Intimation u/s 143(1)

Income Tax Income Tax Notices
1

Notice/Intimation u/s 143(1) after e-filing of ITR

If you have received such a notice, don’t panic.

The process of filing your income tax return doesn’t end with verification. Once you’ve done that, the income tax department takes over and starts processing it. After processing the ITR, the income tax department sends an intimation notice.

So, what is an intimation u/s 143(1) issued by the ITD?

When you submit your tax return, the Income Tax Department conducts computerized checks in terms of any arithmetical errors, internal inconsistencies, tax calculation, and verification of tax payment to review it for accuracy and completeness. These checks help identify discrepancies and ensure compliance with tax regulations.

Intimation u/s 143(1) is a summary of the details you have submitted to the tax department and the details the department has considered while processing your return. Basically, the intimation u/s 143(1) contains the following information:

  1. Permanent Details of assessee like name, address, etc
  2. Income Tax Return filing details like acknowledgment number, filing date, etc
  3. Tax Calculation as provided by you in the Return of Income
  4. Tax as Computed under section 143(1) {i.e. As per Department}

When does one receive an Intimation under Section 143(1)

  • If a taxpayer has paid excess tax then it mentions tax refund. A refund is only initiated if the amount is over ₹100.
  • If the tax paid by the taxpayer has fallen short, then it mentions the amount and a challan to make the payment.
  • Simple acknowledgment if the ITR filed by the taxpayer is consistent as per the Assessing Officer.

What to do on receiving this intimation?
Respond to it online after checking the records and tallying them with the filled ITR details for discrepancies.

Upon receiving the intimation u/s 143(1), you can either agree or disagree with the computation done by the department.

  • If you agree with the tax amount or refund shown in the intimation u/s 143(1), you can pay the outstanding taxes or receive the refund accordingly.
  • If you disagree, you have the option to rectify your return under section 154 or file an appeal under section 246A.
  • If the net amount refundable/payable is zero, consider the intimation as the completion of the return filing process.

Note: An intimation u/s 143(1) can be issued only up to 9 months from the end of the financial year in which the return is filed.

However, here’s an interesting fact: not all Income Tax Notices are as dreaded as they may seem. Some of them actually bring good news! So, don’t panic, stay calm, and carefully read the notice you’ve received – it might have a positive outcome for you if it reflects a refund.

What Happens if you do not respond to the notice?

You should take immediate action upon receiving the notice. If you do not respond in time, the income tax department can adjust extra tax from any refunds due to you. Further, if the demand amount is correct and payable, a delay in tax payment would lead to additional interest costs.

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