February 8, 2023

Now that you’ve got filed your revenue tax return (ITR)—and we hope that you simply did by July 31—it’s essential test your mailbox—bodily and digital—to see in case you have acquired any messages from the revenue tax (I-T) division.

For the reason that I-T division processing is now totally automated, your post-filing returns are processed on the division’s centralised processing centre (CPC). That implies that most communications are computerised. Through the course of, you could obtain intimations and notices from the division beneath totally different sections.

Bear in mind, it could actually simply be an intimation, the place you could not need to do something, however in sure instances you’ll have to be proactive.

Why does the I-T division ship an intimation?

After submitting your ITR, it’s essential both e-verify it or ship the signed copy of ITR-V to the CPC inside 120 days (30 days for returns filed on and after August 1, 2022) of the date of submitting to finish the method out of your finish.

When you confirm the return, you get an electronic mail confirming the receipt of return. Following this, the processing is initiated and in step one, the submitted return is checked for errors and discrepancies.

“This can be a fully automated and computer-generated course of during which the info given by the taxpayer is in contrast with the small print obtainable to the revenue tax division. In case of any discrepancies in arithmetical errors, inner inconsistencies, tax calculation and tax fee verification, then intimation beneath Part 143(1) is shipped to the taxpayer,” mentioned Deepak Jain, chief govt, TaxManager.in, a tax e-filing and compliance administration portal.

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There’s a restrict to sending such notices. “The intimation letter beneath Part 143(1) can’t be despatched after expiry of 9 months from the top of economic yr,” mentioned Yeeshu Sehgal, head of tax markets, AKM International, a tax and consulting agency.

Additionally learn: Moneycontrol’s information to submitting revenue tax returns 

Act, reply or simply maintain quiet?

You aren’t required to behave or reply on each intimation.

Typically, an intimation is only a formality and also you should not have to do something. “After receiving intimation, the taxpayer ought to test the rationale for receiving it and the small print of return filed by the assessee and computation contained within the intimation letter,” mentioned Sehgal.

If the I-T division has identified a discrepancy, it’s all the time higher to return and test your personal I-T calculations or get your chartered accountant to look into it instantly.

An intimation electronic mail comes with an hooked up assertion, which has two columns—one may have the small print as per the return filed by you and one other may have particulars as computed by the division.

There are three doable eventualities—no distinction between the return you filed and what the division computed; it’s essential pay some extra tax; there’s a tax refund.

In case there’s a shortfall within the taxes that you simply had paid earlier, the letter will clearly say on the prime, “You’ve got a requirement for AY 2022-23.” AY stands for evaluation yr, the yr during which you file your return and pay your taxes on revenue earned within the earlier yr.

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If the knowledge relating to supply of revenue, complete revenue and tax paid supplied by you within the ITR and knowledge obtainable within the IT division’s database matches, you aren’t required to reply on receiving intimation beneath Part 143 (1).

Additionally learn: Errors to keep away from whereas submitting revenue tax returns 

What if there are variations?

In case of a distinction between the return filed and knowledge obtainable with the division, there are two prospects—both it’s essential pay extra tax or you must get a refund. “If the taxpayer agrees with the tax demand raised by the revenue tax division, then the additional tax may be paid with the assistance of pre-filled challan despatched together with the notification,” defined Jain.

Extra tax legal responsibility might come up due to varied causes, corresponding to in case you missed reporting sure revenue or claimed larger deductions in comparison with what you have been truly allowed.

In the event you agree, it’s essential to pay your entire tax demand inside 30 days of receipt of this intimation or as stipulated in it. When you pay the tax, submit the copy of the challan to your ward or ship a softcopy on-line to the tax authorities.

Nonetheless, if you don’t conform to the tax demand raised or revenue computed by the I-T division, you’ll be able to file a rectification request beneath Part 154, together with supporting paperwork.

Then again, if you’re fortunate and the intimation reveals that you’ve got paid extra tax than what is definitely required based on the I-T division’s calculation, then it would present a refund quantity, which will likely be returned to you.

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