INTIMATION / NOTICE UNDER SECTION 143(1) (a)

In recent years, most of the tax payers are getting intimation or notice under section 143 (1)(a) from income tax authorities by seeking response to the errors/ incorrect claims/ inconsistencies found in respective Assessment year's IT return, which attract adjustment(s) under section 143 (1)(a) .

Today, in this article we will discuss about intimations u/s 143(1)(a).

Why taxpayers are getting these communications / notices u/s 143 (1)(a)?

While processing the Income Tax return by CPC, if they found any slightest mismatch between Form 16, Form 16A and Form 26AS versus the return filed. They may then recompute your total income and taxes, If there is an arithmetical error in the return or certain TDS has been disallowed to be claimed or something has been claimed which is not as per limits allowed. Then, such adjustments result in an intimation under section 143(1)  which are usually computer generated.

Read: How to do E-filing of Income tax return

What is communication / Notice u/s 143(1)(a)?

Whenever we submit any kind of document to the government, we always hope that we have done our due diligence and the government will be satisfied with the details provided by us.  However, it is not always the case and if you have not submitted all the details as required, you can find yourself at the mercy of the assessing officer with whom you will have to justify yourself to, with proof.  When we submit our yearly tax returns, we mostly hope for one of two situations.  The first being that everything has been filed properly and the income tax deduction is satisfied with our report of yearly income or we expect a refund, but this is not always the case. When you file your tax return one of three things can happen, as per section 143(1).

In the AY 2017-18, several taxpayers have received this notice. The income Tax department sends this notice seeking a response to 

Types of communications, you can receive under section 143(1)(a)

1. In most of the cases, Deductions u/s 80TTA which exempts interest income up to Rs 10,000 in savings bank account which mostly do no figure out in Form 16 are receiving notices. The problem is we still do not know what proof tax department would require for this exemption.

Read: Know your income tax slab rates for 2018-19

2. There may be rounding off errors which the department may correct because of which a final tax due or refund may arise. Sometimes it could just be an intimation that that the Department has determined your refund adjusting for interest.

3. If you have claimed investments under section 80C or any other sections that are not mentioned in your Form 16, you are likely to receive an email from the department asking you to explain the mismatch. 

4. If Any TDS amount deposited by your employer on your PAN for incentives or bonus paid to you in that financial year and which are not mentioned Form 16 issued by your employer, you will get intimation as your tax mentioned in your IT return is mismatched with Form 26AS.

5. Intimation where the notice is to be simply considered as preliminary assessment of your returns since the Assessment Officer has found the return filed by you to be matching with his computation under section 143(1). (you should not reply for this intimation as it is acknowledge of your return successfully)

What is the time limit to revise the return in this case?

Recipient of the mail is given a time period of 30 days from the date of receiving the intimation to send a response. If the recipient fails to respond, the return is processed after making necessary adjustment(s) u/s 143(1)(a), without providing any further opportunities in this matter.

If you agree with the adjustments in the communication / notice, you must submit a revised return within 15 days with supporting documents for tax mismatch.


Read: Precautions to take file your Income tax return

If you Disagree with the adjustments in the communication / notice, you will have to enter the reason for disagreement and also attach supporting documents before you submit your response.

Supporting documents like: Part A of Form 16, Form 16A (if you have fixed deposits at any Bank), Rent receipts, Life insurance statement, Home loan interest certificate i.e., 80C, 80D, 80G proofs etc.,

If you are not responding to notice within 30 Days:

If you do not respond to this notice within 30 days of the receipt, it may delay your tax refund or tax department may send you a notice of demand under section 156 and may also initiate recovery proceeding after 30 days if any additional taxes is payable by you.

In my next article, i will provide you the procedure of filing of revised return.

Please share your suggestions or throw your queries in comments below.