Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: due date for vat payment :: empanelment :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: TDS
 
 
News Headlines »
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS
 NRIs having only investment income may not file tax returns
 With income tax returns filing deadline near, here are 3 major things to do before March 31
 When public becomes tax gatherer

Income Tax intimation: Dealing with it right
September, 19th 2014

One of my friends received an email from the tax department with the subject line, ‘Intimation under section 143 (1)”. He asked me what it meant, why he received the email and what action did he need to take.

As a tax practitioner, I explained that the intimation was a preliminary assessment of the tax return filed by him. It was meant to check the arithmetical accuracy of the return. It was also supposed to spot incorrect claims in the return vis-a-vis the actual documentary evidence. For example, if you claim deduction of taxes paid of R50,000 but the actual tax paid as per Form 26AS (annual tax statement) is R30,000, this would be checked by the tax department and, in the intimation, they would allow credit of taxes paid of R30,000 only.

Such intimation is issued within a year of the filing of tax return. In the intimation, there are two columns comparing the information filed in the return with the details considered by the tax department.

It is worthwhile to verify the details mentioned in the intimation. If there is no difference between the income and tax computed by the tax department and you in the return, there is nothing you need to do.

If the tax paid is less than what is computed by the I-T department, the intimation becomes a Notice of Demand under section 156, i.e., notice to pay the demand (tax payable) determined by the tax department. For example, if income as per the return is R5,00,000 but the department computes income as R6,00,000, there will be a shortfall of tax paid. Or, if the tax paid in the return is R1,00,000 but the department has given credit of taxes paid of R75,000, only then there will be shortfall of tax paid.
If you are of the opinion that the tax department’s computation is correct, you will have to pay such tax. It can be paid either by cheque or through internet banking under the prescribed challan as regular assessment tax.

However, if you feel the tax department’s computation is not correct and have supporting documents to substantiate the same, the anomaly can be rectified by filing a rectification application. But there is no scope for an

explanation by or a discussion with the I-T department on the subject when the intimation is being issued.

If the errors are not corrected after the rectification application, or there are some issues that

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions