The moment you get notice of an income tax assessment or are under scrutiny by the Income Tax Department, the need for a professional becomes paramount. Shah and Doshi is there to provide all-round support for the income tax scrutiny work, incident of appeals against assessment, and compliance related matters. Our competent team takes the complexities of the tax assessment process off your shoulders and does so while keeping your interests intact and ensuring that you are fully compliant.
Being thoroughly knowledgeable about the different provisions in the Income Tax Act and assessment procedures, we offer the complete support from the time the notice is received to the final relief, thereby, helping thousands of taxpayers solve their tax issues in a productive manner.
Types of Income Tax Assessment
Self-Assessment Under Section 140A
Taxpayers self-assess their tax liability when filing returns. Self-assessment consists of aggregating all income, claiming all deductions, and paying the self-assessment tax before the due date of 31 July.
Summary Assessment Under Section 143(1)
The IT Department performs an initial processing of the returns to check for any discrepancies or non-conformance against the data in Form 26AS. This is an automated process and may result in either a demand notice, or a notice for refund.
Scrutiny Assessment Under Section 143(3)
A scrutiny assessment elaborates a tax return filed and proceeds with examining all incomes, deductions, and invoices to ensure that all tax filings have been reasonably, accurately, and completely computed.
Best Judgment Assessment Under Section 144
If taxpayers have not submitted the requested information, the Assessing Officer will perform the assessment according to the recommendations of the IRS while computing the tax which often results in a larger tax bill in this type of assessment.
Income Tax Scrutiny Notice Support
What is Income Tax Scrutiny?
Income tax scrutiny, as provided under Section 143(2) involves a detailed examination of the return where the IT Department selects returns for review based on predefined indicators or discrepancies that require detailed examination.
Types of Scrutiny Assessment
- Limited Scrutiny (CASS): This will involve certain specific discrepancies, including discrepancies such as misrepresented information.
- Comprehensive Scrutiny: A more detailed examination of the return in detail where all the parts of the return are reviewed.
- Manual Scrutiny: Upon approval by CBDT, some returns will be selected for scrutiny assessment which involves full review.
Time Limits for Issuing Scrutiny Notices
Any notice issued under Section 143(2) must be issued within 3 months of the end of the financial year in which the return was filed. Example: If I filed my return for FY 2024–25 by July 31, 2025, then the Section 143(2) notice must be issued, if needed, by June 30, 2026.
Income Tax Assessment Notice Response
Step 1: Quick Review
Review the notice before you proceed to make sure you understand any issues that are raised, timeline, and documents required.
Step 2: Collect Documents
You need to have in your hands documents such as your bank statements, proof of your investments, returns, and other evidence for support.
Step 3: Draft Response
Draft a thorough response that responds to each point clearly and with supporting documents.
Step 4: Submit Online
Submit your response through the e-proceedings portal of the income tax Department, with a digital signature and receipt.
Elements to Consider in your Response
- Respond to every issue raised
- Present the relevant facts with references
- Blade clarity and professional tone
- Send them within the time allotments to keep away from fines
- File copy of the Income Tax Return (ITR)
- PAN & Aadhaar
- Bank statements & passbooks
- Salary slips & Form 16
- GST returns & ledgers (if applicable)
- Records of purchases, sales & expenses
- Proof of Investment, capital gains summary
- Property records & statements of loans
For a detailed explanation, please refer to our blog – How to Deal with Income tax scrutiny notice.
- Notice Analysis & Strategy – Understand the main issues and develop action plans.
- Document Preparation & Review – Collect and exhibit the necessary documents.
- Professional Representation – Be the face and voice of your power before the Assessing Officers.
- Appeal Filing & Follow-up – Submit appeals and oversee the entire process.
- Under-reporting of Income
- Overclaiming of Deductible Expenses
- Adjustments for Transfer Pricing
- Search & Survey Situations
- ITR Submission (AY 2025-26): Deadline September 16, 2025 (non-audit cases)
- Scrutiny Notice: Must be issued by June 30, 2026
- Assessment Order: Within 12 months from end of AY
- Response Time Limits:
- Section 143(1) demand – 30 days
- Section 143(2) notice – 15–30 days
- Penalty: ₹10,000 for every instance where a response is not given
- Best Judgment Assessment: Elevated tax liability will be assessed without your voice
- Appeal: You must pay 20% of taxes prior to filing an appeal
- Risk of Prosecution: However, there is the possibility your willful default will be prosecuted.
For practical tips on avoiding such penalties, read our guide: Common Reasons for Income Tax Assessment and How to Avoid Them.
- Lower your tax burden
- Prevent penalties
- Quickly resolve issues
- Ensure future compliance
- Specialized experience – decades of expertise in tax assessments
- Proven history – thousands of positive resolutions of cases before juries
- Strategic approach – we take the time to create a strategy for each client
- End-to-End Support –we help clients from first notice to appeal
Recent Updates & Changes
Income Tax Act 2025
The Income Tax Act 2025 establishes the term “Tax Year” in place of “Assessment Year” and makes compliance easier starting April 1, 2026.
Digital Assessment Process
There is now a strengthened e-proceedings process to submit your document(s) more simply online.
Faceless Assessment Scheme
The number of faceless assessments has increased significantly, thus saving taxpayers from the hassle of visiting the offices concerned.
CBDT Circulars 2025
New circulars give detailed timelines for the process of scrutiny, with special focus on limited scrutiny cases.
In our recent blog, we explain: Understanding the New Faceless Assessment Scheme.
Related Services
- Income Tax Return Filing
- Audit Services
- How to Choose the Right Auditing Firm
Obtain Expert Assistance with Tax Assessments
You don’t have to face challenges regarding income tax assessments on your own. Our team can provide full support if you receive any notices or if you are subjected to scrutiny or filing of appeals.
Phone: +91 9870611654 / +91 9819316484
Email: harshit@shahdoshi.com / ruchi@shahdoshi.com
WhatsApp: Quick consultation
Office: Based in Mumbai
What are you waiting for? The sooner we get involved, the better the outcome will be! Contact us today for expert help.
FAQ's
An income tax assessment is the procedure whereby the Income Tax Department examines and verifies your tax return to make sure it relates to the proper amounts and the legal parameters.
The main types of assessment include self-assessment, summary assessment, scrutiny assessment, best judgment assessment, and re-assessment under various sections of the Income Tax Act.
Notices are typically issued because there is a mismatch of some data, some high-value transactions, excessive deductions, or even just a random selection from the CASS (Computer Assisted Scrutiny Selection).
You usually have 15–30 days to respond to the income tax notice based on the date specified in the notice.
A notice of assessment for income tax is an official letter from the IT Department advising you of your assessed income, tax liability or refund after the return you filed has been reviewed.
Read the notice, note any deadlines, collect any documentation needed, and, if necessary, seek a tax advisor before responding.
No. Ignoring a notice of assessment, or notice of scrutiny, invites penalties, higher tax liability resulting from a best judgment assessment and in extreme cases a prosecution.
Yes, you can. However, acting without professional assistance is risky. Professional assistance ensures appropriate responses, representation, and decreases the risk of penalties.
Provide accurate documentation, conduct your communications professionally, and stay within the law.
A scrutiny assessment (143(3)) assessment is a detailed review against a regular assessment which covers all assessment procedures.