Income Tax Intimation u/s 143(1) Notice

Income Tax Income Tax Notices
66

Thanks for the reply.

67

Thank you for the help. :slight_smile: @Surbhi_Pal

68

I am new to filing returns and I have a general question about what it means when I get a Intimation u/s 143(1) notice with a refund. My understanding based on reading articles on this and other sites is that the CPC automated checks have validated my return against my AIS (formerly Form 26AS). In other words, I have made no mistakes in filing my ITR based on my AIS - please confirm this understanding is correct.

Why do I ask this? The reason is while reading about Intimation u/s 143(1) I found Section 143(1): Assessment and Intimation under 143(1) Income Tax Act, where it says: “As discussed above, the preliminary assessment of the returns by CPC has been made completely computerised and Section 143(1) acknowledgment is also a computer-generated record.” I’m curious about the words “preliminary assessment”. Does this mean that, in some cases, a later assessment may be made after “Intimation u/s 143(1) notice with a refund” is sent and the refund deposited in the taxpayer’s bank account?

69

Hi @Russell,

Yes, your understanding seems to be correct. An intimation u/s 143(1) is not a Notice but a communication received from the income tax department. Hence, if you receive an intimation stating “ITR processed with refund”, there is no action required from your end. Generally, once the ITR is processed and the refund is issued, there’s no further assessment made, however, in some cases, the ITD may investigate further.

70

Hi @Surbhi_Pal,

Thanks for your prompt reply and confirming what I thought. Do you (or anyone else on the Tax Q&A Team) have any thoughts as to why “in some cases, the ITD may investigate further”. Please note I’m referring only to cases based on details in the AIS , not if there is some transaction that is not present in the AIS and has been concealed by the taxpayer.

Regards,

Russell

71

Hey @Russell,

If the return has been filed in sync with the details provided in the AIS, generally a notice is not issued. However, sometimes the ITD does issue scrutiny notices (not necessarily due to a specific reason) to further investigate the incomes reported by some assesses or to verify the correctness of returns.

72

Hi Team, @Surbhi_Pal @Shrutika_Shah

After filing revised return i have received u/s 143(1) Demand Notice of Rs 380.

  1. How to proceed with the above scenario ?
    2 ) what happens to the original filing, as i filed revised ITR ?

Thanks.

73

Hey @Alex,

In such a case, you can first verify the reason for which the demand was issued. There can be 3 scenarios,

  1. If you observe any mistakes in the ITR filed, you can file a revised return.
  2. If you agree with the demand, you can pay the demand and file a response (within 30 days).
  3. If you disagree with the demand, you can File Rectification Request u/s 154.

Moreover, when you file a revised return, the original return is nullified and the revised return replaces the original one.

Hope this helps!

.

74

Hi @Surbhi_Pal

Thank you very much for quick turnaround.

Reason for the demand is - difference amount under section - “Interest and Fee Payable Total Interest And Fee ( 234A, 234B, 234C & 234F )” - Rs - 380.

in the above case can i agree and pay the difference amount ?

Thanks in advance,
Alex.

75

Hey @Alex,

Yes, you can pay the difference amount and file a response.

76

Hi @Surbhi_Pal,

Just wanted to check if the below process is correct.

  1. Paid outstanding demand.

  2. Chose - Disagree with demand

  3. chose - Demand paid and challan number has CIN number.
    4 Submit the repose.

I am bit worried as i should have selected “Demand is Correct” option.

Btw - Nothing is appearing in Pending action tab.

Thanks in advance.

77

Hey @Alex,

Yes, the correct course of action would have been agreeing to the demand and paying the same. However, you can navigate to Pending Actions > Response to outstanding demand. If the demand has been processed, you will not be able to see it there and there will be no action required from your end.
In case, it is yet to be processed, you can resubmit the response.

Hope this helps!

78

Hello,

I filed my return on 25th June 2023 for FY 22-23. I received Intimation order u/s 143(1) on 24th July 2023 with Demand of Rs 3820. I paid this demand of Rs. 3820 online and submitted the challan details in response to outstanding demand on Income Tax ePortal on 24th July 2023 itself.

Now on 20-Oct-2023 I received another intimation u/s 154 (Rectification Order) with a Demand of Rs. 1150 This rectification is initiated by Income Tax department themself and they mentioned the mistake as “It is seen that Advance Tax paid has been considered as Self-assessment Tax payment in the previous processed order. As this is a mistake apparent from record, the same is proposed to be rectified u/s 154”.

Actually I paid Advance tax on 31-Mar-2023, and the Income Tax department by mistake considered it, as a self assessment tax instead of Advance tax and they have included the interest u/s 234B. Now they have removed this interest u/s 234B in this Rectification order.

Looking at both the intimation orders, looks like IT department has revised the Demand from Rs. 3820 to Rs. 1150. Please help me getting answers to below questions:

  1. How to submit response to outstanding demand on Income Tax ePortal for this Rectification order u/s 154 ?
  2. Do I need to mention the same challan Details of Rs. 3820 paid as part of Intimation u/s 143(1) in Intimation u/s 154 on Income Tax ePortal in response to outstanding demand?
  3. How do I get the refund of excess tax paid of Rs. 2670 (Rs. 3820 - Rs. 1150) ?
  4. Do I need to file revised return to get this refund amount of Rs. 2670 ?

Thanks,

79

Hello @SunilJoshi,

You should file a revised return adding the challan paid for demand, to claim the refund of the differential amount.

You can respond to the outstanding demand stating the reason you have filed a revised return.

In case you need further help, you can book a Meet where a tax expert will help you file revised return.

Hope this helps!