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Intimation under section 143(1)

Naren (SW Engg.) (25 Points)

16 October 2010

Hello,

I received an Intimation from Income Tax Department, under section 143(1). They have calculated tax on my whole income 2,40,000 for AY 2009-2010.

The calculation have completely omitted deduction of Transport Allowance and House Rent Allowance (exempt u/s 10 as stated in my Form 16). The amounts are 9600 and 46560 respectively.

The calculation under 143(1) states I have to pay around Rs. 6,500.

Are the deductions not be considered? How should I proceed now? Please help.

Thanks

-Naren

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4 Replies

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114215 Points)
Replied 16 October 2010

ou will have to file Rectification of Intimation U/s 154 of the Income Tax Act, 1961.

Format:---

Date:

To
CPC Banglore,
..............
..............
...............

Dear Sir,

Ref: - Your Intimation U/s 143 (1) dated: ........ for the A.Y ........, Received on ........ (PAN ..........)

Sub: - Rectification of Intimation U/s 154 of the Income Tax Act, 1961.

I have received your above mentioned intimation U/s 143(1) of the Income Tax Act which is showing a demand of Income Tax of Rs. ....../-

In this connection i want to bring in to your kind notice that....................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............

I therefore request you to please rectify your above mentioned intimation U/s 154 and issue a rectification order to that effect at the earliest.

Thanks you,

Yours faithfully,

Please also see the notes given on last page of notice u/s143(1)

1 Like

Naren (SW Engg.) (25 Points)
Replied 16 October 2010

Thanks very much.

I assume that I should attach a copy of Form 16 with that.

Should I mail this to them or submit personally? I live in Chennai.

Thanks

-Naren

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114215 Points)
Replied 16 October 2010

Just send it through mail (If Received from CPC Banglore). Otherwise you can also visit personally.

Penuel (Owner) (22 Points)
Replied 21 November 2010

Hello Mr Sanjay,

I am need of your expert advice and if you can help me out of my problem:

Yesterday I received an intimation under section 143(1) from IT department India for assesement year 2007-2008. It demands for the tax payable of around 13,000 and shows my TDS as 0. However, I have paid all taxes/TDS and i have been paying regularly since last 3 years.

The details on the intimation appears to be of AY 2008-2009 where I paid tax/TDS of around above amount. For AY 2007-2008 (FY: 2006-2007) I didn't had income that was taxable. The problem appears to me is that while Filing my E - Return (ITR form) online for AY 2008-2009 (FY 2007-2008) i by mistake submitted by return for AY 2007-2008 (FY 2006-2007) instead of AY 2008-2009. (i came to realize this when i was submitting my e-return the next year, so for 1 year i was under impression that i filed my return correctly as there was no notification from IT deparment). During AY- 2007-2008 (FY 2006-2007) I did not had taxable income and i didn't even file my IT Return. So now, the IT department has considered my incorrect e-return and they might not have found my TDS for that year (as there was no TDS actually required, which i showed in my e-return) and due to this discrepency they are now demanding a tax return for that year.

My question is, how can i bring this situation to the notice of IT department and get this rectified. I did some research and I know there is provision of rectification under section 154, but not sure how to approach it. Can you please give some strong guidelines regarding the same? Is this kind of problem i would require a tax professional/expert or can I solve it on my own?

Thanks for reading and your response is much appreciated

Penuel