The Deadline for filing Income Tax Return which was 5th August. Central Processing Center (CPC) of Income Tax have started processing return and sending various intimation and notices. The processing of Income Tax returns have expedited compared to previous years and most of returns are processed within month time. The communication or intimation are usually send by Email with hard copy at address mention in ITR. Do check all communication you received on the register email id and check under which section you have received intimation or notice and respond accordingly. Here are some of the common sections under which people get notices and what these mean.
Refund or DemandIntimation - Intimation under Section 143(1) or 143(1A)
If all the details you have provided are correct and matching with form 16 and form 16A and other information with Income tax department your return will be easily processed and you will acknowledgement and if refund is due will be processed. It can be simply the final assessment of your returns as your tax calculation matches that of the assessing officer.However in case someone has missed any income to be disclose for example, Interest on FDs and there is mismatch with form 26AS then you might get Demand notice. You need to file a revise return and pay the demand as per notice. If tax is due, you will have to pay it within 30 days
One of such measure for tax evaders had been taken by amending Section 143(1)(a) of the Income Tax Act in Budget 2017This amendment is going to hit hard for those Income Tax Assessee mostly Salaried Employees who used to make manipulative claims of allowances (LTA, medical, HRA etc) or deductions (Section 80C, 80D) in Return of Income and claims refund of TDS deducted from Salary. If assessee has claimed any allowance or deduction while filing return of income, which was not considered by employer in Form 16, then he/she must compulsorily face the Income Tax Notice enquiring the same. If assesse failed to response that notice within 30 days, then differential amount between Form 16 and Return of Income will be automatically added to his income and return would be processed accordingly. Everyone will get notice unless Income shown in Return matches exactly or more than the Form 16/16A.You will have to log in to the tax filing portal and, under the ‘e-Proceeding’ section, explain the discrepancy, besides uploading the supporting documentary proof.
Defective Return Notice – Intimation of Defective under Section 139(9)
Individuals will get a notice under this section in case of defective filing of tax returns. Defective return means, If you have used the wrong ITR form, if you haven’t paid the entire tax due, if you have claimed a refund for deducted tax but have not mentioned the relevant income, if there is a mismatch in the name on the form and PAN card, if TDS is deducted but you have not reported correct income.
You need to respond to notice with in15 days from date of intimation by Assessing officer. You can seek an extension by writing to the local assessing officer. If you don’t respond, the return will be considered invalid.
Scrutiny assessment notice under Section 143 (2)
This is a scrutiny assessment notice that follows preliminary assessment of returns. There can be of three types, with the first two coming under computer-assisted scrutiny selection (CASS), while the third is a manual scrutiny notice
a) Limited purpose scrutiny: This is not a full-fledged scrutiny and is meant to highlight only one or two points or few points
b) Complete scrutiny: This entails a complete, detailed scrutiny as serious discrepancies have been identified in the returns.
c) Manual scrutiny: This notice is hand-picked by the assessment officer, but it can be sent only after an approval by the Income Tax Commissioner.
The taxpayer can now be handle such notice online and entire process scrutiny assessment can be completed online without visiting Income Tax office.Assessee needs to get all the documents and proofs to support case and do not miss the hearing date.