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Ok, so you have received a notice u/s 143(1) and that's causing sleepless nights for you? Well, that’s what an income tax notice does to individuals. But let us tell you an interesting fact, that you might not be aware of the fact that, not all Income Tax Notices are as dreaded as they’re perceived. Some income tax notices have good news too. So you should keep calm and read the notice carefully. This guide would also be helpful for you to understand how to respond to the notice you have received?

What exactly is Intimation u/s 143(1)?

Basically, when a return is submitted to Income Tax Department, the department applies the following computerized checks as a part of its review procedure:

  • Arithmetical errors in the return.
  • An incorrect claim, which is apparent from any information in the return. For example, if the deduction u/s 80C is claimed more than the maximum permissible deduction u/s section 80C i.e. Rs 1,50,000, the excess shall be disallowed and it will be reflected in your intimation u/s 143(1).
  • Disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return
  • Difference in income, deductions, TAN, BSR Code, Challan No. etc. appearing in Form 26AS or Form 16A or Form 16 with the Income Tax Return.
  • Comparison of Advance Tax, Self-assessment tax and TDS etc. from 26AS.
  • Claiming the losses for carry forward to next year when return is submitted after the due date.
  • Whether deduction under section 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or section 80-IA has been taken after the due date of Income Tax Return
  • Calculation of Tax and Interest etc.

After these checks, have been applied, then Income Department Issues Intimation u/s 143(1) in the cases where there’s:
  • Increase/decrease in Tax/Interest Payable, or
  • Increase/decrease in Refund, or
  • Adjustment that makes a change in the loss claimed

However, practically you can still receive it, even if your case does not fall in the above mentioned three criteria.


So, to sum up, Intimation u/s 143(1) is a computer-generated notice which contains the final amount of tax payable or refund to be granted, along with interest.

The intimation u/s 143(1) shows side by side comparison of:
  • (a) Tax Calculation as provided by the you in the Return of Income.
  • (b) Tax as Computed under section 143(1) {i.e. As per Department}

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Now, there’ll be two cases, either you’ll agree with the computation done by the department or you’ll not be satisfied.

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If not satisfied: Connect with our expert CA

And, if the net amount refundable or payable is zero or less than Rs. 100, then you can treat the intimation received u/s 143(1) as the completion of return filing process from Income Tax Department for the financial year in relation which the return was filed.

Lastly, do not ignore this notice as you’re required to submit your response within 30 days of receipt of such notice.

Notes:
  • 1. Intimation u/s 143(1) can be issued only up to 1 year from the end of financial year in which the return is filed, and not after that.
    For example, if you have filed your return for the year 2015-16 on 21.07.2016, then in that case, intimation u/s 143(1) can be issued to you only up to 31.03.2018.
  • 2. You can revise your return even after receiving intimation u/s 143 (1) as this intimation is not an assessment.

Did you receive tax notice? Let us help you respond to the IT Department.

- Tax2win has expertise in responding to Income Tax Department

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What if no intimation is received till the expiry of one year?

In case, you do not receive any intimation till the expiry of one year from the end of financial year in which you have filed your return, then, Income Tax Department cannot raise any tax demand on you. And, thus, your ITR – V acknowledgement will be deemed to be your intimation in that case.


How is the intimation received?

These intimations are auto generated which are sent to the Email address providedby you at the time of filing income tax returns online. The sender of these mails is Central Processing Centre (CPC) with the sender id being [email protected] as the returns are processed at CPC only. The attachment received is a password protected file which is your PAN number in lower case followed by your date of birth in DDMMYYYY format. For example, your PAN is AAGRK5803P and your birth date is 2nd November, 1982, then the password to open your online intimation u/s 143(1) shall be “aagrk5803p02111982”.

As the technology is growing, so is Income Tax Department. Now with the sending of Intimation u/s 143(1), a text message is also sent on the registered mobile number.

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How can you contact the income Tax Department in such a case?


You can contact the Income Tax Helpline/Toll Free Number of CPC Bangalore Income Tax Department (Bangalore) at 1800-425 2229 or 080-22546500 for Income tax queries. You can easily contact them with the help of the Communication Reference Number mentioned on the intimation issued to you.

Still need the expert advice? Contact CA

Check the following points when you receive an intimation u/s 143(1):


  • The intimation has your name on it.
  • All Incomes are considered properly under appropriate head and Income of one head is not considered under another head or repeated elsewhere.
  • The deductions you have claimed under 80C and other sections of chapter VI A are considered.
  • TDS claimed, Advance Tax paid and Self-Assessment Tax paid is reflected in the computation by CPC.

So, don’t get paranoid even if an intimation u/s 143(1) has been issued to you. Simply, go through the intimation, gather your supporting evidences and respond! For expert assistance of a CA and clarification, contact us at [email protected] or call +91-9660996655!


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.