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Intimation u/s 143(1) & Demand Notice u/s 156

BCom CA DISA Forensic Auditor

 

Dear friends,

 

Kindly guide me on the followings:

 

I had submitted my return of income for A.Y.2008-09 well before due date; explaining my income and the resulting refund claim. I’m male and of 21 years of age. Particulars of my return are as follows:

 

            Short Term Capital Gain u/s 111A                    Rs. 1,13,006

            Income from Other Sources                              Rs.    42,163

                                    GROSS TOTAL INCOME            Rs. 1,55,169

                        Less – Ded. u/s 80C                             Rs.      4,860

                                                TOTAL INCOME             Rs. 1,50,310 (Rounded Off)

 

Now I had pre-paid taxes to the extent of Rs.6262 by way of TDS & Advance Tax. So I computed the refund of Rs.2110 and filed the return.

 

Today I received the intimation u/s 143(1) for the demand notice u/s 156 which mentioned as follows:

 

Returned Income:         Rs.1,50,310

Assessed Income:         Rs.1,50,310

Net Agri.Income:          Rs. NIL

Special Tax Income:     Rs.40,310

Special Rate Tax:          Rs.4,031

Total Prepaid Tax:        Rs.6,262

 

Demand Tax:                Rs.15,331

Education Cess:            Rs.460

Interest

u/s 234A                      Rs. NIL

u/s 234B                      Rs.1235

u/s 234C                      Rs.488

 

Total Tax and Interest Due        Rs.17,514

Net Amount Payable                Rs.11,252

 

Now how is it possible? I just can’t understand this computation of arriving at tax payable. Kindly advise me what I should do now. Should I pay the huge sum demanded by ITD or should I go for an appeal to commissioner? If I should go for appeal then let me know the procedure for the same.

 
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Chartered Accountant


If there is a apparent mistake file petition u/ 154 for rectification proceedings

 
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Reply to your I.Tax query regarding NIL Demand & NIL Refund (Intimation U/s 143(1)

After you file IT returns, the returns will be processed and the computer will send an automated mail to the assessees. The computer will automatically analyse your data filed in the return and will tell you whether you have to pay any tax/eligible for refund etc.

The intimation u/s 143(1) can be safely treated as assessment order unless the case is picked up for scrutiny. The document shows your income as assessed by the Department based upon the return filed by you (without any further verification) and computation of tax liability.

In case of demand intimation u/s 143(1) may be treated as notice issued u/s 156 for submitting arrear amount of tax.

This intimation is a vital document and can be used as proof of income or tax clearance for many purposes. So keep it safely.

As there is Nil demand and Nil refund, you need not to do anything further.

Keep the letter for your reference safely... If you want you can pursue the matter with IT dept.

It is intimation that your income has been assessed according to your income declared in your Return of Income. If your income shows that the demand is NIL, it means that you have nothing to pay as Income Tax as demand.

 
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glidor@gmail.com


Originally posted by : Parag
 
Dear friends,
 
Kindly guide me on the followings:
 
I had submitted my return of income for A.Y.2008-09 well before due date; explaining my income and the resulting refund claim. I’m male and of 21 years of age. Particulars of my return are as follows:
 
            Short Term Capital Gain u/s 111A                    Rs. 1,13,006
            Income from Other Sources                              Rs.    42,163
                                    GROSS TOTAL INCOME            Rs. 1,55,169
                        Less – Ded. u/s 80C                             Rs.      4,860
                                                TOTAL INCOME             Rs. 1,50,310 (Rounded Off)
 
Now I had pre-paid taxes to the extent of Rs.6262 by way of TDS & Advance Tax. So I computed the refund of Rs.2110 and filed the return.
 
Today I received the intimation u/s 143(1) for the demand notice u/s 156 which mentioned as follows:
 
Returned Income:         Rs.1,50,310
Assessed Income:         Rs.1,50,310
Net Agri.Income:          Rs. NIL
Special Tax Income:     Rs.40,310
Special Rate Tax:          Rs.4,031
Total Prepaid Tax:        Rs.6,262
 
Demand Tax:                Rs.15,331
Education Cess:            Rs.460
Interest
u/s 234A                      Rs. NIL
u/s 234B                      Rs.1235
u/s 234C                      Rs.488
 
Total Tax and Interest Due        Rs.17,514
Net Amount Payable                Rs.11,252
 
Now how is it possible? I just can’t understand this computation of arriving at tax payable. Kindly advise me what I should do now. Should I pay the huge sum demanded by ITD or should I go for an appeal to commissioner? If I should go for appeal then let me know the procedure for the same.

Please discuss the source of TDS in relation to "income fromother sources" to discuss the thread properly.

 
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@ Ajay....intimation can or cannot b treated as assessment order......as per various case laws..........so AJAY kindly discuss it also.....thax...

 
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