How to face Intimation u/s 143(1)?

When We receive Income tax Intimation u/s 143(1)?

Intimation u/s 143(1) is received by each and every assessee who file his income tax return. After filing of income tax return, it is to be sent to Bangalore CPC-Department or it can be verified online through Aadhar Card OTP or through net banking login id or through assessee Digital Signature Certificate.

When Your income tax return is processed by Income tax department, ITD send an Intimation to assessee u/s 143(1). Through this intimation, ITD communicate the result of processing of income tax return which can be one of below:

a) No Demand or No Refund: Return is accepted by income tax department as it is filed by assessee and assessee has not claimed any refund. – > NO ACTION REQUIRE

b) Demand Payable: Return is accepted by Income tax department but with some changes that result in demand payable by assessee. – > ACTION REQUIRE

c) Refund Determined: Return is accepted by Income tax department as it is filed by assessee and assesee has also claimed refund. In this case:-

    1) Refund may be less than as claimed by assessee. – > ACTION REQUIRE

    OR

    2) May be equal as claimed by assessee. – > NO ACTION REQUIRE

So Now Question is How to deal with this intimation in case of Demand Payable or if Refund is less than claimed?

The main important point to remember in this case is that if There is demand payable then It is to be treated as Notice of Demand under section 156 of the Income tax Act, 1961. Accordingly, either this demand is to be paid within 30 days of receipt of this notice or you have to reply the notice within 30 days of receipt of this notice.
Case 1: If you are satisfy with this demand, then pay it within 30 days through offline challan mode or through online tax payment.

Case 2: If you are not satisfy with demand payable, then check the difference in tax computation declared by you and computation accepted by Income tax department as below:

• Check all calculation step by step. Find the difference where is error has been made or where adjustment has been done while calculating tax by Income tax department.

• You can seek rectification as per section 154 by filing online application for rectification through your user id and password on <www.incometaxindiaefiling.gov.in> and choosing Rectification Request.

• For Filing rectification u/s 154, you should come to know the variances in schedules of Income tax return from intimation u/s 143(1).

• In case of any variance in the ‘As Entered’ and ‘As Computed’ values, kindly also refer to the Schedule CYLA along with the Schedules for the corresponding Heads of Income.

• Variance in, ‘As entered’ and ‘As computed’ figures for ‘Total Income after Deductions’ may be due to incorrect section code entered in Schedule SI or details entered under incorrect classification of schedule CG/Schedule OS’.

• Variance in ‘As entered’ and ‘As computed’ figure in schedule BFLA may be due to incomplete details furnished in schedule Unabsorbed Depreciation (Schedule UD).

• In case, if there is a claim for 89(1) relief. You have to upload form No.10E (at e-filing portal) as per the provisions of Income Tax Act, 1961.

On Filing of Rectification u/s 154, you will get Acknowledgement of Rectification Request, that should be used to track the status of Rectification Status.

For More Queries You can send us message at mrtandassociates@gmail.com or leave a comment.

Regards, CA Rahul Gupta

(Practicing Chartered Accountants)

M R T & Associates, Chartered Accountants