Scrutiny notice under section 143(2): what it means and how to respond
A 143(2) notice means your return has been picked for detailed assessment. Organised, documented replies keep it short and the outcome predictable.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP, on · Published
Quick answer
A notice under section 143(2) means your return has been selected for scrutiny assessment. It must be served within three months from the end of the financial year in which you filed the return, and the assessment is usually faceless. Respond on the e-filing portal under e-Proceedings by the date in the notice, then answer each questionnaire under section 142(1). Ignoring it allows a best judgment assessment under section 144. In the Income-tax Act, 2025 the notice is under section 270(8).
Why returns are picked
- Computer-aided selection on risk parameters
- Large mismatches with AIS, Form 26AS or third-party data
- High-value transactions such as cash deposits or property deals not matching declared income
- Large refunds or deductions
- Information from other agencies
Check it is genuine. Every income-tax notice issued since 1 October 2019 carries a Document Identification Number (DIN). Verify it on the e-filing portal’s pre-login service “Authenticate notice/order issued by ITD”. The department’s own FAQ says a notice without a DIN is invalid and needs no response. Genuine notices also appear after login under Pending Actions, e-Proceedings.
How the assessment runs
In cases covered by section 144B, the National Faceless Assessment Centre allocates the case to an assessment unit and all communication is electronic; you do not meet the officer. Further questionnaires under section 142(1) follow, each with its own deadline. The assessment order must be passed within 12 months from the end of the assessment year (for assessment year 2022-23 onward).
| Step | What to do |
|---|---|
| 143(2) notice | Submit the response and documents by the date given |
| 142(1) questionnaires | Answer each fully by its due date and keep acknowledgements |
| Show cause notice | Reply to any proposed variation with evidence |
| Order | Check the computation; appeal or rectify if needed |
Which Act? The Income-tax Act, 2025 applies from tax year 2026-27. Returns and proceedings for assessment year 2026-27 (financial year 2025-26) and earlier years continue under the Income-tax Act, 1961, so a notice for those years cites the old section. Look up any section in our section finder.
Documents to prepare
- The notice and any questionnaire
- Return, computation and audit reports
- Books of account, bank statements and ledgers
- Evidence for income, exemptions and deductions
- Property, investment and loan papers relevant to the issues
If you ignore it
The officer can make a best judgment assessment under section 144 after giving you a chance to be heard, raising a demand with interest, and penalty proceedings for under-reporting can follow.
Frequently asked questions
What is the time limit for a 143(2) notice?
It must be served within three months from the end of the financial year in which the return was filed.
Is scrutiny assessment faceless?
In cases covered by section 144B, yes: it is run by the National Faceless Assessment Centre with electronic communication only. Some categories are excluded.
How long does a scrutiny assessment take?
The order must be passed within 12 months from the end of the assessment year, for assessment year 2022-23 onward.
What if I do not reply to a scrutiny notice?
The officer may complete a best judgment assessment under section 144, with demand, interest and possible penalty.
What is section 143(2) in the new Act?
Section 270(8) of the Income-tax Act, 2025, with the assessment order under section 270(10), for tax year 2026-27 onward.
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Official references
The statutory sources behind this page. We keep our guidance aligned to them: verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.