This notice is sent to you on your registered email ID with income tax department to inform you whether income tax calculation in the ITR filed by you matches that of the income tax department
Once the income tax department has processed your income tax return (ITR), it sends you an intimation notice u/s 143(1) of the Income Tax Act-1961. This notice u/s 143(1) is sent to you on your registered email address as registered in your e-filing account to inform you whether the income tax calculation in the income tax return (ITR) filed by you matches that of the tax department as per the records/other sources of information they have.
As per ITR-filing website, "The income tax return (ITR) filed by the taxpayer is processed by the Income Tax Department and under this process the department checks for any arithmetical errors, internal inconsistencies, tax and interest calculation and verification of tax payment etc of your income tax return (ITR). After processing the ITR, the IT department sends a communication to the taxpayer which is called Intimation u/s 143(1).
However, this is a prima facie check. In future, if the income tax department discovers any additional information regarding your incomes, then they can still send you a notice under the relevant section of the Act asking for further information."
"The taxpayer can check the status of their income tax refund or income tax demand in the intimation issued by income tax department under section 143(1)."
Intimation notice received by you u/s 143(1) will show one of the following things:
A) Your income details, deductions claimed and income tax calculations match with the income tax department's assessments and calculations: In this case the notice will show both income tax payable and refundable as zero.
B) Additional tax demand notice: When, as per the tax department's assessment, you have not added a particular income to your ITR calculated your tax incorrectly due to which there is additional tax payable on it. This would show as a tax demand at the end of the notice u/s 143(1).
C) Income tax refund: As per the income tax department's assessment, if you have paid additional taxes compared to your actual tax liability, a tax refund is due to you.
To know what the income tax department's prima facie evaluation of your income tax return (ITR) is, it is important that you know how to read the intimation u/s 143(1)received by you. Here's how you should read the intimation notice.
The intimation notice is a password protected file. To open the notice received by you, the password is your PAN in lower case and your date of birth. For instance, if your PAN number is AAAAA1234A and date of birth is 01-Jan-1990, then the password to open the document will be aaaaa1234a01011990.
Also Read: How to correct mistakes or errors in ITR..
How to read intimation notice
How you should read the tax notice u/s 143(1) received by you:
The first thing you should check in the intimation notice is whether your personal details such as name, address, PAN and so on are correct or not.
Once these details are checked, the next step is to read and match the income tax computation given by you in your income tax return (ITR) with the department's computation.
The intimation notice u/s 143(1) shows a comparison (in a table) of income reported by you in the income tax return (ITR) under each head in one column with the income under that head as computed by the income tax department in another column separately.
Along with income details, the intimation notice u/s 143(1) also shows the details of the income tax-saving deductions that are claimed by you in the income tax return (ITR).
If the income and tax-saving details in both columns are matching, then your net taxable income after deductions will also match.
The intimation notice u/s 143(1) will also show your income tax details, i.e., tax liability on the net taxable income, tax relief (if any), interest under sections 234A, 234B, 234C, late filing fees u/s 234F and total income tax liability.
In case there is a mis-match in income under a particular head or a deduction amount is wrongly claimed by you or if there is any other arithmetic error in your income tax return (ITR), then in such a case, there will be a discrepancy in the taxable income computed by the income tax department and what you have filed in your income tax return (ITR). The taxable income computed by the income tax department can be higher or lower due to which it will either show that you have to pay additional tax or that a refund is due to you.
"If there is any income tax refund due to you, then income tax department will automatically transfer the amount of income tax refund to the bank account indicated by you for this purpose in your income tax return (ITR) once it is processed. The income tax department will only notify you that your income tax refund has been processed without asking for any bank accounts."
Not received the intimation notice
As per current income tax laws, your income tax return (ITR) must be processed by the income tax department within the expiry of one year from the end of that financial year (FY) in which the income tax return was filed. Therefore, income tax return for FY 2018-19 must be processed by department by March 31, 2021.
In case your return is not processed by the tax department, you can file a grievance on the e-filing website.
Similarly, if your income tax return (ITR) is processed but you can't find the intimation notice in your email, then you can raise a service request for the same on the income tax e-filing website i.e. https://www.incometaxindiaefiling.gov.in/
Also Read: Haven't received your Income Tax Refund yet? Here is what to do..
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