As scrutiny notices under Section 143(2) begin to reach taxpayers for Assessment Year 2024–25, it's crucial to understand what they signify, how they link to the faceless assessment system under Section 144B, and how to prepare a proper, timely response.
This blog breaks it all down — from legal basics to practical checklists — and helps you avoid last-minute panic under the fast-evolving digital compliance regime.
Section 143(2): The Trigger for Scrutiny
Section 143(2) empowers the Income Tax Department to scrutinize your return if it suspects:
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Under-reporting of income
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Excess deduction or exemption claims
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Mismatch with third-party data like TDS, AIS, or SFT
Law Extract:
“Where a return has been made under section 139 or in response to a notice under section 142(1), and the Assessing Officer considers it necessary to ensure that the assessee has not understated the income... he may serve a notice requiring the assessee to produce evidence in support of the return.”
30 June 2025: The Statutory Deadline to Issue 143(2) Notices
As per the second proviso to Section 143(2):
“No notice under this sub-section shall be served on the assessee after the expiry of three months from the end of the financial year in which the return is furnished.”
So, for AY 2024–25:
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If you filed your return in FY 2023–24,
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The last date for the department to issue a 143(2) notice is:
30 June 2025
Notices issued after this date (unless under reassessment or search) are invalid.
Section 144B: The Faceless Assessment Framework
Once a notice under Section 143(2) is issued, all further communication, document submission, and final assessment are governed by Section 144B — the faceless assessment regime.
Key Features:
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Entire process is digital through the e-filing portal
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No physical interaction or local assessing officer
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Communications are issued by the National Faceless Assessment Centre (NaFAC)
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Responses must be submitted via e-Proceedings only
How to Respond to 143(2) Notice — if Received on or Before 30 June 2025
It is common to receive a 143(2) notice with no issue list initially. This usually means the notice was issued before the 30 June deadline but the questionnaire will follow later.
What to Do Immediately:
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Log into the income tax portal:
www.incometax.gov.in -
Go to:
Pending Actions → e-Proceedings → Faceless Proceedings -
Open the notice under Section 143(2) and check for:
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Whether detailed issues are listed
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The type of scrutiny (Limited or Complete)
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If no details are provided, submit this initial response:
AIS vs TIS: Understand and Reconcile Early
Before submitting your full response, you should reconcile your ITR with:
| Feature | AIS (Annual Information Statement) | TIS (Taxpayer Information Summary) |
|---|---|---|
| What it shows | Detailed transaction-wise data from SFTs, TDS, GST, banks, etc. | Summary of income heads (used for ITR prefill) |
| Editable | Yes — you can submit feedback for corrections | No — auto-generated summary |
| Common triggers for mismatch | Bank interest, capital gains, dividends, foreign income | Aggregated mismatch from AIS that flags under-reporting |
What Documents to Start Compiling Immediately
The following checklist will help you respond accurately when the questionnaire arrives:
Common for All:
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Acknowledged ITR-V for AY 2024–25
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Computation of total income
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PAN and Aadhaar copies
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Form 26AS, AIS, and TIS
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All bank statements for the year
If Salary Income:
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Form 16
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Salary slips
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Employer’s declaration for HRA, LTA claims
If Capital Gains:
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Demat account statements
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Contract notes
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Capital gain working with cost/indexation
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Property sale deeds (if applicable)
If Business/Profession:
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Balance Sheet and P&L
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Tax Audit Report & Form 3CD (if applicable)
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GST returns
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Ledger extracts (loans, cash, expenses)
If House Property:
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Rental agreement
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Home loan interest certificate
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Municipal tax receipts
If Foreign Assets or Income:
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Foreign bank or asset disclosures
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Form 67 (for FTC)
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Form 10F and TRC (if DTAA applied)
Responding to the Next Notices (Usually Under Section 142(1))
You may receive further:
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A detailed issue-wise questionnaire under Section 142(1)
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A show-cause notice cum draft assessment order under Section 144B(1)(xvi)(b)
Timeline: Usually 7–15 days to respond.
Use the e-filing portal → “e-Proceedings” → Select notice → “Submit Response”
Attach documents in PDF format with clear names (e.g., "Interest_Certificate_HDFC.pdf")
Final Tips
| ✅ Do This | ❌ Avoid This |
|---|---|
| Always check portal weekly | Ignoring portal/email alerts |
| Submit PDF documents only | Sending emails or offline letters |
| Reconcile AIS-TIS-ITR | Assuming return is error-free |
| Use authorized representative if needed | Waiting until deadline to respond |
Summary Table
| Provision | Role in Scrutiny |
|---|---|
| Section 143(2) | Starts scrutiny – must be issued by 30 June 2025 |
| Section 144B | Governs entire digital, faceless assessment |
| AIS / TIS | Basis for identifying discrepancies |
| Section 142(1) | Follow-up notice seeking detailed information |
The scrutiny process may begin with a brief 143(2) notice, but your preparedness defines the outcome. Stay alert to your e-filing portal, respond promptly, and start compiling records right now — even before a detailed questionnaire arrives.
