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section 143 1 of income tax act

Section 143 1 of the Income Tax Act (Guide)

You will face nervousness when you receive a notice from the Income Tax Department. You may get thought about fines and arrivals. It builds stress in your daily life. 

But not every income tax notice bears bad news. Some may have great information about tax refunds. Some notice from the Income Tax Department has a statement or announcement. It has no positive or negative impact. One of those notices is the Intimation under section 143(1) of the income tax act. 

This notification is a system-generated message stating any errors in your returns. It also notices you about any interest payable or refundable. Notice under section 143(1) is generated automatically and has no human intervention. You will receive this notice via email within one year from the financial year in which you file your returns. 

Let us know more about section 143(1) of the income tax act.

What does intimation u/s 143 1 means?

The Centralized Processing Centre (CPC) processes your returns as soon as you file them. After processing your returns, the income tax department sends you an intimation under section 143(1) about the results.

If you have received such an income tax notice, please do not fear. It is just an intimation about your returns.

The Income Tax Department examines the returns you file. This process is known as assessment. The Central Processing Unit of the IT department does a preliminary check of all the returns filed and informs you about the result.

This assessment primarily includes arithmetical errors, internal inconsistencies, tax calculation, and verification of your tax. The preliminary evaluation process is computerized and done by the Central Processing Centre (CPC).

After the assessment, the system generates an intimation under Section 143(1) that generally indicates the detected errors.

How do you respond to the intimation US 143 1?

Firstly, you need not worry if you receive such an intimation. Check for particulars and see if the details mentioned belong to you. Like the name, PAN number, and assessment year.

Next, check whether you receive the notice for tax refundable or payable. In case of tax refundable, you will get the refund for values exceeding Rs. 100. You will receive this refund in due course of time without providing any additional details.

If the notice is for tax payable, you need to see the cause of the discrepancy. It may be due to simple arithmetic errors, insufficient documents submitted, undeclared sources of income, or deductions filed under the wrong sections. If the analysis seems acceptable, you can pay the tax discrepancy immediately. If you are unhappy with the computation made and would like to deny the notice, you can consult with a capable CA and contact your income tax officer.

Do I need to file a revised return after intimation u/s 143 1?

You can revise the income tax return after receiving a notice under Section 143(1) if you feel any discrepancy in the intimation you receive. The deadline to file a revised return is 15 days from the date you receive the intimation. If you fail to reply promptly to the income tax notice u/s Section 143(1), your return will be the same as cited in the income tax notice.

You can log in to the income tax e-filing portal and submit the revised returns online.

You will need to submit your response for the mismatch in the intimation you receive. You can file revised returns after submitting your response.

How long does it take to get the refund after intimation US 143 1?

After you file your IT returns and verify the same, you will receive an intimation regarding details of your returns under section 143(1).

If the intimation is for a tax refund, you will receive the mentioned refund amount without providing further details.

Once you receive the notice from the income tax department under section 143(1), you will receive your refund usually in 20-45 days. If the refund takes longer, you should follow up with the Centralised Processing Centre (CPC).

What is intimation US 143 1 due date?

You will receive section 143(1) intimation within one year from the end of the financial year in which you file the return. E.g., suppose you file your return for the financial year 2021-22 in July 2022, you may receive an intimation notice any time till 31 March 2023. 

Suppose you do not receive any intimation within the stipulated time, it simply means there are no adjustments carried out to your return and no change in tax liability/refund. The acknowledgment filed itself is deemed to be Section 143(1) intimation.

What is the meaning of CPC order US 143 1?

The Centralized Processing Centre is responsible for the processing of all the returns filed in a financial year. Once you file your returns, the initial processing of returns by CPC is automated, and Section 143(1) Intimation is also a computer generated record.

CPC validates data you provide while filing your returns with details available with the income tax department’s record (such as Form 26AS developed through information given by collecting banks, TDS returns, etc.). This notice usually only points out apparent mistakes that are found by the mainframe system.

The intimation notice has two columns: ‘As provided by you in the Return of Income’ and ‘As computed under Section 143 (1)’.

CPC compares the details for major categories as 

  • Income under different heads, 
  • Gross total revenue
  • Deductions under Chapter VIA (80C, 80D, etc.), and 
  • Tax deducted at source, and tax paid by taxpayers in the form of advance tax and self-assessment tax

Proper adjustments are made to income as computed under Section 143(1), and CPC calculates the final tax liability or refund.

If you send a response within 30 days from the intimation date, CPC will consider it before making the final adjustment. If no response is received within such a period, CPC will incorporate the adjustments made before.

These are the details that are in CPC order US 143 1.

FAQS- Section 143 1 of the income tax act

1. What happens if I don’t respond to the notice within 30 days?

 If you didn’t respond to the intimation notice under section 143(1) within 30 days, CPC will incorporate the adjustments made initially, and your returns will get processed.

2. Can we file an appeal against 143 1 intimation?

Yes, you can file an appeal against section 143(1) intimation. If there are no mistakes and you are not satisfied with the adjustments made by the CPC/computerized system under section 143(1), you can file an online rectification application under Section 154(1). 

This online rectification application intimates the correction of mistakes appearing in Section 143(1) notice. 

You can further appeal to the income tax department if you still didn’t agree with the rectified intimation notice under section 154(1).

If you are not satisfied with the process of your rectification returned by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from the CPC/assessing officer, you can file a complaint to the income tax ombudsman. 

Bottomline

Section 143(1) of the income tax act is nothing but the intimation about your filing of returns. 

This notification is a system-generated message stating any errors in your returns. It also notices you about any interest payable or refundable. Notice under section 143(1) is generated automatically and has no human intervention. You will receive this notice via email within one year from the financial year in which you file your returns. 

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