A scrutiny notice under Section 270 — the provision that replaced the old Section 143(2) — means your income-tax return has been selected for detailed scrutiny. Don't panic — most scrutiny is limited to a specific issue. The notice must be issued within 3 months of the end of the financial year in which you filed, the process is now faceless (online via e-Proceedings), and you respond by uploading the documents and explanations asked for, by the deadline.
Receiving a scrutiny notice feels alarming, but it is not an accusation of wrongdoing — it simply means the department wants to verify something in your return in detail before accepting it. Under the Income-tax Act, 2025, the processing of returns, prima-facie adjustments and scrutiny all sit in Section 270, which replaced the old Sections 143(1), 143(2) and 143(3). The vast majority of scrutiny today is limited scrutiny, focused on one or two specific points flagged by the system, such as a large deduction, a mismatch with your AIS, or a big refund. Handle it the right way — read exactly what is being asked, gather the supporting documents, and respond on time through the portal — and it usually closes without any addition to your income. The mistakes that cause trouble are ignoring the notice or responding vaguely, not the scrutiny itself.
After you file, your return is first processed — the automated check that was the old Section 143(1) and is now part of Section 270. Separately, the Assessing Officer may pick your return for a deeper examination, and this selection is communicated through a scrutiny notice under Section 270 (the old Section 143(2)). It tells you that your case has been taken up for scrutiny assessment, and it is followed by a detailed questionnaire calling for the specific information and documents required (the enquiry that was issued under the old Section 142(1)). There are broadly two flavours: limited scrutiny, where only the specific issue that triggered the selection is examined, and complete scrutiny, where the whole return is open to examination. Most computer-selected cases are limited.
The department cannot issue a scrutiny notice whenever it likes. It must be served within three months from the end of the financial year in which you filed the return. So if you filed your return for AY 2025-26 during the financial year 2025-26, the notice has to reach you by 30 June 2026. A notice issued after this limit is invalid, which is an important defence — always check the date of the notice against this deadline. If no valid Section 270 scrutiny notice is issued within the time limit, your return cannot be taken up for scrutiny at all.
Scrutiny is now faceless, conducted electronically through the National Faceless Assessment Centre, with no physical visit to a tax office and no named officer to meet. Everything happens on the income-tax e-filing portal under e-Proceedings: you receive the notice there, the questionnaire appears there, and you upload your responses and documents there. This removes the personal interface that used to worry taxpayers and keeps the whole process on record. You simply need to log in regularly during an open proceeding so you don't miss a notice or a deadline.
Common triggers for scrutiny include a mismatch between your return and the AIS, an unusually large deduction or exemption, a high-value transaction like a property purchase or big cash deposit, a substantial refund, foreign assets or income, and returns showing losses set off against other income. Because so much of this comes from data the department already holds, the best protection is to have filed accurately and reconciled your AIS in the first place — then scrutiny is just a matter of handing over the proof you already have.
Knowing which kind of scrutiny you are in shapes your whole response. In a limited scrutiny, the Assessing Officer can examine only the specific issue for which the case was flagged — say, a large donation deduction or a mismatch in interest income. The officer cannot roam into other parts of your return unless the case is formally converted into complete scrutiny with senior approval. That means your reply should stay tightly focused on the flagged issue: answer it fully, attach the proof, and avoid volunteering unrelated information that widens the enquiry. In a complete scrutiny, by contrast, the whole return is open, so you prepare a comprehensive file covering income, deductions, and major transactions. Reading the notice to identify which type you face is therefore the first and most important step.
Because scrutiny usually turns on evidence you already possess, assembling a clean file makes the process painless. Keep ready your salary and TDS certificates (Form 130 / 131, the old Form 16 / 16A) and Form 26AS, your AIS and TIS, bank statements for the year, capital-gains statements from your broker or registrar, proof of every deduction claimed (insurance premium receipts, home-loan interest certificate, donation receipts, rent receipts), purchase and sale deeds for any property transaction, and loan confirmations for large deposits. If the scrutiny concerns foreign assets or income, add your Schedule FA workings and foreign broker statements. Having these organised before you draft your reply lets you respond to each query with a document reference rather than a vague explanation — which is exactly what closes a scrutiny quickly and in your favour.
Ignoring a Section 270 scrutiny notice is the worst thing you can do. If you don't respond, the Assessing Officer can proceed to a best-judgment assessment under Section 271 (the old Section 144), estimating your income to your disadvantage, disallowing claims, and levying penalty and interest. You also lose the chance to explain genuine transactions that would have been accepted. So even if the notice seems to relate to a small or explainable matter, respond — it is far cheaper to answer than to fight an adverse order later.
Once the examination is complete, the department passes an assessment order under Section 270 (the order stage that was the old Section 143(3)). If it accepts your return, the matter ends. If it makes additions you disagree with, you are not without recourse — you can appeal to the Commissioner (Appeals) / NFAC, and secure a stay of the disputed demand (usually on paying 20%) while the appeal is heard. For anything but the simplest limited-scrutiny query, it is worth having a chartered accountant draft the response, because a well-argued, well-documented reply is what closes a scrutiny cleanly, keeps additions off your income, and — if an addition is still made — builds the record you will rely on in appeal.
It means your return has been selected for detailed scrutiny to verify specific claims or the whole return. It is not an accusation — most scrutiny is limited to one issue. You respond by uploading the requested documents and explanations on e-Proceedings by the deadline. This was the old Section 143(2) notice.
Within three months from the end of the financial year in which the return was filed. A notice issued after that is invalid, and without a valid Section 270 scrutiny notice within the limit, the return cannot be taken up for scrutiny.
Log in to the e-filing portal, open the notice under e-Proceedings, read the questionnaire, prepare a point-wise reply with supporting documents, and upload it before the deadline. Request an adjournment through the portal if you need more time.
The Assessing Officer can make a best-judgment assessment under Section 271 (old Section 144), estimating your income to your disadvantage, disallowing claims and levying penalty and interest. Always respond, even to a small query.
We read the notice, draft a documented point-wise reply and represent you through faceless assessment.
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