Intimation Under Section 143(1) of the Income Tax Act

As a responsible citizen, submitting your income details to the Income Tax Department is essential. You can declare them by filing your returns accurately. The department verifies your returns for correctness, and this process of examining returns is known as ‘Assessment.’

While there are four assessment types, Section 143(1) pertains to the preliminary type, also referred to as ‘Summary Assessment.’ When the Assessing Officer (AO) finds any discrepancy while examining your returns, a notice will be sent to you under Section 143(1).

Letter of Intimation Under Section 143(1)

Under Section 139, you can file your ITR voluntarily or at the request of the Income Tax Department. The department assesses your ITR and generates an income tax notice or letter of intimation highlighting the errors identified by the system.

This evaluation primarily includes:

Checking for arithmetical errors
Tax calculations
Internal inconsistencies
Verifying tax payments

The preliminary assessment process is entirely digital and delegated to the Central Processing Centre (CPC).

When Do You Receive a Notice Under Section 143(1)?

As you know, Section 143(1) of the Income Tax Act pertains to a summary assessment, which does not require a taxpayer to be physically present. You are issued a notice when the AO notices minor errors in your income tax returns.

Assessment under Section 143(1) can be referred to as a preliminary check on the returns you filed. While detailed scrutiny is not performed, your returns are examined to check the following:

If there are any arithmetical calculation mistakes
If you have made an incorrect claim
If any expense accounted in the audit report has not been included in the returns
If there is a difference between the income you recorded and the income recorded in the system
If you calculate the wrong TDS from the salary
If you under-report your income details

When the AO notices such discrepancies, you get an intimation in the form of notice under Section 143(1). You receive the notice on your registered email ID. Alternatively, you may receive an SMS stating that a notice has been sent to your mail.

The Income Tax Department can issue the notice within 9 months after a financial year-end. However, as per Section 143(1), you do not need to visit the department. You can respond online within the stipulated timeframe after you check and tally your returns correctly.

What Should be Done on Receiving Intimation u/s 143(1)?

You should carry out the following steps when you receive your ITR intimation:

Review the intimation to ensure your name, address, assessment year, PAN, and e-filing acknowledgement number are accurate
If you identify any mistakes, you can file a revised return through the income tax e-filing website
If you disagree with adjustments made by the CPC/computerised system, file an online rectification application to address the issues
Respond on the e-filing portal regarding any tax demand, indicating whether you agree or disagree with the intimation
If dissatisfied with CPC's rectification return, file online grievances, contact the assessing officer, or lodge a complaint with the Income Tax ombudsman

Process to Follow After Receiving a Notice Under Section 143(1)

Checking Income Details

Ensure your income details align with the records of the Income Tax Department. Any discrepancies should be promptly reported within a month of receiving the notice as per Section 143(1).

Filing Rectification Application

If dissatisfied with the Income Tax Department's computation, file a rectification application under Section 154 of the Income Tax Act.

Timely Rectification Requests

For cases where jurisdictional authority is transferred from the central processing centre, file rectification requests within 4 years of notice issuance.

How is an Assessment Under Section 143(1) Executed

Here is the process followed by the Income Tax Department after you answer the notice issued per Section 143(1):

Tax along with interest and fee is computed based on the income details after necessary rectifications are made
You are intimated about any refund amount or the amount you need to pay
An intimation will be generated and sent to you detailing the refund and sum to be paid, depending on the scenario
You may also be contacted by the Income Tax Department when you have adjusted the loss declared
Acknowledging the income return confirms that there is no tax payable or to be refunded

An additional point to remember is that you may have to pay additional fees, according to Section 139(1), when you fail to file your returns within the due date. You may have to pay ₹5,000 in such cases.

Hence, filing your tax returns accurately without delay can save you from the hassle of paying additional fees. Also, it is vital to acquaint yourself with these tax laws to know the importance of filing your returns. You can get essential information related to the Income Tax laws on Bajaj Markets.

What happens if I do not respond to a notice issued under Section 143(1)?

It is important to take immediate action when you receive a notice, or else the Income Tax Department may adjust the required amount from your tax refund.

Why is it essential to properly read the notice issued per Section 143(1)?

Analysing the tax notice is crucial to ensure your return matches Income Tax Department records.

Is the intimation notice under Section 143(1) password protected?

Yes, the password for income tax intimation is protected. To view the notice, you must type your password, which is your PAN information, in lowercase, along with your date of birth.

What important pointers must be checked in an intimation notice under Section 143(1) of the Income Tax Act?

Your notice may contain one of the following things.

Your income details and deductions claimed match the calculations of the Income Tax Department
You may be asked to pay additional tax as you missed reporting a particular income in your returns
You must have paid additional taxes, and may be due for a tax refund