Section 143(1) Income Tax Notice

Tax notice under Section 143(1) of the Income Tax Act can be issued to begin a summary assessment without calling the taxpayer. Section 143(1) notices are issued based on computerized processing of tax returns without any human interface. In a summary assessment, the Income Tax Department would not call for additional information or documents as requested in a scrutiny assessment.

An income tax notice under Section 143(1) will be issued in any of the following scenarios after automated verification of tax return filed:

  1. Any arithmetical error in the return;
  2. An incorrect claim, if such claim is apparently wrong in the tax return filed;
  3. Disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date for filing income tax return;
  4. Dissallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return (applicable from AY2017-18);
  5. Disallowance of deduction claimed under Section 10AA, 80-IA, 80-IAB, 80-IC, 80-ID, or 80-IE, if the return is furnished beyond the due date specified under sec 139(1)
  6. Addition of income appearing in form 26as or Form 16A or Form 16 which has not been included in computing the total income in the return;
  7. Information with is inconsistent with another entry of the same or some other return;
  8. Information required to substantiate an entry which has not been provided like donation information;
  9. If any deduction exceeds the statutory limit allowed;

Responding to Tax Notice

Additional tax is payable by the assessee, after making adjustments mentioned below and giving credit to the taxes and interest paid. In such a case, the taxpayer will be asked to pay the amount due within 30 days. Tax is refundable to the assessee, after making adjustments mentioned below and giving credit to the taxes and interest paid.

There is an increase/decrease in the loss declared by the assessee and no tax or interest is payable by the assessee and no interest is refundable to the assessee.

Time Limit

Assessment under section 143(1) can be made within a period of one year from the end of the financial year in which the return of income is filed. Thus the intimation for tax or interest due under Section 143(1) should not be sent after the expiry of one year from the end of the financial year in which return is filed.

Process for Responding to Income Tax Notice under Section 143(1)

The tax notice u/s 143(1) will be sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to the taxpayer. In case there is no sum payable or refundable, the acknowledgement of the return of income will be deemed to be the intimation.

The taxpayer should note that merely because notice is received from the income tax department, it does not mean that it is mandatory for the taxpayer to appear in person before the authorities. In many cases, it shall be sufficient if the person receiving the notice furnishes a response to it in the physical or electronic mode.

If the taxpayer would like to revise the income tax return after receiving a notice under Section 143(1), the assessee must be aware that the deadline for revising the return is 15 days from the date of the notice. If the taxpayer fails to respond in a timely manner to the income tax notice u/s Section 143(1), the income tax return will be processed after making necessary adjustments mentioned in the income tax notice.

To respond to an income tax notice under Section 143(1), follow the steps below:

Step 1: Log in to your account on the Income Tax Department E-Filing website.

Step 2: Click on the E-Proceedings tab and select E-Assessment/Proceedings.

Step 3: Select Prima Facie Adjustment u/s 143(1)(a).

Step 4: You will see the details of the notice received. Click on Submit to being the process of submitting the response.

Step 5: You will now see the list of all mismatches identified. Click on the drop-down next to the Response to submit a response to the mismatch.

Step 6: In case you have any specific information or explanation, enter the same in the justification or remarks.

Step 7: Submit any supporting documents regarding the amounts of discrepancy before you submit your response.

Step 8: Click on “Submit”. Once the response is submitted, an acknowledgement will be provided.

5 thoughts on “Section 143(1) Income Tax Notice”

  1. Dr. Pravin Chunilal Somayya

    AY 2018-19.
    I was issued 143(1) notice.
    I was in hospital for spine cord operation at Pune.
    I am a Pensioner (Retired Professor ) receiving pension from Maharashtra Govt. Aurangabad Teasury Office. Paying IT regularly from last 50 years.
    I receive Pension after due TDS.
    I have already paid all due taxes in yime limit.
    There was discrepancy in the, Traces 26AS form.
    I did apply for the rectification in due time.
    I had submitted 9 grivences in this regard.
    Till this date, i am waiting for justice.
    Unnecessary tax with penalty was deducted from my refund of AY 2020-21.
    13.There is no my faults of mine. Due tax of FY 2017-18, AY 2019-19 was paid in time limit.

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