Intimation u/s 143(1) is a notice sent by the I-T department to all the tax filers informing them about the result of the preliminary assessment of their tax return. In this guide by H&R Block, you will learn what this tax notice means and how you need to respond to it.
3 types of notices can be sent to you u/s 143(1) by the Income Tax Department:
[ Read: Types of Notices ]
Time limit for the notice to be served is up to 1 year after completion of relevant Assessment Year. Notice is sent after the expiry of one year from the end of the Financial Year in which the return is filed.
[ Read: Notice of Adjustment u/s 143(1)(a) ]
The income Tax department sends this notice seeking a response to the errors / incorrect claims / inconsistencies which attract adjustment(s) under Section 143(1)(a) of the I-T Act.
In the AY 2017-18, several taxpayers have received this notice. A number of taxpayers who had filed their returns for AY 2017-18 had received emails from the Central Processing Centre (CPC) seeking clarification under Section 143(1)(a) of the I-T Act for the mismatch between the income and deduction when compared to Form 16, Form 16A or Form 26AS.
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.
Let’s look at some of the most common reason why tax payers are getting this notice
Open the notice and scroll down to Page 2 to understand the difference –
The mismatch is due to an extra deduction of Rs.1,01,000 that’s not in the Form 16.
If you look at entry no. 1 & 2, we can deduce the following:
Taxpayers who have also had savings bank account interest or income from fixed deposits or house property that’s not included in the Form 16 may also get this email.
[ Read: Reasons for receiving other tax notices ]
If you want to revise the return against this notice received then, it must be within 15 days of agreeing with the demand.
Note: You will have to attach the supporting documents regarding the amounts of discrepancy before you submit your response. (e.g., rent receipts, life insurance statement, home loan interest certificate, Form 16, Form 16A etc.)
Receiving a scrutiny notice is never a pleasant experience and failure to respond to it correctly can result in further proceedings or penalties. To ensure any notices you receive are handled with care and attention to detail, consult your personal tax experts at H&R Block India to get instant tax notice assistance.