C.K. Gupta
In short
A scrutiny notice does not mean you did something wrong — only about 3–5% of returns are picked, often by computer selection or because one figure does not match the department’s data. The notice that starts scrutiny is the one under Section 143(2) of the old Act (Section 270(8) under the Income-tax Act, 2025, for assessment year 2027-28 onwards); the detailed questions come later, in a separate questionnaire. Reply point-by-point on the e-Proceedings portal with labelled documents, never by email, and never ignore it: silence can end in a best-judgment assessment on the officer’s estimate, not your real income.
Verified October 2026 · TaxGST.in
A salaried employee in Pune filed on time, claimed his HRA and 80C deductions, and got his refund. Eight months later a notice arrived: his return had been selected for scrutiny. He panicked, assumed he was under investigation, and nearly hired a consultant for ₹25,000 to reply to a notice that, at that stage, asked for nothing more than his computation of income. Scrutiny is a check, not a charge-sheet — but it is a check with deadlines, and the way you handle the first notice decides how painful the rest of it is.
If your notice is a different kind, check it first: the defective-return guide covers the 15-day correction notice, and the extended 21 November ITR deadline covers audit-category filing. If you also earn beyond salary, the salary-plus-side-income guide explains the AIS mismatches that most often trigger a closer look. For the full income-tax picture, see the income-tax guide hub and the compliance calendar hub for every live deadline.
Why your return was picked
There are only a few routes into scrutiny. The commonest is CASS — Computer-Assisted Scrutiny Selection — which picks returns on risk parameters: a mismatch between the income you reported and the transactions in your bank or investment records, a large refund claim relative to income, a high-value transaction (property, shares, foreign remittance) that does not appear in the return, or simply random selection for quality checks. Manual selection follows from information with the department — a survey, a tip-off, or a prior year’s issue. In practice, a notice rarely tells you the full reason at the selection stage; the questionnaire that follows tells you what is actually being examined.
Here’s the catch: the selection notice itself usually asks for very little. Taxpayers who over-respond at this stage — volunteering three years of bank statements nobody asked for — create new questions. Reply to what is asked, no more, no less, and keep the rest ready.
Limited, complete, or manual: read the notice type
The notice will say whether scrutiny is limited or complete, and that one word controls the whole case. In limited scrutiny, the officer is restricted to the specific issue named in the notice — say, a capital-gains computation — and cannot wander into the rest of your return. In complete scrutiny, no issue is named and the officer may examine everything. Manual scrutiny is generally issue-specific and arises from specific information. If your notice names an issue, do not answer questions outside it unless a later questionnaire formally expands the scope; if it names nothing, prepare for a full review and get your whole file in order before the questionnaire arrives.
The sequence, stage by stage
Stage 1 — the selection notice. You receive it on the e-filing portal, by email and SMS. Log in at incometax.gov.in, go to Pending Actions > e-Proceedings, download the notice, and check three things: the assessment year, the type of scrutiny, and the reply date printed on it. File your computation of income if asked, and confirm receipt. In most cases no detailed reply is due at this stage.
Stage 2 — the questionnaire. This is the substantive phase, issued as a separate notice (under Section 142(1) of the old Act, Section 268(1) of the 2025 Act). It lists numbered points. Answer point by point, in the same numbering, with each document labelled to the point it supports: bank statements, Form 16, Form 26AS, AIS and TIS, investment proofs, expense bills, capital-gains statements. Upload PDFs through e-Proceedings only — replies sent by email or in person have no legal value in a faceless assessment.
Stage 3 — follow-ups and hearing. The officer may issue further questionnaires on the same or new points. Under the faceless assessment scheme, hearings happen by video conference if you request one, and you or your authorised representative (a CA, for instance) may attend. Ask for a hearing if a point turns on explanation rather than paper — a transaction’s purpose, for example, is often clearer spoken than written.
Stage 4 — the order. The officer passes a final assessment order (Section 143(3) old Act, Section 270(10) of the 2025 Act) that either accepts your return or makes additions and raises a demand. You then have 30 days to appeal if you disagree — a deadline worth diarising the day the order arrives, not the day you get around to reading it.
Timelines that protect you
| Step | Deadline |
|---|---|
| Selection notice (old Section 143(2)) | Within 3 months of the end of the financial year in which the return was filed; a notice outside that window is time-barred |
| Questionnaire reply | The date printed on the notice — ask for an adjournment in writing before it passes, not after |
| Final assessment order | Within 12 months of the end of the relevant assessment year |
| Appeal against the order | 30 days from the order |
One warning matters more than the rest: if you miss a questionnaire deadline without seeking an adjournment, the officer may pass a best-judgment assessment (old Section 144, Section 271 of the 2025 Act) — a demand based on the officer’s estimate of your income. That order is appealable, but you will be fighting an estimate instead of presenting your own figures, which is a much worse position.
Your reply checklist
- Download and read the notice before drafting anything; note the AY, scrutiny type, and reply date.
- Reconcile your return with AIS, TIS and Form 26AS first — most additions start as a mismatch you could have explained.
- Answer in the notice’s numbering, one point at a time, with labelled PDFs (no single 200-page dump).
- Keep every submission acknowledgement; it is your proof of compliance.
- Never ignore a notice because the amount looks small — a small addition today becomes the reason for selection next year.
FAQs
Does a scrutiny notice mean I am suspected of tax evasion?
No. Most selections are computer-driven or random. It means your return will be checked in detail, nothing more.
What is the difference between limited and complete scrutiny?
Limited scrutiny is confined to the issue named in the notice; complete scrutiny has no named issue and may examine the whole return.
Can I reply by email to the assessing officer?
No — in faceless assessment, only replies filed through e-Proceedings on the portal count. Email and personal visits have no legal value.
What happens if I miss the reply date?
The officer may pass a best-judgment assessment on an estimated income. Seek an adjournment in writing before the date passes.
Do new-Act notices look different?
For assessment year 2027-28 onwards, the selection notice carries Section 270(8) and the questionnaire Section 268(1) of the Income-tax Act, 2025. Notices for AY 2026-27 and earlier still carry the old section numbers, and the portal reply process is identical.
Sources
Income-tax Act, 2025 — Section 270(8)–(10) (scrutiny selection and assessment, succeeding old Sections 143(2) and 143(3)), Section 268(1) (questionnaire, succeeding old Section 142(1)), and Section 271 (best-judgment assessment, succeeding old Section 144), as mapped for AY 2027-28 onwards; notices for AY 2026-27 and earlier continue under the Income-tax Act, 1961 section numbers. Faceless assessment scheme procedures (e-Proceedings on incometax.gov.in, video-conference hearings) as operated by the Income Tax Department. CASS selection and the 3–5% scrutiny incidence as described in the department’s scrutiny framework.
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