Last reviewed: 13 November 2026. A notice under section 143(2) means your return has been selected for scrutiny assessment. It is followed by questionnaires under section 142(1) asking for documents and explanations. Scrutiny is where most significant additions are made, and also where a well-documented reply closes the matter. Most cases are now handled through the faceless assessment scheme, so the entire file is built on what you upload.
Part of our income-tax notice series. For every notice type, the time limits and the appeal route, start with the complete guide to income-tax notices.
Why returns get selected
- Computer-assisted selection (CASS) on risk parameters, such as large refunds, high-value transactions in AIS not reflected in the return, sharp drops in income, or large exempt income claims.
- Compulsory selection under CBDT guidelines. For returns filed in FY 2025-26, the guidelines dated 4 June 2026 cover six categories (CS 01 to CS 06), including survey and search cases, cases with additions in earlier years on recurring issues, cases of non-response to reassessment, and cases flagged by specific information of tax evasion. Our note on compulsory scrutiny criteria for FY 2026-27 explains each.
Limited or complete scrutiny?
| Point | Limited scrutiny | Complete scrutiny |
|---|---|---|
| Scope | Only the issues listed in the notice | The entire return |
| Can the officer go beyond? | Only after converting to complete scrutiny with approval | Yes |
| Reply strategy | Answer only the listed issues, fully | Assemble the complete file: books, bank statements, ledgers, agreements |
What a 142(1) questionnaire usually asks
- Bank statements of all accounts and an explanation of large or cash credits.
- Sources of share capital, premium and unsecured loans: confirmations, ITRs and bank statements of lenders or investors. See what courts accept for section 68 additions.
- Purchase and sales registers, stock records and party confirmations. See defending bogus purchase additions.
- Details of deductions, exemptions and their supporting documents.
- Reconciliation of turnover with GST returns and AIS.
How to reply
- Note the response date in e-Proceedings and diarise it. Seek adjournment before that date if documents are not ready.
- Reply point by point, using the questionnaire's own numbering, with an index of annexures.
- Upload documents that prove each statement: a reply without evidence is read as an admission of the gap.
- Where the officer proposes a variation, a show cause notice and draft order will follow. Reply to it on facts and law, and ask for a personal hearing by video conference where facts need explaining.
- Keep every acknowledgement; they matter if the order is later challenged for breach of natural justice. See faceless orders quashed for natural justice.
Illustrative example
A private limited company in Navi Mumbai receives a 143(2) notice for AY 2025-26 under limited scrutiny on "large unsecured loans" and "share premium". The reply gives, for each lender and investor, the confirmation, PAN, ITR acknowledgement, bank statement extract showing the source, and the board and ROC filings for the allotment. The officer accepts six of seven parties; for the seventh, where the investor's bank statement shows a same-day cash deposit, the company provides the investor's explanation of the cash. That one point becomes the only contested issue in the order, and the appeal is confined to it.
Frequently asked questions
What is a 143(2) notice?
It is the notice that selects your return for scrutiny assessment. Without a valid notice under section 143(2) served within the time limit, a regular scrutiny assessment cannot be made.
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. For returns filed in FY 2025-26, the last date was 30 June 2026; for returns filed in FY 2026-27, it is 30 June 2027.
What is the difference between 143(2) and 142(1)?
Section 143(2) selects the return for scrutiny. Section 142(1) is used to call for documents, accounts and information during the assessment, and also to require a return to be filed where none was furnished.
Can I ask for a personal hearing in a faceless assessment?
Yes. When a show cause notice or draft variation is issued, you can request a personal hearing, which is conducted by video conference.
What if I cannot reply by the due date?
Apply for an adjournment on the portal before the due date, giving a reason. Not replying can lead to a best-judgment assessment under section 144.
We read the notice against your return, AIS and books, tell you what it is really asking, prepare the reply with supporting documents, file it on the portal and follow the matter through to the order and, where needed, appeal. The outcome rests with the tax authority; our work is to put a complete, documented response before it.
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This article is for general information and does not constitute advice on any specific case. Sources: the Income-tax Act, 1961 (which continues to govern assessment years up to 2026-27 under section 536 of the Income-tax Act, 2025), the Income-tax Act, 2025, the Finance Act, 2026 and the CBDT instructions and circulars cited in the text. Time limits run from the date of service of each notice or order; confirm the current position and the exact dates in your notice before acting. Firm details: Somesh Chandak & Associates, Chartered Accountants, Unit 119, 1st Floor, Centura Square IT Park, SG Barve Road, Wagle Estate, Thane West 400604. FRN 158694W.