What happens if you do not reply to an ASMT-10 notice

What the officer can do

Section 61(3) provides that where no satisfactory explanation is given within 30 days or the extended time, or where you accept a discrepancy but do not take corrective action, the officer may initiate audit under Section 65, special audit under Section 66, inspection, search and seizure under Section 67, or proceed to determine tax under Sections 73 or 74 for periods up to 2023-24, and Section 74A for 2024-25 onwards.

Steps to take now

• Check the portal for any further notice, such as DRC-01A or a show cause notice in DRC-01.
• If no further notice has been issued, file the ASMT-11 reply now, with a short note on the reason for delay.
• Pay any amounts you accept, with interest, through DRC-03. Voluntary payment before a show cause notice generally reduces penalty exposure.
• If a show cause notice has been issued, prepare a reply to that notice; the scrutiny reply is then mainly useful as background.

Why a late reply still helps

Officers often prefer to close scrutiny cases on the papers. A reconciliation that arrives late may still lead to ASMT-12, or at least narrow down the points in any show cause notice. It also gives you a documented record that you engaged with the department.

What to avoid

• Assuming that silence will make the notice lapse.
• Paying the full amount demanded without checking it, just to close the matter.
• Ignoring portal notifications because the registered email is no longer monitored.

Help

A professional can review where the case stands, file the pending reply or prepare for the show cause notice, and represent you in any hearing through written submissions.

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.