Many of you or your relatives/friends may face the problem with Intimation under Sec 143(1). Read the complete article to know what is that Intimation, in which case you will receive? and what should we do on receiving such intimation?
What is Intimation under Section 143(1)?
Intimation under Section 143 (1) is a letter which is automatically generated by the computers of IT department without any human interference. There is a software that is designed to detect arithmetical inaccuracies and inconsistencies in the return filed by you. So, if you receive any Intimation u/s 143 (1) in which you are asked to pay any taxes as per the computation of Tax department then check the Intimation where you can find the Mismatch of taxes payable. We have to correct those mismatches by filing rectification.
As the name suggests, it is just an intimation and not a Scrutiny or Assessment order. This will be sent to your E-mail address that is provided by you in the Income Tax Return form. Receipt of Income Tax Intimation 143(1) means completion of the assessment process for the FY (financial year) except if there is any tax due from the taxpayer.
Under Section 143(1) the Income tax department completes the assessment without calling taxpayer to the department. Based on the IT return filed by you, the Income tax department checks,
- Any incorrect claim made or
- The arithmetical errors in the return.
So, this Intimation under Section 143(1) contains two columns. One with Information as Provided by Taxpayer in Return of Income and another with Tax as determined by the Income Tax Department u/s 143 (1).
Section 143 (1)
Summary assessment without calling the assessee (Section 143 (1))
Under section 134 (1), an AO (Assessing Officer) can complete the assessment without passing a regular assessment order.
Adjustments to the total income under Sec 143(1)
The total income of a taxpayer shall be computed under section 143 (1) after making the following adjustments to the total income in the IT return.
- Any arithmetical error in the return
- An incorrect claim that is apparent from any information in the return shall mean such claim on the basis of an entry, in the return,
- of an item, which is inconsistent with another entry of the some other or same item in such IT return.
- in respect of which, information required to be furnished to substantiate such entry, has not been furnished under this Act; or
- in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as a monetary amount or percentage or ratio or fraction.
In what cases Intimation 143(1) will be sent?
Intimation u/s 143(1) send to you only in the following three cases.
- After making adjustments referred to in Section 143(1) and after giving credit to the taxes and interest paid, if any tax or interest is found payable from the return; or
- After making adjustments under Section 143(1) and after giving credit to the interest & taxes paid, if any tax or interest is found refundable from the return; or
- Where adjustments referred to in Section 143(1) have been made resulting in reduction/increase of loss declared by the taxpayer and no tax or interest is payable or refundable by/to the assessee.
In short, IT Department will send Intimation only if any tax or interest is found refundable or payable or there is any reduction/increase in loss.
What is the time-frame by when the IT department will send this intimation?
The Intimation under Section 143(1) shall be sent within 12 months from the end of the financial year in which the Income Tax return is made. For example, you will get intimation on or before March 2016, for the Financial Year ending March 2014.
What should I do if haven’t received intimation?
Intimation under section 143(1) shall not be sent to the assessee if there is no tax or interest refundable or payable, or no adjustment is made resulting in increase/reduction in loss. If you haven’t received any Intimation under section 143 (1) within 12 months period, consider ITR-V (acknowledgment) of the IT return as deemed intimation.
What should be done if we find a mismatch in the Intimation under Section 143(1)?
If you find any mismatches, you can follow the steps mentioned below.
Step 1: Compare two columns a) One with Information as Provided by Taxpayer in Return of Income b) another with Tax as determined by the Income Tax Department u/s 143 (1) and check the difference. Find out the reason for the difference.
Step 2: File online Rectification application under Section 154(1) correcting the mistake that appeared in the intimation received under section 143(1).
Step 3: After filing rectification under section 154(1) login to the income tax department ePortal and file online response.
Step 4: If you are not satisfied with the processing of your return/rectification return by CPC (Central Processing Center), file online grievances.
Step 5: If you are not satisfied with the action taken by the CPC/Assessing Officer, you have another option i.e., to file a complaint to income tax ombudsman (Public advocate).