Income tax assessment is how the department verifies your income and tax. There are five types: Self-Assessment (140A), Summary Assessment u/s 143(1) (automated CPC processing), Scrutiny Assessment u/s 143(3) (detailed examination), Best Judgment u/s 144 (non-compliance) and Income Escaping / Reopening u/s 147-148. All scrutiny is now done under the Faceless Assessment Scheme (Section 144B) — no physical appearance.
Types of Income Tax Assessment
Every assessment type, what triggers it and how you are expected to respond.
| Section | Type | Trigger | Your Response |
|---|---|---|---|
| 140A | Self-Assessment | You compute and pay tax on any shortfall before filing your ITR | Voluntary — pay the self-assessment tax challan, then file the return |
| 143(1) | Summary / Intimation | Automated CPC processing; mismatch vs TDS / 26AS / AIS data | Check the intimation; pay any demand or file rectification u/s 154 for an error |
| 143(2)+143(3) | Scrutiny | Return picked by risk algorithm; 143(2) notice within 3 months of FY-end of filing | Reply to questionnaires on the e-proceedings portal; upload documents |
| 144 | Best Judgment | You fail to file, respond to notices or keep books | Opportunity given before order; then appeal to CIT(A) / ITAT |
| 147/148 | Income Escaping (Reopening) | AO has specific information that income escaped assessment | Reply to the 148A show-cause; object; challenge via writ if needed |
| 144B | Faceless | Governs the procedure for all scrutiny assessments | Everything electronic; show-cause mandatory before any addition |
Section numbers follow the 1961 Act and remain in use in live notices, orders and appeals; the Income-tax Act, 2025 renumbers these provisions from AY 2026-27 without changing the machinery.
Non-response to a 143(2) or 148 notice leads to a Best Judgment Assessment u/s 144 — the officer estimates your income without your inputs, almost always producing a higher demand. A penalty of Rs10,000 per default can also apply u/s 272A. Always respond by the deadline; file an adjournment request through the portal if you need more time.
Assessment Time Limits (Limitation Periods)
Each assessment must be completed within a statutory window. Missing these makes the assessment time-barred and invalid.
| Assessment | Time Limit | Example / Basis |
|---|---|---|
| 143(1) Intimation | Within 9 months from end of the FY in which the return is filed | AY 2025-26 return filed in FY 2025-26 → by 31 Dec 2026 |
| 143(3) Scrutiny order | Within 12 months from end of the AY in which the return is filed | AY 2025-26 → order by 31 Mar 2027 |
| 148 Reopening (up to Rs50L) | Within 3 years from end of the relevant AY | Standard income-escaping cases |
| 148 Reopening (above Rs50L) | Up to 5 years from end of the relevant AY* | Only with PCCIT/CCIT sanction & specific information |
| Search / seizure cases | Extended limitation | Post-search block assessment |
* The Finance Act 2024 trimmed the earlier 10-year outer limit to about 5 years (5 years 3 months) for higher-value cases from 1 September 2024; older cases may still follow the 10-year rule. Confirm the exact date on incometax.gov.in.
Most 143(1) demands are pure data mismatches — TDS, interest or high-value transactions in your Annual Information Statement that were not reported. Reconciling Form 26AS and the AIS against your return before filing removes the single biggest cause of intimations and refund adjustments.
Scrutiny Assessment — How It Works
Only a small fraction of returns (broadly 0.1-0.5%) are picked for scrutiny by a risk-based algorithm. A 143(2) notice starts it; the case is then assigned to a random faceless Assessment Unit that raises specific queries.
Your rights under faceless assessment (144B)
- A show-cause notice before any adverse addition, with time to reply.
- A personal hearing by video conference on request.
- A randomly assigned unit — no face-to-face contact with any officer.
- A reasoned, speaking order — an order without proper show-cause can be challenged in the High Court.
Received a 143(2) scrutiny notice? Get your reply and documents handled by a CA.
Get Scrutiny Help →Reopening — Income Escaping Assessment
The AO can reopen a completed assessment only with specific information that income escaped tax. Post Finance Act 2021, a 148A show-cause notice must be issued and your objection considered before a Section 148 reopening notice can be validly issued.
Reopening is likely valid if
- AO holds specific, defined "information" (AIS, audit, another authority)
- A 148A notice was issued and your reply considered
- Required sanction from PCCIT/CCIT was obtained
- It is within the applicable time limit for the amount
You can challenge it if
- It rests on a mere change of opinion or vague suspicion
- No 148A show-cause / opportunity was given
- It is time-barred for the escaped amount
- Mandatory approval was not properly recorded
A reopening notice is not a demand — but ignoring the 148A show-cause forfeits your best chance to stop the reassessment at the threshold. File your objection with evidence; if the AO still proceeds on weak grounds, the order can be contested in appeal or by writ.
Got a 148 or 148A reopening notice for an old year?
Talk to a Tax Expert →Faceless Assessment Scheme
Since 2020-21, scrutiny is fully faceless: no jurisdiction, no visits, no known officer. The National Faceless Assessment Centre allocates your case to a random Assessment Unit and every communication flows through the e-proceedings portal with a valid DIN.
- Case allotted to a random Assessment Unit
- All notices carry a Document Identification No. (DIN)
- Replies filed only via the e-proceedings portal
- Draft order reviewed before it is finalised
- Show-cause mandatory before any addition
- Video-conference personal hearing on request
Verify the DIN on every notice on incometax.gov.in — a communication without a valid DIN is treated as non-est (never issued). Faceless does not mean unrepresented: you can and should have a CA draft your submissions and appear at the video hearing.
Want your return checked against 26AS & AIS before you file — so no notice ever comes?
File With TaxClue →Frequently Asked Questions
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