Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Friday, January 12, 2018

Alert messages from CPC & response by taxpayers - Section 143(1)(a)(vi)

CBDT instructs CPC to send alert messages and mails to tax payers asking for response for the proposed income/loss adjustments prior to issuing intimation u/s 143(1) & response / revised return to be filed by the taxpayer
For processing of Income-tax Returns which were filed in forms Itr-1 to 6 and applicability of section 143(1)(a)(vi) CBDT has issued Circular No.1/2018 dated 10/01/2018
As per circular of CBDT now CPC will be sending intimations proposing adjustments in identified returns under section 143(1)(a)(vi) of the Act, the process to be followed by the taxpayers for filing the response is as under:
 Since section 143(l)(a)(vi) of the Act is being applied for the first time while processing the returns before issuing an intimation of the proposed adjustment, the taxpayer will be informed through an e-mail and SMS communication about the variation in the tax-return vis-a-vis the information available in 26AS/ Form16 and Form 16A (the three Forms) and requesting him to submit response to the variation within one month of receiving the communication electronically.
It is of utmost necessity that the concerned taxpayer files a prompt, timely and satisfactory response to the awareness campaign or subsequent intimation proposing adjustment u/s 143(1)(a)(vi) of the Act.
In case the taxpayer does not respond within the available time-frame or the response is not satisfactory, a formal intimation u/s 143(l)(a)(vi) proposing adjustment to the returned income would be issued to him.
 In a case where no response is received from the taxpayer within thirty days of issue of such intimation, the proposed adjustment shall be made to the returned income.
 The manner for furnishing response by the taxpayer is as under:
- For furnishing the response, taxpayer is required to login in his account in the e-filing site and choose the option (View-Returns/Forms).
- In a case where communication/intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as 'Response to Communication/Intimation u/s 143(1)(a) is pending'. 
 The taxpayer can click on the same and submit his response.
 For furnishing response on receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, options are as under:

I.

if the taxpayer fully agrees with the proposed adjustment, he is required to file a revised return in response on receiving the message or formal intimation u/s 143(1)(a)(vi) of the Act.
II.

if the taxpayer partially agrees with the proposed adjustment, he is required to
(i)                 file a revised return for the part of the proposed adjustment with which he is in agreement &
(ii)                file a reconciliation statement for the part of the proposed adjustment with which he is not in agreement.
III.

If taxpayer disagrees with the proposed adjustment, he is required to file a reconciliation statement in support of his contention.

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