Income Tax News: The Income Tax Department has commenced processing the income tax returns (ITR) filed by taxpayers for the financial year. As part of this process, the department is sending notices under Section 143(1) of the Income Tax Act through email to inform taxpayers about the status of their filed returns. This notice is crucial as it indicates whether the ITR submitted is accurate or if any discrepancies have been identified.
What is Section 143(1) Notice?
The notice under Section 143(1) is an automated intimation sent by the Income Tax Department after processing a taxpayer’s ITR. This notice is issued to every taxpayer whose return has been processed. If you have not received this notice yet, it may indicate that your return has not been processed.
The notice typically includes information on whether the ITR filed by the taxpayer is correct. If errors or inconsistencies are found, the notice will detail the discrepancies and provide the reasons for them.
How Should Taxpayers Respond to the Notice?
Receiving a notice under Section 143(1) can be concerning for many taxpayers, but it is important to approach it calmly and systematically. Here’s what you should do:
- Read the Notice Carefully: The first step is to thoroughly read the notice to understand its contents. It will specify if there are any errors in the information you provided when filing your ITR.
- Correct Errors, if Any: If the notice points out any mistakes, such as incorrect income or deduction details, you should promptly correct them. You can file a revised return before the deadline, which is usually December 31.
- Types of Information in the Notice:
- No Additional Tax Liability: If your calculations match those of the department, the intimation will show zero tax liability or refund.
- Additional Tax Demand: If there are discrepancies between your return and the department’s data, the notice may demand additional tax and interest.
- Refund Due: If you’ve overpaid taxes, the notice will mention the refund amount due to you.
Important Details: Password and Response Process
The document attached with the notice is password-protected. To open it, you need to use a combination of your PAN number (in lowercase) and your date of birth in DDMMYYYY format. For example, if your PAN is “ABCDE0000A” and your date of birth is April 2, 1990, the password would be “abcde0000a02041990”.
To respond to the notice, follow these steps:
- Identify the reason for the intimation.
- Provide a proper explanation and attach necessary documents.
- Submit your response online through the Income Tax e-filing portal within the specified time frame.
- Keep copies of your response and the documents submitted for future reference.
What to Do If You Don’t Receive the Intimation?
If your ITR has not been processed in a timely manner or if you do not receive an intimation, you can file a complaint on the Income Tax portal. Timely response to any notice from the Income Tax Department is crucial to avoid potential issues in the future.
Taxpayers are advised to stay vigilant and ensure that they respond appropriately to any communications from the department to maintain compliance and avoid penalties.
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