After the ITR filing process completion, the income tax department sends an intimation under section 143(1), to underline any discrepancy that occurred related to the less tax paid than the original amount supposed to be.
Intimation Notice Under Section 143(1) From the Income Tax Department
To resolve the issue, after getting an Intimation Notice Under Section 143(1), the receiving taxpayer has to pay the remaining balance. Furthermore, if the case is of excess tax amount being paid, the tax amount will be refunded by the authorities of the assessee’s bank account.
What is Intimation Notice Under Section 143(1)?
When individuals file their ITRs before or on the last date, which was July 31st this year, the income tax department further assesses the filed data and starts further processing it.
So, “During this process, the tax department might come across a number of discrepancies such as that of data, calculations, among others. In such cases, the department will send a notice — also referred to as intimation under section 143(1),” mentioned by livemint.
“This notice is sent on the taxpayer’s registered email ID. An SMS is also sent to the registered mobile number informing that the intimation notice has been sent to the registered email ID,’ further mentioned.
Founder of CA Chauhan & Co, Chirag Chauhan says, “there could be three likely scenarios. The first one is that the tax department does not raise any demand for income tax. In this case, the assessor does not have to worry about anything. The second scenario could be that of a tax refund. And the third is that there is a tax demand.”
“It is important for the taxpayer to first identify the scenario, and accordingly rectify the computation. For instance, if TDS is not considered by the department, then one can apply for it to be considered — thereby reducing the tax liability. There are, therefore, multiple permutations and combinations and the response will vary from case to case,” further stated.
“There could be a situation that these changes are not reflected in the tax return by December 31. In such a case, one can always rectify the return afterwards. “The deadline for filing a revised return gets over on Dec 31, but one can always rectify his/her return later. There is also an option of raising a grievance or approaching the CPC,’ lastly mentioned