ITR filing procedure does not finish on the stage of verification. When the person has validated his tax returns, the income tax department initiates the tax return process. Post to the process of income tax return, the income tax department sends the intimation notice.
Under section 143(1) of the Income-tax Act, 1961, the intimation notice shall be sent. On the enrolled email ID of the income tax return filer, the notice will be sent. Then the SMS shall be sent on the filers enrolled mobile number where it informs that the person has been given an intimation notice on his email ID, which is registered in the income tax department.
While processing the ITR, the tax council verify the arithmetical mistakes, internal inconsistencies, tax and interest calculation and checks tax payment filed, etc.; when the ITR is processed, the tax council sends the intimation beneath section 143(1). But you must note that during the time of operation of ITR, the tax department makes a prima facie check. They can still give you a notice regarding income tax in the coming time beneath the distinct section urging for more details.
CPC's initial processing of returns is wholly automated, and Section 143(1) Intimation is also a computer-generated record. CPC validates data provided in each tax return with details available with the income tax department’s record (such as form 26AS generated through details provided by collecting banks, form 16, TDS returns, etc.). This notice usually only points out apparent mistakes found out by the mainframe system.
Kind of intimations possible are discussed below:
The intimation notice shall state the mentioned one of the things:
A) Tax calculations, income components, deductions filed for a claim to match with tax debt. Assessments/calculations: the case specified that there will be no extra tax payable through you in the notice. Indeed, the tax payable, as well as refundable, will display as zero.
B) Additional tax demand notice: there might be circumstances in which you forgot to report the specific income in your tax return or might be claimed the deduction or miscalculated your tax because of which you are liable to pay more tax. Towards these conditions, the tax council sends you their assessment and urges you to pay more.
C) Income tax refund: In these cases, under the assessment of the income tax departments, you have to file more taxes concerning the original tax amount. In these cases, the income tax refund will be displayed as due.
The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by the date of birth in DDMMYYYY format without giving any space.
Section 143(1) intimation has to be sent within one year from the end of the financial year in which the return is being filed. E.g., if the taxpayer has filed a return pertaining to the financial year 2019-20 in July 2019, intimation can be sent any time till 31 March 2021. Suppose a taxpayer does not receive any intimation within such period. In that case, it simply means there are no adjustments carried out to the return filed by the taxpayer, and no change in tax liability/refund and acknowledgement filed itself is deemed to be Section 143(1) intimation.
However, if the taxpayer agrees to the tax demand raised by the income tax department after carrying out adjustments as above, the taxpayer must pay such taxes. However, while paying tax on the demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under the type of payment in the challan.