After an earnings tax return (I-T return) has been filed, the tax division sends an intimation underneath part 143(1) to spotlight any discrepancy which may come up from a decrease tax paid than what was meant to be paid.
In case of a decrease tax paid, the tax payer is supposed to pay the stability quantity and resolve the problem. And in case of extra quantity, the tax refund is disbursed by the division to the assessee’s checking account that’s linked for this very goal.
What is intimation underneath part 143(1)?.1)?
Individuals are purported to file their earnings tax returns on or earlier than July 31 of the evaluation yr. After the return has been filed, the tax division carries out processing of the return.
During this course of, the tax division may come throughout numerous discrepancies similar to that of information, calculations, amongst others. In such instances, the division will ship a discover — additionally known as intimation underneath part 143(1).
This discover is shipped on the tax payer’s registered e mail ID. An SMS can be despatched on the registered cellular quantity informing that the intimation discover has been despatched to the registered e mail ID.
An array of situations
Once the intimation is obtained from the division, there might be numerous situations that observe, e.g., incorrect deduction of TDS from wage and under-reporting of earnings.
Chirag Chauhan, Founder of CA Chauhan & Co, says there might be three possible situations. The first one is that the tax division doesn’t increase any demand for earnings tax. In this case, assessee doesn’t have to fret over something. The second state of affairs might be that of a tax refund. And the third is that there’s a tax demand.
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“It is necessary for the tax payer to first determine the state of affairs, and accordingly rectify the computation. For occasion, if TDS will not be thought-about by the division, then one can apply for it to be thought-about — thereby lowering the tax legal responsibility. There are, due to this fact, a number of permutations and combos and the response will differ from case to case,” says Mr Chauhan.
There could be a situation that these changes are not reflected in the tax return by December 31. In such a case, one can always rectify the return afterwards. “The deadline for filing a revised return gets over on Dec 31, but one can always rectify his/her return later. There is also an option of raising a grievance or approaching the CPC,” says Mr Chauhan.
Time interval
Although the division normally sends a discover inside a brief interval of submitting of tax return, the utmost time restrict of sending this intimation is 9 months from the top of monetary yr during which the return has been filed.
This article first appeared on MintGenie
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