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143(1) Intimation


Received Notice of 143(1) / Tax Intimation from IT Department and Dont Know what to do with it ? – 143(1) IntimationDont worry, Tax Experts from Taxmantra will help you in understanding the same and will suggest you the best next course of action.

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FAQ on ‘Sec 143(1) – Letter of Intimation’

What is Intimation under section 143(1) ?

The intimation under section 143(1) is sent by the IT Department in response to tax return filed by the tax payers. The intimation as the name suggests intimates the tax payer about, any tax and interest payable or if the assessee is eligible for refunds after providing all the necessary adjustments relating to tax deducted at source, advance tax paid, any tax paid on self – assessment or any other amount in the nature of tax or interest.

Can Tax be demanded through this 143(1) intimation ?

This intimation shall be deemed to be notice for tax demand  under section 156 as the case may be and all the provisions will apply accordingly.  If there is no sum payable or refundable then the acknowledgement of the return shall be deemed to be intimation.

The total income of an assessee shall be computed after making the following adjustments in the return of income-

a)      Any arithmetical error in the return or

b)      An incorrect claim apparent from any information in the return.

“An incorrect claim apparent from any information in the return” shall mean such claim on the basis of an entry, in the return,-

a)      Of an item which is inconsistent with the entry of similar other item in such return;

b)      In respect of which, necessary information to substantiate such entry has not been furnished; or

c)      In respect of any deduction, where it exceeds the statutory limit which may be expressed as monetary amount or percentage or ratio or fraction.

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What is the time limit of sending the intimation?

The intimation shall be sent before the expiry of one year from the end of the assessment year in which the income was assessable. In other words, before the expiry of one year from the end of the financial year in which the return was filed.

Can an intimation once send be rectified u/s 154?

As per the provisions of Sec154, the Assessing Officer may amend any intimation or deemed intimation u/s 143(1) without prejudice to the provisions of the Act.

What is the procedure to be followed after receiving intimation under this section?

If any tax and interest payable arises on the basis of return submitted, the assessee may comply with the deemed notice of demand by making payment or may make an application for rectification u/s 154.

Whether intimation u/s 143(1) amounts to an assessment?

Intimation u/s 143(1) cannot be treated as conclusion of assessment process because such intimation is a deemed notice of demand u/s 156. The department has clarified that the intimation is merely an acknowledgement to the fact that the return filed has been accepted and does not contain any error apparent from record.

Whether an intimation u/s 143(1) can be rectified after the issue of notice u/s 143(2)?

Notice u/s 143(2) is prerequisite to be issued for furtherance of proceeding u/s 143(3). Thus no intimation u/s 143(1) can be issued after the issuance of notice u/s 143(2).

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