Income Tax

Powers of assessing officer to send intimation under section 143(1)

Sometimes, tax payers receive intimation of demand or that of refund from the income tax Department under section 143(1) of the Income Tax Act. Intimation is generally prepared and sent to the assessee stating the amount to be payable by the assessee or the amount of refund due to the assessee.
Intimation shall also be sent to the assessee in case the loss stated in the return by the assessee is adjusted but no tax is payable by the assessee or no refund is due to him.
However no intimation under section143 (1) of the Act shall be sent after the end of one year from the end of the financial year during which a return is filed.

Circumstances under which intimation under section 143(1) is sent:

Most of intimation under section 143 (1) of the Act is sent for discrepancy in income tax return filed by tax payers and the documents based on which such return is prepared such as TDS certificates, Form 16, or other forms, etc.
The sum payable by an assessee or the amount of refund due to an assessee shall be determined after adjustment of the tax and interest computed considering any tax deducted at source or any advance tax paid by the assessee.
Sending intimation under section 143 (1) of the Act is a very bold step on behalf of the department to quickly assess all income tax returns filed. After correct assessment of returns by the income tax department, intimation under section 143(1) is issued.
Normally such intimation is received through e-mail to the Email address provided in the returns which are filed online. Intimation under section 143(1) is considered as completion of assessment for the financial year unless there is any tax due.

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Consequences of intimation under section 143(1):

If the net taxable income of an assessee is more than the total tax paid by him, intimation as per 143(1) will be treated as a demand notice for payment of tax due to the department.
If “net amount refundable” as mentioned in intimation under section 143(1) exceeds Rs. 100/-, there is a tax refund due from the department to the tax payer. But in case such refund amount is less than Rs. 100/- , the amount will not be refunded.
One can check his income tax refund status online on the official website of the tax department.
If “net amount payable” as stated in intimation under section 143(1) exceeds Rs.100, which means that there is tax amount due from the tax payer, such intimation will be treated as demand notice for the payment of due tax. The intimation letter shall be accompanied by a challan form to pay income tax if the due is more than Rs. 100/-.
However if “net amount payable” is less than Rs. 100/-, one can treat intimation under section 143(1) as completion of assessment of income tax returns under the Income Tax Act.

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