Intimation under section 143(1) is an intimation for ITR processed by the income tax department to the taxpayer about any arithmetical mistakes or changes to be done.

A notice in the email from Income Tax Department may make anyone worry but if you’ve received an intimation under section 143(1), you don’t need to worry as it is just an intimation and not any scrutiny or order by the  Income Tax Department.Intimation for ITR processed may be about:

  • Any tax or interest which has to be paid, or
  • If you are eligible for refunds from Income Tax Department

This notice/intimation under section 143(1) is generated by the computer on the basis of any mathematical error or any incorrect tax claim.

Steps to be followed if you’ve received an Intimation u/s 143(1):

Step 1

The intimation for ITR processed may be in PDF format which is password protected.The PAN number of the person receiving the notice has to be used as the password to open that notice. 

Step 2

Check the basic details:

  • Check the name on the notice.
  • Check the PAN card number on this notice.
  • Check the Assessment Year (AY) on the notice.If notice has been sent for A.Y. 2018-19, then it is about the F.Y. 2017-18 for which the tax was paid.
  • There will be a communication reference number and e-filing reference number which has to be noted down by the person receiving the notice under 143(1) for the further communication with the Income Tax Department.

Step 3

After the basic details, the notice will have the details of the Income from the five heads of Income Tax under the name of “Income Tax Computation”.It has to be checked thoroughly by the person who has received the notice under section 143(1).It will have the details of:

  • Incomes of the assessee on which he has paid tax
  • Income of the assessee calculated under section 143(1)

Step 4

In the last section of the form, it will have the details of any refund from the Income Tax Department or any amount payable to the Income Tax Department.In case the amount is mentioned for “Net Amount Refundable” then it is a good news and you will receive that amount in the bank account you’ve provided. And if there is some amount in “Net Amount Payable”, then that amount has to be to the Income Tax Department.

Reasons for receiving Intimation under section 143(1)

  1. If there is any arithmetic error in the information provided by the Taxpayer.
  2. If any claim is made by the assessee which is incorrect and that incorrect claim can be calculated from the information provided by him.
  3. If any loss of the previous year has been claimed by the assessee and the return of that previous year was furnished after the due date, then disallowance of such loss can be given as intimation under 143(1).
  4. An intimation may be issued for disallowance of any expenditure which is indicated in the audit report but not taken into account in computing the total income in the return filed.
  5. Any deduction which is claimed under sections 10AA, 80-IA, 80-IAB, 80-IB, 80- IC, 80-ID or section 80-IE, if the return has been furnished beyond the due date specified under sub-section (1) of section 139. In such a case also intimation may be issued about disallowance of such deductions claimed.
  6. Intimation for ITR processed may also be issued for any income appearing in Form 26AS or Form 16 but which is not included in computing the total income in the return filed.

Conclusion

In case you think there is some error in the notice or the amount that is calculated in the notice, you should consult a tax expert for clarification or further action to be taken.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself through our ITR software or get Chartered Accountant’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.