Chartered Accountant
12739 Points
Posted on 30 January 2019
What exactly is Intimation u/s 143(1)?
Basically, when a return is submitted to Income Tax Department, the department applies the following computerized checks as a part of its review procedure:
- Arithmetical errors in the return.
- An incorrect claim, which is apparent from any information in the return. For example, if the deduction u/s 80C is claimed more than the maximum permissible deduction u/s section 80C i.e. Rs 1,50,000, the excess shall be disallowed and it will be reflected in your intimation u/s 143(1).
- Difference in income, TAN, BSR Code, Challan No. etc. appearing in Form 26AS or Form 16A or Form 16 with the Income Tax Return.
- Comparison of Advance Tax, Self-assessment tax and TDS etc. from 26AS.
- Claiming the losses for carry forward to next year when return is submitted after the due date.
- Whether deduction under section 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or section 80-IA has been taken after the due date of Income Tax Return
- Calculation of Tax and Interest etc.
After these checks, have been applied, then Income Department Issues Intimation u/s 143(1) in the cases where there's:
- Increase/decrease in Tax/Interest Payable, or
- Increase/decrease in Refund, or
- Adjustment that makes a change in the loss claimed
However, practically you can still receive it, even if your case does not fall in the above mentioned three criteria.
So, to sum up, Intimation u/s 143(1) is a computer-generated notice which contains the final amount of tax payable or refund to be granted, along with interest is issued to you.
The intimation u/s 143(1) shows side by side comparison of:
- (a) Tax Calculation as provided by the you in the Return of Income.
- (b) Tax as Computed under section 143(1) {i.e. As per Department}