Section 143(1) Taxation Notice

All persons having taxable income must file a revenue enhancement return each year. After filing the official document, the taxation department would process the return and check for any errors. If the errors in a tax notice are minor, a summary assessment under Section 143(1) will be completed without calling the assessee. Hence, tax notice under Section 143(1) is the most typical variety of tax notices received from the revenue enhancement department. On receiving any revenue enhancement notice, the taxpayer without panicking can take steps to grasp the tax notice and fits the request of the tax officer. during this article, we glance at tax notice u/s Section 143(1) very well.

Section 143(1) Taxation Notice

When Section 143(1) Tax Notice is Issued?

A tax notice under Section 143(1) of the Tax Act is issued to start a summary assessment without calling the taxpayer. Section 143(1) notices are issued supported computerized processing of tax returns with no human interface. during a summary assessment, the revenue enhancement Department wouldn’t concern with additional information or documents as requested in a very scrutiny assessment.

Summary Assessment Under Section 143(1)

A tax notice under Section 143(1) is issued in any of the subsequent scenarios after automated verification of the legal document filed:

Any arithmetical error within the return;

An incorrect claim, if such claim is outwardly wrong within the instrument filed;

Disallowance of loss claimed, if the return of the previous year that goes off of loss is claimed was furnished beyond the day of the month for filing revenue enhancement return;

Disallowance of expenditure indicated within the audit report but not taken into consideration in computing the full income within the return (applicable from AY2017-18);

Disallowance of deduction claimed under Section 10AA, 80-IA, 80-IAB, 80-IC, 80-ID, or 80-IE, if the return is furnished beyond the date specified under Section 139(1).

Addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the full income within the return;

Information with is inconsistent with another entry of the identical or another return;

Information expected to substantiate access that has not been given like donation information;

If any deduction exceeds the statutory limit allowed;

Section 143(1) Taxation Notice

Responding to Tax Notice

Additional tax is due by the assessee, after giving rise to adjustments mentioned below and providing credit to the taxes and interest paid. In such a case, the taxpayer is asked to pay the quantity due within 30 days. Tax is refundable to the assessee, after creating adjustments mentioned below and providing credit to the taxes and interest paid.

There is an increase/decrease within the loss declared by the assessee and no tax or interest is payable by the assessee and no interest is refundable to the assessee.

Time Limit

Assessment under section 143(1) will be made within a period of 1 year from the top of the fiscal year during which the return of income is filed. Thus the intimation for tax or interest due under Section 143(1) mustn’t be sent after the expiry of 1 year from the tip of the twelvemonth within which the return is filed.

Process for Responding to revenue enhancement Notice under Section 143(1)

The tax notice u/s 143(1) is going to be sent to the assessee specifying the sum determined to be payable by, or the quantity of refund because of the taxpayer. just in case there’s no sum payable or refundable, the acknowledgement of the return of income is deemed to be the intimation.

The taxpayer should note that merely because notice is received from the tax department, it doesn’t mean that it’s mandatory for the taxpayer to seem in the flesh before the authorities. In many cases, it shall be sufficient if the person receiving the notice furnishes a response thereto within the physical or electronic mode.

If the taxpayer would love to revise the taxation return after receiving a notice under Section 143(1), the assessee must bear in mind that the deadline for revising the return is 15 days from the duration of the notice. If the taxpayer fails to retort in an exceedingly timely manner to the taxation notice u/s Section 143(1), the revenue enhancement return are going to be processed after making the necessary adjustments mentioned within the tax notice.

To respond to a tax notice under Section 143(1), follow the steps below:

Step 1: Log in to your account on the revenue enhancement Department E-Filing website.

Step 2: Click on the E-Proceedings tab and choose E-Assessment/Proceedings.

Step 3: Select clear Adjustment u/s 143(1)(a).

Step 4: you may see the main points of the notice received. Click on pass through being the method of submitting the response.

Step 5: you’ll now see the list of all mismatches identified. Click on the drop-down second to the Response to accept a response to the mismatch.

Step 6: just in case you’ve got any specific information or explanation, enter the identical within the justification or remarks.

Step 7: Submit any supporting papers respecting the amount of difference before you submit your acknowledgment.

Step 8: Click on “Submit”. Once the response is submitted, an acknowledgment is going to be provided.