Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Have you received an intimation from the income tax department and don’t know how to go about it? Here is a guide on what the letter contains, how to understand it and the process of filing a response.

What Is Letter of Intimation U/S 143(1)?

Letter of intimation u/s 143(1) is a preliminary assessment intimation sent to you after you file your Income Tax Returns. This letter is a way to communicate with the taxpayer of any refund that has to be paid or an amount owed to the department. The letter of intimation u/s 143(1) is computer generated and consists of tax calculations, inconsistencies, verification of tax payment, and such calculations.

How Will I Receive the Intimation U/S 143(1)?

You shall get the notice through your email address used while filing your income tax returns . You may also receive the intimation on your registered mobile number.

What Will the Notice Consist Of?

The income tax intimation u/s 143(1) will let you know if the tax calculations filed by you match the Income Tax Department’s records. The notice could consist of either of three examples given below:

1.The notice could say that the income tax deductions claimed by you and the calculations match the department’s records. So, you don’t have any pending taxes left and no refund that has to be paid to you.

2.The intimation letter could also say that the claims made by you are wrong or that you haven’t claimed a certain source of income. It could be about owing some money to the department or there could be an error. In the end, you will find a tax demand.

3.Theintimation could also be about a refund that the department owes you. This could happen due to paying extra taxes which leads to a refund.

How Can I Read the Intimation Received under Section 143(1)?

Follow the steps given below to read the letter of intimation sent by the income tax department:

Step 1:
Open the File

The file sent you will be password protected where your password will consist of your PAN number in lowercase and your date of birth in DDMMYYY format. For example: If your PAN number is RSTUV1234R and your birth date is 25 September 1993 then your password will be rstuv1234r25091993

Step 2:
Check the Details

After opening the file, you should check each and every personal detail mentioned to verify if anything is incorrect.

Step 3:
Verify the Tax Calculations

Now that you have verified your personal details, you should pay close attention to the table given in the income tax intimation u/s 143(1). You will find your tax calculations and the income tax department’s calculation in the table. Compare both of these to check for any inconsistencies. You can also find the claims of tax-saving investments, tax liabilities and any late filing penalties in the letter. After checking these sections, you will know if any refund or tax is due.

In case there is an error, you can file for a revised income tax returns. If you do not agree with the processing of returns, you can file for a grievance.

When Will I Receive the Notice?

After you file your income tax returns, the department takes a year from the end of the financial year when you filed the returns to send you a letter of intimation. If you do not receive the letter, the email address given by you could be wrong or a document could have gone missing. You can raise a request on the e-filings website under Section 143(1).

Step by Step Process to Respond to a Notice

1.Go to the official page of income tax returns (https://incometaxindiaefiling.gov.in/) and log in to your account

2.If you have received the letter of intimation, you will be able to see it on the screen

3.Click on ‘Proceeding Name’. You will now be able to view the details of the proceedings

4.Click on ‘Submit’ under ‘Response’. You will be able to view the difference between the returns filed by you and Form 26AS or Form 16/16A

5.You will get three options of responses which are ‘Agree’, ‘Partially Agree’ and ‘Disagree’ submit your response

6.In the case of ‘Agree’ or ‘Partially Agree’, a revised return has to be filed

7.In the case of ‘Disagree’, you will have to mention the reason for it and submit your response