A notice under Section 143(2) means the Assessing Officer has selected your return for scrutiny to verify claims, income and deductions. It must be served within three months from the end of the financial year in which the return was furnished; a notice issued late is invalid, and the assessment is conducted faceless.
What the notice means
Section 143(2) initiates a scrutiny assessment. The return is examined in detail to confirm that income is not understated, losses are not overstated, and deductions are correctly claimed. Scrutiny may be limited (specific issues flagged by the system) or complete (the whole return).
Limited vs complete scrutiny
| Type | Scope |
|---|---|
| Limited scrutiny | Only the specific issues mentioned (e.g. a large deduction, a mismatch) |
| Complete scrutiny | The entire return; AO can examine any aspect |
In limited scrutiny, the officer cannot travel beyond the flagged issues without converting it to complete scrutiny with approval.
How to respond
- Note the issues and the response deadline on the e-filing portal.
- Respond through faceless e-proceedings — upload documents and a point-wise reply.
- Reconcile the return with 26AS/AIS/TIS and books for each issue.
- Keep replies factual and supported; seek adjournment through the portal if needed.
Outcome and timeline
The scrutiny ends with an order under Section 143(3), generally within 12 months from the end of the assessment year (subject to the statutory limit for the year). A well-documented, timely response is the best defence against additions; an unfavourable order can be appealed to the CIT(A).
Key takeaways
- 143(2) starts a scrutiny assessment of your return.
- Must be served within 3 months of the FY-end of filing — or it is invalid.
- Scrutiny is limited (flagged issues) or complete (whole return).
- Respond via faceless e-proceedings; order under 143(3).