Section 143(1)

Letter Of Intimation Under Section 143 (1)

Intimation under section 143 (1) is a notice sent to taxpayers containing the amount of tax payable along with interest issued. When you pay income tax return, tax department validates your return and carries out a preliminary assessment of the return filed. They compute your total income as well as taxes and modify your tax return by making small adjustments or corrections and communicate the results of the same to the tax payers. This is an auto-generated letter from computer of income tax department telling tax payers about the –

• Increase/decrease in tax/interest payable.
• Increase/decrease in refund
• Adjustment that makes a change in the loss claimed.

What Is Intimated By The Tax Department U/S 143(1)?

Following checks has been performed by the tax department as part of review procedure –

• Arithmetical errors
• Difference in income, TAN, BSR Code, Challan number etc. in form 26AS or Form 16 or form 16A in relation to income tax return.
• If you have claimed more deduction u/s 80C than the maximum permissible deduction i.e. 150,000.
• Comparison of advance tax, self-assessment tax and TDS from 26AS statement.
• Whether deduction under section 10AA, 80-IA, 80-IB, 80-IC, 80-ID, 80-IAB OR SECTION 80-IA has been taken after the due date of the tax return.
• If you have paid less tax, you need to pay the remaining tax as early as possible to settle your account.
• If you have paid more tax, you are entitled for a refund.

How Is The Intimation Received?

Intimation u/s 143(1) is sent on the e-mail addresses of the tax payers provided by them at the time of filing tax returns online. The mail is received from the central processing center (E-mail id – intimations@cpc.gov.in ). All the returns are being processed at CPC only. The notice received is a password protected file which is opened when you put your PAN number in lower case followed by your date of birth in DDMMYYYY format. For ex – Your PAN number is AIWRK3807P & your date of birth is 15th November 1989, then the password to open the online intimation u/s 143(1) will be “aiwrk3807p15111989”. As technology is growing day by day, a text message is also sent to the taxpayer’s registered mobile number.

Reviweing Of Important Things

What things you should review after receiving notice under section 143(1) from the income tax department. They are as follows -

1. Check your name & address
2. Check your PAN number
3. Check the assessment year
4. Check your e-filling acknowledgement number

When You Receive Notice U/S 143(1)?

There are usually 3 cases in which you receive notice u/s 143 –

1. When there is no mismatch – No mismatch means that all the fields in the document are matching and there is no tax due or to be refunded. In such a case, you can assume the intimation as an acknowledgement of your income tax return. No further action is required from your end.
2. When final tax is due and you are agree with it – When final tax is due and you agree with it, you have to make the payment to income tax department as early as possible. After making the payment, no further action is required from your side.
3. When there is a final tax due and you do not agree with it – This situation arises when self-assessment tax payments have been considered or TDS has been disallowed. If you did not satisfy with the final calculations done by income tax department, you can rectify your tax return u/s 154(1). For rectification, you can apply online or you can reach accessing officer by writing an application.

Types Of Notices You Can Receive U/S 143(1)

Income tax department can send you 3 notices u/s 143(1) and they are as follows –

1. No demand, no refund – In this case, you can easily assume your notice as an acknowledgement of your income tax return. Calculations of return are totally matching with the calculations u/s 143(1).
2. Refund – In this case, you will receive a refund notice in which calculations shows that you have paid excess tax to the income tax department.
3. Demand – In this case, you will receive a demand notice in which calculations shows that you have underpaid the tax and you need to pay the remaining tax within the period of 30 days to avoid fines, penalties etc.

Time Limit For Issue Of Notice U/S 143(1)

Intimation u/s 143(1) needs to be sent to the tax payer by the income tax department within one year from the end of financial year or return filing year. For example – If you have filed your return for the year 2016-17 in July 2017. In such a case, intimation can be issued to you anytime till 31st march 2019. After that date, Income tax department is not allowed to send any demand notice.

What If No Intimation Is Received Till Expiry Of One Year?

If you didn’t received any intimation from the income tax department till the expiry of one year from the end of financial year in which you have filed your tax return. Income tax department cannot issue notice u/s 143(1). You are provided with ITR-V as an acknowledgement of your tax return.

How Can You Contact The Income Tax Department?

You can contact the income tax helpline/toll free number of CPC Bangalore, income tax department at 1800-425 2229 or 080-22546500 for income tax queries. You can also contact the income tax department with the help of communication reference number mentioned on the notice sent by tax department u/s 143(1).

Consequences Of Not Responding To Notice U/S 143(1)

• You need to respond to notice u/s 143(1) only in case of a refund or tax payment
• If you will not respond to the notice given by tax department, they may send you one more notice u/s 156. They may also start recovery proceedings after 30 days, if any additional taxes are payable to you.