Section 143 1 of Income Tax
Section 143 1 of Income Tax
In India, you can file your tax returns in two ways: voluntarily (section 139) or when demanded by the income tax department. Once you have filed the return, it is essential to understand what takes place after that so you are well prepared and know what exactly needs to be done.
At times, you may receive an intimation from the income tax department after you file your returns. But worry not, as not every intimation is a piece of bad news! In this article, we shall explain one such intimation that you may receive under section 143 of the Income Tax Act.
Intimation US 143 (1) Meaning
Once the taxpayer files his returns, the income tax department carries out an assessment or scrutiny of the return with the help of a fully computerised system. This is called the preliminary assessment.
This assessment helps the Income Tax Department check whether the income tax paid, calculations and other information are accurate and consistent. After the evaluation is completed, the computerised system generates a section 143 (1) intimation. The purpose of this intimation is to inform the taxpayer about the findings of the scrutiny.
It is essential to mention that an intimation u/s 143(1) is sent to all taxpayers.
Details Present in the ITR 143 (1)
Following are the details present in the intimation sent under section 143 (1):
Details of the taxpayer/assessee, such as name, address, etc.
Tax computation as per the tax department under section 143(1).
Serial number of the refund
Miscellaneous details, including date of filing, acknowledgement number, etc.
Tax calculation as per the return filed
What are the Causes of ITR Intimation 143 (1)
Once the department completes the scrutiny of the income tax return filed by a taxpayer, several factors may lead to an intimation being sent. The intimation highlights reasons for adjustments and errors. Here are some reasons why the intimation is sent:
TDS Mismatch
In some cases, the TDS details furnished by the taxpayer may not match the data available with the Income Tax Department. In such cases, the taxpayer may be informed about the discrepancy through a 143 (1) intimation.
Incorrect Income Details
If the taxpayer forgets to disclose a source of income such as income from interest or other source, etc., an intimation will be sent regarding the mismatch in the source of income.
Error in Tax Amount
Some returns may reflect a tax amount which does not match the calculations of the income tax department. Therefore, the department may send in intimation regarding the tax liability.
No Return Filed
If the income of an individual is above the threshold limit but he has not filed a return, he will receive a notice u/s 143 (1) asking him to file the return.
Non Verification
An intimation under section 143 (1) is also sent if the income tax file is not verified or not e-verified by the taxpayer.
Failure to Comply with Rules
If there is any non-compliance or failure to adhere to the income tax rules or provisions, an intimation u/s 143(1) will be issued.
Tax Refund
If an individual has paid excess tax, he will be informed about the tax refund amount through the intimation under section 143 (1).
Shortfall in tax
If there is a shortfall in tax calculation, the Income Tax Department sends an intimation to the taxpayer under section 143 (1).
Types of 143 (1) Intimation
There are three kinds of intimations that taxpayers may receive from the Income Tax Department.
Intimation of Demand
The first type of intimation an individual may receive is demanding him to pay tax. Such an intimation is issued if there is any under-calculation of tax by the taxpayer.
Intimation of Refund
If the taxpayer has paid excess tax, the intimation will inform him of the same and specify the refund amount.
ITR 143 (1) Intimation of No Refund or No Demand
If the taxpayer’s calculation matches the data of the Income Tax Department and the income tax amount is correct, the intimation will be sent without any adjustments. This means that the department has accepted the return without any adjustment.
Steps to Follow After Receiving Intimation US 143 (1)
If you receive a 143 (1) intimation, there are two possibilities: either you agree with the adjustment, or you don’t agree with the adjustments proposed by the Income Tax Department.
How to Read The Intimation?
Go to the income tax e-filing portal, login and download the intimation.
Open the downloaded file.
Enter the password. The password is your PAN number in lowercase, followed by your birthdate (DDMMYYYY).
Read the intimation contents carefully and check if the adjustments mentioned are correct.
**How to Respond to the Notice Under Section 143 (1)
If you agree with the adjustments mentioned under section 143 (1), you must pay the outstanding taxes. In some cases, you may receive a refund.
However, if you do not agree to the adjustments made by the Income Tax Department, you must respond to the intimation within 30 days of its issuance. You may either request rectification under section 154 or appeal under section 246A.
Here are the steps to follow if you want to respond to the intimation:
Log in to the income tax portal.
Navigate to the pending actions tab.
Next, select the e-proceedings option. Then, click one-assessment.
Choose adjustment u/s 143(1)(a).
You will see the intimation notice details.
Click on “submit” to respond to the intimation.
Once you see the mismatch found, click the dropdown and select your response.
Select the appropriate documents supporting your response.
Click submit.
Conclusion
All the taxpayers receive ITR intimation 143(1). It is an indication that your income tax return has passed through the preliminary assessment. You should not get intimidated by receiving the intimation from the income tax department.
Read the notice carefully and check all the details. Next, try to understand the objective of the notice, whether you are eligible for a refund, need to pay more tax, or none of them.
Once you find out, you can appeal or raise a rectification request by providing the supporting documents.
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