CBDT has started MASS dispatch of Scrutiny Notices for AY 2024–25.
1. What is a Scrutiny Notice?
It’s a formal notice issued u/s 143(2) of the Income Tax Act.
It means the department wants to verify specific information in your ITR and not that you’ve done anything illegal.
2. Who’s Getting Picked This Time?
Surprisingly, many individuals are under the radar – especially those who:
Reported only salary income inspite of multiple incomes in AIS
Ignored mutual fund capital gains
Missed showing dividend income
Claimed inflated deductions but didn’t declare related proofs to employers.
3. Real Examples (Just This Week):
These 3 scrutiny notices came to my notice in my office in last week:
- Case 1 – ₹6L mutual fund redemptions shown in AIS, but ITR only declared salary!
- Case 2 – ₹1.9L VDA transactions missed; 80D & 80G claimed.
- Case 3 – ITR-1 filed despite holding RSUs in the US (foreign assets).
All 3 were filed intentionally to hide taxes. All received notices under 143(2).
4. Where to Check If You’ve Got One?
Email from: donotreply@incometax.gov.in
Portal: incometax.gov.in
Go to: e-Proceedings → Assessment → View Notices
Download & read the PDF carefully
Note the reply deadline – usually 15 to 30 days.
5. What To Do Immediately ?
✔️ Get your Form 26AS + AIS + TIS
✔️ Match them with your ITR line-by-line
✔️ Collect all supporting docs:
•MF capital gains statements
•Salary + perquisite breakup
•Bank account proof of dividends
•Donation receipts, etc.
6. Filing a Response – Be Structured
Go to e-Proceedings → Assessment → Submit Response
Upload clear, labelled PDFs and no zip files
Include a short cover note summarising your position and ITR submissions.
7. Should You Take Professional Help?
If your ITR has:
Capital gains
RSUs/foreign holdings
Business income
Refund mismatch or large deductions
Don’t experiment. Consult a CA.
A wrong reply may invite penalty, re-assessment, or delay closure.
8. Ignoring It? Think Again.
If no reply is filed in time, the AO may pass a Best Judgment Assessment u/s 144.
That means:
❌ Refund denied
❌ Deductions disallowed
✅ Tax computed as per their assumptions
Possibly highest tax slab
9. This Is Manageable – If You Act
I’ve seen scrutiny cases closed peacefully when:
✔️ Documents were in order
✔️ Timely & complete response was filed
✔️ Communication was polite and logical
It is just a legal review process. Treat it that way.
10. Avoiding Scrutiny in Future
- Match AIS & 26AS before filing
- Don’t ignore dividends, MF redemptions, or stock gains
- File ITR-2/3 if you have multiple income heads or capital gains
- Disclose RSUs & foreign assets in Schedule FA
⚠️ And remember that once you receive a scrutiny notice, you cannot file an Updated Return u/s 139(8A) to fix mistakes. That door is closed.
Final Advice
Scrutiny doesn’t mean you’re in trouble but mishandling it surely can put you there.
It’s mostly about mismatches, not fraud.
But once 143(2) is issued:
➡️ No updated return
➡️ Everything must now be supported and explained
➡️ Be honest, be proactive, and seek help if needed