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Income Tax intimation U/S 143(1)

Page no : 2

Manjunath S (Chartered Accountant) (25 Points)
Replied 22 April 2010

Hi Nitin & Angshuman

The above views are right you have to file an application for rectification of order u/s 154. Note where the department has committed mistake and file along with necessary proof.



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

Hi,

Thank you all for being so wonderful ! U guys rock ! But, how can Govt. make such mistakes ? And, how much time this rectification takes ? Is there a deadline by which I should submit the rectification statement ? Is it better to go and deliver the rectification in person and get hold of the acknowledgement ?


vivek singhal (Chartered accountant) (79 Points)
Replied 23 April 2010

yes angshuman you don't worry. just file an application to ITO to rectify his intimation under section 154. definitly he shall give response your application. 


Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 23 April 2010

Rectification letter should ideally be filed within 30 days of the receipt of intimation and rectification order must be passed u/s 154 within six months. if no communication received within six months then rectification deemed to have been passed.


Angshuman (Technical Specialist) (32 Points)
Replied 23 April 2010

Thanks Aditya ! I have talked to the C.A. who files return for our office. He says that this rectification we have to do ONLINE only and currently IT Dept has not given access to that online link of rectification. Also, he mentioned that they are not taking Han-Delivery of such documents.


More news...


I-T dept’s system error generates a shocker
Bella Jaisinghani | TNN
 
Mumbai: A “computer error’’ in the office of the income tax department is causing anxiety to scores of taxpayers across the city. Several salaried employees have received notices from the department demanding up to a few thousand rupees as penalty for “deferment of tax payment’’. Officials admit it is a mistake and have set up a counter at the Bandra-Kurla Complex office to redress the issue.

  Over the past week, at least 50 employees of a private company in south Mumbai have approached the accounts department for help. “Each of them has received a similar notice demanding a sum of Rs 1,200 towards deferment of tax payment under Section 234C,’’ says the accounts officer. “When a few of them visited the I-T office at Bandra seeking clarification, they were informed that this was a mistake caused by a system error and that they will not have to pay anything.’’

  The glitch seems to have orginated in one particular unit of the BKC wing as the name of the assessment officer is the same across a random sample of notices.
  I-T chief commissioner R K Singh said the issue had not come to his attention but promised to look into the matter. “Section 234C is to do with advance tax which is paid in three instalments. Should an assessee pay less during the first two instalments and more in the final one, it is presumed that he had deliberately deferred payment until the last instalment. However, this penalty is only computed for a few months,’’ he said.

  Experts doubted the notices as soon as they saw them, firstly because the recovery amount was uniform. “It is hardly likely that each employee would have to pay exactly the same given that the income from other sources, like interest, does vary. Moreover, Section 234C relates to the advance tax that is paid by the company and not each individual employee. Also, it governs all staff members, so how could some individual assessees receive notices in this regard?’’ observes a chartered accountant.

  In certain cases, taxpayers have been asked to pay as much as Rs 5,000. Irrespective of the amount, they are part-angry part-relieved to know it was all a mistake. “Colleagues who visited the I-T department have been told not to worry about it, and that they may simply write a letter stating the facts,’’ says a senior officer of a private firm. “Yet it would be advisable for the authorities to issue a public clarification and let all the recipients of such notices know what they are supposed to do.’’




rajiv kumar srivastava (Manager Account) (29 Points)
Replied 23 April 2010

Anshuman Ji ,

It may be possible that the TDS was not adjusted in your summary assesment , Just give your reply U/S 154 with attchment of Following..

( 1 )  Form 16

(2 ) Return

( 3 ) Self assesment challan

( 4 ) Intimation U/s 143 ( 1 ) received by dept.

 


mangalth (Accountant) (21 Points)
Replied 23 April 2010

REPALY IS SAME AS REPLYIED ABOVE


Angshuman (Technical Specialist) (32 Points)
Replied 23 April 2010

Hello Mr. Rajeev,

Yes, I have not got the Full credit for TDS. What is Self-Assessment challan ?


P. G. Bhave (Consultant) (21 Points)
Replied 15 June 2010

Hi,

In your query you have not specified anything regarding the Intimation.

You should follow the following procedure :

1. Compare the details of Income, Tax payable including interest u/s. 234A, 234B and 234Cand tax paid.

2. Identify where the difference lies. There is bound be some difference as you claim that no tax is payable as per your Return.

3. If there is an error in calculation of tax, i.e. you have paid less tax than what is payable (Please note that the HR / Accounts Department of youir company can also make a mistake in calcuating the tax payable) then you wil have to pay the difference along with the interest if applicable.

4. If the department has not given you credit for either TDS or Self Assessment Tax and the demand is raised on account of the same, file a letter with the ITO, whos has passed the Intimation, asking him to give credit for the same and rectify the Intimation u/s. 154 of the Income Tax Act.

5. If the department has charged you interest us/. 234 A / B / C, although it is not applicable (there are substantial cases where this has happened because of a programming error at the Income Tax ofiice at Bandra Kurla Complex) then file a letter with the ITO, whos has passed the Intimation, asking him to delet the interest and rectify the Intimation u/s. 154 of the Income Tax Act.

Hope this satisfies your query

Ram Bhave


joshua daniel (officer-Internal audit) (70 Points)
Replied 20 July 2010

Dear Sir,

I submitted my return for AY 2009-10 through e-filing. I worked in one company from April 2008-july 2008. and in another company from august 2008-march 2009. I received separate form 16 from both employers. Now i have received Income tax intimated u/s 143(1) asking me to pay more tax.

please advise me what needs to be done.

thank you

 




Sachin (Engg) (28 Points)
Replied 22 July 2010

Great post ppl.

I am also one of the victim on intimation u/s 143 for A.Y 2008-09 as well as A.Y. 2009-10. Both came from different ITO, Hyderabad and B'lore where as I am staying in Pune and filling my ITR in Pune.

When asked, they say your PAN is shifted to Hyd because in one of the previous year (2005 or so) i filed my ITR there.

I am also waiting for response on rectification sent to ITO.

Do let me know how much time they take to respond to the rectification...

Thanks,

Sachin


Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))   (8310 Points)
Replied 05 August 2010

A must read article for every

PCC & IPCC student

Important Suggestions for PCC and IPCC Students for Exams


CA. Nuba Subzwari (CHARTERED ACCOUNTANT) (501 Points)
Replied 06 August 2010

 

Mr. Joshua do the same as Mr.P.G.Bhave specified

n Mr.Sachin as u hv already sent rectification letter to ITO u shud wait for 6 months for their reply n if there z no reply then rectification u/s154 will be deemed to have been passed........


CA. Nuba Subzwari (CHARTERED ACCOUNTANT) (501 Points)
Replied 06 August 2010

Originally posted by : Hema

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.

can one revise a return after the assessment order of A.O. as far as i know one can revise return upto the next 31 mar subsequent to the relevant A.Y. or the receipt of Assessment order whichever is earlier........plz correct me if i m wrong.......




Sachin (Engg) (28 Points)
Replied 06 August 2010

Hi Nuba,

So when the rectification u/s 154 is accepted and if I am not getting any response. Ideally we don't have any proof that my file is cleared. Just trying to understand the law book :-)

Also, is there anyway to shift the PAN from one ITO to another. I want to get it shifted to the closest ITO of my city. Can I do this when the rectification is in progress?

Thanks a lot,

Sachin



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