I have received a notice from the income tax department under Section 143 (1). What does it mean?


#1

I have received a notice from the income tax department under Section 143 (1). What does it mean?


#2

The IT department can serve a notice for many reasons but if you are clean with nothing to hide there is no reason to worry. A notice is issued under Section 143 (1) if the calculation of computation of income tax by the IT department does not tally with your calculations in your IT return. So gather the sought documents and make a timely submission on your notice to avoid any penalty.


#3

Someone told me we no longer need a certificate from a government doctor to get avail deductions on medical treatment under section 80DDB. Is this correct?


#4

Yes as per the updated rules, you no longer need the certificate issued by a doctor working in a government hospital. You can now take certificate from any specialized doctor not necessarily working in a government hospital. The specialist can be a neurologist, oncologist, urologist, haematologist, immunologist or any other doctor. Under Section 80DDB you can avail a maximum tax deduction of Rs. 40,000 spent towards treatment of ailments of serious nature.


#5

Hi Sourav,

The below three instances are the primary reasons for having an intimation notice generated.

• If the taxpayer has paid extra tax then the notification will mention the amount of tax refund. If the refund value is above Rs. 100, then the refund will be paid out to the taxpayer. Refund values below Rs. 100 will not be paid out.
• If the taxpayer has paid taxes, which after computation are found to be less, then the notice will state the amount of tax due by the taxpayer and will also enclose a challan for the same payment.
• A simple notice which states that the tax returns filed by the taxpayer fall in line with the computation made by the assessing officer. In such cases no specific intimation is sent to the assessee and the assessee should treat the ITR V acknowledgement of filing of return of income as the intimation notice.

How to deal with Intimation under section 143(1):

Firstly, a taxpayer should check for particulars and see if the details mentioned do belong to them such as name, PAN number, and assessment year.

The second step would be to check if the notice was sent either due to tax refund or tax that needs to be paid. In cases of tax refund, only those values exceeding Rs. 100 will be refunded and this refund will be paid out in due course of time without the taxpayer having to provide any additional details.

If the notice was sent due to tax that needs to be paid, then the taxpayer needs to see the cause of discrepancy. These causes may be due to simple arithmetic errors, inadequate documents submitted, undeclared sources of income, or deductions filed under the wrong sections. If the computation seems satisfactory, then the taxpayer must proceed to pay the tax difference immediately but if the taxpayer is unhappy with the computation made and would like to refute the notice then they can consult with a competent CA and contact their income tax officer.

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Cheers,
BB Expert