CA reviewing your response first. This is not a routine correction exercise; an incomplete or poorly worded reply can significantly extend the scrutiny period.
What Is a Section 148A Notice?
A Section 148A notice tells you the ITD believes income from a previous assessment year was not reported. Before formally issuing a reassessment notice under Section 148, the ITD must first give you an opportunity to explain. That is what this communication is, your chance to respond before the matter escalates further.
Common Triggers for Crypto Investors:
- Unreported gains from Indian or foreign exchange activity in a prior year
- Crypto holdings detected during search and seizure proceedings under Section 132
- P2P trades on Binance or other foreign platforms, lacking counterparty KYC documentation
- Amounts flagged as unexplained cash credits under Section 68 in a previous assessment year
- AIS data from a prior year showing exchange activity with no corresponding ITR disclosure
- Undisclosed income from token grants or ESOPs not reported at the exercise stage.
How to Respond?
The ITD gives you one structured opportunity to explain before issuing the formal reassessment notice. Missing this window, or responding inadequately, removes that opportunity entirely.
What Is a Section 156 Demand Notice?
A Section 156 notice is a formal demand. It states a specific amount, tax, interest, or penalty that is due and payable by a stated deadline. Unlike the previous notice types, this is not an invitation to explain. It is a bill, and it must be addressed directly.
Common Triggers for Crypto Investors:
- Tax liability confirmed after a scrutiny assessment under Section 143(3)
- Interest under Sections 234A, 234B, or 234C for late or insufficient advance tax payment
- Penalty under Section 270A for under-reporting or misreporting of crypto income
- Unpaid TDS penalty under Section 271C confirmed after assessment
- Tax demand arising from a best judgement assessment under Section 144 following non-response
How to Respond?
If you believe the demand figure is incorrect, for example, because the AIS figure used in the assessment included gross trading volume rather than net taxable gain, file a rectification request under Section 154 before the payment deadline. Do not simply leave it unpaid.
What Mistakes Should You Avoid After Receiving an Income Tax Notice?
Receiving a notice is unsettling, and that discomfort often leads to one of two mistakes: acting too fast without verifying, or not acting at all. Both have consequences. The errors below are the ones crypto investors make most often. and the ones that turn a straightforward notice into a prolonged problem.
Ignoring the Notice Entirely
Even a notice you are certain is wrong must receive a formal response. Silence is read as non-compliance, not disagreement. The Assessing Officer moves ahead under Section 144, estimating your income from available data and issuing a demand that is almost always higher than what you would have owed had you responded in time.
Responding Without Verifying It First
Fake notices in active circulation through April 2026 directed victims to fraudulent compliance portals. Clicking the link triggered an automatic download of malware, including Remote Access Trojans that gave attackers persistent access to the victim’s device and credentials. Spending three minutes on the ITD portal verification tool before doing anything else is not optional, it is essential.
Filing a Rushed or Incomplete Response
A response submitted without full supporting documentation often raises more questions than it answers. The Assessing Officer may issue a follow-up query, extend the scrutiny period, or treat the incomplete submission as inadequate compliance. Take the time to gather every exchange statement, AIS reconciliation, and Schedule VDA entry before submitting anything.
Not Reconciling AIS Data Before Responding
The ITD builds its case from your AIS. If your response does not address the specific figures appearing there, particularly gross trading volumes reported by exchanges, the discrepancy remains unexplained in the officer’s records. Always pull your AIS first, identify exactly what triggered the notice, and address those figures directly in your reply.
Missing the Revised Return Window
If the notice exists because income was under-reported, a revised return under Section 139(5) filed before 31st December 2026 is almost always the cleaner outcome. It reduces penalty exposure, demonstrates voluntary compliance, and avoids the back-and-forth that a disputed response invites. Assessing Officers do take note of taxpayers who correct errors proactively.
Most crypto investors who receive a notice do not lack the willingness to respond, they lack the transaction records to do so accurately. Missing exchange data, unreconciled TDS credits, and AIS mismatches are what turn a simple intimation into a prolonged scrutiny. That is exactly the gap KoinX closes.
How Can KoinX Help You Respond to a Crypto Tax Notice?
When a crypto notice arrives, the immediate challenge is not understanding the law, it is pulling together accurate, complete transaction records across multiple exchanges, income types, and financial years. Manual approaches rarely produce the level of documentation the ITD expects in a response. KoinX is built specifically to solve that problem.
AIS Mismatch Detection Before You File or Respond
KoinX computes the gross transaction volume that the ITD sees in your AIS and compares it against your declared Schedule VDA figures. Discrepancies are flagged before you submit anything, giving you time to prepare a reconciliation note rather than receiving a follow-up query from the Assessing Officer.
ITR-Ready Schedule VDA Reports for Notice Response
For every exchange connected to KoinX, it generates a Schedule VDA report broken down by individual transaction, acquisition date, cost of acquisition, disposal value, and resulting gain. These reports are formatted for direct use in ITR-2 and ITR-3 responses, saving significant preparation time as deadlines approach.
TDS Reconciliation Across Indian and Foreign Exchanges
KoinX cross-references the TDS deducted by each connected exchange against your Form 26AS entries. Where a credit appears in Form 26AS but is not matched to a transaction in your records, or where a transaction occurred on a foreign platform with no automatic deduction, KoinX flags the gap before it becomes an unexplained entry in your response.
KoinX Connect, Automatic Data Import From 800+ Exchanges
CA Directory Access for Crypto Notice Response
For scrutiny notices, Section 148A communications, or any matter involving undisclosed crypto activity, KoinX connects you with verified Chartered Accountants who specialise in crypto taxation. Having the right professional review your response before submission, with your complete transaction data already prepared, is the most reliable way to close a notice without escalation.
Whether you are responding to a Section 143(1) intimation or a Section 148A reassessment notice, accurate transaction data is what closes the matter. Get your ITR-ready crypto tax report on KoinX and respond with confidence.
Conclusion
Verifying a notice takes three minutes on the ITD portal. Responding to the wrong one, or ignoring the right one, can cost significantly more. Every legitimate notice has a DIN. Every fake one has a link. Knowing the difference and acting within the deadline keeps a manageable situation from becoming costly.
If your notice involves a crypto AIS mismatch or an undisclosed Schedule VDA entry, the fastest path to a clean response is accurate transaction data. Join KoinX today and get the exchange records, TDS reconciliation, and ITR-ready reports you need to respond with confidence.
Frequently Asked Questions
I Got an Email About a Tax Notice But There Is No DIN on It? Could it be Fake?
Not necessarily, but treat it as suspect until proven otherwise. All ITD communications issued after 1st October 2019 must carry a DIN. If the email lacks one, do not click anything. Go directly to the ITD portal and use Method 1, PAN plus notice details, to check whether any notice was genuinely issued to you for that period.
Can I Verify a Notice Without Logging In to the ITD Portal?
Yes. The “Authenticate Notice / Order Issued by ITD” tool is a pre-login service. You do not need a registered account or password. Visit incometax.gov.in, click the authentication link on the homepage, and proceed with either your PAN details or the DIN directly.
I Am a Crypto Investor and Received a Section 148A Notice. What Does That Mean for Me?
It means the ITD believes income from a previous assessment year was not reported. For crypto investors, this is most commonly triggered by unreported exchange gains, P2P activity lacking counterparty PAN details, or amounts flagged as unexplained credits under Section 68. You will be given a chance to explain before a formal Section 148 notice is issued. Engage a CA before submitting any response.
The AIS Shows My Full Trading Volume as Income, But I Only Made a Small Gain. How Do I Explain That?
This is a common issue caused by exchange SFT reporting. Exchanges report gross transaction value, not net gain. In your response through e-Proceedings, submit your full transaction history showing the acquisition cost and disposal value of each trade. State clearly that the AIS figure represents gross volume, not taxable income, and attach the exchange statement as supporting documentation.
I Clicked a Link in What I Now Think Was a Fake Notice. What Do I Do Immediately?
Disconnect the device from the internet immediately. Do not enter any further credentials on any website. Run a full malware scan using updated security software. Change passwords for your email, banking portals, and the ITD e-filing account from a separate, clean device. Report the incident to cybercrime.gov.in and call the ITD helpline at 1800 103 0025 to flag the fraudulent communication.
How Long Do I Have to Respond to an Income Tax Notice?
The response deadline is stated on the notice itself. It varies by notice type. Section 143(1) intimations typically allow 30 days, while scrutiny notices under Section 143(2) state a specific hearing date. Missing any deadline, regardless of notice type, allows the Assessing Officer to proceed under Section 144. Always note the deadline the moment you confirm a notice is genuine.
