Manager - Finance & Accounts
58504 Points
Joined June 2010
Hey Vipul! Here’s what’s happening with your situation:
Why can a demand under Section 143(1)(a) arise before return filing due date, but get noticed/verified after the due date?
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Section 143(1)(a) demand is basically a summary assessment done by the Income Tax Department based on the return filed.
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Even if you file the return before the due date, the processing/verification by the department might happen later — often after the due date.
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The demand notice can be generated only after the return is processed and verified by the system or officer.
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So, demand can appear (raise) only after the return is processed, even if you filed the return timely.
How is this possible?
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The return filing date and demand generation date are independent.
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The department processes the return later, and if mismatch or short payment is found, they raise demand.
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The demand date can be after the return due date, even if the return was filed before due date.
Summary:
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Return filed before due date → good, timely filing.
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Demand raised after due date → normal, as processing happens after filing.
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Demand under 143(1)(a) is based on return verification, which is post filing.