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Income Tax intimation U/S 143(1)

Angshuman (Technical Specialist) (32 Points)

21 April 2010

Hi,

I received an intimation from Income Tax for A.Y. 2008-2009. According to that I am liable to pay more TAX Amount ! How is this possible ? I had already paid and filed my return through my company. And, our Tax is always deducted in the salary. So, I see no confusion in return filing.Then I had paid an additional Self-Assessment tax too ? So, what does this new intimation letter means ? That too for 2008-2009 ?

Please help.

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33 Replies

Dhruv (Chartered Accountant) (308 Points)
Replied 21 April 2010

Assessments usually operate on a 2 year lag period, assessment orders/notices for the period AY 2008-09 will be coming in AY 2010-11, like in your case.

It is not necessary that you have to pay that tax, sometimes there is a mistake while a summary assessment is done of your return, one has to go through the order to determine how the liability has been calculated and on what basis. In case of a mistake in the IT department's reading, an application can be filed informing them of the mistake.

Don't worry!

Mohit Jangid (Article) (141 Points)
Replied 21 April 2010

ya u dont need to worry but make sure that you reply within 30 days

Angshuman (Technical Specialist) (32 Points)
Replied 22 April 2010

HI All,

Thanks for your replies. What should I reply within 30 Days. How do I proceed from here now ?

CA Hema (CA, B.com) (133 Points)
Replied 22 April 2010

hi anshuman

file again a copy of ur last return(i.e return of AY 08-09) if u think that none of ur income escaped in return. if u have missed to show any income in last return then revice the return with actual income and correct tax.

1 Like

Dhruv (Chartered Accountant) (308 Points)
Replied 22 April 2010

Well, you don't really need to file the revised return just as of now, it depends on what basis the Order under 143(1) has come. It's best if you talk to your CA and show him the order, or type the text of the order here to invite our views on how the same should be handled.

(Guest)

Dear Angshuman,

1. Compare the intimation and your return of income.

2. If the mistake is found in intimation then just send reply letter by pointing mistakes and enclose sufficient proof. For example, if they failed to consider self assessment tax paid by or your TDS claim then enclose copy of self assessment tax challan or TDS certificate. If there is mistake in caluclation then provide correct calculation in your reply.

3. If the mistake in your return of income then file revise return.

Angshuman (Technical Specialist) (32 Points)
Replied 22 April 2010

Hi,

I am not conversant with these terms. But, what I can see inthe Form is the following are not matching with the income of return -

1. Income From Salary

2. Gross Total Income (after Intra head adjustments)

3. Total Income after deductions

4. Tax on Total Income

5. EC+SECONDARY & HIGHER EDU CESS

6. Gross Tax Liability Before Tax Relief

7. TDS

Additionally, there are huge sums against these items

234A Interest, 234B & 234C.

1 Like

Nitin (DM) (22 Points)
Replied 22 April 2010

Hello,

thanks to all for creating this thread.I recieved a similar initmation where the computations are totally incorrect .I understand that I should send an application for rectification(under section 154) along with supporting proofs.

Can someone kindly guide me on how & where to submit this application

Thanks,

Nitin

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 22 April 2010

If you are a salaried person having no income other than salary income on which TDS has been deducted the there is a chance that interest u/s 234C might have been charged by the department to you as has happened in so many case recently due to a software error at the time of processing return at Bandra Income Tax office in Mumbai.

There are about 150,000 such cases and you must write a letter to the ITO who has issued the intimation to rectify the said intimation stating that interest u/s 234C was wronglly charged to you and please rectify the intimation u/s 154.

1 Like

Nitin (DM) (22 Points)
Replied 22 April 2010

Hello Aditya,thanks for the reply.

The list of errors as I have mentioned in the letter drafted to the ITO are as follows:

_______________________________________________________

1. Computation of Income from salary under section 143(1).It computes to 3158896 as per your statement which seems to be in gross error. Enclosed is my form 16 & Annex to form 16

2. Under Particulars of Income details- Gross total income (After heads adjustments)-as provided by Taxpayer in return of income, it mentions as 2911690/- whereas in my returns

I have submitted gross income as 918810/-. The above figure computed under section 143(1) is 3201761/-

3. Under Section VI the deduction eligible was 140000/- (40000/- under section 80 DDB, proofs submitted with the employer, part of Form 16 attached )

4. All the other computations seem to be based on the above errors and therefore I request you to rectify and confirm.
_____________________________________________________________

There is not only 234C interest component but also under 234B Interest.

+ there was self assessment tax filed apart from TDS towards short term capital gains.

Thanks,

Nitin

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 22 April 2010

Submit a copy of income tax return acknowledgement also with the above.

(Guest)

I have also gone through 2 cases in which same things happen.

while verification i found that they have entered long term capital gain on shares(which was exempt) as short term capital gain by mistake.

you should apply for rectification u/s 154.

CMA RV Padmakumar.A (Practicing CMA and Registered Valuer (S&FA) ) (1440 Points)
Replied 22 April 2010

angushman intimation u/s 143(1) can be sent to you up to 31.03.2010 for the A Y 2008-09if you filed your return on due date (becforec the completion of one year after the financical year in which the retur is) . so no problem in that.

most cases TDS may not be given credits by the Assessing officer.