Quick answer: An income tax notice 143(2) means the department has picked your return for scrutiny — a detailed check, not a penalty. Only about 3–5% of returns get one. Reply online through e-Proceedings on incometax.gov.in, usually within 15–30 days. Ignoring it can lead to a best-judgment assessment decided without your inputs.
A 143(2) notice in your inbox feels alarming. It is not. In most cases, the department wants to verify one or two entries in your return — a mismatch with your AIS, a large deduction, a high-value transaction. If you reply on time with the right documents, most scrutiny cases close without any extra tax. This guide explains what the notice means, why you got it, and exactly how to reply.
What is an income tax notice 143(2)?
Section 143(2) of the Income-tax Act, 1961, is the notice the Assessing Officer issues when your return is selected for scrutiny assessment. It is the formal start of a detailed examination of your return under Section 143(3). Under the Income-tax Act, 2025, which applies from 1 April 2026, the provision is renumbered as Section 270(8) — but notices for Assessment Year 2026-27 and earlier years still cite Section 143(2), so check which Act your notice refers to before drafting your reply.
A 143(2) notice is different from the other notices you may know:
| Notice | What it means |
|---|---|
| Section 143(1) intimation | A computer-processed summary of your return — tax payable or refund due. No detailed check. |
| Section 143(2) notice | Your return is selected for scrutiny. A detailed check follows. |
| Section 142(1) notice | A questionnaire the officer sends during scrutiny, asking for specific documents and explanations. |
| Section 148 notice | Reassessment — the department believes income escaped assessment in an earlier year. |
The 143(2) notice itself usually does not list detailed questions. It tells you that scrutiny has started and whether it is limited scrutiny or complete scrutiny. The specific questions arrive later, usually through a separate notice under Section 142(1).
Why did I get a 143(2) scrutiny notice?
Most cases are picked by a computer, not by an officer reading your return. The main selection routes are:
- CASS — Computer-Assisted Scrutiny Selection. A rule-based system compares your return with third-party data: your AIS, Form 26AS, TDS returns, GST data, and high-value transaction reports (SFT) filed by banks and registrars. A mismatch — say, interest income in your AIS that is missing from your return — can trigger selection.
- Manual selection by the CBDT. Higher-risk profiles are picked by hand: foreign assets or transactions, undisclosed income, or cases linked to a search or survey.
- Specific risk flags. Large deductions claimed, a sharp drop in reported income, high-value property or share transactions, or cash deposits that do not match your income profile.
Getting picked does not mean you did anything wrong. The system flags patterns, and many flagged returns turn out to be correct once the taxpayer explains the entry with documents.
Limited scrutiny vs complete scrutiny: what is the difference?
Your notice will state which kind of scrutiny applies, and the difference decides how much you must submit.
- Limited scrutiny. The officer can examine only the specific issue named in the notice — for example, a single deduction or one bank transaction. You answer that issue, and the case should not expand into the rest of your return.
- Complete scrutiny. The officer can examine the whole return in detail. This is used for higher-risk cases, such as suspected undisclosed income or foreign assets.
If your notice says “limited scrutiny”, keep your reply focused on the named issue. Do not volunteer unrelated documents or explanations — extra material can only create new questions.
How much time do you get to reply to a 143(2) notice?
Two deadlines matter, and they are different:
| Deadline | Rule |
|---|---|
| Department must issue the notice | Within 3 months from the end of the financial year in which you filed the return. For a return filed in FY 2025-26, the notice must come by 30 June 2026. |
| You must reply | The time stated in the notice itself — typically 15 to 30 days from the date of service. The exact date is also shown on the e-Proceedings dashboard. |
Check the portal, not just the PDF. The due date on your e-Proceedings dashboard is the one that counts. If you need more time, you can ask for an adjournment through the same portal before the deadline — do not simply let the date pass.
How to check if your 143(2) notice is genuine
Fake tax notices are a real scam. Before you reply, verify the notice:
- Check the DIN. Every genuine notice carries a 20-character Document Identification Number. Log in to incometax.gov.in and use “Authenticate Notice / Verify DIN” to confirm it. A notice without a valid DIN should be treated as suspicious.
- Check the portal. A real notice also appears under Pending Actions → e-Proceedings on your own e-filing account. If it is not there, do not act on the email alone.
- Never pay from a link in an email. The department never asks for payment through an email link. Any payment happens only through the e-pay tax service on the portal.
Documents required for a 143(2) reply
Collect these before you start drafting, so your reply is complete in one go:
- Bank statements for the relevant financial year, with a reconciliation if the officer flagged a deposit or transaction
- Form 16 / Form 16A, Form 26AS, AIS and TIS for the assessment year
- Investment proofs for every deduction claimed — 80C, 80D, HRA, home-loan interest
- Purchase and sale deeds, contract notes, or capital-gains workings if a property or share transaction was flagged
- Rent agreements and rent receipts for HRA claims
- Foreign asset details (Schedule FA) if you hold any foreign account or asset
- The computation of income you filed with the return
Label every file clearly before uploading — for example, Annexure-A_BankStatement_SBI_FY2025-26.pdf and Annexure-B_Form16_Employer.pdf. A clear file name tells the officer what each document proves without opening it.
How to reply to a 143(2) notice online: step by step
All replies go through the e-Proceedings facility. Emailed or physical replies are not a valid substitute.
- Log in to incometax.gov.in with your PAN and password. Keep your registered mobile and email active for OTPs.
- Go to Pending Actions → e-Proceedings. You will see every active notice linked to your PAN.
- Open the notice. Click “View Notice” against the relevant assessment year, then download the Notice/Letter PDF to read the full text and the response deadline.
- Pull your data. Download your AIS, TIS, and Form 26AS for that assessment year from the portal, and match each flagged entry against your return.
- Draft a point-wise reply. Answer each query in the same order and numbering the notice uses. If the notice has 6 points, your reply addresses Point 1, then Point 2, in that order. State the fact, cite the document, and attach it as an annexure.
- Choose Agree or Disagree. On the response screen, choose whether you agree with the issue raised. If you agree, upload a revised computation. If you disagree, give your explanation with proof.
- Submit a Partial or Full Response. A partial response works if some points need more time — but file the full response before the deadline, and ask for an adjournment if you cannot.
- Tick the declaration and submit. Save the acknowledgement number. Check the portal after a few days to confirm the response shows as submitted.
A useful rhythm: Day 1, read the notice and verify the DIN. Days 2–5, collect documents and check them against AIS and 26AS. Days 6–10, draft the point-wise reply. Days 11–15, get it reviewed by a CA and submit. Do not leave submission to the last day — portal traffic and OTP delays are common near deadlines.
What happens after you reply?
After your response, the officer may send more queries through Section 142(1) notices, or ask for a video-conference hearing under the faceless assessment system. Most scrutiny in 2026 runs through the National Faceless Assessment Centre (NaFAC) — there is no in-person meeting with an officer, and all communication happens on the portal.
The process ends with an assessment order under Section 143(3). The assessment must generally be completed within 12 months from the end of the financial year of the relevant assessment year. The order will say whether your returned income is accepted, or whether the officer has added income and raised a demand. If you disagree with the order, you have 30 days to appeal to the Commissioner (Appeals).
What happens if you ignore a 143(2) notice?
Ignoring the notice is the one mistake that turns a routine check into a real problem:
- Best-judgment assessment under Section 144. The officer can complete your assessment on the basis of the material available — their estimate, not your actual income. That estimate is rarely in your favour.
- Penalty under Section 271(1)(b). A penalty of ₹10,000 can be imposed for failing to comply with a notice.
- The case escalates. Non-response itself becomes a risk flag, and the scrutiny can widen beyond the original issue.
If you missed the deadline, do not wait. Log in, file the response late with a short explanation for the delay, and request condonation. A late reply is far better than no reply.
Frequently asked questions
What is a Section 143(2) notice in simple terms?
A Section 143(2) notice means the Income Tax Department has selected your return for scrutiny — a detailed check of the return. It is not a penalty and does not mean you did anything wrong. Only about 3–5% of returns are picked, mostly by the CASS computer system after matching your return with AIS, Form 26AS, and bank data.
Why did I receive a scrutiny notice under 143(2)?
The usual triggers are a mismatch between your return and your AIS or Form 26AS, a large deduction, a high-value transaction, a sharp change in income, or foreign assets. Most cases are picked by the CASS system. Manual selection happens for higher-risk profiles, such as undisclosed income or search-linked cases.
How much time do I have to reply to a 143(2) notice?
The notice itself states your deadline — typically 15 to 30 days from the date of service. The exact date is also visible on the e-Proceedings dashboard on incometax.gov.in. The department, for its part, must issue the notice within 3 months from the end of the financial year in which you filed the return.
How do I reply to a 143(2) notice online?
Log in to incometax.gov.in, go to Pending Actions → e-Proceedings, open the notice, and click Submit Response. Draft a point-wise reply matching the notice’s numbering, attach labelled documents (bank statements, Form 16, 26AS, AIS, deduction proofs), choose Agree or Disagree, and submit before the deadline. Save the acknowledgement number.
What is the difference between limited and complete scrutiny?
In limited scrutiny, the officer can examine only the specific issue named in the notice. In complete scrutiny, the officer can examine the whole return. Your notice states which one applies. In limited scrutiny, keep your reply focused on the named issue and do not volunteer unrelated material.
What happens if I ignore a 143(2) notice?
The officer can pass a best-judgment assessment under Section 144, deciding your income on the material available — usually an estimate that is not in your favour. A penalty of ₹10,000 under Section 271(1)(b) can also apply. If you missed the deadline, file the response late with an explanation rather than ignoring it.
Is a 143(2) notice the same as a raid or search?
No. A 143(2) notice is a paper-based, faceless scrutiny of a filed return. A search (raid) under Section 132 is a different, far more serious action involving physical search of premises. A scrutiny notice never involves officers visiting your home.
Official sources
- Income Tax Department e-filing portal: incometax.gov.in
- Income Tax Department (old portal, circulars and forms): incometaxindia.gov.in
- Central Board of Direct Taxes / CBIC: cbic.gov.in
Reviewed by Asuthod Rathod, CA
Last updated: 5 November 2026
Disclaimer: This article is for general information only and is not tax advice. A scrutiny notice depends on the facts of your case. If the amount involved is large or the issue is complex, speak to a chartered accountant before replying.
Editorial byline for eircicai freelancer tax and ITR filing guides — covering 44ADA presumptive tax, advance tax, and ITR filing. Content is reviewed by Asuthod Rathod, CA.