Reply To

Notice under Section 143(2)  

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Reply to Notice under Section 143(2) of Income Tax Act for Scrutiny Assessment 

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What is a Reply to Notice under Section 143(2)?   

A reply to notice under Section 143(2) is the formal response you submit when the Income Tax Department selects your return for income tax scrutiny assessment. The notice is issued to verify your income, deductions, exemptions, and claims made in the filed ITR. You must provide accurate information and supporting documents to justify your return.

The scrutiny notice under the Income Tax Act is not a penalty but only a verification step. However, ignoring or incorrectly replying to it can result in tax demand, penalties, or further investigation. That is why a proper and detailed section 143 2 scrutiny notice reply is very important.

Ebizfiling helps you prepare a correct, timely, and complete reply supported with all required evidence. We guide you through how to reply to 143 2 notice, what documents to prepare, and how to respond on the income tax portal.

When is Notice u/s 143(2) is issued?   

A notice under Section 143(2) of the Income Tax Act, 1961, is issued by the Income Tax Department in India after an income tax return (ITR) has been filed. This notice is typically sent for the purpose of scrutiny assessment. Here’s when and how it is generally issued:

  1. Filing of Return: After a taxpayer files their income tax return, the Income Tax Department processes it.

  2. Selection for Scrutiny: If the return is selected for scrutiny based on certain criteria (like discrepancies, high income, etc.), the department issues a notice under Section 143(2).

  3. Timeframe: The notice must be issued within six months from the end of the assessment year in which the return is filed. For example, if the ITR is filed for the assessment year 2022-23, the notice must be issued by September 30, 2023.

  4. Response Required: The notice requires the taxpayer to respond to the queries raised by the department, usually involving documentation and evidence supporting the claims made in the return.

  5. Assessment Process: Following the response, the assessment process continues, which may involve further notices or discussions.

How-to-Handle-Section-143(2)-Scrutiny-Assessment

What is the time limit for issuing a notice under Section 143(2)?   

The notice must be issued within six months from the end of the assessment year in which the income tax return (ITR) was filed.

 Deadline to issue the final assessment order under Section 143(2)   

The assessment order must be completed within 12 months from the end of the assessment year in which the notice under Section 143(2) was issued.

Suggested Read: Expecting a Tax Refund but Got a Demand? Understand Your 143(1) Notice  

Why Ebizfiling?   

EbizFiling.com is a top business platform that offers company setup, compliance, and management consulting services in India and abroad. They make online GST return filing easy, fast, and affordable. It also assist with Income Tax filing, TDS, PF, and ESI returns.

For help with GST returns or to learn more, contact their compliance manager at 09643203209 or email info@ebizfiling.com for a free consultation.

Charges to reply notice under section 245 of Incone Tax Act

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ESSENTIAL

8850/-

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  • 1st Reply to Income tax notice U/s 143(2)

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4130/-

(All Inclusive)

  • Subsequent Reply to Income tax notice U/s

What happens if you don’t comply with the notice under Section 143(2)?     

Assessment Order

If you don’t respond, the tax department may make decisions about your taxes without your input, which could lead to you owing more money.

Best Judgment Assessment

The tax officer might estimate your income based on limited information, possibly resulting in a higher tax bill.

Penalties

Not responding to the notice can lead to penalties, which could be up to ₹10,000 for each time you don’t comply.

Interest on Tax Due

If you end up owing more taxes, you may also have to pay extra interest for not paying on time.

Prosecution

In serious cases, such as deliberately ignoring notices, the tax department could take legal action, leading to fines or even jail time.

Loss of Tax Benefits

If you can’t prove deductions or credits you claimed, you may lose those benefits and end up paying more taxes.

Future Scrutiny

Ignoring notices can make the tax department watch your future tax returns more closely.

Legal Action

The tax department can take legal steps to collect what you owe, like seizing your property or bank accounts

 Documents Required for Reply to Section 143(2) Notice   

  • PAN

  • Aadhaar

  • Income Tax Return copy

  • Form 26AS

  • AIS and TIS statements

  • Bank statements

  • Salary slips or salary certificate

  • Proof of deductions claimed

  • Proof of investments

  • Books of accounts (if applicable)

  • Purchase and sales invoices

  • Rent agreement

  • Property purchase or sale documents

  • Loan statements

  • Any additional document requested by the Assessing Officer

 Advantages of Filing Your 143(2) Scrutiny Reply with Ebizfiling   

Expert Review

We check your ITR, claims, and financial details carefully, helping you prepare a correct reply for the scrutiny notice to avoid any tax issues later.

Clear Drafting

Your reply is written in simple and accurate language, ensuring the assessing officer understands each explanation without confusion or missing details.

Timely Filing

We help you prepare and submit your 143(2) reply before the due date so you avoid penalties, further scrutiny, or adverse orders from the department.

Correct Documents

Our team guides you in collecting and uploading the right supporting papers so every claim in your return is backed with proper and valid evidence.

Portal Support

We assist you in uploading your reply, records, and annexures correctly on the income tax portal so your entire scrutiny submission is error-free.

End Guidance

You receive complete support from notice review to final submission, including answers to queries raised by the officer during the assessment process.

 Stepwise Process for Replying to Section 143(2) Notice 

1

Share Your Notice

2

Provide Supporting Documents

3

Drafting Your Reply

4

Review and Approval

5

Submission on Portal

 How Ebizfiling Processes Your Scrutiny Notice ?

  • We examine the 143(2) notice to understand the exact issues selected for verification so your reply addresses each point clearly and accurately. We review your ITR, AIS, Form 26AS, and related records to match income details, deductions,  and transactions reported in your return correctly.

  • We prepare a clear list of required supporting documents so every income, deduction, or claim mentioned in your return is properly validated

  • We create a detailed computation sheet that shows correct taxable income, deductions, and figures, helping officers verify your return easily.

  • We draft a simple and precise reply covering all queries in the scrutiny notice so the assessing officer receives clear and complete answers.

  • We help you upload your reply and supporting documents on the income tax portal correctly to ensure smooth and error-free submission online.

  • We assist continuously after submission, manage officer queries, and track updates so your scrutiny assessment reaches a proper conclusion.

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FAQs on Reply to Notice under Section 143(2)   

Get answers to all your Queries

  • What is the purpose of a Section 143(2) notice?

    It is issued when the department wants to verify details in your ITR. It checks income, deductions, and claims you reported.

  • How will I know if my return is selected for scrutiny?

    You will get the notice on email and SMS. It also appears in your income tax portal under the e-proceedings section.

  • How soon should I reply to a 143(2) notice?

    You must reply within the deadline mentioned in the notice. The income tax portal also shows the due date for response submission.

  • Is a Section 143(2) notice a penalty?

    No, it is not a penalty and only verifies your return. However, ignoring it or replying incorrectly can create tax liabilities.

  • Why was my ITR picked for scrutiny?

    Reasons may include mismatched income, high-value transactions, or unusual claims. Some notices are also issued through random selection.

  • Can I reply to a 143(2) notice online?

    Yes, all replies and documents are filed online. You can upload everything through the e-proceedings section on the tax portal.

  • What happens if I ignore the notice?

    The officer may pass an adverse order or raise tax demand. It can also lead to further assessment or stronger action.

  • What documents should I submit?

    You must submit proofs like bank statements, Form 26AS, AIS, salary slips, and receipts. Anything supporting your ITR claims may be required.

  • Can salaried employees also receive a 143(2) notice?

    Yes, any taxpayer may be selected for scrutiny. Salaried individuals often receive notices for mismatches or extra deductions.

  • Do I need a CA to reply to this notice?

    You can reply yourself if you understand the process. Taking expert help reduces errors and prevents possible tax disputes.

  • What is a limited scrutiny case?

    It focuses only on a few selected issues. You must reply only to those specific points mentioned in the notice.

  • What is a complete scrutiny case?

    It examines your entire financial profile and return. Income, expenses, deductions, and all transactions may be checked.

  • How do I check my scrutiny notice online?

    Log in to the income tax portal using your PAN. Go to e-proceedings to see the notice and pending actions.

  • Can the officer ask for additional documents?

    Yes, follow-up questions or document requests are common. You may have to upload extra proofs based on your first reply.

  • How long does scrutiny assessment take?

    It depends on the nature of the case and documents. Most assessments are completed within the relevant assessment year.

  • Can I modify my reply after submitting?

    You cannot edit a submitted reply. But you may file additional responses if the officer asks for more clarification.

  • Is a hearing required for scrutiny assessment?

    Some cases require online hearings or video meetings. The officer may ask you to clarify specific points directly.

  • Will scrutiny affect future returns?

    Scrutiny does not affect your future filings. But repeated mismatches or errors can increase the chance of future checks.

  • Does receiving a 143(2) notice mean I made a mistake?

    Not always, as many cases are routine checks. Some notices are issued automatically based on system triggers.

  • How does Ebizfiling help with scrutiny replies?

    We assist with drafting your reply and preparing documents. We also help with portal filing and follow-up until closure.

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    12 Jan 2018

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    19 Nov 2021

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