What is an intimation u/s 143(1)(a)?
Whenever we submit any kind of document to the government, we always hope that we have done our due diligence and the government will be satisfied with the details provided by us. However, it is not always the case and if you have not submitted all the details as required, you can find yourself at the mercy of the assessing officer with whom you will have to justify yourself to, with proof. When we submit our yearly tax returns, we mostly hope for one of two situations. The first being that everything has been filed properly and the ITD is satisfied with our report of yearly income or we expect a refund, but this is not always the case. When you file your tax return one of three things can happen, as per section 143(1).
Note that an intimation u/s 143(1) is different from an intimation/notice u/s 143(1)(a).
What are the contents of an intimation under section 143(1)(a)?
- If details provided by you in your tax return are verified by the Income Tax department and no discrepancies are found then the notice will serve as final assessment of the return. All you need to do is to take a print out of the notice and keep it safely with your tax related documents.
- If you are getting a refund, wait for the cheque or direct transfer of cash into your account. However, if you do not receive a return due to wrong information being furnished at the time of filing return then you need to send a request for reissue of refund. Click here to know how you can send a request for reissue of refund.
- If there is a tax demand then this intimation becomes notice of demand and this intimation may be treated as Notice of demand u/s 156. Accordingly, you are requested to pay the entire amount within the time mentioned in the notice.
What is the timelimit for serving a notice under section 143(1)(a)?
Notice under section 143(1)(a) is to be served within 1 year of completion of the relevant Assessment Year. (more simply – Notice can be sent within one year from the end of the Financial Year in which the return is filed)
How to Respond to a notice under section 143(1)(a)?
Log in into the income tax website and go to ‘e-Proceeding’ menu option and further choose ‘e-Assessment/Proceedings’ and click on ‘Prima Facie Adjustment u/s 143(1)(a). Click on the dropdown under the column “Response” and choose any of the two responses.
- Agree to addition: If you have forgotten to include income from fixed deposits etc. that are mentioned in your Form 26AS, select this option. If you agree with the demand then you must file a revised return within 15 days.
- Disagree to addition: If you have added allowances/deductions in your tax return directly and have necessary proofs for it, then select this option. Now when you disagree, you’ll see a section open where you can select from a list of reasons of disagreement.
- Fill in the details as mentioned below: TAN of the employer (available in the Form 16)
- Deduction made under section: Enter 192 if you have made a deduction against salary income
- Amount paid/credited by deductor: Check your Form 16 Part A for this number
- Nature of Receipt as per deductor: Salary (If income earned is from salary)
- Income/Gross Receipt as per return: Enter the income after taking the deduction into account.
- Head of Income/Schedule under which reported in the return: 1 (accepts only numeric value)
- Reason: Select the appropriate reason and submit response against your intimation –
- If mismatch has occurred due to HRA, select the option “Allowances exempt claimed in return but not in Form 16”
- If the mismatch has occurred due to section 80 deductions, select the option “Deductions claimed in the return but not in Form 16”
- Justification/Remarks: If you have anything specific to explain regarding the calculations or amounts considered in calculation, do mention such details there.
Note: You will have to attach the supporting documents regarding the amounts of discrepancy before you submit your response. (e.g., rent receipts, life insurance statement, home loan interest certificate, Form 16, Form 16A etc.)
Click on “Submit”. Once you submit your response, you will see an acknowledgement screen.
Receiving a scrutiny notice is never a pleasant experience and failure to respond to it correctly can result in further proceedings or penalties. To ensure any notices you receive are handled with care and attention to detail, consult our tax experts at Go For Filing to get tax notice assistance.
FAQs on Section 143(1)(a)
What is notice under section 143(1)(a)?
Notice u/s 143(1)(a) is an intimation from the Central Processing Centre (CPC) seeking clarification of the mismatch between the Income and deduction when compared to Form 16, Form 16A or Form 26AS.
What is the time period for sending a response towards this notice?
A time period of 30 days from the date of receiving the intimation is given to the recipient of the notice. If the recipient fails to respond, the return is processed after making necessary adjustment(s) u/s 143(1)(a), without providing any further opportunities in this matter.
What are the Consequences of not responding to notice within 30 Days?
If you do not respond to this notice, it may delay your tax refund or tax department may send you a notice of demand u/s. 156 and may also initiate recovery proceeding after 30 days if any additional taxes is payable by you.