Tax payers please pay attention about INTIMATION U/S 143(1) OF THE INCOME TAX ACT

It is very positive step that income tax department to assess all income tax returns filed online quickly. After successful assessment of tax returns by income tax department, issues Intimation u/s 143(1). Normally these intimations will be received through email to the Email address provided in filing income tax returns online. This Intimation u/s 143(1) should be treated as completion of assessment income tax returns for the year unless there is tax due from the tax payer.

We treat this as Intimation of completion of assessment of income tax returns, Intimation of Income tax refund in case refund is due from income tax, India. If net taxable income is more than total tax paid, this Intimation u/s 143(1) will be treated as demand notice for payment of income tax due to income tax department.

We have to interpret the Intimation u/s 143(1) as follows:-

1. If “NET AMOUNT REFUNDABLE” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is a tax refund due from income tax department to tax payer. Refunds amounting less than Rs 100 won’t be refunded. You can check refund status online https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
2. If “NET AMOUNT DEMAND” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is tax amount due from tax payer. This will be treated as demand notice for the payment of income tax due. This Intimation letter encloses challan form to pay income tax if the due is more than Rs 100.

If “NET AMOUNT REFUNDABLE /NET AMOUNT DEMAND”  is less than Rs 100, you can treat this Intimation u/s 143(1) as completion of income tax returns assessment under Income Tax Act. It can be useful for the proof of Income/ Completion of income tax returns assessment.

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