Answer

1. F

   Facts

   Limited scrutiny covers only the issues named in the notice. Complete scrutiny lets the officer look at the whole return. The scope matters because it limits what the officer can examine.

2. P

   Provisions and law

   • Sec 143(2), Income-tax Act 1961 (now Sec 270(8), Income-tax Act 2025)Officer may select a return for scrutiny by serving a notice within three months from the end of the financial year in which the return was filed.
   • Sec 143(3), Income-tax Act 1961 (now Sec 270(10), Income-tax Act 2025)Officer passes a scrutiny assessment order after considering evidence.
3. A

   Analysis

   In limited scrutiny, say the issues are high cash deposits and a large capital gain. Answer those fully and keep the reply on those points. If the officer starts asking about unrelated matters, you can politely point to the limited scope. The officer can widen the scope only by following the internal approval rules, so a sudden widening can be questioned.

4. C

   Conclusion

   1. 1Read the issues listed in the first notice.
   2. 2Prepare evidence only for those issues.
   3. 3Keep replies focused on the stated scope.
   4. 4If new issues are raised, ask whether the scope was widened with approval.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.