143 (1) Income Tax (Must Know Information)

What happens when the taxpayer provides wrong information in the ITR? What happens when the information provided by the taxpayer does not match the records of the Income Tax Department of India?

In simple words, the Income Tax Department sends you a notice of intimation under Section 143 (1) Income Tax Act, informing the taxpayer about the mismatch in the ITR and will ask you to pay any additional tax (if any). The IT department can send notice within 9 months of filing the ITR by the taxpayer. 

Let’s learn more about section 143 1 Income Tax.

What Is Section 143 (1) in Income Tax?

Section 143 1 in Income Tax Act allows the IT department to send an intimation notice to the taxpayer in cases where their data and the taxpayer’s data in the ITR filed varies. The intimation may mention any of the causes. Let’s see them one by one.

Reasons for Intimation under Section 143 (1) of the Income Tax Act,1961:

1. There is no variation in the information about the tax information, claimed deductions, and other income details. The notice will show no additional tax due, i.e., the tax payable and tax refundable amount will be zero.

2. The notice will demand you to pay additional tax in case you missed reporting any income in the ITR. The IT department will send their assessment details of your taxes and ask you to pay the required amount.

3. The notice will suggest a refund from the income tax department if you paid any extra taxes. The IT department will process your refund.

Once you have received the intimation, check for the details like your name, DO.B., PAN details, etc, to verify it’s correct and is for you. You can open the intimation by using your PAN and your date of birth.

What to Do If I Received Intimation U/S 143 (1)?

In case you have received intimation under section 143 (1) read the notice carefully for the three reasons stated above. There is no need to worry if it’s the case of a refund or no dues liability. However, if you are asked to pay any extra taxes, verify the details with your records. 

You can also ask the tax department to resend the intimation if you haven’t received it or you think it’s not correct.

The information about the gross income, net income, tax payable, TDS, etc is mentioned in a table format. It shows the comparison between the filed ITR and the data of the IT Department. In case of any mismatch, the same is reflected in the table. 

It will also contain every detail from deductions, income under various heads, late fees or fines if any imposed under section 234 F, or interest liability under sections 234 A, 234 B, and 234 C.

Request for Resending Intimation Order under Section 143(1)/154

The taxpayer can ask the IT department to resend the intimation order if they haven’t received one! It can be done by following steps:

1. Log in to your account in the e-filing portal.

2. In the My Account menu, click on service request. Now, select the requested category: intimation u/s 143(1)154/16(1)/35 and then click on submit.

3. Enter the following details: return type, assessment year, category, and subcategory (if applicable).

4. Click on submit.

Check the status of the submitted form by

1. Logging in to your account again in the e-filing portal.  

2. In my account menu, click the service request. Then select the request type: New Request and category as intimation u/s 143(1). Now, click on submit.

How Long Does It Take To Get Refund after Intimation Us 143 (1)?

When the refund amount is more than INR 100, then only a refund is initiated. The IT department will credit the refund to the account mentioned by you in your ITR form at the time of processing the ITR. You will be notified of the same through an e-mail or an sms on your registered mobile number.

NOTE: The IT department does not ask for any account details to transfer the refund. If you receive any message asking for your bank details or OTP etc, it is a scam. Beware!

Do I Need to File Revised Return after Intimation U/S 143 (1)?

You can file a revised return after you have received intimation under section 143(1). This can be done per section 135 (5) of the IT Act.

What Happens If I Don’t Respond to the Notice within 30 Days?

If the assessee does not respond to the intimation notice within the 30 days limit, the IT department will make the necessary adjustment and process the return. For further hearing, the assessee will have to appeal to the CPC with a proper explanation of the cause of the delay in response.

How Long It Takes for ITR Refund after Intimation?

The refund is initiated to the registered bank account after the processing of ITR if only the amount of the refund is more than INR 100.

Can We File an Appeal against 143 (1) Intimation?

Yes, the taxpayer can file an appeal against the intimation received under section 143(1). Usually, the reason for filing a request is the double taxation imposed on the assessee. The taxpayer is asked to pay an additional tax in the intimation for the income already assessed in the ITR filed by the assessee. This happens because of several technical rules. 

The assessee can file an appeal within 30 days from the date of issue of intimation. You can file the appeal through Form No. 35. You can download it or fill it out online on the e-filing portal of the IT Department of India. A fee is charged based on the income of the assessee to file the appeal.

1. For income less than INR 1 lakh, the fee is INR 250, and INR 500 is charged 
2. For income between INR 1 to 2 lakh, the fee is INR 500 and
3. For income more than INR 2 lakh, the fee is INR 1000.

Conclusion

Section 143(1) Income Tax Act, 1961 states that the Income Tax Department will send an intimation under this section after the processing of the ITR filed by the assessee/taxpayer. In case you paid extra taxes, it will be an intimation for a refund. If paid less or did not disclose any income, it will be intimation for additional taxes and there will be no dues pending if everything is correct. The assessee must respond to the intimation within 30 days by paying the dues or resending the intimation or making an appeal for rectification. It can be through the online e-filing portal of the Income Tax Department.

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