How to read income tax intimation notice under section 143(1)


The process of filing a tax return (ITR) doesn’t end at the verification stage. Once a person has verified his/her legal instrument, the tax department starts processing the ITR. After the processing of ITR, the taxation department sends an intimation notice.

This intimation notice is shipped under section 143(1) of the Income-tax Act, 1961. The notice is distributed on the official document filer’s registered email ID by the tax department. The intimation notice must be issued within 9 months from the top of the twelvemonth within which the legal document is furnished.

This may mean that for ITR filed for FY 2020-21, the last date of issuing intimation notice is December 31, 2022.”It is very important that a private reads this tax notice. What to test in intimation notice under section 143(1)? The intimation notice will state one amongst the subsequent things:

A) Your income details, deductions claimed, and tax calculations match with the tax department’s assessments and calculations: During this case, the notice will show that there’s no additional tax payable by you. Also, both tax payable and refundable is going to be shown as zero.

B) Additional tax demand notice: There could also be a situation where you’d have missed reporting a specific income in your instrument or have wrongly claimed a deduction or calculated your tax incorrectly thanks to which there’s an extra tax payable by you. In such a situation, the tax department sends you their assessment and can ask you to pay the extra tax amount.

C) Revenue enhancement refund: During this situation, as per the tax department’s assessment, you have got paid additional taxes as compared to your actual liabilities. In such a case tax refunds are going to be shown to you.

How to read intimation notice
The intimation notice may be a password-protected file. To open the notice received by you, the password is you’re PAN in graphene and your date of birth. Once you’ve got opened the password-protected file, the primary thing you must sign up for the intimation notice is whether or not your details like name, address, PAN, then on are correct or not.

Once these details are checked, the following step is to read and match the tax computation in your ITR with the department’s computation.

If the income and tax-saving details in both columns match, then your total income after deductions, i.e., the net taxable income also will match. In case there’s a mismatch in income under a selected head or a deduction amount is wrongly claimed by you or if there’s the other arithmetic error, then in such a case, there’ll be a discrepancy within the taxable income computed by the tax department and what you’ve got filed in your ITR.

The taxable income computed by the department will be higher or lower to which it’ll either show that you simply need to pay additional tax or that a refund to you.

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