How to read an Income Tax notice under Section 143 (1) ?? The income tax intimation notice informs the taxpayer whether the income tax calculation given by him in the ITR matches with that of the tax department, basis the information it has.
How to read an Income Tax notice? After processing the income tax returns filed by taxpayers, the income tax department sends an intimation notice to them under Section 143(1) of the Income Tax Act, 1961. The tax department sends this intimation notice to the taxpayer’s registered email ID. An SMS is also sent to the taxpayer’s registered mobile number informing him/her about the intimation notice sent to the registered email ID.
The income tax intimation notice informs the taxpayer whether the income tax calculation given by him in the ITR matches with that of the tax department, basis the information it has. While processing the ITR, the tax department checks arithmetical errors, inconsistencies, tax and interest calculations. The department also verifies the tax payment made. And once the processing of all information provided by the taxpayer is complete, the tax department sends an intimation notice under Section 143(1).
Tax experts say that you should carefully read the income tax intimation notice. According to Abhishek Soni, Co-founder and CEO, Tax2win.in, whenever we receive an Income tax notice from the department then we need to check a few things:
- “Once we have received an intimation, the first thing we should check in the intimation notice is whether our personal details such as name, address, PAN and so on are correct or not,” Soni told FE Online.
- In the next step, he said that we need to check which notice you have received i.e. whether it is Intimation u/s 143(1) for processing of ITR, whether it is a defective notice u/s 139(9), whether it is a notice of scrutiny assessment u/s 143(2) etc.
- The next step is to read and match the ITR that you have filed and check the reason of the notice.
- On the basis of nature of notice, you need to check the compliance that needs to be submitted like filing revised ITR, submitting rectification request, paying demand etc, Soni said. oe
Effective from April 1st 2021, the Income Tax Department has to send the intimation notice to the taxpayer within 9 months from the end of the financial year in which ITR has been filed. So, for example, if a person files ITR for FY 2020-21 today, then he should get the intimation notice by December 31, 2022.
The last date for filing ITR for FY 2020-21 is December 31st 2021.
It is important to note that tax notices don’t end with Section 143(1). As only a prima facie check is done by the tax department at the time of processing. The department can still send a tax notice under a different section for more information in future.