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Section 143(1) intimation vs 143(2) scrutiny: two very different letters
An intimation under Section 143(1) is a computerised calculation, not an audit. Section 143(2) is the formal scrutiny notice. Know which one you have and what each demands.
By Amit Modi
Published 13 August 2026 · Updated 13 August 2026 · 4 min read
Section 143(1) intimation vs 143(2) scrutiny: two very different letters
I got an intimation under Section 143(1). Am I under scrutiny?
Not yet. A Section 143(1) intimation is the computerised tax, interest, or refund calculation on your filed return — it is not an audit. Section 143(2) is the formal scrutiny notice issued only after selection. A 143(1) adjustment is correctable; a 143(2) notice must be answered.
The Income Tax department sends two letters that share a section number and nothing else. One is an automatic calculation slip; the other is the formal beginning of an examination of your affairs. Confusing them costs time and, in the worst case, a default assessment.
What the Section 143(1) intimation actually is#
When you file a return, the department's system processes it and generates a statement under Section 143(1) — the "intimation" you see in your e-filing inbox. It shows the tax computed from your return, any interest, and either a refund or a demand.
Key facts about the intimation:
- It is computerised — no officer has reviewed your return.
- It can contain arithmetical or clerical adjustments the system made to your return as filed.
- A demand arises most often from a mismatch between the tax you declared and the tax paid, or from an adjustment the system applied automatically.
- A wrong intimation is correctable — through a rectification under Section 154, a revised return where you are still eligible to file one, or a response with evidence.
When scrutiny arrives: Section 143(2)#
Section 143(2) is the notice that actually opens your file. It is issued only after your case is selected for scrutiny — through the computer-assisted selection procedure, or on the basis of information the department has on record. From the date it is served, the assessing officer has jurisdiction to examine your books, records, and every claim you made.
The differences from the intimation are fundamental:
- A human is now involved — the officer will examine your return against your documents.
- The response is the whole game — your books, bank statements, receipts, and reconciliations must support every claim.
- The notice must be served within a prescribed time of the return being filed — a notice served late is legally defective, which is itself a defence.
- A no-response ends badly — an assessment can be completed based on whatever material the officer holds, without your submissions.
The comparison#
| Basis | Section 143(1) intimation | Section 143(2) notice |
|---|---|---|
| What it is | Computerised tax/interest/refund calculation on the return as filed | Formal selection of the case for scrutiny |
| Who generates it | The system, automatically | An assessing officer, after selection |
| Does it require a response? | Only if the amount shown is wrong or you contest the demand | Yes — a full, evidence-backed reply |
| Consequence of inaction | The demand becomes payable and can be recovered | Assessment may be completed without your submissions |
| Is it correctable? | Yes — rectification or revised return where eligible | No — it is the start of an examination, not a miscalculation |
What to do when each letter arrives#
For a 143(1) intimation:
- Check the computed tax, interest, and the return the system used.
- If it shows a demand you do not recognise, compare it against the return you actually filed and the challans you paid.
- Act within the prescribed time — a response, rectification, or revised return where eligible — rather than paying a wrong demand or ignoring a correct one.
For a 143(2) notice:
- Note the date of service and the response window.
- Assemble the records behind every figure in the return — bank statements, invoices, receipts, and reconciliations.
- Prepare a written reply that answers the specific points of enquiry, not a generic cover letter.
- Track the case until it is disposed; scrutiny is a process, not a single letter.
If your case has been selected for scrutiny and you need the response built properly, the practice handles the whole correspondence — from the first reply to the assessment order. Start with a review of the notice.
