After filing your Income Tax Return, you may receive some notices from the tax department. Understanding the meaning of those notices and giving appropriate response is very important for every taxpayer.
This guide will help deal with two different category of notices:
Three types of notices can be sent to you u/s 143(1):
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.
In the AY 2017-18, several taxpayers have received this notice. 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.
A number of taxpayers who had filed their returns for AY 2017-18 have received emails from the Central Processing Centre (CPC) seeking clarification under section 143(1)(a) of the I-T Act to 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.
Before we understand the process to send a response, let’s first look at some common reason for which taxpayers are getting this notice.
Example-1: If you have claimed investments under section 80C or HRA that are not mentioned in your Form 16, you are likely to receive an email from the department asking you to explain the mismatch.
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.
If you want to revise the return against this notice received then, it must be within 15 days of agreeing with the demand.
The tax return will be processed after making necessary adjustments mentioned in the 143(1)(a) communication.
TAN: TAN of the employer (available in the Form 16)
Deduction made under section: Enter 192 if you have made a deduction against salary income
Amount paid/credited by deductor: Check your Form 16 Part A for this number
Nature of Receipt as per deductor: Salary (If income earned is from salary)
Income/Gross Receipt as per return: Enter the income after taking the deduction into account.
Head of Income/Schedule under which reported in the return: 1 (accepts only numeric value)
Reason: Select the appropriate reason and submit response against your intimation –
If mismatch has occurred due to HRA, select the option “Allowances exempt claimed in return but not in Form 16”
If the mismatch has occurred due to section 80 deductions, select the option “Deductions claimed in the return but not in Form 16”
Justification/Remarks: If you have anything specific to explain regarding the calculations or amounts considered in calculation, do mention such details there.
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.)