Tuesday, January 30, 2024

Detailed Guide on Notice u/s 143(1)(a)

What is Notice u/s 143(1)(a)?

Notice u/s 143(1)(a) is a communication from the Income Tax Department (ITD) indicating a preliminary assessment of your Income Tax Return (ITR). It's a computer-generated notice, typically highlighting discrepancies or proposed adjustments in your ITR, based on an electronic processing system at the Centralized Processing Centre in Bengaluru. This notice is not a final assessment but an opportunity for taxpayers to clarify or correct their returns.

Reasons for Issuing Notice u/s 143(1)(a)

Here are common reasons for receiving this notice:

143(1)(a)(i)Arithmetical Error in ITRMiscalculations or mathematical errors in your tax calculations.
143(1)(a)(ii)Incorrect Claim in ITRClaims that are inconsistent or incorrect according to ITD's records.
143(1)(a)(iii)Disallowance of loss claimed in ITRLoss claims made after the due date of filing the return.
143(1)(a)(iv)Disallowance of expense claimed in ITRExpenses claimed that are not allowable or are inconsistent with audit reports.
143(1)(a)(v)Disallowance of deduction claimed in ITRDeductions claimed beyond the prescribed limits or incorrectly.
143(1)(a)(vi)Addition of income in Form 26AS, 16, 16AMismatches in income details or TDS as per the ITR and these forms.

Communication of Proposed Adjustment u/s 143(1)(a)

The notice is sent electronically to the taxpayer's registered email or mobile number. It's password-protected for security, with the combination of the PAN (in lowercase) and the date of birth (DDMMYYYY format) as the password.

Time Limit for Notice u/s 143(1)(a)

  • Deadline: The ITD must issue this notice within nine months from the end of the financial year in which the return was filed.
  • Revising Returns: If you receive the notice before December 31 of the assessment year, you have the option to file a revised return. If you get it after December 31, you can only respond to the notice and cannot file a revised return.

Due Date to Submit Response to Notice u/s 143(1)(a)

  • 30-Day Window: You need to respond within 30 days from the date of receiving the notice.
  • Types of Responses:
    • Agree with the discrepancies and accept the proposed adjustments.
    • Disagree and provide a detailed explanation or evidence supporting your disagreement.
    • Partially Agree and explain the reasons for partial agreement.

How to File Response to Notice u/s 143(1)(a)

  1. Login to the E-filing Portal: Access your account and navigate to Pending Actions > e-Proceedings.

  2. View the Notice: Click on 'View Notice' for adjustment under section 143(1)(a).

  3. Open the Notice PDF: Access the notice/letter in PDF format.

  4. Download and Review: Download the notice for a detailed review.

  5. Initiate Response: Select the option to submit your response.

  6. Review Prima Facie Adjustments: Examine the details of the adjustments proposed by CPC in your filed ITR.

  7. Provide Your Response: Click on each variance and provide your response.

  8. Select Response from Dropdown: For each adjustment, select your response (Agree, Disagree, or Partially Agree) and save.

  9. Verify Your Response Electronically: After responding, e-verify your response to complete the process.

  10. Confirmation of Submission: Upon successful verification, you'll receive a transaction ID and a confirmation email.