Why Do You Get An Intimation Notice Under Section 143(1) From the Income Tax Department?

 

After the ITR filing process completion, the income tax department sends an intimation under section 143(1), to underline any discrepancy that occurred related to the less tax paid than the original amount supposed to be.

To resolve the issue, after getting an Intimation Notice Under Section 143(1), the receiving taxpayer has to pay the remaining balance. Furthermore, if the case is of excess tax amount being paid, the tax amount will be refunded by the authorities of the assessee’s bank account.

What is Intimation Notice Under Section 143(1)?

When individuals file their ITRs before or on the last date, which was July 31st this year, the income tax department further assesses the filed data and starts further processing it. So, “During this process, the tax department might come across a number of discrepancies such as that of data, calculations, among others. In such cases, the department will send a notice — also referred to as intimation under section 143(1),” .

“This notice is sent on the taxpayer’s registered email ID. An SMS is also sent to the registered mobile number informing that the intimation notice has been sent to the registered email ID’.

Expert Opinions

Founder of The Rajasthan Law Chamber, Ranjeet Kumar Mundhra  states that there could be three likely scenarios, namely :

1.      That the tax department does not raise any demand for income tax. In this case, the assessor does not have to worry about anything.

2.      That their could be a tax refund.

3.      That there is a tax demand.”

“It is important for the taxpayer to first identify the scenario, and accordingly rectify the computation. For instance, if TDS is not considered by the department, then one can apply for it to be considered — thereby reducing the tax liability. There are, therefore, multiple permutations and combinations and the response will vary from case to case,”.

“There could be a situation that these changes are not reflected in the tax return by December 31. In such a case, one can always rectify the return afterwards. “The deadline for filing a revised return gets over on Dec 31, but one can always rectify his/her return later. There is also an option of raising a grievance or approaching the CPC.

With Warm Regards,

Ranjeet Kumar Mundhra

Advocate & Tax Consultant

Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.