Receiving an income tax intimation under Section 143(1) from the Income Tax Department (ITD) can seem daunting, but it is a standard procedure that follows the submission of your Income Tax Return (ITR). This notice provides a concise summary of the department's assessment of your ITR. It compares the income you reported against data from external sources, calculates the tax you owe or the refund you are due, highlights discrepancies, and provides a processing code indicating the status of your ITR evaluation.
Why Is Intimation Issued Under Section 143(1)?
An intimation under Section 143(1) is sent for several reasons, including:
Incorrect Claim Deductions: If you've claimed deductions beyond the permissible limit (e.g., Section 80C exceeding ₹1,50,000), the excess amount is disallowed. Disallowed Expenses: Certain expenses mentioned in your audit report but not included in your return may be disallowed. Tax Consistency Verification: The ITD checks the accuracy of advance tax, self-assessment tax, and TDS details as per Form 26AS. Additional Income: If any additional income appears in Form 26AS, Form 16A, or Form 16 that was not declared in your return, it will be included. Loss Claims: Claims for losses carried forward to the next year may be disallowed if the return was filed late. Late Deduction Claims: Deductions under Sections 10AA, 80-IA, 80-IB, etc., taken after the ITR due date, may be disallowed. Tax and Penalty Calculations: The intimation also calculates taxes, penalties, and interest for late filings. Primary Situations Covered in the IntimationIntimation under Section 143(1) usually addresses one of the following scenarios:
Tax Refund: If you have paid more tax than required, the intimation will detail the refund. Refunds above ₹100 are issued. Tax Shortfall: If you've underpaid taxes, the intimation will specify the shortfall and include a challan for payment. Simple Notice: If your tax return matches the ITD's assessment, you will receive a simple notice acknowledging the filing. In such cases, your ITR V acknowledgment will act as the intimation notice. Timeline for Issuing Intimation Notice The deadline for issuing intimation notices was extended in 2021, allowing the ITD nine months to issue them after the end of the financial year in which the tax return was filed. For the 2023-24 financial year, the deadline for filing returns was July 31, 2024. Therefore, the ITD must issue intimation notices by December 31, 2025. What Steps Should You Take After Receiving Intimation?After receiving an intimation under Section 143(1), here’s what you should do:
Review the Intimation: Cross-check the details of the intimation with your filed return. Ensure that it corresponds to the correct financial year and includes accurate information such as your name, PAN, and assessment year. Address Discrepancies: If there are differences between your return and the intimation, submit a revised return through the ITD’s e-filing portal. Dispute Adjustments: If you believe the adjustments made by the ITD are incorrect, you can file a rectification request under Section 154(1) through the e-filing website. Respond to Tax Demands: Use the e-filing portal to indicate whether you agree or disagree with the tax assessment. RaiseUnresolved Issues: If you are not satisfied with how your rectification is handled, you can submit an online grievance or contact your assessing officer. If this doesn’t resolve the issue, you may file a complaint with the income tax ombudsman.All You Need to Know About the New Tax Clearance Certificate for Indians Travelling Abroad
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