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Guide · ITR & Compliance

Income Tax Assessment Order —
143(1), 143(3) & 148

Understand every income tax assessment notice — the 143(1) intimation, 143(2) scrutiny, 143(3) order, 144 best-judgment and 148 reassessment — the time limits, and how to reply on the e-filing portal.

TaxClue Editorial Desk Updated 18 August 2026 6 min read 16 FAQs answered
Updated for AY 2026-27 CA-Reviewed e-Proceedings Response
Quick Answer

An income tax assessment is the department's examination of your ITR. Section 143(1) is an automated intimation from CPC; 143(2) is a scrutiny notice; 143(3) is the final assessment order after scrutiny; 144 is a best-judgment order when you don't respond; and 148 re-opens a past year where income escaped assessment. Most notices carry a 30-day response window on the e-Proceedings portal.

143(1) intimation 30 days
143(2) scrutiny Reply online
143(3) order Appeal 30d
148 reassessment File ITR
At a glance

Types of Assessment Notices — Decision Table

Every common income tax assessment notice, who issues it, your timeline to act, and its purpose. Section numbers are those retained under the Income-tax Act, 2025 (effective AY 2026-27), which restated the earlier 1961-Act scheme.

SectionNotice / OrderIssued ByYour TimelinePurpose
143(1)Intimation (auto)CPC Bengaluru30 days if demandArithmetic fixes, TDS/26AS mismatch, inconsistent claims
143(2)Scrutiny noticeAssessing OfficerAs specifiedSelects the return for detailed examination
143(3)Assessment orderAssessing OfficerAppeal 30 daysFinal order after scrutiny; determines income & tax
144Best-judgment orderAssessing OfficerAppeal 30 daysEstimated assessment when you fail to file/respond
147/148Reassessment noticeAssessing OfficerFile ITRRe-opens a past year where income escaped assessment
148AShow-cause (pre-148)Assessing Officer7 days+Mandatory opportunity before a 148 notice
156Demand noticeAssessing OfficerPay 30 daysCommunicates the tax demand; interest on delay

Faceless assessment (National Faceless Assessment Centre) handles most 143(3) scrutiny electronically. Verify every notice under "e-Proceedings" on incometax.gov.in.

A 143(1) intimation is not a scrutiny

Most taxpayers only ever get a 143(1) intimation — a routine, computer-generated processing summary. It is not an audit. Only a 143(2) notice means your return has actually been picked for scrutiny.

Automated processing

Section 143(1) — Intimation from CPC

After you file, the Centralised Processing Centre (CPC) processes the return electronically and may issue an intimation under Section 143(1) — generally within 9 months from the end of the financial year in which the return was filed. It compares the tax the system computes with what you declared.

  • Arithmetical errors in the return
  • Incorrect claims apparent from information within the return itself
  • Disallowance of a loss or deduction claimed beyond the due date / audit report
  • TDS or tax-credit mismatch — Form 26AS / AIS vs what you claimed
  • Any resulting refund, demand, or "no change" outcome

If it shows a demand, respond within 30 days: pay it, agree/disagree online, or file a rectification under Section 154 if there is an apparent error. If it shows a refund, no action is usually needed.

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Detailed examination

Scrutiny — Section 143(2) & 143(3)

A Section 143(2) notice means your return is selected for scrutiny — via Computer-Aided Scrutiny Selection (CASS) or for specific risk flags. It must be served within 3 months from the end of the financial year in which the return was filed. You reply through the e-Proceedings module.

143(2) noticeReturn picked for scrutiny
You respondUpload reply + evidence online
AO reviewsMay seek more details
143(3) orderFinal assessment passed

After reviewing your submissions, the AO passes the final assessment order under Section 143(3), determining total income and tax. Any additions or disallowances flow into a Section 156 demand notice. Disagree? File an appeal to the Commissioner (Appeals) in Form 35 within 30 days.

TaxClue Insight — documents win scrutiny

Scrutiny outcomes turn on evidence. Keep bank statements, Form 26AS, AIS/TIS, invoices, capital-gains statements and sale/purchase deeds ready and reconciled with your ITR before you draft the reply — a vague response invites additions.

Received a 143(2) scrutiny notice? Let a CA draft and file the reply.

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Re-opening a past year

Section 148 — Income That Escaped Assessment

A Section 148 notice re-opens an earlier year where the AO believes income escaped assessment. Before it, the AO must issue a Section 148A show-cause notice and give you at least 7 days to explain. You then file a fresh ITR for that year within the time allowed.

ScenarioTime Limit to Re-open
Normal case (escaped income ≤ ₹50 lakh)3 years from end of the relevant AY
Escaped income > ₹50 lakh (asset/entry-backed)Up to 5 years from end of the relevant AY
With sanction of the specified authorityExtended timeline per the current reassessment scheme

The reassessment time limits were rationalised by the Finance Act, 2024 (from 1 Sep 2024) — broadly 3 years normally and up to 5 years for large-value escapement, replacing the earlier 10-year outer limit. Older notices may still follow the earlier regime.

If you stay silent

Section 144 — Best-Judgment Assessment

If you don't file the return or ignore the notices, the AO can complete a best-judgment assessment under Section 144 — estimating your income from available data, usually to your disadvantage. Penalty under Section 270A (under-reporting/misreporting) and, in serious cases, prosecution can follow.

You are usually fine if

  • You only received a 143(1) intimation with no demand
  • You filed within due date and 26AS/AIS matches
  • You respond to every notice within the deadline

Act urgently if

  • You have a 143(2) scrutiny or 148 reassessment notice
  • A 143(1) or 156 demand is unpaid past 30 days
  • You have not filed the ITR the notice refers to

Facing a 148 reassessment or a 144 best-judgment order?

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Step by step

How to Respond to a Notice Online

All replies go through the e-Proceedings module on the income tax portal. The flow is the same for 143(1), 143(2) and 148 notices:

  • Log in at incometax.gov.in with your PAN
  • Open Pending Actions → e-Proceedings
  • Select the relevant notice / DIN
  • Draft a point-wise written reply
  • Attach 26AS, AIS/TIS, bank & invoice proofs
  • Submit and download the acknowledgement
  • Track status until the order is passed
  • File appeal / rectification if you disagree
Always verify the DIN

Every genuine communication carries a Document Identification Number (DIN). Verify it under "Authenticate Notice/Order" on incometax.gov.in before acting — this filters out fake notice scams.

Government sourcese-Proceedings & Authenticate Notice: incometax.gov.in · Assessment scheme: Sections 143, 144, 147-148A, 156, Income-tax Act, 2025 (restating the 1961 Act) · Faceless assessment: Section 144B — National Faceless Assessment Centre · Reassessment time limits: Finance Act, 2024 (w.e.f. 1 Sep 2024)
People also ask

Frequently Asked Questions

Intimation & 143(1)
What should I do when I receive a Section 143(1) intimation?
Read it carefully — a 143(1) intimation from CPC Bengaluru shows the tax the system computed against what you declared. If it shows a refund or "no change", no action is needed. If it raises a demand, respond within 30 days: pay it, agree or disagree online, or file a rectification under Section 154 if there is an apparent error. You can also respond through e-Proceedings on incometax.gov.in.
Is a 143(1) intimation the same as a scrutiny notice?
No. A 143(1) intimation is an automated, routine processing summary that almost every return generates — it is not an audit. Scrutiny begins only with a separate Section 143(2) notice served by the Assessing Officer. Getting a 143(1) does not mean your return has been picked for detailed examination.
What is the time limit for a 143(1) intimation?
CPC can issue a 143(1) intimation up to 9 months from the end of the financial year in which the return was filed. If no intimation is issued within that period, the return as filed is treated as the intimation and is deemed processed.
What causes a TDS mismatch in a 143(1) intimation?
A mismatch arises when the TDS or tax credit you claimed in the ITR differs from what appears in Form 26AS / AIS. Common causes are a deductor filing a late or wrong TDS return, quoting the wrong PAN, or you claiming credit before it reflected in 26AS. Reconcile 26AS/AIS with your ITR and, if needed, file a rectification under Section 154.
Scrutiny 143(2) & 143(3)
How should I respond to a scrutiny notice under Section 143(2)?
Log in to incometax.gov.in, open e-Proceedings under Pending Actions, select the notice and submit a detailed written reply with supporting documents — bank statements, invoices, Form 26AS, AIS, capital-gains statements and any deeds relevant to the issues raised. Respond within the deadline in the notice (often 15-30 days); extensions can be requested through the portal.
What is the time limit to issue a 143(2) scrutiny notice?
A Section 143(2) notice must be served within 3 months from the end of the financial year in which the return was filed. A notice served after this limit is invalid, and any assessment based on it can be challenged.
What is a Section 143(3) assessment order?
It is the final assessment order the Assessing Officer passes after completing scrutiny under 143(2). It determines your total income and tax liability. If the AO makes additions or disallows claims, the extra tax is demanded through a Section 156 notice. You can appeal to the Commissioner (Appeals) within 30 days.
What is faceless assessment?
Under Section 144B, most scrutiny assessments are conducted faceless through the National Faceless Assessment Centre — there is no physical meeting with an officer, work is allocated randomly, and all communication happens electronically through the portal. It is designed to reduce discretion and increase transparency.
Reassessment 148
What is a Section 148 reassessment notice?
A Section 148 notice is issued when the Assessing Officer has information suggesting income chargeable to tax escaped assessment in a past year. Before it, the AO must issue a Section 148A show-cause notice and give you an opportunity to explain. In response to 148 you must file a fresh return for that year within the time allowed.
What is the time limit for reassessment under Section 148?
After the Finance Act, 2024 rationalisation (from 1 September 2024), reassessment can generally be initiated up to 3 years from the end of the relevant assessment year, extended to about 5 years where the escaped income represented by an asset or specific entries is above ₹50 lakh, with sanction of the specified authority. Older notices may still follow the earlier regime with a 10-year outer limit.
What is a Section 148A notice?
Section 148A is the mandatory pre-reassessment stage: the AO shares the information suggesting escaped income and gives you at least 7 days (extendable) to respond, then passes a reasoned order deciding whether it is a fit case to issue a 148 notice. It ensures you get a hearing before the year is re-opened.
Deadlines & Non-response
What happens if I do not respond to income tax notices?
Ignoring notices can lead to a best-judgment assessment under Section 144, where the AO estimates your income from available data — usually resulting in a higher demand. Penalty under Section 270A for under-reporting or misreporting, and in serious cases prosecution, can also follow. Always respond within the stipulated deadline, even if only to seek an extension.
What is the time limit to complete a 143(3) scrutiny assessment?
A regular scrutiny assessment under Section 143(3) must generally be completed within 12 months from the end of the assessment year in which the income was first assessable, subject to specified extensions. Faceless assessment follows the same outer time limits administered through the National Faceless Assessment Centre.
What is a Section 156 demand notice?
A Section 156 notice communicates the tax, interest, penalty or other sum payable as a result of an assessment or intimation. It must generally be paid within 30 days of service. Non-payment attracts interest under Section 220 and recovery action; if you dispute the demand, file an appeal and, where eligible, apply for a stay of demand.
How do I check if a tax notice is genuine?
Every valid notice or order carries a Document Identification Number (DIN). Use the "Authenticate Notice/Order Issued by ITD" service on incometax.gov.in to verify the DIN before acting. Real notices also appear under e-Proceedings when you log in — a communication that has no DIN and does not appear in your portal account should be treated with caution.
Can I disagree with an assessment order?
Yes. If you disagree with a 143(3) or 144 order you can file an appeal to the Commissioner of Income Tax (Appeals) in Form 35 within 30 days of receiving the order, and escalate further to the ITAT if needed. For a plain apparent error in a 143(1) or order, a rectification under Section 154 is the faster route.
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