Income tax notice under Section 143(1) – Letter of Intimation

When is the notice served: Three types of notices can be sent under section 143 (1)
Intimation where the notice is to be simply considered as final assessment of your returns since the CPC or assessing officer has found the return filed by you to be matching with his computation under section 143 (1).

A refund notice ,where Income tax refunds you for extra tax paid, then you can look forward to the cheque.

Demand Notice where the officer’s computation shows shortfall in your tax payment. The notice will ask you to pay up the tax due within 30 days.

Time limit for the notice to be served : up to 1 year after completion of relevant assessment year

How to reply to notice :
If details provided by the taxpayer and as verified by the Income Tax department match, then this notice will serve as final assessment of the return with nothing to be done on part of the taxpayer and the department. Just a printout of the same shall be taken and kept along with the income tax file.Take a printout of the same and file it with your income tax papers.

If you are getting Refund, wait for the cheque or transfer into your account.
If there is a tax demand then this intimation becomes Notice of Demand under section 156. The notice says ”In case of Demand, this intimation may be treated as Notice of demand u/s 156 of the Income Tax Act, 1961. Accordingly, you are requested to pay the entire Demand within 30 days of receipt of this intimation“. For example, if Income as disclosed by taxpayer is Rs. 6,00,000 and tax duly deposited on same but the department computes his income as Rs. 6,50,000, then tax on Rs 50,000 needs to be paid. The taxpayer will have to pay such tax or if he thinks that the demand is wrong then he must prove his case and file rectification.

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