Many taxpayers receives notice under section 143(1)(a) after filing their Income-tax returns and get tensed as to how to handle the same.
So before understanding how to handle the same let us understand what is Notice of 143(1a)?
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.
A taxpayer receives intimation only if any one of the below- mentioned circumstances prevails:
1. Where any tax or interest is found payable after making adjustments referred to in Section 143(1)
2. Where any tax on interest if found refundable after making adjustments
3. Where adjustments referred to in Section 143(1) have been made resulting in increase/ reduction of loss declared by the assessee and no tax or interest is payable by the assessee and no tax or interest is refundable to the assessee.
If the above circumstance exists there will be below three kind of adjustments:
1. No demand No refund: After these adjustments, there is no demand from the Income Tax Department nor does it owe any refund to the assessee.
2. Demand determined: There needs to be some more additional payment of tax by the assessee.
3. Refund determined: It is seen that there needs to be payment of some refund amount to the assessee.
So, How to deal with the notice under section 143(1)(a)?
Step 1: Look at the page where you can know the exact difference and reason for the same.
Step 2: After understanding the difference, take the required action as below:
1. If Accepted, Declare the Other Income in the revised return
2. If rejected, and you have the proofs of deductions, then simply attach the same while responding to this notice (steps explained below)
Steps to accept or reject at IT portel:
Step1: Log in to Income-tax Department website
Step 2: Go to Pending Action-> Response to Outstanding Demand
Step3: Then select either agree or disagree and specify the reasons for the same
i. If you Agree for addition, you will have to make the relevant adjustments and modifications in the return and revise it and also pay the additional tax amount, if any
ii. If you Disagree with the adjustments, you will find a box open up, where you will have to enter the reason for disagreement
Post receipt, a time period of 30 days is received to reply to the notice. If the recipient fails, the return is processed after making necessary adjustment(s) u/s 143(1)(a), without providing any further opportunities in this matter.
Do not forget to revise the return if you have agreed to the adjustments in the notice, if the due date for revised has crossed the assessee has to rectify the return.
Conclusion
Hence, if your deductions or exemptions mentioned in your Form 16, Form 16A or Form 26AS do not match with that of your deductions mentioned while filing ITR; then you are likely to receive intimation u/s 143(1)(a). You need to respond to the intimation within stipulated time along with providing relevant supporting documents.
Regards
CA Umang Jain
+91 96323-32850
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