Income tax scrutiny notice: what it means and what to do
The one genuinely worth taking seriously from the moment it arrives.
An income tax scrutiny notice, issued under Section 143(2), is the one genuinely worth taking seriously from the moment it arrives. Unlike an automated intimation, it means an Assessing Officer is going to examine your return and the documents behind it in detail, not just cross-check totals against a database.
What a scrutiny notice actually is
A 143(2) notice signals that your return has been selected for detailed scrutiny. The tax department wants further clarity on specific claims, transactions, deductions, or expenses included in your ITR, and it marks the start of a formal audit process, not a routine reconciliation. It can only be issued within a statutory window: within three months from the end of the financial year in which the return was filed. If you haven’t heard anything by the end of that window for a given year, that year’s scrutiny window has effectively closed.
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Limited scrutiny vs. complete scrutiny
Scrutiny isn’t one-size-fits-all. A limited scrutiny notice means the Assessing Officer is focused on specific issues or discrepancies already flagged in your return, a narrower, faster process. A complete scrutiny(also called full scrutiny) is a much more thorough examination of your entire ITR and all related supporting documents. Which one you’ve received is usually clear from how the notice is worded and what it specifically asks for.
What triggers a scrutiny notice
A mismatch between the income you reported and the information already available with the tax department (from Form 26AS, AIS, or third-party reporting) is the single most common trigger. Others include large year-on-year income or loss fluctuations, undeclared or improperly declared foreign income or assets, and inconsistencies around TDS or refund claims.
Deadline and how to respond
The response deadline is tighter than the other notice types, commonly 15 days, and what’s being asked for is usually specific: documentary evidence for a claim, or an explanation for a pattern in the return. A scrutiny notice isn’t an automatic tax demand by itself, but it does require a timely, well-supported response. This is the notice type where getting professional help from a chartered accountant, not a forum post, is worth it more often than not, since the outcome directly shapes the assessment order that follows.
All figures are indicative and for educational purposes only, not financial advice.
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