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Section 139(9): Defective Return Notice

Section 139(9): Defective Return Notice

Important Keyword: 139(9), Defective Return, IT Notice, Section 139(9).

Section 139(9): Defective Return Notice

Navigating the labyrinth of Indian tax laws can feel like traversing a maze blindfolded for many taxpayers. The intricacies can often lead to unintentional errors creeping into their Income Tax Returns (ITR). When the Income Tax Department (ITD) conducts its scrutiny and uncovers such discrepancies, it issues what’s known as a “defective return notice” under section 139(9) of the Income Tax Act. Ignoring or failing to respond to this notice within the stipulated time frame can result in undesirable consequences.

To mitigate such situations and foster voluntary compliance, the ITD furnishes various documents like Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS), among others. These documents serve as crucial checkpoints that taxpayers should diligently inspect before filing their ITR.

Think of Form 26AS as your tax compass, pointing out the direction of your financial transactions as recorded by the ITD. The Annual Information Statement (AIS) acts as a mirror reflecting the financial data reported by third parties like banks, employers, and mutual funds, offering taxpayers a chance to reconcile their records. Similarly, the Taxpayer Information Summary (TIS) provides a consolidated view of your tax profile, aiding in the identification of potential errors or discrepancies.

What is Section 139(9) – Defective Income Tax Return Notice?

A defective return notice is like a friendly tap on the shoulder from the Income Tax Department, signaling that something might be amiss in your tax return. It’s issued when errors, omissions, or inconsistencies are detected, hindering the accurate processing of your return. This notice isn’t meant to alarm you; rather, it’s an opportunity to rectify any slip-ups and ensure compliance with tax regulations. Responding promptly, within 15 days of receiving the notice, is crucial.

Here are some common reasons why you might receive a defective return notice under section 139(9) of the Income Tax Act:

  1. Mismatch in TDS and Income Details: Suppose you’ve earned income from freelancing, but mistakenly reported it under the wrong category, like Salary instead of Professional Income. This mismatch between your reported income and the TDS deducted could trigger a notice.
  2. Mismatch in Tax Dues: If the total taxes paid don’t align with the total taxes payable according to your return, you might receive a notice. It’s essential to ensure that your tax dues match up accurately.
  3. Return Filed without P&L and Balance Sheet: If you’re required to maintain Profit & Loss (P&L) and Balance Sheet details but fail to include them in your return, you could get flagged. For instance, if you’re a commission agent and overlook filling in your Balance Sheet details, you might receive a notice.
  4. Return Filed without Tax Audit Report: Certain criteria set by Section 44AB necessitate a tax audit report to accompany your return. If you fall under these criteria but forget to include the audit report, expect a notice.
  5. Not Eligible for Presumptive Taxation Scheme: Opting for the presumptive taxation scheme comes with specific requirements. Failing to provide accurate or complete information or opting out of the scheme without fulfilling necessary obligations can lead to a notice.
  6. Mismatch in Name and PAN: Any disparity between the name in the PAN database and the one provided in your return could result in a notice. It’s crucial to ensure consistency between the two.

Receiving a defective return notice isn’t cause for panic. It’s an opportunity to review your return, correct any errors, and resubmit it to ensure compliance. By addressing the issues highlighted in the notice promptly, you can navigate the tax-filing process smoothly and avoid any undesirable consequences.

Sample Notice under Section 139(9)

Sample notice u/s 139(9) of income tax act
Sample notice u/s 139(9) of income tax act

How will I Receive Notice under Section 139(9)?

In the realm of tax matters, the Central Processing Center (CPC) efficiently administers the issuance of notices under Section 139(9) of the Income Tax Act. These notices, vital in ensuring compliance with tax regulations, are seamlessly transmitted to taxpayers via their registered email addresses.

Attached to these emails lies a significant safeguard: a password-protected notice. To unlock its contents, taxpayers need only to input their Permanent Account Number (PAN) in lowercase, followed by their date of birth in the DDMMYYYY format. This combination, like a key to a vault, grants access to the essential information contained within.

This process underscores the government’s commitment to secure communication and transparency in tax dealings. By employing such measures, taxpayers are assured of the confidentiality of their tax-related communications while simultaneously facilitating compliance with regulatory requirements.

How to respond to notice under Section 139(9)?

Here’s how you can submit a response to the notice u/s 139(9) of the income tax act.

  1. Login to the e-filing portal and Navigate to Pending Actions > E-Proceedings from the dashboard.

    step 1 to submit response to notice u/s 139(9)
  2. Click on View Notices
    You will be able to view the proceeding name [Defective notice u/s 139(9)] and your return acknowledgment number here.

    Step 2 of how to submit response to notice u/s 139(9)
  3. Submit Response
    After understanding the notice, click on the submit response option. Make sure to submit a response before the response due date mentioned here.

    Step 3 of how to submit response to notice u/s 139(9)
  4. Agree or Disagree
    Choose from the options provided as to whether you agree or disagree with the notice.

    step 4 of how to submit response to notice u/s 139(9)
  5. Agree with the Notice
    If you agree with the notice, you can file a corrected return by attaching a JSON file here.

    step 5 of how to submit response to notice u/s 139(9)
  6. Disagree with Notice
    If you disagree with the discrepancy mentioned by the ITD, you will have to provide a reason for disagreement here.

    step 6 of how to submit response to notice u/s 139(9)
  7. After entering the reason click on Submit and it is done you will see a confirmation message with an acknowledgment number on the screen upon successful uploading.

Consequences of Non-response

Should a taxpayer overlook the imperative to respond to the notice within the stipulated 15-day window, the consequences are weighty. In such a scenario, the tax department deems the original return as null and void, akin to it never being filed for that financial year. This oversight triggers a cascade of potential repercussions, including the imposition of interest and penalties for the failure to file the return.

Read More: How to respond to Non-filing of IT Return Notice?

Web Stories: How to respond to Non-filing of IT Return Notice?

Official Income Tax Return filing website: https://incometaxindia.gov.in/

Income Tax Notice

Income Tax Notice

Important Keyword: Intimation, IT Notice.

Income Tax Notice

An income tax notice is a formal letter sent by the Income Tax Department to taxpayers for various reasons. These notices might ask for more information, clarify details in tax returns, remind individuals to file their returns, or notify them about tax audits and assessments. It’s essential for taxpayers to understand what the notice means and to respond quickly by providing the needed information or documents. Ignoring these notices can lead to serious consequences, such as interest charges, penalties, fines, or even legal issues like imprisonment.

Thus, it is very important for taxpayers to be aware of the nature of these notices and to take prompt action to comply with the requests. Proper and timely responses can help avoid complications and ensure compliance with tax laws.

Reasons for issuance of Income Tax Notice

A taxpayer might receive a notice from the Income Tax Department for several reasons. Here are the main factors that often lead to such notices:

  1. Non-filing of Income Tax Return (ITR)
  2. Mismatch in Tax Credits
  3. ITR Filed Without Payment of Tax Dues
  4. Non-disclosure of Income
  5. Scrutiny Assessment

These are the usual reasons for receiving a notice, but other unexpected circumstances can also trigger one.

Communication of Income Tax Notice

The Income Tax Department sends notices via email or text messages. If they find errors or discrepancies in your return, they will notify you on your registered email ID and mobile number.

Identifying the Validity of the Income Tax Notice

Before responding to an Income Tax notice, it’s crucial to verify its authenticity and ensure that it is indeed intended for you. This step helps in preventing any potential fraud or miscommunication. This can be done by carefully checking the basic details outlined in the sample notice below:

income-tax-notice

When you receive an income tax notice, it’s essential to verify its details to ensure it is accurate and intended for you. Here’s what you need to check:

  1. Name and Address: Make sure the notice has your correct name and address.
  2. PAN Number: Verify that your Permanent Account Number (PAN) is correctly mentioned.
  3. Assessment Year, Type of Return, ITR Type: Confirm these details are correct and match your tax filing.
  4. Name and Designation of the Issuing Officer: Check the credentials of the officer who issued the notice.
  5. Communication Reference Number: Note this number for any further correspondence or inquiries.

Accessing the Notice

Most income tax notices are password protected. To open the notice, you will need to use a specific format for the password:

  • Password: Your PAN in lowercase followed by your date of birth in DDMMYYYY format, without any spaces.
  • Example: If your PAN is AAAPA1234A and your date of birth is January 1, 2000, the password will be aaapa1234a01012000.

Example:

  • PAN: AAAPA1234A
  • Date of Birth: 01/01/2000
  • Password: aaapa1234a01012000

Common reasons for Notice and their resolution

SectionReason for NoticeResolution
139(9)For filing a defective returnIdentify the defect mentioned and submit a return in response to the notice of defective return notice u/s 139(9).
142For not filing the income tax return or for the scrutiny of documents & accounts in support of the return filed.File the return within the time limit mentioned in the notice.

Submit a valid response if you are not required to file a return.

Present before the assessing officer with books of accounts and supporting documents if demanded by the Assessing Officer.
143(1)For adjustment or additional tax demand if an error or incorrect information is detected in the return. Pay outstanding tax dues if any.

Correct the errors and file rectification return u/s 154 if required.
143(2)For scrutiny assessment after a detailed inquiry by assessing officer.Your case has been selected for scrutiny. Hence, you should provide all the relevant information, pieces of evidence as demanded by IT authorities.
148For reassessment, if the officer believes some income has escaped assessment.Provide all the relevant information, evidence as demanded by IT authorities.
156For dues (tax, interest, penalty, fine or any other sum) payable by the assessee)Submit a response to a notice from e-Filing account.

Pay tax if you agree.

Provide a reason if you don’t agree with the demand.
245For adjustment of a refund with any demand dueFor dues (tax, interest, penalty, fine, or any other sum) payable by the assessee)

Dealing with an Income Tax Notice

Don’t Ignore the Notice

When you receive an income tax notice, it’s crucial not to ignore it. Verify the details and respond promptly within the specified period. Failing to respond can lead to penalties and other consequences.

Check the Notice for Your Basic Details

Ensure the notice includes correct information such as your PAN, name, assessment year, assessing officer, and income tax ward details. Make sure there are no errors or ambiguities.

Identify the Reason for the Notice

Review the notice to understand why it was issued. Common reasons include discrepancies in TDS (Tax Deducted at Source), defects in the tax return, or undisclosed information.

Check the Validity of the Notice

The Income Tax Department follows specific time limits for issuing notices. Check the section mentioned in the notice to determine if it was issued within the valid timeframe. For example, a notice under Section 143(3) for scrutiny assessment must be issued within nine months of the end of the financial year in which the return was filed. If the notice is issued later, it may be invalid.

Provide Supporting Evidence

You may be asked to provide documents and information to support your response. Gather the necessary documents to back up your claims or explanations.

Timely Response

Respond to the notice within the period mentioned. If you are unable to gather the required documents or information in time, communicate this to the department and request an extension.

Seek Professional Help

If you don’t understand the notice, seek help from a professional, such as a Chartered Accountant.

How to Respond to the Notice

  1. Verify Details and Reason: Ensure the notice is valid and understand the reason for its issuance.
  2. Log into the Income Tax Portal: Access the portal to respond to the notice.
  3. Attach Supporting Documents: Provide any requested documents or information related to your filed return.
  4. Submit Your Response: Ensure you submit your response within the stipulated time frame.

For submitting a response, the taxpayer can follow below-mentioned steps:

  1. Login to the e-filing portal and Navigate to Pending Actions > E-Proceedings from the dashboard.step 1 to submit response to notice u/s 139(9) of income tax act
  2. Download Notices
    Click on the option to View Notice option for the notice on which the taxpayer wants to submit the response. Once the tab is opened taxpayer can download the notice. For example, here we are selecting 143(1) adjustment notices.
    e-proceedings
  3. Respond to Notice
    Click on the option to submit a response for responding.
    Provide response to 143(1)(a)
  4. Proceed to e-verify your response
    Once the taxpayer responds to the notice, they are required to e-verify the provided response for submitting it.
    143(1)(a) response
  5. Successful Verification
    On successful e-verification, a success message will be there along with a Transaction ID. You will also receive a confirmation message on your email ID registered on the e-filing.
    143(1)(a) response

Consequences of non-response

The taxpayer must furnish a response to the notice within the stipulated time frame mentioned in the notice. Failure to do so may result in the department imposing penalties, interest, or fines. Additionally, in certain cases, the department may specify provisions for imprisonment.

Read More: Income Tax Refund: Eligibility, Procedure and Interest

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Official Income Tax Return filing website: https://incometaxindia.gov.in/

How to respond to Non-filing of IT Return Notice?

How to respond to Non-filing of IT Return Notice?

Important Keyword: Income Tax Compliance, Income Tax Website, IT Notice.

What is Non-Filing Monitoring System (NMS)?

The Non-Filing Monitoring System (NMS) is a system developed by the Income Tax Department to identify individuals who are required to file taxes but have not done so. Here’s how it works:

Identification of Non-filing

The NMS identifies people who are liable to file taxes—those with an annual income exceeding ₹2,50,000—but have not filed their tax returns. The system leverages several information sources to spot these non-compliant taxpayers:

  • AIR (Annual Information Return): Filed by financial institutions, providing details of high-value financial transactions.
  • CIB (Centralised Information Branch): Collects and processes data related to potential tax evaders.
  • TDS Statements: Details of tax deducted at source, which help in tracking the income of individuals.

Notification Process

Once potential non-filers are identified, the NMS automatically sends a non-compliance email to the taxpayer’s registered email address. The Income Tax Department also sends notifications via SMS and email every year to inform non-filers of their obligation to submit their returns.

Sample email from Non-filers Monitoring System

Sample Email for Non-filers

How to respond to NMS compliance email?

Here is a step by step guide on how to deal with non-filers monitoring system email

  1. Visit Income Tax Portal
    Login Income Tax Website.

    income-tax-website-home
  2. Navigate to Compliance
    Click on View and Submit Compliance.

    income-tax-view-and-submit-compliance
  3. You will see the Submit Compliance Form.
    Navigate to Filing of Income Tax Return.

    income-tax-website-file-return
  4. Navigate to Asssessment Year for which Return Not Received.
    You have two options to respond:
    A. ITR has been filed,
    B. ITR has not been filed.
  5. If you select option (A), you need to provide:
    1. Mode of filing the ITR,
    2. Date of filing the ITR,
    3. An acknowledgement Number.
  6. If ITR was e-Filed,
    details will be prefilled automatically.

    Income-tax-website-itr-has-been-filed
  7. If you select option (B), you need to provide one of the following reasons:​​
    1. Return under Preparation,
    2. Business has been Closed,
    3. No Taxable Income,
    4. Others.
  8. Navigate to Related Information Summary.
    It gives a detailed information summary.

    income-tax-website-related-information
  9. Choose a relevant option under Information Related To against each transaction mentioned
    Provide additional information if required.

    income-tax-website-related-information-2
  10. Following are the options available to a taxpayer under Information Relates To tab:
    1. Self-Investment/ expenditure is out of exempt income
    2. Self-Investment/ expenditure is out of accumulated savings
    ​3. Self-Investment/ expenditure is out of gifts/ loans from others
    ​4. Self-Investment/ expenditure is out of foreign income
    5. Self-Income from a transaction is exempt 
    ​6. Income from a transaction is below taxable limit 
    ​7. Self-Income from transaction relate to different AY 
    ​8. Self-Not Known
    ​9. Other PAN 
    ​10. Not Known 
    ​11. I need more information
  11. Upon submission you will see following screen.
    Download Response.pdf for your future reference.

    income-tax-website-nms-submission

Read More: Income Tax Refund: Eligibility, Procedure and Interest

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Official Income Tax Return filing website: https://incometaxindia.gov.in/

Section 143(1): Letter of Intimation

Section 143(1): Letter of Intimation

Important Keyword: Income Heads, IT Notice, Section 143(1).

Section 143(1): Letter of Intimation

Once the taxpayer files their return, the income tax department performs an initial check. This process involves verifying any arithmetic mistakes, incorrect claims in the return, differences in tax calculations, and confirming if tax payments are accurate. If the department finds any issues, they send the taxpayer an intimation letter under section 143(1). This letter shows a comparison between the figures provided in the filed Income Tax Return and those calculated by the income tax department.

Intimation under section 143(1)

When a taxpayer submits their return, it undergoes an initial assessment by the Central Processing Centre (CPC). The CPC, established by the Central Board of Direct Taxes (CBDT), centralizes the processing of returns to quickly determine tax liabilities or refunds.

Purpose and Benefits of the CPC

The CPC automates the initial processing of tax returns, providing several benefits:

  • For Taxpayers: Faster and smoother processing of returns.
  • For the Tax Department: Reduced workload, allowing focus on more complex tasks.

Process of Preliminary Assessment

The assessment involves a computer-driven system that checks the return for accuracy. Here’s the step-by-step flow:

  1. Recalculation of Income: The system recalculates the total income or loss based on the available information.
  2. Verification: Major categories are verified, including:
    • Incomes under various heads
    • Gross total income
    • Deductions under Chapter VIA
    • TDS and taxes paid (Self Assessment tax and Advance Tax)
  3. Adjustments and Intimation:
    • After verification, adjustments are made as per section 143(1).
    • An intimation letter is sent to the taxpayer detailing the proposed adjustments.
    • The taxpayer must respond within a prescribed time limit.
    • If a response is received, final adjustments are made accordingly. If not, the proposed adjustments are considered final.
  4. Final Tax Liability: Adjustments are made against TDS and other relief claims under sections 90/91 if applicable, followed by the issuance of the final intimation to the taxpayer.

Types of Intimations

  • No Demand or No Refund: No adjustments made, and the filed return is accepted as is.
  • Demand Intimation: Adjustments result in additional tax liabilities.
  • Refund Intimation: If the tax liability is lower than the taxes paid, the excess amount is refunded.

Types of Adjustments under Section 143(1)

The CPC may issue an intimation letter for the following adjustments:

  • Arithmetic Errors: Corrections of calculation mistakes.
  • Incorrect Claims: Disallowance of claims that are evidently incorrect based on the return’s information.
  • Disallowed Expenses: Expenses reported in the audit report but not in the return.
  • Set-Off of Losses: Disallowance of loss set-offs if the previous year’s return was filed late.
  • Unreported Income: Income shown in Form 26AS/16A/16 but not reported in the return.
  • Inconsistencies: Contradictions within the return or with other sections.

Sample Intimation letter u/s 143(1)

Sample intimation u/s 143(1)

Communication of Intimation under section 143(1)

Taxpayers can receive the intimation letter under section 143(1) through their registered email or mobile number on the income tax portal. The Central Processing Centre (CPC) is the sender of these intimations.

Time Limit for Issuance

The income tax department must issue the intimation under section 143(1) within nine months from the end of the financial year in which the return was filed.

Example

If Jay filed his income tax return on July 20, 2023, for the financial year 2022-23, the income tax department can send the intimation under section 143(1) up to December 31, 2024. This is because it is nine months from the end of the financial year 2022-23, in which the return was filed.

No Communication within Timeframe

If a taxpayer does not receive any intimation within this nine-month period, it implies that there have been no changes or corrections made to the initially filed return. Consequently, there are no modifications in the tax liability or refund due. In such cases, the filed return is considered to have been accepted as filed, effectively serving as an intimation under Section 143(1).

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portal
    Login to the income tax website using valid credentials.
  2. Navigate to View Filed Returns
    Go to e-file > Income Tax Returns > View Filed Returns
  3. Click on View Details
    For the relevant Assessment Year, click on View DetailsView Filed Returns_Income Tax Website
  4. Download Intimation Order under Section 143(1)
    In the next step, taxpayers can see the status of each filing stage. If it shows ‘Processed’, they can download the intimation by clicking on ‘Download Intimation Order’.

    Download Intimation Order_Income Tax Website
  5. Open Intimation Order under Section 143(1)
    The intimation order is password-protected. The password to open the intimation letter is PAN in lowercase and the date of birth (DDMMYYYY) is without any space. Eg: PAN is AAAPA1234A and the date of birth is 01/01/2000. The password would be aaapa1234a01012000.

Response to Intimation under section 143(1)

Upon receiving the intimation, the taxpayer should initially verify the correctness of the information provided. This includes confirming details such as the Name, PAN, Assessment year, etc.

Case scenarioAction
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds.In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes.In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer.The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return.If the taxpayer Agrees: They need to pay the outstanding demand and file a response.

If the taxpayer Disagrees: 
They need to file a Rectification request u/s 154.

Consequences of Non-response

Upon receiving an intimation letter under section 143(1), the taxpayer must respond within the specified time limit.

Consequences of Non-Response

If the taxpayer fails to respond within the given timeframe, the income tax department will treat the proposed adjustments as final. The department will then proceed to calculate the final tax liability or refund based on these adjustments.

Final Intimation

After these calculations, the taxpayer will receive a final intimation letter detailing the ultimate tax liability or refund. This final letter concludes the assessment process under section 143(1).

Read More: Reprocess the ITR : e-Filing portal

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Official Income Tax Return filing website: https://incometaxindia.gov.in/

Section 143(1)(a): Notice for Proposed Adjustments

Section 143(1)(a): Notice for Proposed Adjustments

Important Keyword: Due date, IT Notice, Section 139(5), Section 143(1)(a).

Section 143(1)(a): Notice for Proposed Adjustments

The Income Tax Department verifies the details provided in the return filed by the taxpayer. If there are any discrepancies, the department issues a notice or intimation to the taxpayer, instructing them to make corrections. Before starting any assessment procedure, the department issues a notice under Section 143(1)(a), which outlines the proposed adjustments to the return. After the taxpayer responds to this notice, the department begins the assessment procedures and issues a final order.

What is Notice Under Section 143(1)(a)

Section 143(1)(a) notice of proposed adjustments involves the electronic processing of tax returns by the Centralized Processing Center (CPC) in Bengaluru. This notice is a preliminary communication and not a final assessment. It indicates discrepancies or adjustments in the filed income tax return based on the provided information. The taxpayer is given the opportunity to respond to these proposed adjustments before a final assessment is made.

Such notice is issued for the following reasons:

SectionReason
143(1)(a)(i)Arithmetical Error in ITR
143(1)(a)(ii)Incorrect Claim in ITR
143(1)(a)(iii)Disallowance of loss claimed in ITR
143(1)(a)(iv)Disallowance of expense claimed in ITR
143(1)(a)(v)Disallowance of deduction claimed in ITR
143(1)(a)(vi)Addition of income appearing in Form 26AS, Form 16 or Form 16A

Notice u/s 143(1)(a)(i)

Notice under this sub-section is issued when there is an arithmetical error in the return. The notice specifies the income categories where discrepancies exist between the calculations based on the taxpayer’s filed return and the department’s calculations.

Notice us 143(1)(a)(i)

Notice u/s 143(1)(a)(ii)

A notice under this sub-section is sent when there are discrepancies in the Income Tax Return you have filed. An incorrect claim in your return can occur in the following situations:

  1. Mismatch of Information: The details provided in one section of your Income Tax Return do not align with the information given in another section.
  2. Omission of Required Information: Important details that should be included in the return are missing.
  3. Exceeding Deduction Limits: The deductions claimed in the return go beyond the allowable limits set by the Income Tax Act.
Notice under sec 143(1)(a)(ii)

Notice u/s 143(1)(a)(iii)

If you file your Income Tax Return after the due date specified under section 139(1), you are not allowed to carry forward losses. If you still claim these losses, the Income Tax Department will issue a notice under section 143(1)(a)(iii) to disallow them.

Notice u/s 143(1)(a)(iv)

This notice is sent when an expense has been incorrectly claimed in the Income Tax Return. If the audit report disallows certain expenses and you claim them while filing your return, these will be disallowed, and you will receive a notice under section 143(1)(a)(iv).

Notice u/s 143(1)(a)(v)

A notice under this sub-section is issued if you have incorrectly claimed certain deductions in your Income Tax Return. Deductions under sections like Sec 10AA and Sec 80H to Sec 80RRB in Chapter VI-A cannot be claimed if the return is filed after the due date specified under section 139(4). If these deductions are claimed, a notice under section 143(1)(a)(v) will be issued to disallow them.

Notice u/s 143(1)(a)(vi)

This notice is received when there is a mismatch between the details of TDS (Tax Deducted at Source) on salary as per Form 26AS or Form 16 and the TDS details reported in the Income Tax Return. There can also be mismatches between TDS as per Form 16A and the income details reported. Specifically, this can occur if the Business or Profession Income reported under Schedule BP in the return does not match the gross receipts or turnover in the Tax Credit Statement (Form 26AS).

Notice u/s 143(1)(a)(vi)
  • The salary reported under Schedule S in the return does not match the gross salary in the Tax Credit Statement i.e. Form 26AS.
Notice u/s 143(1)(a)(vi)
  • Taxable Salary in ITR does not match with the Taxable Salary as per Form 16. This indicates that the taxpayer has included an additional deduction in the ITR that doesn’t appear in Form 16.
Notice u/s 143(1)(a)(vi) 3

Communication of proposed adjustment u/s 143(1)(a)

Notification Process by the CPC
The Central Processing Centre (CPC) at the income tax portal will send the intimation letter under section 143(1)(a) to your registered email or mobile number. This notice will be password-protected. To open it, use your PAN in lowercase followed by your date of birth in DDMMYYYY format. For example, if your PAN is AAGPR1212A and your date of birth is 02/10/1980, the password will be aagpr1212a02101980.

Time Limit for Issuing the Notice
The Income Tax Department can issue this notice within nine months from the end of the financial year in which the return is filed. For example, if Ms. Priya filed her income tax return on 25th July 2023, she could receive a notice under section 143(1)(a) until 31st December 2024. This period allows for 9 months from the end of the financial year in which the return was filed.

If you do not receive any intimation within this period, it means that the calculations of the Income Tax Department matched the details provided in your filed return.

Due Date for Submitting a Response
Upon receiving a notice under section 143(1)(a), you must file a response within 30 days from the date of the notice. Your options include:

  1. Agreeing to the Discrepancies
    • Accept the proposed adjustments.
  2. Disagreeing with the Discrepancies
    • Submit a response explaining your reasons for disagreement.
  3. Partially Agreeing to the Discrepancies
    • Submit a response explaining which parts you disagree with and why.

In any of the above cases, you have the option to submit a revised return under section 139(5).

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

  1. Login to the e-filing portal and navigate to Pending Actions > e-Proceedings from the dashboard.step 1 to submit response to notice u/s 139(9) of income tax act
  2. View NoticesClick on the option to View Notice for adjustment u/s 143(1)
    e-proceedings
  3. Notice pdfClick on the Notice/Letter pdf.
    view notice 143(1)
  4. Download the noticeYou will be able to view the notice issued to you. If you wish to download the notice, click Download.
    Download notice 143(1)(a)
  5. Respond to NoticeClick on the option to submit a response.
    Provide response to 143(1)(a)
  6. Details of the Prima Facie AdjustmentsYou will be able to view the details of the Prima Facie Adjustments found by CPC in your filed ITR. Click on each variance to respond.
    143(1)(a) response
  7. Provide ResponseOn clicking the variance, details of the variance will be there. To respond to the particular variance, click Provide Response.
    143(1)(a) response
  8. Response from dropdownSelect the relevant response from the dropdown and click Save after responding to each Prima Facie Adjustment.
    143(1)(a) response
  9. Proceed to e-verify your responseAfter providing all the responses, click “Back.” This action will take you to the details of the Prima Facie Adjustment that CPC found in your filed ITR. Once you respond to each variance, the system will save your responses. Click Continue, Select the Declaration checkbox, and click Proceed to e-Verify.
    143(1)(a) response
  10. Successful VerificationOn successful e-Verification, a success message will be there along with a Transaction ID. You will also receive a confirmation message on your email ID registered on the e-filing.
    143(1)(a) response

Read More: Reprocess the ITR : e-Filing portal

Web Stories: Reprocess the ITR : e-Filing portal

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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