What Is Section 143 (1a) Of The Income Tax Act: What To Do After Receiving a Notice Under Section 143(1a)?
Section 143(1a) intimation is notified to taxpayers when there’s a discrepancy between the income and data entered while filing for income tax return. Every individual needs to file Income Tax Return (ITR). ITR contains information about income and the taxes payable against them. If you have paid more or less than the tax amount as per your income slab, you will receive an intimation under Section 143(1a)
Read on to know all the details about Section 143(1a), the time limit to respond to it and what to do next if you have got notified under this section.
What is Section 143(1a) of the Income Tax?
Section 143(1a) was introduced into Income Tax Act in the assessment year 2018-2019. According to this Section, a taxpayer needs to focus on clarity when he/she is filing Income Tax Return. The data provided must be accurate, and there should not be any mismatch between incomes provided and tax deductions.
If IT authorities detect any mismatch in the information, they will issue a notice to the taxpayer under Section 143(1a).
Intimation under Section 143(1a)
An intimation order is also known as a notice. If the Income Tax authorities detect any issue with the data entered, calculation error and documentation, they will issue an Intimation Order under Section 143(1a).
Notice under Section 143(1a)
As per Section 143(1a), a notice is an Intimation Order issued by Central Processing Centre (CPC). It seeks an explanation from the assessee regarding differences between recorded income and deductions.
Sample of Intimation under Section 143(1a)
The image attached below is a sample of a notice issued under Section 143(1a):
Time Limit for the response for 143(1a)
There is a stipulated period for response. A person will have to respond within 30 days of receiving a notice under Section 143(1a).
Who Receives Intimation under Section 143(1a)?
Generally, if a person’s income/deductions/exemptions mentioned in ITR do not match the exact details in Form 16, he/she receives an Intimation Order. This happens a lot if an employee does not inform his employer of the tax deductions he claims in his ITR form.
Some of the common instances when people receive a notice under Section 143(1a) is when they claim tax deductions that are eligible under Form 26AS but are not mentioned in Form 16.
Given below is a list of deductions/exemptions present in Form 26AS but absent in Form 16:
- Tax deductions claimed under tax benefits of home loan present in Section 24
- Exemptions claimed for house rent allowance, leave travel allowance etc. under Section 10
- Deductions claimed for mutual funds, LIC, NSC, PPF, SCSS, children’s education fees, tax-saving FDs under Section 80C
- Deductions claimed for the amount contributed to National Pension Scheme under Section 80CCD
- Tax deductions claimed for payment of Medical Insurance premium under Section 80D
- Deductions sought for disability under Section 80DD and Section 80U
- Tax deductions sought for treatment of specified diseases under Section 80DDB
- Deductions claimed for education loan under Section 80E
- Deductions sought for interest on savings account under Section 80TTA
Please note that Income Tax officials take into account various other reasons apart from the aforementioned list of common reasons for sending a notice under Section 143(1a). The reasons may vary from person to person. IT authorities mention why the Notice is issued in the Intimation Order itself.
What to do After Receiving a Notice under Section 143(1a)
Given below are steps to follow after receiving a notice under Section 143(1a):
Step 1: First, the receiver needs to read the Notice thoroughly because it would help him/her to understand why it has been issued in the first place.
Step 2: Once the receiver understands why he has received the Notice, it will be easy for him/her to take the required action. For example, the assessee may declare ‘other income’ in his revised ITR or attach necessary proofs for claiming deductions.
How to Respond to the Notice Issued under Section 143(1a)
Given below are the steps to respond to a notice issued under Section 143(1a):
Step 1: First, the user needs to log into the official website of the Income Tax Department
Step 2: Then he/she needs to navigate to the ‘e-Proceeding’ option and click on ‘e-Assessment/Proceedings’
Step 3: Then, the user will be directed to a page where he/she has to choose ‘Prima Facie Adjustment under Section 143 (1a)
Step 4: Next, the user will be redirected to a page where he/she needs to click on Reference ID
Step 5: Then, the user will be redirected to a screen which will show the addition of income appearing in Form 26AS/Form 16/Form 16A that was excluded from the returns filed earlier
Step 6: The user needs to select ‘Agree/Disagree’ against each of the additions. If the user agrees to the additions, he must make the necessary adjustments and pay the extra tax. However, if he disagrees with the additions, then he has to provide the reason and necessary documents supporting his response
Step 7: Furthermore, the user needs to provide remarks about his income/deductions in a column in the form and attach relevant documents like rent receipts, proofs of 80C etc.
Step 8: Finally, the user needs to click on ‘submit’, and an ‘acknowledgement’ of his/her response will be shown
Before coming to a close, in case you need assistance, here’s a step-by-step guide to filing ITR online.
Also Read: What Are The Best Tax-Saving Instruments In India?
What is the procedure for E-filing of ITR?
Now, taxpayers can file ITR from the comforts of their homes via online mode.
Given below are the steps for e-filing of ITR:
Step 1: The individual needs to visit the official Income Tax e-filing portal and register if he’s a new user.
Step 2: Then, he/she should ‘login’ using their credentials.
Step 3: Next, the user needs to insert the password and then click to continue.
Step 4: After logging into the portal, he/she should click on ‘e-file’, followed by ‘File Income Tax Return’.
Step 5: Next, the user needs to select the assessment year for which he/she wishes to file returns and press on ‘Continue’ button.
Step 6: The user will get the option of filing ITR online and offline, and he/she needs to select the online option.
Step 7: Next, the user needs to choose whether he/she will file ITR as an individual, Hindu Undivided Family (HUF) or others.
Step 8: Then, the user needs to choose the relevant ITR.
- Salaried individuals and people earning from pensions and property need to fill up ITR-1.
- People who earn from capital gains need to fill up ITR-2, while people who own houses but don’t earn from capital gains need to fill up ITR-2A.
- Professionals and business owners have to choose their relevant form from among ITR-3, ITR-4 and ITR-4S.
Step 9: The user will be redirected to the relevant page where he/she has to read the general instructions minutely and fill up the required details under ‘General Information’, ‘Tax Details’, ‘Income Details’, ‘Taxes Paid and Verification’ and ‘80G’.
Step 10: Next, the user should click on ‘Preview and Submit’ to check whether he/she has correctly filled up the form or not.
Step 11: Then, the user needs to click on the ‘Submit’ button for the final submission for uploading ITR.
Step 12: After uploading the form, the user needs to verify his/her return with the help of Aadhaar OTP or Electronic Verification Code (EVC). He/she can also opt for offline verification by submitting a signed printout of ITR V (Income Tax Return Verification form) at ‘Centralised Processing Center, Income Tax Department, Bengaluru’ within 120 days of e-filing.
Step 13: The user will receive an Acknowledgement or ITR-V on their email after he/she successfully uploads their return. They can also download the acknowledgement from the e-filing website at their convenience.
Step 14: After verification is complete, the Income Tax Department will notify the assessee about the processing via mail or SMS.
Final Word
Section 143(1a) is a recent addition to the Income Tax Act. This Section empowers IT authorities to issue a notice to individuals whose Income Tax Return files display a discrepancy between incomes and deductions/exemptions in Form 16/Form 16A/Form26AS. This blog has enumerated the common reasons a person might receive an Intimation Order. However, the reasons behind issuing a notice under Section 143(1a) differ. So it is advisable to read the Notice well and answer accordingly within the stipulated time.
FAQs on Section 143(1a)
Ans: To check whether the issued notice under Section 143(1a) is correct or not, one can request the Income Tax Department to resend the Notice. Given below are the steps to do so:
Step 1: One needs to login into the official e-filing website.
Step 2: Next, one needs to provide relevant details like Assessment Year, PAN, Category and CPC Reference Number.
Step 3: The user needs to choose ‘Request Type’ as ‘New Request’. He/she needs to fill up the relevant detail under the ‘Request Category’ tab and finally press the ‘submit’ button.
Ans: If an individual fails to respond within 30 days of receiving the notice under Section 143(1a), IT authorities make adjustments and start processing the return. The assessee does not receive opportunities to respond.
Ans: Centralised Processing Centre of the Income Tax Department conducts a preliminary assessment of every ITR. They inform the people of the results after the completion of the process. Calculation errors, tax calculations, tax payments, and inconsistencies are an integral part of a Preliminary Assessment. The process is entirely computerized.
Ans: A person receives a password-protected Intimation Order under Section 143(1). An individual’s ITR Intimation password happens to be his PAN in lowercase, followed by his DoB in DDMMYYYY FORMAT. Please note that there shouldn’t be any space in between.
Ans: According to Section 143(1), an Intimation Order must be issued within 12 months of the end of the financial year when the return has been filed. For example, if Arun files an IT Return for the financial year 2020-2021 in September 2020, the IT department can send a notice under Section 143(1) to Arun within 31st March 2022.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
Read More on Income Tax Act
