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Everything You Need to Know About the Intimation Order U/S 143 (1)

Filing income tax returns is essential in India. The Taxpayers have to file regular income tax returns. The income tax returns contain all the data of gross income and taxable income. Also, it shows the tax liability of the individual. Well, the salaried person, self-employed, and professionals should always submit income tax returns.

The Income Tax Department website is the official portal for submitting income tax returns. The individuals have to use the account credentials to login and file the returns. Any professional tax consultant or a Chartered Accountant will submit the return on your behalf. After successful submission, the officials at the Income Tax department check the same.

If the officials at the department of Income Tax find any discrepancies, data mismatch, or data entry errors, you get an intimation from the department. The notice is known as the Intimation Order, which is filed U/S 143(1). If you’ve got an Intimation Order from the Income Tax Department, then you should learn everything about the same.

What are the Reasons Behind Intimation Order U/S 143 (1)

There are different reasons for issuing an intimation order. The officials at the Income Tax Department assess the tax returns. After finding any discrepancies, they issue an intimation order under the appropriate section. Here are the reasons behind getting an intimation order U/S 143(1).

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#1 – Discrepancies in Return

If there are any discrepancies in your income tax return, then you might invite an intimation order. The differences in the amounts will trigger an alarm. You should double-check the return before filing for the cash transactions.

#2 – TDS Error

Any mistake from the employer side on deducting the TDS will get you an Intimation order U/S 143(1). When the employer goofs up with the TDS filings, you might get affected. There is nothing to worry about. The individual has to present in front of the authority and explain the situation to get away from the same.

#3 – Document Review

If the officials at the Income Tax Department want to review the documents, then you might get an Intimation order. Sometimes, the officials may ask you to present all the documents, based on which you’ve filed the Tax return. It’s one of the common reasons why people get an intimation order U/S 143(1) in India.

#4 – Declaration of Investments of other people

To save taxes, people always avoid investing in their names. Instead, they opt for a spouse and children for investment. But if someone mistakenly declares the investments made on other people’s names, then this will raise the alarm. There is a very high chance that you may get the intimation order.

What to Do After Receiving an Intimation Order U/S 143(1)

Before panicking, it is essential to understand the intimation order. The intimation order mentions your name, address, and the assessment year. Also, it contains the reasons behind the intimation order. There are three validation points. Any one of them is mentioned in your notice.

  1. No Refund, No Demand
  2. Demand Determined
  3. Refund Determined

#1 – No Refund, No Demand

In case of the No Refund, No demand, the system automatically adjusts the profit/loss in return. The adjustments are the following 143 (1). In this case, you have to do anything.

#2 – Demand Determined

In this case, the Income Tax Department has demanded something from your side. It will be the penalty in most cases. There are two options for the taxpayer in this case.

  • Accept the Demand – Accepting the demand and paying the penalty will sort out the matter. There is nothing more to do than paying the penalty.
  • Disagree with the Demand – If you disagree with the demand, then you have to appeal the intimation order. The taxpayer can submit a rectification request, or resubmit the tax return to solve the matter.

#3 – Refund Determined

In this case, the Income Tax Department will try to refund you the difference in returns. There are two options for the taxpayer in this case.

  • Accept the Refund– Accepting the Refund will immediately resolve the intimation order for the taxpayer.
  • Disagree with the Refund– If you think the Refund is wrong, or you have mistakenly received the order, then submitting a Rectification request is the best option.

Final Words

The computer system processes the first stage of income tax returns. If any discrepancies are found, the system automatically generates the intimation notice. Well, this might be a genuine order or just the system glitch. But you have to comply with the same. If you are not sure how to react, getting a professional income tax notice assistance service is helpful.

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