The last thing a taxpayer expects is any sort of communication from the Income Tax department! But one should remember that information from Tax department needn’t necessarily be a Notice or a Notice needn’t necessarily be asking you to appear or pay taxes. In this article, we have written about one such Intimation u/s 143(1) of Income Tax Act.
Under Section 143(1) the tax department completes the assessment without calling you to the department. Based on the return filed by you, the department checks
- The arithmetical errors in the return or
- Any incorrect claim or deduction made.
- Incorrect brought forward Loss claimed
- Mismatch of disallowance of expenditure mentioned in audit report and income tax return
- Income appearing form 26AS, but not considering in return.
The intimation u/s 143(1) will have two column, (a) the tax determined as per the return filed by you (b) the tax determined by the department after making any changes.
Done by the computer – All intimations u/s 143(1) is processed by the computer without any human interface. The software is designed to detect arithmetical inaccuracies and inconsistencies in the return and such software is placed at Central Processing Centre (CPC)
Stay cool – So, don’t get upset (and shout at your service provider!) if you get an intimation u/s 143(1) wherein as per the computation of Tax department, you are asked to pay any taxes. Generally, you will find that the Mismatch of taxes payable. We have to correct it by filing rectification.
If the Intimation u/s 143(1) doesn’t show any difference (or mismatch), keep this document along with a copy of Income tax return filed by you as proof of completion of assessment.
What should I do if no intimation is received?
The intimation shall be sent within one year from the end of the financial year in which the return is made. (Means for the Financial Year ending March 2014, you will get intimation on or before March 2016). If you haven’t received any intimation within this period, consider ITR– V (acknowledgment) of the return as deemed intimation.
What should be done in the case of mismatch?
First ascertain whether refund due to you computed or arrived as per your claim. If no refund is claimed by you, ensure that “Net Amount Payable” is Zero .
If refund claimed by you matched with the income tax return filed by you or net amount payable is zero, no further action is required.
You can follow the steps mentioned below if you found discrepancies–
Step 1: compare two column, (a) As provided by Tax Payer in Return of Income (b) As computed under section 143(1) and check the difference, find out the reason for the difference.
If you are unable to identify, the reason for the difference, you may please feel free to contact us at firstname.lastname@example.org or comment in the comment section below.
Step 2: File online rectification application u/s 154(1) correcting the mistake appearing in the intimation received u/s 143(1) (Read: What are the Steps involved in Filing Online Rectification?)
Step 3: After filing rectification u/s 154(1) login to ePortal of the income tax department and file online response (Read: Have you checked your Outstanding Income Tax Demand appearing in e-Filing portal? to know how to submit online response to outstanding demand)
Step 4: File online grievances if you are not satisfied with processing of your return/rectification return by Central Processing Center (CPC) (Read: Tax Payer can submit online grievance relating to CPC and efiling of Income tax Return)
Step 5: Even after Step 3 above if you are not satisfied with the action taken by the CPC/AO, you have another option to file complaint to income tax ombudsman (Read: Do you know about Income Tax Ombudsman? to know more about step by step procedure to file complaint to Income Tax Ombudsman)
We would be glad to know your doubts or queries. In case you need our assistance in relation to Intimation under section 143(1) of Income Tax Act 1961 , please feel free to post your query on forum of our website
You can visit Refund/Demand/Rectification/Revised return section to read other articles
- Communication of proposed adjustment u/s 143(1)(a) of Income Tax
- How to handle notice received for Non-Filing of Income Tax Return
- What one should know about filing income tax return in India
- Step by Step procedure to handle notice received u/s 245 of Income Tax
- Different type of communication letters sent by Central Processing Center (CPC)
- FAQ- CPC Communication on processing of Income Tax Return and filing of Rectification application.
- Now you can e-Verify already uploaded Income Tax Return
- Does the Income Tax Officer have the discretionary powers to take up scrutiny of IT returns?
- Tempting mistakes while filing the Income Tax return