Around 1.75 lakhs people have received scrutiny notices for AY 2024-25 under Section 143(2) of the income tax act. If you’ve gotten one, don’t panic. It’s part of the Income Tax Department’s routine process to verify the details you have provided in your Income Tax Return (ITR).
Here’s what the email generally looks like,
Subject: Intimation under Section 143(2) of the Income Tax Act, 1961
Dear [Taxpayer Name],
This is to inform you that your Income Tax Return for Financial Year 2023‑2024 (Assessment Year 2024‑2025) has been selected for scrutiny under Section 143(2) of the Income Tax Act, 1961.
You are requested to visit the e‑Filing portal (https://www.incometax.gov.in) and respond to this notice under the ‘e‑Proceedings’ section at the earliest.
You will shortly receive the detailed notice PDF under Section 143(2) via email and via download from your account on the portal.
For any clarifications, please contact your jurisdictional Assessing Officer or call the helpline.
Regards,
Centralised Processing Centre
Income Tax Department
Let’s understand what this notice is about and what you need to do next.
What is the scrutiny notice u/s 143(2)?
So every year, a small percentage of returns are flagged under Computer-Assisted Scrutiny Selection (CASS) or manual scrutiny. And these taxpayers then receive a notice under Section 143(2).
This simply means your ITR has been selected for detailed scrutiny by the Assessing Officer (AO).
Now this can happen even if you’ve filed your taxes accurately and doesn’t always imply an error in your return. It’s just that the ITD wants to get more details from certain taxpayers to ensure everything’s in place.
Why are ITRs being selected for scrutiny?
Some of the common reasons returns have been picked for scrutiny this year include:
- Cash deposits in your bank account that you haven’t properly explained
- Large amounts credited to your bank that don’t match the income reported in your tax return
- Money invested in your business without clear evidence of where it came from
- Differences between the turnover shown in your tax return and your GST filings
- Discrepancies or irregularities in merger and acquisition transactions
I’ve attached the first page of a scrutiny notice below for your reference.
What to do if you receive a notice under 143(2)?
1. Gather your documents
Collect all relevant documents related to your income, including financial statements, transaction records, and other documents that supports your ITR. The ITD may send you a detailed questionnaire, and you’ll need to respond to each point within the given time frame.
2. Submit proof electronically
You’ll need to submit any supporting documents electronically through the e-Proceedings facility on the Income Tax e-filing portal.
You have 15 days from receiving the notice to submit your response. You can upload your documents, respond to any queries, and track all updates directly through this platform.
All communication and submissions will be through Faceless Assessment on the Income Tax e-filing portal.
3. Stay on top of notifications
Keep an eye on your email for updates or further communication from the ITD. Also ensure that your AIS (Annual Information Statement) matches your submitted documents to avoid discrepancies.
What happens after you submit?
Once you’ve submitted the required documents, the Assessing Officer will review them. If everything is in order, the scrutiny will be concluded. If further clarification is needed, you might be asked for additional information. Keep track of any follow-up communication from the ITD.
As long as you submit the requested information within the given time, this process should go smoothly. If you need any assistance, feel free to get in touch.