What to Do When You Receive a Tax Notice from the IT Department After Filing ITR and How to Reply to 143(1) Notice? Reply like this.
When you file your Income Tax Return (ITR), the process does not end there. The Income Tax Department begins processing the filed ITR; some individuals may receive a notice from the Income Tax Department during this process.
Individual taxpayers receive an intimation notice under Section 143(1) of the Income Tax Act. This notice is sent to the registered email address and mobile number.
It is essential to read any notice from the IT department. If the figures in your ITR do not match the information with the Income Tax Department, you will be informed through an IT notice.
When is an intimation notice under section 143(1) issued?
- When the income tax department changes regarding a refund.
- When additional tax or interest is payable.
- When the return process is completed, no request for a refund is made.
What does the intimation notice under section 143(1) say?
The notice will provide details on the taxpayer’s income, claimed deductions, and tax calculations, all of which are compared with the information held by the IT department. This notice will indicate if any additional tax is payable and whether the tax payable and refund will be ‘0’.
If a person has yet to declare income, wrongly claims deductions, or miscalculates tax in their income tax return, the notice will show that they must pay additional tax.
Section 143(1) allows a person to claim a refund if they have paid more tax than their actual liability, as the Income Tax Department estimates.
Password to open Section 143(1) Notice:
To open the intimation notice, use your date of birth and PAN as a password. For example, if your PAN is AAAAA0000A and your date of birth is 01 April 1990, the password will be aaaaa000a01041990.
The notice provides a table comparing the income reported by the taxpayer under each category in the ITR with the income calculated by the Income Tax Department.
The intimation notice will also include the applicable tax liability on net taxable income, applicable tax deduction, and total income tax liability.
How to respond to a tax notice under section 143 (1):
- Understand the nature of adjustments made by the IT department and the reasons given in the notice.
- Be prepared to provide appropriate explanations, supporting documents, or corrections to your submitted information.
- Submit your response online through the e-filing portal or visit the IT office within the specified time.
- Retain a copy of the submitted response for future reference.
If you are due a refund, the amount will be shown in the intimation notice, but note that no SMS will be sent about it. Be cautious of any SMS claiming a refund, and avoid clicking on any links.