ITR processing under section 143(1) : A Comprehensive Guide
The ITR is taken up for processing by the CPC unit of the Income Tax Department, which verifies the details submitted in the ITR with the information on hand and sends a notice of intimation to the registered email address under Section 143 (1). The CPC in Bangalore carries out all primary assessments. The Income Tax Department only processes tax returns after they have beenverified by the taxpayer. Therefore, taxpayers are encouraged to submit their returns on time to ensure that they are processed quickly.
About Income Tax Return filing and Verification
The ITR processing starts after the ITR is filed and verified by the taxpayer. You can file your ITR with Tax2win here.
The taxpayer should verify their return within 30 days of filing it and if not verified within time then ITR is considered invalid. Here are different ways of verifying ITR-
- Sending signed ITR-V physically to the CPC, Bangalore
- Through Aadhaar OTP
- Through EVC generated from a pre-validated bank account
- Through EVC generated from a pre-validated Demat account
- Through EVC through ATM (offline method)
- Through Net Banking
- Through Digital Signature Certificate (DSC)
ITR processing under section 143(1)
Once the ITR has been verified, the department processes the income tax return and sends the intimation under Section 143(1) of the Income Tax Act, 1961. This intimation will be sent to the registered email address and mobile number. A text message is sent on mobile number which is :
(example) ITR for AY 2023-24 and PAN abcxxxxx1r has been processed at CPC. Intimation u/s 143(1) has been sent to your registered email ID. If not received check-in SPAM folder.
CPC processes each e-filed return, and an intimation u/s 143 (1) is generated. The department compares the information submitted in the taxpayer's return to the records held by the CPC and issues an intimation under section 143 (1). The intimation also includes a tax computation, as calculated by both the taxpayers and the income tax department.
How to know the status of ITR processing?
Here are the steps to follow to know the status of ITR processing -
- Log in to the income tax portal using PAN and password to check the status of their ITR processing
Hover your cursor over the ‘e-file’ tab and click on ‘View filed returns’ under ‘Income Tax Returns’ - Post that, the following screen will appear where taxpayers can see the status of their ITR processing along with the date of processing.
What are the possible status post the ITR processing?
There are 3 possible scenarios under ITR processing that the taxpayers should know to decode their intimation under section 143(1).
- No demand, no refund
In this case, the department accepts the taxpayer's information filed in the ITR and the ITR processing status changes to "No demand, no refund." It signifies that the assessee does not owe or receive any amount to/from the departments. - Demand determined
The department issues a demand intimation if there is a mismatch in the taxes paid or the credit claimed. Under section 143 (1), the demand must be paid within the time period specified in the intimation. - Refund determined
The refund is issued to the taxpayers if the return filed by the taxpayer is found to be accurate and includes a refund claim. The credit of refund process typically takes 20-45 days from the date of e-verification of the income tax return. However, if the acknowledgement (ITR V) is physically sent to the CPC, it may take longer.
What is the password for intimation notice U/S 143(1)?
The intimation notice received from Income Tax Department comes with password protection, and you need to decode the password before opening it. The default password set by the income tax department comprises your PAN and date of birth. If your PAN is CMDPP5555E, and your date of birth is March 16, 1994, your Intimation notice password will be cmdpp5555e16031994.
Don’t let the intimation notice under section 143(1) stress you out. You can easily pay the demand amount within the deadline and avoid any penalties. But if you are confused by the notice or unsure how to respond, you don’t have to do it alone. You can get expert guidance from the best eCAs who will help you understand your tax situation and reply to the notice. Book your eCA consultation today!
Frequently Asked Questions
Q- How long does it take for the ITR to be processed?
The processing time for ITR can vary depending on several factors such as the jurisdiction, complexity of the return, ITR FORM, and the workload of the tax authorities. In general, the processing time can range from a few weeks to several months.
Q- How can I check the status of my ITR after filing?
You can check the status of your ITR by logging into the tax department's online portal or through their designated mobile application.
Q- What does 'ITR processed' mean?
'ITR processed' means that the tax authorities have completed the assessment of your tax return and have calculated the tax liability or refund, if applicable. It indicates that the initial processing of your return is complete.
Q- What happens if there is a discrepancy or error in my ITR?
If there is a discrepancy or error in your ITR, the tax authorities may issue an intimation or notice seeking clarification or additional information. It is important to respond to such notices promptly and within a time limit issued and provide the necessary documents or rectify the errors as requested.
Q- Will I be informed if my ITR is rejected?
Yes, if your ITR is rejected, the tax authorities will inform you through an intimation or notice. The intimation will specify the reasons for the rejection, and you will need to rectify the issues and file a revised return, if required.
Q- What happens if I have a refund due after ITR processing?
If you are eligible for a refund after ITR processing, the tax authorities will issue the refund to you. The refund amount will be credited to the validated bank account that you provided during the filing process.
Q- Can I track the status of my refund after ITR processing?
Yes, you can track the status of your refund by using the tax department's online portal or mobile application. You will need to provide your PAN (Permanent Account Number) and other required details to track the refund status.
Q- What should I do if there is a delay in the ITR processing or refund?
If you experience a significant delay in ITR processing or refund, it is advisable to contact the tax department's customer service helpline or visit their local office to inquire about the status and seek assistance. They will be able to provide guidance and address your concerns.
People also ask
- Types Of Income, Deductions, Tax Slabs & e-Filing ITR Online
- Advance Tax: Calculate & Make Payment Online
- URN Status - How to check your URN Status?
- Udyog Aadhar Registration
- Self Assessment Tax
- Securities Transaction Tax (STT)
- Section 92E - Furnishing Reports For International Transactions
- Presumptive Income Taxation Under Income Tax Act
- Section 44ADA - Presumptive Taxation
- Section 44AD - Presumptive Taxation
- Section 12A - Tax Exemptions for Charitable Trusts & NGOs
- PRAN Card - Permanent Retirement Account Number Guide
- Minimum Alternative Tax - Applicability & Calculation of MAT Credit
- Section 56 - Taxation of Wedding/Marriage Gifts Received
- Income Tax on Dividends - How dividends are taxed?
- Income Tax on Awards & Prizes - Lottery, Game Shows, Puzzle
- Claim Tax Credit on Foreign Income of a Resident Indian
- Income Tax Audit Under Section 44AB of Income Tax Act
- Income Tax Act & Laws - 1961 & 1962
- Gross Total Income - Computation of Total Taxable Income
- Form 10E - Claim Income Tax Relief under Section 89(1)
- Dividend Mutual Funds
- Cost Inflation Index (CII)
- Agricultural Income - Types & Tax Calculation
- 5-Year Post Office Recurring Deposit
- Voter ID /Election Card - Documents, Application, Eligibility
- Total Income - How to Calculate It?
- Income Tax India E - filing Login
- KYC (Know Your Customer) - How to Check Your KYC Status
- Section 87A - Tax Rebate under Section 87A
- Union Budget 2019 - Key Highlights
- Income Tax Form 60
- Income Tax For Self Employed Business, Profession & Freelancers
- Govt. Jobs v/s Private Jobs - Comparative study on benefits
- Section 234F - Penalty for Late Filing of Income Tax Return
- Section 234C - Interest on Deferred Payment of Advance Tax
- Section 234B - Interest on Delayed Payment of Advance Tax
- Section 234A - Interest Penalty on Delayed ITR Filing
- Section 234F - Penalty for Late Filing of Income Tax Return