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- Key Highlights
- What is Intimation Under Section 143(1)?
- Important Features of Section 143(1) Intimation
- When Can You Receive an Intimation Under Section 143(1)?
- When is the ITR notice issued?
- How to get the Notice under Section 143(1) Again?
- Things to Check on Notification Under Section 143(1)
- 6 Steps to Deal with Intimation Under Section 143(1)
- Manage Your Taxes Efficiently With the Right Information
- FAQS - FREQUENTLY ASKED QUESTIONS
Key Highlights
- Section 143(1) intimation is fully automated and compares your ITR with the department's records.
- Tax demands and discrepancies should be addressed promptly so as not to incur penalties. The notice can be issued anytime within 1 year of filing the last ITR.
- The notice will indicate if you are liable for a refund or have to pay more tax and the refund is processed within 20 to 45 days.
- Errors can be resolved by filing a revised return or requesting rectification free of cost.
There seems to be a massive sense of unease when somebody gets a notice from the income tax department. However, not every notice, is bad news. Some bring pleasant news in the form of refunds, while others are more of an announcement or a factual statement with little relevance to either side.The Intimation under section 143(1) is one of these notices. The notice is a computer-generated communication stating any mistakes committed along with the interest that might be due or paid back. Let's understand it in detail.
What is Intimation Under Section 143(1)?
Section 143(1) is the processing of the very first ITR at the CPC (Centralised Processing Centre) of the Income Tax Department. After the return has been filed by a taxpayer, the CPC works on that return to check all the reported income, deductions, and the taxes paid.The intimation can be sent for three main purposes, which are as follows:
- Acceptance : It is just a notice that says the tax return filed is correct and no amendments or rectification is required.
- Rectification: Any mismatch, like under-reported income or disallowed deduction, with suggested rectification.
- Refund or Demand: It notifies the taxpayer whether a refund or demand payment is due to him.
Also Read: Section 56 of Income Tax Act, 1961: Impact, Exemptions, and More
Important Features of Section 143(1) Intimation
Some of the salient features of the intimation received under Section 143(1) are as follows: Self-Processing This intimation is computer-generated to produce a transparent and accurate outcome. Data Comparison The ITR filed by the taxpayer is matched with the details available in the tax department's records, such as TDS and Form 26AS. Time The intimation must be issued within one year from the end of the financial year in which the return was filed. No Manual Intervention The process involves no manual scrutiny, and discrepancies are flagged automatically.
When Can You Receive an Intimation Under Section 143(1)?
The three circumstances stated below are the primary reasons for an intimation notification to arise:
- If you have paid any additional taxes, the amount will be mentioned along with the refund message. This refund would be provided if its amount is over ₹100. For amounts below ₹100, refunds won't be sent.
- The notice shall mention the tax amount payable and provide a challan for the same payment in case you have paid taxes which, at computation, fall short.
- A simple notice that your tax returns are in agreement with the calculation of the assessing officer. You must use the ITR V acknowledgement for submitting the ITR as the notice when no explicit notice is issued.
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When is the ITR notice issued?
After filing your tax return, an Intimation Order by the IRS can be issued to you. Let's understand a few of the common reasons for IRS notices:
| Discrepancy in the filling of the return | This situation will arise if what you report and what is on record with the Income Tax Department disagree. Perhaps you gave incorrect details or failed to report any income. In certain situations, the Income Tax Department will contact you. |
| Error in TDS | The most frequent error for income tax returns is the TDS number error. Perhaps your employer has taken money from your salary before for TDS. The IRS will inform you because of the above reasons. |
| Review of the Documents | In several circumstances, the Income Tax Department might request to see the records that a taxpayer had utilised to file his income tax returns. The taxpayer should be intimated by the Department for the above reason, and the taxpayer should reply as early as possible with the required documents. |
| Investments made in the name of the spouse should be declared | To escape paying taxes, most residents want to purchase valuable assets such as real estate, fixed deposits, buildings, and other items in the name of their wives or other close relatives. Contrary to this, these monies belong to the owner and have to be reported on an income tax return. Notice will be issued to citizens by the Income Tax Department. |
| Random Auditing | To do a random audit of the documents and information used to file income tax returns, the income tax department may only notify the taxpayer. Here, the taxpayer has to assist the Department to give them all the relevant information. |
| Intimation under section 143(1) | According to the Intimation u/s 143(1), both income tax returns are evaluated to correct internal anomalies, numerical mistakes, tax estimating, and tax payment checking. No verification of income is carried out at this stage. There is no human intervention involved; data engineering does everything. |
How to get the Notice under Section 143(1) Again?
If you are not getting your notice on your registered mail ID, then follow these steps to get a notice under 143(1) again:
- Step 1 - Go to eportal.incometax.gov.in .
- Step 2 - Enter your login details to access the portal.
- Step 3 - Choose "Income Tax Return" from the "e-file" menu.
- Step 4 - Choose "View Field" to bring up a new page with the submitted returns.
- Step 5 - Choose "Download Intimation Order."
Things to Check on Notification Under Section 143(1)
When you receive a notification under 143(1), you need to make sure of the following:
- The document identification number of the intimation.
- The name on the document.
- The deduction claims under 80C and sections; whether the income is mentioned under the appropriate head.
- Whether the income is repeated; and whether any rebates are claimed or allowed.
- Whether relief under sections 89, 90/90A and 91 is taken into account in the intimation.
- Whether the self-assessment tax was paid.
- And whether TDS/TCS claimed the advance tax was paid in the computation by CPC (Central Processing Center).
6 Steps to Deal with Intimation Under Section 143(1)
After receiving the intimation, here's how you can deal with it: Read the Intimation The intimation notice has two parts:
- Part A : Summary of the ITR filed by the taxpayer.
- Part B : Adjustments done by the CPC, along with the consequent tax liability or refund.
Check the Adjustments Cross-check the adjustments reflected in the intimation notice with your original ITR and supporting documents. The most common reasons for adjustments are:
- Discrepancy in TDS or advance tax payments.
- Disallowance of wrong claims of deductions or exemptions.
- Arithmetic errors in tax calculation.
Reply Immediately In case the intimation states that there is a refund or no further action is needed, then no reply is required. But in case of a tax demand, pay the amount within the given time frame to avoid penalties. File a Revised Return (If Necessary) If the adjustments are due to errors in your original ITR, file a revised return under Section 139(5) with the necessary corrections. Raise a Grievance (If Applicable) If you disagree with the adjustments, you can file an online grievance through the Income Tax Department's e-filing portal or seek rectification under Section 154. Consult a Tax Professional Seek a chartered accountant or tax advisor for the more complex ones or disputes for proper resolution.
Manage Your Taxes Efficiently With the Right Information
Intimation under Section 143(1) is an essential part of the tax assessment process, ensuring that the tax calculations are transparent and accurate. Thus, knowing its purpose and how to react to it is important for the taxpayer to avoid penalties and discrepancies, and more importantly, staying compliant with the tax laws.Always review your intimation, address the issues promptly, and seek professional advice when needed to navigate the Income Tax Act with confidence. Also Read: Section 148 of Income Tax Act, 1961: Notice & Response
FAQS - FREQUENTLY ASKED QUESTIONS
What is the purpose of intimation under Section 143(1)?
The purpose is to verify the accuracy of the ITR filed by the taxpayer and inform them about any discrepancies, refunds, or tax demands.
How do I know if I have received an intimation under Section 143(1)?
The intimation is sent to your registered email ID and is also available for download on the Income Tax Department's e-filing portal.
What can be done if there is a tax demand in intimation?
Pay the tax demand within 30 days without penalties. If you do not agree with this demand, apply for rectification under section 154 or consult a tax professional.
Is it possible to ignore an intimation under section 143(1)?
No, ignoring can invite all penal interest and thereafter legal action by the tax department.
What if I disagree with changes?
If you disagree with the changes then you can file a rectification request or raise a grievance online through the e-filing portal.
Do I need to pay to file a revised return?
No, filing a revised return is free of cost. However, you may incur penalties if you miss the return filing deadline.
Can I ask for a refund once the return has been revised?
Yes, if the revised return shows a lesser tax liability or a greater refund, then the refund will be given by the tax department.
How long does it take to get a refund after intimation?
Refunds are usually dealt with within 20-45 days of intimation being sent.
What is the difference between intimation under Section 143(1) and scrutiny assessment under Section 143(3)?
Section 143(1) is a preliminary assessment without any intervention manually, whereas section 143(3) is detailed scrutiny at the hand of the tax officer.
Can I get multiple intimations under section 143(1)?
Yes, if you file a revised return or request rectification, then you will receive more intimations showing updated status.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
