All persons with taxable income must file a tax return each fiscal year. After filing the tax return, the income tax department would reuse the return and check for any errors. However, a summary assessment under Section 143( 1) can be completed without calling the assessee, If the errors in an income levy notice are minor. Hence, an income levy notice under Section 143( 1) is the most common type of tax notice received from the Income Tax department. On receiving any income duty notice, the taxpayer without panicking can take steps to understand the tax notice and misbehave with the request of the duty officer. In this article, we look at income duty notice u/ s Section 143( 1) in detail.
All the income levy returns filed by the taxpayers are first processed online at the Centralised Processing Centre( CPC).
The Ministry of Taxation issues information to taxpayers under section 143(1) once they process the return, informing them of the results.
A duty notice under Section 143( 1) of the Income Tax Act can be issued to begin a summary assessment without calling the taxpayer. Section 143( 1) notices are issued based on computerized processing of duty returns without any mortal interface. In a summary assessment, the Income Tax Department would not call for additional information or documents as needed in scrutiny assessment.
Section 143( 1) Of the Income Tax Rules:
The assessee may receive a suggestion notice by the income tax department under section 143( 1) in the following situations
If the assessee paid an additional quantum, the notification includes the refund amount.
If the assessee paid an additional quantum, the notification includes the refund amount.
It’s important to note that the income tax department initiates refunds only if the quantum is further than ₹ 100. However, no refund is possible, If the refund quantum is lower than that.
Still, they may admit a letter of section 143( 1), If the taxpayer can not pay the quantum. The letter will include the exact quantum payable and a copy of a challan.
If the assessor and assessing officer have paid and accounted for the levy, there is still no notification. However, in this scenario, an acknowledgment is conveyed through a suggestion notice.
Why does one get a notice from the income duty department under section 143?
When you fill out form no. 143 to submit Income Tax Return, you verify all of your income, charges, and other income. still, the Income Tax Department has all data of your earnings and expenses, they cross-check your income tax statement with their statement if both aren’t equal also you get a notice from income levy. Some people show their income low and show high expenses without evidence. In this case, the income levy department sends a demand notice.
Reasons for getting a notice from Income duty Department 143( 1) :
Random Scrutiny – the Income levy Department randomly checks details and verifies through their random scrutiny program.
TDS quantum – If you haven’t filled correct TDS information or your employer has not submitted the TDS that you’re claiming.
Mismatch in your Income or expenditure – If your filled information isn’t matching with Income Tax Department information, you may get the notice. occasionally it happens, that when you forget to declare your other income sources, FDs interest, you may be claiming the deduction in the wrong section, or occasionally you haven’t filled in your complete information.
Document Verification – If the Income duty IT Department wants to check your documents of yours for verification, they send you a notice.
Investment in the name of family members – occasionally you invest on behalf of your partner, and kids and the income you induce from your investment is taxable. However, you may get a notice, If you don’t mention the income you induce from other sources.
High-Value Deals – In a year, your cash deposit is 10 lacs or further, your investment is 2 lacs or further in mutual funds, your purchase of bonds debentures 5 lacs or further, buy or vend of the property 30 lacs or further, or you spend further than 2 lacs from the credit card. However, you may get an Income duty notice, If you don’t mention these deals.
Wealth Duty – If you have any asset of 30 lacs or further and haven’t bared it.
Section 143(1) of the Income Tax Act will notify you about the due date of your income tax refund if you acknowledge receiving it.
These are the reasons why one can get a notice from the Income levy Department. To know all about the process of filing income duty returns visit our blog section.
Conclusion:
Humans are prone to error. still, it’s crucial to correct these miscalculations at the earliest time possible. The income levy department may discover a mistake in the information on your IT return. In this case, the error could be classified as income concealment, and you could face an additional penalty along with interest due to delaying duty payments.
thus it’s crucial to make changes to your levy return when you realize any errors on the initial return. Section 143(1) of the Income Tax Act will notify you of the due date for your income tax refund, provided that you acknowledge receiving it. If you admit to receiving an income tax refund, you will be notified in accordance with section 143(1) of the Income Tax Act when it is due.
FAQ & Related Questions:
1. What’s the Letter of suggestion under section 143( 1)?
During the request processing, the income duty department may find specific disagreements in data, wrong entry of some data, computations, crimes, etc. So, you will get a notice from the IT department, and that letter is what we call a suggestion Order.
2. What’s the due date for suggestions under section 143( 1)?
still, also by December 31st, 2022, If you file ITR for FY 2020 21.
3. What’s section 143( 1) of the Income Tax Act?
Section 143(1) enables automatic communication to taxpayers to check for any criminal activity in their duty form.
4. How to respond to the income duty notice under section 143( 1)?
Please resend IT suggestions for section 143(1) ITR to ensure accuracy. Thank you.
5. What if I don’t admit my suggestion under section 143( 1) indeed after the end of the specified period?
No outstanding/refundable sums & no adjustments made = suggestion accepted as return accepted by taxpayer.
6. I entered a demand notice under section 143( 1) of Rs5000. What should I do?
To pay the duty liability, you must first confirm its reason if you consent to the duty demand.
Choose the duty on regular assessment( 400) under a type of payment in the challan. However, submit a response for the same, If you don’t agree with the demand.