An income tax notice is a written communication sent by the Income Tax Department to a taxpayer alerting an issue with their tax account. The notice can be sent for various reasons such as non-filing their income tax return, incorrect assessment, asking for clarifying documents etc.
How to respond to a notice?
It depends on the kind of notice received. If they have asked for backing documents then you will have to submit them. However its best to consult a qualified CA before responding to notice.
No, ignoring notice could lead to severe penalties.
More often than not, notice is a demand for clarification or documentation from the tax payer. However if ignored it could lead to severe penalties.
What are the different notices that the Income Tax Department can send to an individual
There are broadly 6 different types of notices that can be sent to a tax payer. The details of such notices can be found here