The Income Tax Return Filing (ITR) is a crucial procedure to receive a refund upon taxes paid in excess in a financial year. The due date for ITR filing for FY 2022-23 was July 31, 2023, which has ended already. After ITR filing, the tax department goes through the declarations and taxes paid to check whether the details provided correct/match. In case, the taxes paid or disclosed in ITR are found to be inaccurate, the department may issue a notice/intimation.
Let's see the different types of intimation/notices issued by the department:
Types of Intimations
Under Section 143(1) of the Income Tax Act
The department sends this intimation under section 143(1) to notify the taxpayer whether the income tax filed in the ITR matches the records gathered by the department. This step is an initial assessment and is alluded to as a summary assessment so that there will be no need to call the taxpayer. In this situation, no deep investigation is done by the officials. In short, receiving this intimation indicates that the return has been successfully filed.
This intimation contains a prima facie verification and correcting errors by the department concerning tax calculation and tax payments to make it certain that there is no tax or interest due or refund due to the taxpayer. This intimation can be of three types.
Intimation with No Tax Demand or I-T Refund
Such kinds of intimations are issued to taxpayers if the returns are accepted without requiring any adjustment by the department.
Intimation with Tax Demand
When the department sends intimation after making adjustments in the returns.
Intimation with a Income Tax Refund
The department issues this type of intimation when a taxpayer pays the tax in excess either in the form of TDS, TCS, advance tax, or self-assessment tax as compared to the tax determined in the return of income.
Types of Income Tax Notices
Under I-T Section 142(1)
The department issues this type of notice to accumulate certain information such as if the taxpayer filed the return earlier or it may require any additional document as a proof against the claims made. This notice is sent before the assessment of the return.
Under I-T Section 143(2)
The department issues this notice in the situation of the Assessing Officer (AO) not being satisfied with the documents or with the assessee's responses against the income tax notice under Section 142(1).
Under I-T Section 148
In cases of income not correctly disclosed by the taxpayer or paid taxes less than what he was subject to, the notice under Section 148 is issued by the assessing officer asking the taxpayer to provide the return of income.
What Does An Assessee Does for Obtaining Such Intimation/notice?
The experts advised that the assessee for the case of obtaining the notice must verify the reason for obtaining the same and the information of the return furnished via the taxpayer and calculation included in the intimation letter.
The taxpayer must carefully evaluate the computation and all relevant data before responding. The taxpayer has 30 days from the date of receipt of the notification letter to respond to income tax compliance to the notification letter. However, if the taxpayer doesn't reply to the notification letter, the income tax department will process the return without further notice after making the appropriate modifications in accordance with Section 143(1)(a).
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