Understanding the Significance of Income Tax Act Section 143(1) and guide to respond to intimations
Table
Section 143(1) of Income Tax Act: Intimation
Section 143(1) of income tax act Intimation refers to the communication sent by the Income Tax Department to a taxpayer after processing their income tax return. This intimation is not an assessment order but rather a preliminary review of the information provided by the taxpayer in their return. The purpose of this intimation is to inform the taxpayer about the computation of their total income, the tax liability, and any discrepancies or adjustments made by the Income Tax Department.
Key Causes of Intimation
The issuance of an intimation under Section 143(1) of the Income Tax Act typically occurs after the processing of a taxpayer's income tax return. Several factors can lead to the issuance of an intimation order, highlighting various reasons for adjustments made by the Income Tax Department. Here are the key causes:
Discrepancies in Income Details: Mismatch or discrepancies in the reported income, such as differences in salary, business income, interest income, or other sources of income.
Mismatch in TDS Details: Variations between the TDS (Tax Deducted at Source) details reported by the taxpayer and the data available with the Income Tax Department.
Errors in Deductions and Exemptions: Inaccuracies or omissions in claiming deductions or exemptions under various sections of the Income Tax Act.
Incorrect Tax Payments: Differences in the amount of tax paid by the taxpayer and the tax liability as computed by the Income Tax Department.
Mismatch in PAN or Aadhaar Details: Incorrect or mismatched Permanent Account Number (PAN) or Aadhaar details provided in the return.
Failure to Verify or E Verify the Return: Non verification or non e verification of the filed income tax return by the taxpayer.
Non Filing of Tax Return: Failure to file an income tax return when the taxpayer's income exceeds the exempt limit, or when the taxpayer is liable to file a return under the law.
Calculation Errors: Mathematical errors or calculation mistakes in the return that lead to discrepancies in the computed tax liability.
Non disclosure of Income: Deliberate or unintentional non disclosure of certain income sources or assets.
Non Compliance with Income Tax Rules: Violation of specific rules or provisions of the Income Tax Act, leading to adjustments during the processing of the return.
It's important for taxpayers to carefully review the intimation received under Section 143(1) and address any discrepancies or errors promptly. The intimation serves as a communication tool to inform the taxpayer of the adjustments made during the processing of the return, and resolving any issues in a timely manner contributes to a smoother and more accurate income tax assessment process. If there are disagreements with the adjustments, the taxpayer may need to take corrective action and, if necessary, follow up with the Income Tax Department.
Time Limit for issuing intimation u/s 143(1)
No Intimation under sub-section Shall be sent after the expiry of one year from the end of the financial year in which the return is made
Actions to be taken upon receiving an intimation under Section 143(1)
It is advisable to carefully review the details provided in the intimation. Check the computation of total income, tax payable or refundable, and any adjustments made by the Income Tax Department. If the details are accurate and there are no discrepancies are found, no further action may be required.
However, if there is agreements or disagreements :
If you agree with the tax payable or refund amount indicated in the Section 143(1) intimation, you can proceed by either making the payment for any outstanding taxes or simply expect to receive the refund amount specified.
However, if you find discrepancies in the calculations made by the Income Tax Department, you have the option to either submit an online request for rectification under Section 154 or initiate an appeal under Section 246A.
In the event that the net refundable or payable amount is zero, you may consider the intimation received under Section 143(1) as the conclusion of the return filing process for the relevant financial year, as per the information provided by the Income Tax Department.
What should I do if I don't receive any intimation from the Income Tax Department within the given time frame?
If you haven't received an intimation within one year from the end of the financial year in which you filed your return, your ITR–V acknowledgement will be deemed as the intimation. Nevertheless, it's recommended to verify online whether the Income Tax Department has processed your ITR for your confirmation.
Where can you find your ITR Intimation
You can find your Income Tax Return (ITR) Intimation by logging into the Income Tax e-filing portal. Here are the steps to locate your ITR Intimation:
Visit the Income Tax e-filing Portal: Go to the official Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/
Log in to Your Account: Log in using your credentials, which include your User ID (which is your PAN) and password. If you haven't registered, you will need to create an account.
Go to "My Account": After logging in, go to the "My Account" tab on the dashboard.
Select "View e Filed Returns/Forms": Under the "My Account" section, select the option "View e Filed Returns/Forms.
Choose the Relevant Assessment Year: Select the assessment year for which you want to view the ITR Intimation.
View Intimation: Click on the acknowledgment number of the filed return. This will lead you to the details of your filed return, and you can find the link to view the Intimation under Section 143(1).
Download the Intimation: You can view and download the ITR Intimation in PDF format for your reference.
Check Your Email: Additionally, the Income Tax Department often sends an email notification to the registered email address when the Intimation is available. Check your email inbox for any communication from the Income Tax Department.
Always ensure that you keep a copy of the ITR Intimation for your records, as it provides details about the computation of your total income, tax payable or refundable, and any adjustments made by the Income Tax Department.
Intimation: Password Protected
The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.
Say, your PAN is XYZPB1234C and your birth date is 15th March 1999, then the password to access your online intimation under Section 143(1) would be "xyzpb1234c15031999."
What precautions should be taken when reviewing an intimation under Section 143(1)?
When reviewing an intimation under Section 143(1), it's crucial to pay close attention to the following aspects:
Carefully verify personal details such as your name, PAN, and assessment year to ensure accuracy.
Thoroughly review the income details to confirm that all sources of income have been accurately considered.
Check the computation of total income and tax payable, ensuring alignment with your filed return and adherence to tax slabs.
Verify the consideration of all eligible deductions and exemptions claimed in your return.
Cross-check TDS details against your Form 26AS to ensure accurate reflection in the intimation.
Understand whether the intimation indicates a tax refund or demand, and if there's a demand, review the reasons behind it.
Understand adjustments made by the Income Tax Department and carefully review any discrepancies mentioned.
Note any specified deadlines for responding to discrepancies or taking necessary actions.
Log in to the income tax e-filing portal to verify details online, as it often provides a comprehensive view of your filed return and processing status.
FAQ
Q1. What is Section 143(1) of the Income Tax Act?
Section 143(1) empowers the Income Tax Department to process income tax returns and issue preliminary intimation to taxpayers regarding the computation of their income and tax liability.
Q2. How can I check my refund status?
You can check your refund status by logging into the Income Tax e-filing portal and selecting the "Refund/Demand Status" option under the "My Account" tab.
Q3. What should I do if my refund status shows "Refund Failed" or "Refund Returned"?
If your refund fails or is returned, verify the bank account details provided in your return. Correct any errors and re initiate the refund process.
Q4. Why is there a TDS mismatch in my intimation under Section 143(1)?
TDS mismatch may occur due to disparities between the TDS details reported by the taxpayer and the information available with the Income Tax Department. Verify and correct the discrepancies.
Q5. How can I rectify TDS mismatch in my return?
Rectify TDS mismatch by filing a revised return with accurate TDS details. Ensure that the information matches the TDS certificates received or Form 26AS.
Q6. What if I have a mathematical error in my income tax return?
In case of a mathematical error, file a revised return with correct calculations using the online facility on the Income Tax e filing portal.
Q7. Can I correct mathematical errors in my return after receiving an intimation under Section 143(1)?
Yes, you can correct mathematical errors by filing a revised return. Log in to the e-filing portal and choose the option for filing a revised return.
Q8. How do I respond to a Section 143(1) intimation?
Review the intimation carefully. If you agree, no action is needed. If you disagree, rectify errors and respond through the online portal with necessary details.
Q9. What is the password to open the online intimation under Section 143(1)?
The password is a combination of PAN and date of birth. For example, if PAN is ABCDE1234F and birth date is 10th July 1985, the password is "abcde1234f10071985."
Q10. How long does it take to receive an intimation under Section 143(1) after filing the return?
The timeframe can vary, but intimation is generally issued within a few weeks or months after the return filing.
Q11. Can I check the status of my refund without logging into the e-filing portal?
No, you need to log in to the Income Tax e filing portal to check the status of your refund.
Q12. What steps should I take if my refund is delayed?
Check the refund status online, and if it's significantly delayed, you may contact the Income Tax Department through the helpline or visit the local office.
Q13. What is the significance of Section 143(1) in the income tax assessment process?
Section 143(1) provides a preliminary review of the filed returns, allowing taxpayers to address discrepancies before the assessment is finalized.
Q14. Can I file an appeal if I disagree with the adjustments made in Section 143(1) intimation?
If disagreements persist, taxpayers can file an appeal with the appropriate appellate authority.
Q15. What happens if the net refundable or payable amount is zero in the Section 143(1) intimation?
If the net amount is zero, the intimation can be considered the completion of the return filing process for that financial year, as per the Income Tax Department.
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