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Income Tax Notice for Proposed Adjustment u/s 143(1)(a)

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Sakshi Shah

Due date
IT Notice
Section 139(5)
Section 143(1)(a)
Last updated on July 13th, 2021

What is Notice u/s 143(1)(a)

Communication received u/s 143(1)(a) is communication for proposed adjustment u/s 143(1)(a) received from the income tax department. This notice is issued for the following reasons:

Section Reason
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 u/s 143(1)(a)(i) is issued when there is an arithmetical error in the filed Income Tax Return. It is sent to the registered email of the assessee. The notice mentions income head, amount reported in ITR, amount as per computation, amount of variance and description of error. The assessee must submit a response to this notice within 30 days from the date of issue.

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

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

Notice u/s 143(1)(a)(ii) is issued when there is an incorrect claim in the filed Income Tax Return. It is sent to the registered email of the assessee. The notice mentions income head, amount reported in ITR, amount as per computation, amount of variance and description of error. The assessee must submit a response to this notice within 30 days from the date of issue.

Incorrect claim means:

Notice under sec 143(1)(a)(ii)

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

Notice u/s 143(1)(a)(iii) is issued when the loss has been incorrectly claimed in the ITR filed. It is sent to the registered email of the assessee. The notice mentions income head, amount reported in ITR, amount as per computation, amount of variance and description of error. The assessee must submit a response to this notice within 30 days from the date of issue.

As per the Income Tax Act, the assessee cannot carry forward the loss if he files his income tax return after the prescribed due date. When the return is filed after the due date u/s 139(1) and yet the loss has been claimed, notice u/s 143(1)(a)(iii) is issued to disallow such loss.

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

Notice under section143(1)(a)(iv) is issued when an expense has been incorrectly claimed in the ITR filed. It is sent to the registered email of the assessee. The notice mentions income head, amount reported in ITR, amount as per computation, amount of variance and description of error. The assessee must submit a response to this notice within 30 days from the date of issue.

If an expense is disallowed under the audit report but the assessee claims it in the income tax return. Notice under section 143(1)(a)(iv) is issued to disallow such expense.

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

Notice u/s 143(1)(a)(v) is issued when a deduction has been incorrectly claimed in the ITR filed. It is sent to the registered email of the assessee. The notice mentions income head, the amount reported in ITR, amount as per computation, amount of variance, and description of the error. The assessee must submit a response to this notice within 30 days from the date of issue.

If the assessee files his Income Tax Return after the due date prescribed u/s 139(1). Thus in such case he cannot claim certain specified deductions (Sec10AA and Sec 80H to Sec 80RRB under chapter VI-A). However, if he has claimed such deductions, the tax department would issue a notice u/s 143(1)(a)(v).

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

Income Tax Notice u/s 143(1)(a)(vi) is received when there is a mismatch in details of TDS on salary as per Form 26AS or Form 16 or mismatch in TDS as per Form 16A and income details reported in the filed Income Tax Return. The notice communicates the head of income, the amount reported in ITR, amount as per Form 16/26AS/16A, amount of variance, and the description of the error. There can be following 3 possibilities:

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

Taxable Salary in ITR does not match with the Taxable Salary as per Form 16. This means that an extra deduction has been claimed in the ITR which is not reflected in Form 16

Notice u/s 143(1)(a)(vi) 3

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

Notice u/s 143(1)(a)(vi) 3

How will I receive Communication u/s 143(1)(a)?

Communication on Email

Intimation 143(1)(a) - Email Communication

Communication on SMS

Time Limit for issue of Communication for Proposed adjustment u/s 143(1)(a)

The income tax department can send intimation u/s 143(1)(a) within one year from the end of the financial year in which the return is filed.

Example

Taxpayer files ITR for FY 2018-19 in July 2019 or October 2019
End of financial year in which return is filed – 31st March 2020
One year from end of financial year – 31st March 2021
Therefore, the tax department can send intimation for ITR of FY 2018-19 up to 31st March 2021

If a taxpayer does not receive any intimation within such period, it means that there are no adjustments and changes to the ITR filed. There is no change in tax liability or refund. Thus, the Income Tax Return filed is deemed to be intimation u/s Section 143(1).

Due Date to submit response to notice u/s 143(1)(a)

If you have received a notice under section 143(1)(a), you must file a response within 30 days from the date of issue of notice.

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

  1. Visit the e-Filing portal

    Login using valid credentials on the e-Filing portal.

  2. Pending Actions

    Click on Pending Actions > e-Proceedings from the dashboard

  3. View Notices

    Click on the option to View Notice for adjustment u/s 143(1)View Notice for section 143(1)

  4. Notice pdf

    Click on the Notice/Letter pdf.Section 143(1) - Notice or Letter PDF

  5. Download the notice

    You will be able to view the notice issued to you. If you wish to download the notice, click Download.Download the notice

  6. Respond to Notice

    Click on the option to submit response.Submit Response to Notice

  7. Details of the Prima Facie Adjustments

    You will be able to view the details of the Prima Facie Adjustments found by CPC in your filed ITR. Click on each variance to provide responses.Provide Response to Notice

  8. Provide Response

    On clicking the variance, details of the variance will be displayed. To provide response for the particular variance, click Provide Response.Provide Response

  9. Response from dropdown

    Select the relevant response from the dropdown and click Save after responding to each Prima Facie Adjustment.Relevant Response for Section 143(1)

  10. Proceed to e-Verify your response

    Once all the responses have been provided, click Back. On clicking Back, you will be taken back to the details of Prima Facie Adjustment found by CPC in your filed ITR. After responding to each variance, the responses will be saved. Click Continue. Select the Declaration checkbox and click Proceed to e-Verify.e-Verify Response for 143(1)

  11. Successful Verification

    On successful e-Verification, a success message is displayed along with a Transaction ID. You will also receive a confirmation message on your email ID registered on the e-Filing portal.Successful Verification for Response to Notice under section 143(1)

FAQs

Is income tax notice u/s 143(1) different from notice u/s 143(1)(a)?

Communication u/s 143(1) is just an intimation and not a notice. Under this intimation, there is a preliminary check whether the calculations as per ITR match with the calculations as per tax department.
If there is any mismatch in the data, the department issues a notice for adjustment u/s 143(1)(a) The taxpayer needs to respond to this notice within 30 days.

How do I check my 143(1) online?

Generally IT Department sends intimation u/s 143(1) on the registered mail. However, if you have not received you can still request for 143(1) by logging into your Income tax account, then my account and request for 143(1) intimation under service request.

What does pending for response to proposal of adjustment u/s 143(1)( a) ?

A communication for such an adjustment under Section 143(1)(a) is sent to taxpayers wherein there is a mismatch of the income/deductions/exemptions reported in the Income Tax Return and in the income/deductions/exemptions as shown in the Form 16.

Got Questions? Ask Away!

  1. Hey @TanyaChopra

    An Intimation u/s 143(1)(a) is issued when there’s a mismatch between your tax credit statement i.e. Form 26AS and your tax return. This happens through automated checks at CPC (Centralized Processing Center) in Bangalore where your returns are processed.

    You can respond to this intimation by registering and logging in to your account on the Income-tax website. You need to determine how you’re going to be responding to the intimation - there are three options available.

    • Agree - This means that you agree with the mismatch. If you do choose this option, you’ll also have to revise your filing.
    • Partially agree - Some of the mismatch is true, the rest of it isn’t - so you’ll choose this option and will need to revise your filing.
    • Disagree - This would mean that you’re not accountable for the mismatch and as a next step, you’ll provide accounts that add up to the difference in mismatch.

    As you might imagine, there’s no real need to panic here as the intimation can be easily taken care of.

    Hope this helped! If you have any further questions, feel free to ask.