Filing your Income Tax Return (ITR) does not always end the compliance process. In many cases, the Income Tax Department may issue a scrutiny notice under Section 143(2) to examine your return in greater detail. For Assessment Year (AY) 2024–25, the department has begun issuing such notices in large numbers.
In this blog, we’ll explain what Section 143(2) is, why notices are issued, how to respond, and what taxpayers should do to avoid complications. We’ll also cover timelines, common reasons for scrutiny, response procedures, and best practices to stay compliant.
What is Section 143(2)?
Section 143(2) of the Income Tax Act, 1961 empowers the Assessing Officer (AO) to issue a scrutiny notice to a taxpayer if they believe that the return filed by the individual, firm, or company requires further verification.
It is issued after a return is filed and only when the return is selected for scrutiny. This selection could be based on random computer-based selection (CASS) or specific red flags in the return.
Objective:
To ensure that the income disclosed by the taxpayer is correct and all deductions, exemptions, and claims are genuine.
Why Is a Notice Issued Under Section 143(2)?
There are several reasons a taxpayer may receive a 143(2) notice. These include:
- High-value transactions not disclosed in the Income Tax Return (ITR)
(e.g., large cash deposits, property purchases, or share transactions) - Mismatch between Form 26AS, AIS, TIS, and the filed return
(e.g., difference in TDS/TCS credits, income reported by third parties) - Claiming large deductions under sections like 80C, 80G, etc.
(especially without valid supporting documents) - Underreporting of income
(intentional or unintentional omissions in salary, interest, rental, or business income) - Discrepancies in capital gains or foreign income disclosures
(e.g., incomplete or incorrect reporting of share sales or offshore earnings) - Selection under Computer-Assisted Scrutiny Selection (CASS)
(randomized or risk-based selection by the Income Tax Department) - Claiming excessive tax refunds using fake deductions or exemptions
(e.g., inflated HRA, fictitious donations, false investment claims)
Even if your ITR is filed correctly, you can still be selected for scrutiny through random selection.
Timeline for Issuing 143(2) Notice
As per the Income Tax Act:
- The notice must be issued within 3 months from the end of the financial year in which the return is filed.
Example:
If your ITR for AY 2024–25 was filed on 25 August 2024, the 143(2) notice can be issued any time up to 30 June 2025.
What Does Generally the Notice Contain?
The Section 143(2) notice typically contains:
- Acknowledgment of your ITR filing
- Mention of your PAN, assessment year, and ITR acknowledgment number
- The fact that your return is selected for scrutiny
- A request to provide supporting documents, evidence, and clarifications
- Deadline to respond (usually 15 days from the notice date)
- Instructions to reply via the e-Proceedings portal on www.incometax.gov.in
What Happens After Receiving the Notice?
Receiving a 143(2) notice means your return is under detailed scrutiny. The process involves:
- Submission of supporting documents and evidence
- Review by Assessing Officer
- Issuance of further queries/questionnaires if needed
- Final assessment order passed under Section 143(3)
Documents You May Need to Submit
Be prepared to provide the following few documents whichever is applicable on you:
- Bank account statements for the financial year
- Salary slips and Form 16
- Form 26AS, AIS, and TIS downloads
- Investment proofs (LIC, ELSS, PPF, etc.)
- Rent agreements and rent receipts (if HRA claimed)
- Capital gains computation and sale/purchase deeds
- Business books of accounts, ledgers, and invoices (for professionals/businesses)
- Loan repayment and interest certificates
- Donation receipts (if Section 80G claimed)
- Foreign income details (if applicable)
- Balance sheet, profit and loss account, trading account
- Audit report
Mode of Response – e-Proceedings (Faceless Assessment)
All assessments under 143(2) are now handled electronically under the Faceless Assessment Scheme. There is no requirement for physical appearance unless specifically instructed.
Steps to respond:
- Login to www.incometax.gov.in
- Navigate to Pending Actions > e-Proceedings
- Select the relevant notice
- Submit point-wise response with supporting documents
- Acknowledge submission and download the receipt
Consequences of Ignoring Section 143(2) Notice
Failure to respond within the given time or submitting incomplete responses can lead to serious consequences:
1. Best Judgment Assessment (Section 144)
If you dont respond, the AO will complete the assessment based on available information, often resulting in:
- Disallowance of deductions
- Higher taxable income
- Tax demand with penalties
2. Penalty Proceedings
The department may initiate penalty proceedings under:
- Section 270A (for underreporting/misreporting of income)
- Section 271(1)(c) (for concealment of income)
3. Interest Liability
Interest may be levied under:
- Section 234A – For delay in filing return
- Section 234B – For non-payment or underpayment of advance tax
- Section 234C – For deferment of advance tax
4. Prosecution
In extreme cases of willful tax evasion or fraud, prosecution may be initiated.
What Should You Do If You Receive a 143(2) Notice?
Heres a step-by-step guide:
Step 1: Stay Calm and Read Carefully
- Read the notice thoroughly
- Note the assessment year, PAN, deadline, and mode of submission
Step 2: Login to the e-Filing Portal
- Go to Pending Actions > e-Proceedings
- Open the notice and download the copy
Step 3: Compile Supporting Documents
- Gather income proofs, bank details, and any documents supporting claims made in ITR
Step 4: Prepare Point-wise Reply
- Address each query clearly
- Do not leave responses blank
Step 5: Submit Response and Acknowledge
- Upload documents in PDF (as per file size limits)
- Submit and download acknowledgment
Step 6: Consult a Tax Professional
- If you’re unsure, seek help from a CA or tax consultant
- Avoid casual or incomplete responses
Sample Format of Notice under Section 143(2)
Dear Taxpayer,
Income tax are issuing notice under section 143(2) to the taxpayers in massive numbers and asking taxpayer to submit the record giving 15 days period to submit the details Here the the notice content of notice
क. आपको यह संचार क्यों मिल रहा है?
A. Why are you getting this communication?
प्रियकरदाता,
Dear Taxpayer,
आयकर विभाग आपके द्वारा निर्धारण वर्ष 2024-25 के लिए दिनांक__________को पावती संख्या___________के तहत आयकर विवरणी दाखिल करने पर, देश के विकास में आपके योगदान की सराहना करता है।
The Income Tax Department appreciates your contribution towards development of the Nation by filing of your return of income for the Assessment Year 2024-25 vide Ack, no. _________________оп(Date).
विवरणिका को तैयार करने में आपकी सावधानी को स्वीकार करते हुए, कुछ मुद्दों पर और स्पष्टीकरण की आवश्यकता है. जिनके क आपकी आय विवरणिका को आयकर अधिनियम, 1961 के प्रावधानों के अनुसार संवीक्षा मूल्यांकन के लिए चुना गया है।
While acknowledging the care you may have taken in preparing the return of income, there are certain issues, on which further clarification is required. Therefore, the return of income has been selected for scrutiny assessment in accordance with the provisions of the Income-tax Act, 1961.
ख. आपको क्या करने की आवश्यकता है?
B. What you need to do?
आप ई-फाइलिंग वेबसाइट (wwww.incometax.gov.in) में इलेक्ट्रॉनिक रूप से अपने खाते के माध्यम से ई-प्रोसीडिंग्स की सुविधा का उपयोग करके, अपनी सुविधानुसार कोई भी साक्ष्य, जिस पर आप अपनी आयकर विवरणी के समर्थन में निर्भर करते हैं, दिनांक_____को या उससे पहले प्रस्तुत कर सकते हैं या करवा सकते हैं।
You may submit or cause to submit any evidence on which you may rely in support of your return of income electronically in e-Proceedings facility through your account in e-Filing website (www.incometax.gov.in) at your convenience on or before__________.
आपको विचाराधीन निर्धारण वर्ष के दौरान आपके द्वारा किए गये विभिन्न वित्तीय लेन-देन से संबन्धित सारी जानकारियाँ, दस्तावेज, साक्ष्य इत्यादि एकत्र करने की सलाह दी जाती है। विस्तृत प्रश्नावली या संचार, निर्धारण प्रक्रिया के दौरान जारी किया जा सकता है। जब भी आपको प्रश्नावली या संचार जारी किया जाता है, आपको निर्दिष्ट समयावधि में बिन्दुवार प्रतिक्रिया देने की आवश्यकता है।
It is advised that you should gather all the information, documents, evidences, etc. in respect of various financial transactions you have entered during the Assessment Year under consideration, which may be relevant for the scrutiny proceedings. Detailed questionnaire(s) or communication may be issued during the course ofassessment proceedings. As and when questionnaire(s) or communication is issued, you are required to provide specific point-wise response within the time specified.
ग. कार्यवाही का तरीका क्या होगा?
C. What will be the mode of proceedings?
कार्यवाही आपके ई-फाइलिंग वेबसाइट (www.incometax.gov.in) में खाते के माध्यम से ई-प्रोसीडिंग्स सुविधा के द्वारा इलेक्ट्रॉनिक रूप से की जाएगी। ई-प्रोसीडिंग्स / पहचान विहीन निर्धारण पर एक संक्षिप्त टिप्पणी ई-फाइलिंग वेबसाइट (www.incometax.gov.in) पर उपलब्ध है।
The proceedings will be conducted electronically in e-Proceedings facility through your account in e-Filing website (www.incometax.gov.in). Brief note on e-Proceedings/ Faceless Assessment are available on the e Filing website (www.incometax.gov.in).
घ. सहायता कैसे प्राप्त करें?
D. How to Get Assistance?
आप टोलफ्री नंबर 1800 103 4215 पर सभी कार्य दिवसों में प्रातः 9:30 से सांय 6:00 तक सम्पर्क कर सकते हैं।
You can also call at Toll Free number 1800 103 4215 from 9:30 a.m. to 6:00 p.m. on all working days.
ङ. ध्यान रखने योग्य बातें-
E. Tips to Remember
1. चूंकि संदेशों में आपके वित्तीय लेन-देन से संबन्धित व्यक्तिगत व संवेदनशील जानकारी हो सकती है, अतः आपको आयकर विभाग से सभी संचारों के लिए आपकी व्यक्तिगत / संस्थागत ई-मेल उपयोग करने की दृढ़ता से सलाह दी जाती है।
You are strongly advised to use your personal organizational e-mail ID for all the communication with us, since the communication may contain your personal and sensitive information related to your financial transactions.
2. कृपया प्रेषक की ईमेल को श्वेत सूची या सुरक्षित भेषक सूची में जोड़ें अन्यथा आपका मेल बॉक्स फिल्टर आपको इस प्रेषक से ई- मेल पर अद्यतन सूचनाएं प्राप्त करने से रोक सकता है।
Please add the sender e mail to whitelist or safe sender list; else your mailbox filter may stop you from receiving updates over e-mail from this sender.
3. बेहतर उपयोगकर्ता अनुभव के लिए internet explorer 11+, अद्यतन Chrome या Mozilla ब्राउसर के उपयोग की संस्तुति की जाती है। It is recommended to use internet explorer 11+, updated Chrome or Mozilla browsers for smooth user experience.
Tips to Avoid Scrutiny Notices
- File returns on time with accurate details
- Cross-verify Form 26AS, AIS, and TIS before submission
- Avoid inflated deductions
- Maintain complete records of income and investments
- Disclose all bank accounts, interest income, and foreign assets
- Reconcile your business/professional income with GST returns
- Do not claim the fake deduction and exemption in the income tax return
Recent Trends for AY 2024–25
For AY 2024–25, the Income Tax Department has started issuing 143(2) notices in significant numbers. In most cases:
- The notice is served via email and is reflected in the portal
- A 15-day deadline is given for the first response
- Assessment is being conducted completely online via Faceless Assessment
Therefore, timely and professional response is more important than ever.
Final Words
Receiving a notice under Section 143(2) is not uncommon and doesn’t necessarily mean something is wrong. However, it demands attention, proper documentation, and a timely response. Avoiding or delaying action can lead to financial consequences, penalties, or even legal complications.
Stay proactive, Submit your documents on time, Consult a qualified tax advisor if needed
