30 June Scrutiny Deadline Under Section 143(2): A Practical Guide for Assessees

Every year towards the end of June, many assessees start worrying after seeing headlines about “30 June” and “scrutiny notices”. Phone calls and emails pour in, with people fearing searches, raids or drastic action simply because a date is approaching.

The reality is far more measured: 30 June is a statutory cut-off for the Income Tax Department, not a compliance due date for the assessee. You are not required to upload any new form, pay any additional tax, or perform any fresh action on that specific date merely because it is 30 June.

What this date controls is the time limit within which the Department can issue a Section 143(2) scrutiny notice for a particular return. Understanding this timeline, and what a scrutiny notice genuinely signifies, helps separate actual risk from needless anxiety.

What Is the 30 June Cut-off Under Section 143(2)?

Time limit for scrutiny selection

When an assessee files a return, the Assessing Officer (AO) cannot keep the scrutiny option open indefinitely. For a regular scrutiny assessment, the law prescribes a fixed outer limit:

A notice under Section 143(2) must be served within three months from the end of the financial year in which the return is furnished.

Let us apply this to a live example:

  • Suppose an assessee files the return for AY 2025-26 (relating to income of FY 2024-25) in July 2025.
  • This filing happens during FY 2025-26.
  • FY 2025-26 ends on 31 March 2026.
  • Three months from that date takes us to 30 June 2026.

Accordingly, 30 June 2026 becomes the last permissible date for issuing a Section 143(2) notice for such returns. If no notice is served by that date, the AO’s power to conduct regular scrutiny under Section 143(2) for that particular return lapses.

Why the date is often misunderstood

Media coverage frequently presents 30 June as though something dramatic must be done by every assessee, which is misleading. The correct position is:

  • It is an internal limitation on the Department’s right to select your return for scrutiny.
  • It is not a universal filing deadline, payment date or response date for all assessees.

For a compliant assessee who has filed the return carefully and preserved key documents, 1 July usually brings quiet comfort: the window for regular scrutiny on that return has closed.

What Does a Section 143(2) Scrutiny Notice Actually Mean?

The word “scrutiny” often sounds like a predetermined judgment. In practice, a Section 143(2) notice is only an intimation that your return has been picked for closer examination.

  • It is not a finding of concealment.
  • It is not a declaration that your return is incorrect.
  • It is the start of a fact-finding process, not the end.

Possible outcomes of scrutiny

Once scrutiny is initiated, the assessment can result in different outcomes depending on facts and how effectively they are presented:

  1. No variation – The AO accepts the returned income without any addition.
  2. Minor adjustments – Small disallowances or corrections are made, sometimes due to documentation gaps.
  3. Significant additions – Where discrepancies remain unexplained or are clearly unsustainable.

Many assessments under Section 143(3) after a Section 143(2) notice close with no major additions, especially where the assessee’s records are complete and responses are well-prepared.

Distinguishing Between Different Types of Income Tax Notices

Assessees frequently confuse notices under different sections. Before reacting, it is essential to identify what exactly has been received.

Key notice types to differentiate

  • Section 143(1) – Intimation

    • System-generated processing of the return.
    • Deals with arithmetic errors, apparent inconsistencies, TDS mismatches, refunds or small demands.
    • Not a scrutiny notice.

  • Section 142(1) – Inquiry / Call for information

    • Can be issued even before a return is filed.
    • Seeks specific information, accounts or documents.
    • May precede or supplement scrutiny.

  • Section 143(2) – Scrutiny selection

    • Formal notice indicating that the return is selected for regular scrutiny.
    • Triggers a detailed assessment under Section 143(3).