Timely filing of your income tax return is such a euphoric feeling, isn't it? You have made the disclosure, availed the deductions, and filed your return on time. And then, out of the blue, you get a notice in your mailbox — a notice that states your return has been selected for scrutiny under section 143 2 of income tax act.

Now what?

If you hear this before, don't panic. You're not alone. Thousands of taxpayers, both companies and individuals, receive the same income tax notices annually. And the majority of them also panic at first. But the good news is: if you play smart and within the time frame, there's absolutely nothing to fear.

This blog, courtesy of Book My Accountant (BMA), will take you through what the notice is about, why it occurs, and the precise steps to follow—particularly if you do not wish to incur penalties or tax issues down the road.

What Does a Section 143(2) Notice Mean?

Let's make it easy. Notice under section 143 2 of income tax act indicates the Income Tax Department needs to examine your return in more detail. It doesn't indicate that you are in trouble. It only means that something in your return puzzled them and they require clarification.

It might be because:

• You have reported a high amount of income or deducted large amounts.
• There is inconsistency between your Form 26AS/AIS and your ITR.
• You had significant transactions—namely, selling a property or investing a large sum.
• Your return was arbitrarily picked up by the system for scrutiny.

Briefly, this is routine scrutiny by the tax department. You just have to reply correctly and in time.

How Does Section 144B Relate to This?

You may have also heard of section 144B. It addresses faceless assessment.

Are those days gone when you used to have to go to an IT office? Now all of this is done online — safely, openly, and without any human bias. If your return is selected for assessment, all correspondence will be through the income tax portal.

So yes, even if you receive a notice under section 143(2), the assessment will probably follow the procedure under 144B.

Why Did You Receive a Notice?

• Folks will wonder, "But I didn't do anything wrong. Why me?"
• The truth is, here are some of the usual triggers:
• Enormous refunds received
• Donations or deductions that don't make sense based on your income
• Transactions flagged by banks or third parties but not included in your return
• Business expenses appearing to be exaggerated
• Technical discrepancies in income or tax credits

Even if you've been completely above board, certain patterns or numbers can trigger your return for audit.

Step-by-Step: What You Should Do Immediately

Let's go into action mode. Here's your plan:

Step 1: Read the Notice Carefully

1. The assessment year (e.g. AY 2024–25)
2. The date of issue
3. The deadline for response
4. Whether it’s under 143(2) or also mentions 144B

Don't freak out. Just know what they're looking for.

Step 2: Collect Your Documents

Before you reply, you'll need to substantiate your claims with appropriate documents. Start with:

• PAN & Aadhaar copies
• ITR Acknowledgement
• Bank statements
• Salary slips / Form 16
• Form 26AS, AIS, and TIS reports
• Deduction proofs (80C, 80D, home loan, etc.)
• Capital gain statements
• Business records, if applicable

In essence, you need to construct a solid, fact-based reply.

Step 3: Log into the e-Filing Portal

Go to https://www.incometax.gov.in.

Proceed to "e-Proceedings" under "Pending Actions".

Locate the notice and click on "Submit Response".

Here you can attach supporting documents and reply in writing as needed.

Step 4: Respond Before the Deadline

Suppose the notice was published on 23rd June 2025 with a deadline to respond of 8th July 2025. If you happen to miss this date, the department can go ahead with a best judgment determination. That is, they will determine your case in your absence — and that might not be favorable for you.

What If You Need More Time?

If you are really not able to file on time, you can get an income tax extension through the portal. Simply state your reason clearly. Extensions are issued in actual cases.

But it's always best to be prepared and proactive. Answer early if you are able to.

Why a Tax Expert Can Make a Huge Difference

Even if you’re comfortable handling your taxes, scrutiny notices can get technical. If you’re a salaried person with multiple income streams, a business owner, or someone who has claimed heavy refunds, consulting a Chartered Accountant (CA) is wise.

Here’s how professionals like the team at BMA can help:

• Identify errors or mismatches in your ITR vs. AIS/Form 26AS
• Draft a legally strong response under the correct tax provisions
• Upload clear and complete documentation
• Handle follow-ups or departmental queries on your behalf
• You wouldn’t want to lose a refund or face penalties because of an innocent mistake.

Tips to Avoid Notices in the Future

Want to stay off the department’s radar? Here’s how:

• File your income tax return before the income tax return last date
• Reconcile Form 26AS, AIS, and your actual income before filing
• Don’t overclaim deductions
• Disclose all sources of income, including crypto, rent, dividends
• For businesses, keep books current and tidy
• Think about getting a professional tax review prior to filing

And if you fear that you need extra time to file, get an income tax extension ahead of time instead of waiting until the very last minute.

What Happens if You Don't Respond?

Seriously? It's just not worth taking the chance.

If you don't respond:

• The department might think that you're concealing something
• Penalties and interest could be charged
• Your income tax refund could be withheld
• It may lead to further investigation

If it's a company tax return, the risk is even higher — your history of compliance counts for loans, tenders, audits, and reputation.

Dos and Don'ts of Tax Notice Handling

Final Thoughts

Receiving a notice under section 143 2 of income tax act can be alarming, but it doesn't have to be an issue. It's a normal part of the tax system these days. Remain calm, remain truthful, and react intelligently.

And don't forget, if it's your first time receiving a notice or you are getting the notice every income tax this year, BMA is a call away. We are experts at solving both individual and company tax filing, with one-on-one care.