Intimation u/s 143(1)

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Paridhi

27 Points Joined April 2012

Hi All,

I really need some advice here.

I recently received an email for Demand Outstanding and to be paid to the tune of about 30K. On the Income tax efiling website I requested for the Intimation U/S 143(1) document and received the same today. The document has completely shocked me and I cannot understand what is going on in it.

	As Provided by Taxpayer in Return of Income	As Computed Under Section 143(1)
GROSS TOTAL INCOME	3,92,591	4,42,411
DEDUCTIONS UNDER CHAPTER VIA	1,04,776	4,776
TOTAL INCOME AFTER DEDUCTIONS	2,87,815	4,37,640

Rest of the document shows correct values for TDS etc.

Now due to the difference in the 'GROSS TOTAL INCOME' & 'DEDUCTIONS UNDER CHAPTER VIA' in the document, the document shows that I am liable to pay additional tax to the tune of 30K (approx).

I have checked my Form-16 for this AY and it clearly shows the below values:

GROSS TOTAL INCOME = 3,92,591

DEDUCTIONS UNDER CHAPTER VIA:

(a) Section 80C = 100,000 (the breakage of this is also clearly specified in the Form-16)

(b) 80D = 4,776

Aggregate Deduction amount under chapter VI-A = 104,776.00

Now when my Form-16 shows all these details clearly, I have two queries:

- How is the GROSS TOTAL INCOME As computed under Section 143(1) more than what is specified in my Form-16?

- I can clearly see that the Deduction considered in the 143(1) document only take the 80D deductions under consideration. Why has it not taken the Section 80C deductions?

Please advise what should I do.

Replies (7)

neeraj

930 Points Joined August 2008

Certain expenses may be disallowed U/s 143(1) by AO

And provide details of ur deduction U/s 80C.

Paridhi

27 Points Joined April 2012

Thanks for your response.

Below are the details of deduction under section 80C as given in Form-16

	Gross Amount	Deductible Amount
Life Insurance Premium	100,000.00	87,936.00
Public Provident Fund	10,500.00	0.00
Employee Provident Fund	12,064.00	12,064.00

On what basis would none of this be disallowed U/s 143(1) by AO??

Arvind Sharma

ACA

1432 Points Joined May 2009

Since, you have genuine deduction, and there is mistake in department side, you have to apply for ractificaiton u/s 154 as available onlne.

Steps for Ractification (as provided by IT Department):-

Step 1: Make sure you have received an intimation under section 143 (1) from CPC Bangalore for the E-returns filed by you for AY 2009-10 or later.

Step 2: Carefully examine the intimation to see if the computation by CPC is correct even if different from what was expected by you. It may be that you may have computed tax liability or interest incorrectly. Take the help by using departmental excel utility available in e-filing website.

Step 3: Since the Rectification Request is to be submitted by uploading the complete xml file similar to uploading the original return, it may be preferable to start with the saved e-return data that was prepared by the return preparation utility/software (Department provided excel software or other software), in case it is available with the taxpayer.

Step 4: Carefully review the Common Error guide and the table above to understand as the basic reason for the variation.

Step 5: All errors in data entry should be completely corrected and schedules or fields left blank should be filled accurately as explained in the guide. The complete return should be filled including TDS and Tax payment schedules and not only schedules that need change or the fields that need correction. This is because the entire return with corrected data would be re-processed under rectification. However, there should not be any revision in income figures or new claims since then the rectification request would be rejected or rectification would be delayed. It may be clearly noted that this facility is only for correcting mistakes apparent from record. Fill the utility as if you are preparing a new ITR.

Step 6: After the Return data is corrected then the xml can be generated. This is the Rectification XML file.

Step 7: Log in to https://incometaxindiaefiling.gov.in and go to My Account-> Rectification-> Rectification upload .

Step 8: Fill in details from the intimation sheet which will be verified to ascertain that only the taxpayer in possession of the Intimation from CPC would be able to submit a rectification request.

Step 9: Fill in details of Schedules where changes have been made and reasons for seeking rectification. Fill in due date for filing return, if incorrect as per intimation sheet. Leave blank if not applicable. Fill in details which are not available in the return form such as details of 80G donations (not available in ITR forms for 1, 2 and 3) and Quarter-wise details of Capital Gains (all four types- which is not available in ITRs 2, 3, 4, 5 and 6) only if applicable. Leave blank if not applicable. Please note if your address has been changed in the rectification XML file, you should check the address changed checkbox to ensure that the new address is updated else the address as per old e-return only will be used.

Step 10: Now upload the Rectification XML file. Validations will be done to ascertain that only mistakes apparent from record are sought to be rectified.

Step 11: Upon successful upload, Rectification Request number and acknowledgement will be displayed.

Paridhi

27 Points Joined April 2012

Hi, Many thanks for your detailed reply. I understand what I need to do for the mismatch in the Deductions section. However, can you explain why is there a mismatch in the GROSS INCOME 'As provided by Taxpayer' and 'As computed under Section 143'?

Arvind Sharma

ACA

1432 Points Joined May 2009

It can be answered only after looking ITR filed and Ackn. Further, you can contact Aayakar Sampark Kendra.

Dagliamit

Finance Professional

42 Points Joined March 2007

There are many issue in processing. You have check xml uploaded. Following error(s) may be there.

1. Depriciation must be posted block wise. (If you claim only in profit n loss a/c in Computation, depriciation is not given to you-possiblly)

2. Pl verify deduction chp.via schedule. It is not pasted in xml. If you generate PDF return you can see that.

File online rectification by generating new xml. If you give full detail (Xml and Statement of Income), I will give you complete solution.

Amit Dagli

Paridhi

27 Points Joined April 2012

Amit, thanks for your response. However, I have no idea what is the XML that you are speaking about. Our company works with an online income tax filing website for the employee to file the income tax. The income & savings are all automatically transferred from the company to the website and on checking that it is a completely user friendly online process to file. Could you guide me from where can I get that XML?