The income tax department issues an Income tax intimation notice to taxpayers after processing their income tax returns under Section 143(1) of the Income Tax Act, 1961. This notice is sent to the taxpayer’s registered email address by the income tax department. In addition, an SMS is also sent to the taxpayer’s registered mobile number informing him or her of the intimation notice sent to the registered email id.
The income tax intimation or notice informs the taxpayer whether his income tax computation in the ITR matches with the tax department’s calculation based on the information it obtained from various sources. The tax department checks for arithmetical errors, inconsistencies, tax payable, tax paid and interest calculations, at the time of processing the ITRs.
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The department also double-checks the tax payment. The tax department then sends an intimation notice under Section 143(1) once all of the information submitted by the taxpayer has been processed.
According to tax professionals, you should read the income tax intimation notice carefully. When we get an income tax notice from the Authorities, we need to double-check a few things like:
Firstly, when we receive an intimation, we should check the intimation notice to see if our personal information, such as name, address, PAN, and so on, is correct.
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Secondly, we must identify which type of notice received, such as an Intimation u/s 143(1) for ITR processing, is a defective notice u/s 139(9), or a notice of scrutiny assessment u/s 143(2).
Further, read and compare the ITR that you filed with the notice’s rationale. You must check the compliance that needs to be done based on the nature of the notice, such as filing revised ITR, submitting rectification request, paying demand, and so on.
From April 1, 2021, the Income Tax Department must send the intimation notice to the taxpayer within 9 months of the end of the financial year in which the ITR was filed. So, if a person files an ITR for the financial year 2020-21 now, he should receive an intimation notice by December 31, 2022. The deadline to file an ITR for the financial year 2020-21 is 31st December, 2021.
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It’s worth noting that tax notices don’t stop with Section 143(1). The tax department only does a basic assessment at the time of processing. In future, the department may send a tax notice under a different section for more information.
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