Tax credit not given- File rectification with the IT Department

When return is filed either manually or online, the return is processed to ascertain whether any arithmetical error or any incorrect claim has been made by the assessee. The computer will automatically analyse the data filed by the assessee in his return of income and calculate the amount of tax payable or refundable, if any.

If the department found any discrepancies after the processing of the return, intimation u/s 143(1) shall be issued by the department. Such intimation is deemed to be the notice of demand u/s 156 of the act. No such intimation shall be sent after the expiry of 1 year from the end of the assessment year. If the assessee has not received any such intimation, it means that the return filed by the assessee has been accepted by the department.

On receipt of such intimation, the assessee shall have to comply with the notice of assessing officer (AO) by making payment of the additional demand raised.  The assessee may receive an intimation in which the credit of tax or others has not been given by the department although the details of same has been given at the time of filing of the return.

If you receive any such intimation for payment of additional tax or in case of refund, the same shall not be granted. DON’T WORRY. This is not a matter of big concern. You can still have an option to file rectification u/s 154 of the act against such intimation to the same A.O. who has issued such intimation. The department is now providing online service for filing of such rectification.

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Alok Patnia

Founder and Director at

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