What is Intimation under section 143(1) | Respond to a Income Tax Intimation u/s 143(1) Online | Penalties | not Received ?

Introduction

Once you file your income tax returns (ITR), the Income Tax Department (ITD) does a preparatory assessment of the IT returns.
It inspects for internal inconsistencies, any mathematics errors in tax calculation, and verifies the tax payment information.
Initial evaluation is computerized and does not involve any checks through IT officials.
Once the initial assessment is over, the ITD informs you via sending you a letter of intimation under Section 143(1).
Let’s discuss about more “What is intimation u/s 143(1)?”, “Intimation meaning in Income Tax” and “How to Respond a intimation u/s 143(1)?
Intimation u/s 143(1) means “Intimation notice under section 143(1) of the Income Tax Act 1961

What is intimation under section 143(1) of the Income Tax Act 1961?

The ITD will forward the notice to your registered email Id.
Your registered e-mail Id is the one you use while e-filing your ITR.
The 143(1) notice will let you know whether the calculations in your filed ITR meets the ITD’s records.
It could say one of the following reasons:

  1. Intimation with no demand or no refund
    Taxpayer income information, Tax deductions claimed, calculations and so on match the IT department’s assessments. This indicates that, You don’t have any pending taxes to pay and nor does the ITD owe you a refund.
  2. Intimation with a demand
    The 143(1) notice could also be an extra tax demand notice. if the IT department’s calculations indicate that you haven’t declared a source of income while filing your ITR.
    OR
    You have wrongly claimed a deduction.
    This mistake could also be mathematical and you may still owe the ITD some money.
  3. Intimation with a refund
    Taxpayer may get is an IT refund notice. You will get this if you have paid extra taxes than you are required to, in which condition the ITD will send you a refund.

What is Intimation u/s 143(1) with a Demand?

  • The notice you get through e-mail will be a password-protected PDF file.

Password for Intimation u/s 143(1)

  1. Your password will be your PAN Card number in lowercase followed by your DOB (date of birth).
    That means, if your PAN is ABEFD4587A and your date of birth is 21st Nov 1983, your password will be abefd4587a21111983.

  2. Next, you should verify that the personal information provided in the notice are right or wrong. Pay particular regard to the name, PAN and address.
  3. Most important is verify the calculations.
  • In case, details are correct,
    You need to compare your IT computation with that of the notice.
    Notice’s Table will show your income information along with any tax-saving deductions that you have claimed.
    Also, it will explain your tax liability, any tax relief, and any late filing fees you may be required to pay or have paid under section 234F.
  • In case, any mathematical error or a wrong deduction claimed,
    You will notice a difference in your ITR and the IT department’s calculations.
    You will then look whether you have to pay any extra tax or if a refund is due.

Intimation with a Refund

If any refund is due to you, The amount will be directly credited to registered account.
The Income Tax department will notify you after successfully credited.

How to Respond to a Income Tax Intimation u/s 143(1) Online

Once you get the intimation u/s 143(1) of the Income Tax, you have 30 days to respond the same.
If you are not able to find the intimation on either your e-mail address or via SMS,
you can also see your online IT account on the e-filing website.
A 143(1) notice should be available there.

  1. Login to your e-filing account on Income Tax website with your credentials.
  2. Click on ‘E-file’ option and then go to ‘Respond to Outstanding Tax Demand’.
    Intimation under section 143(1)
  3. Kindly cross verify the following details:
    Assessment year.
    Section code.
    Demand notification number.
    Date on which demand is raised.
    Outstanding demand amount.
    Uploaded by.
    Rectification rights.
    Response – submit and view.
  4. Click on ‘Submit’ button for the relevant assessment year and then
    select one of the following options-

Demand is correct

  1. Once choose this option, a pop-up screen appears along with a below massage
    If you confirm, demand is correct then you can’t disagree with the demand’.
  2. Click on the ‘Submit’ button.
  3. A success message will be showed after click on ‘Submit’ button.
  4. If any refund is due, the outstanding money and the interest will be adjusted against the due. or else, you must pay the demand as soon as possible.

Demand is partially correct

  1. You will look 2 fields to enter a right and wrong money.
    Once you enter the money in the fields, you must select a reason for stating the ITD’s calculation to be partially correct.
  2. Demand has already been paid: Share the CIN (Challan Identification Number) and also mention BSR code, date of payment, amount.
  3. Demand has already been reduced by rectification/revision – Share the date of order, demand amount, information of jurisdictional ITO who has rectified. Also upload rectification effect order passed by the Income Tax Officer.
  4. Demand has already been reduced by appellate order but appeal effect has to be given by the department
    Share the date of order and the appellate order reference number.
  5. Appeal has been filed and stay petition has been filed, or stay has been granted by, or instalment has been granted by
    Share the date of filing of the appeal, appeal pending with appellate authority (CIT/ITAT).
  6. Rectification/revised return has been filed at CPC – Kindly fill the following details
    Filing type
    E-filed acknowledgment number
    Remarks (comments, if any of the tax payer)
    Upload challan copy, TDS certificate, letter requesting rectification copy, indemnity bond.

Disagree with demand

  1. Upon selecting this option, you must share information of
    why you disagree with the department’s call“.
  2. You must share purpose for your disagreement from the available options.
  3. Submit your response to check a success screen with a transaction ID.

Intimation u/s 143(1) not Received

  1. Login to your e-filing account on Income Tax website with your credentials.
  2. Select ‘intimation u/s 143(1)/154/16(1)/35’.
  3. Go to ‘My Account’ tab, select the ‘Service Request’ option.
  4. Click on ‘New Request’ and request category as ‘intimation u/s 143(1)/154/16(1)/35’.
  5. Enter Information and click on ‘Submit’ tab.
  6. A pop-up will display on your screen.
    Enter the necessary details such as return type as Income Tax Return, Assessment year, category as intimation u/s 143(1).
  7. Again click on the ‘Submit’ option. A message will display on the screen stating, “Your request for intimation has been registered with us and Transaction ID is XXXXXXX.

Penalties for not Paying of Income Tax by Income Tax Department

If any fund payable in a notice of Intimation u/s 143(1), is needed to be paid within 30 days of the service of such notice.
Upon failure to pay the entire or partial amount of the demand within 30 days, a taxpayer is handled as an ‘Assessee-in-default’ for the funds unpaid.
That means your CIBIL score will go to down.
You shall be responsible to pay the outstanding amount along with interest at the rate of 1% for every month or part of the month for the period of default.

Also Read Inflation Rate in India : How Impacts Your Savings | 2021

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