About intimation

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31 August 2018 Why intimation (U/S 143 (1)) comes from the IT department.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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31 August 2018 To show the details of assessment of one's IT return. Shows the income declared by the assessee and the income assessed by the Department

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 November 2021 Initial processing of returns by CPC is completely automated and Section 143(1) Intimation is also computer generated record. CPC validates data provided in each tax return with details available with income tax department’s own record (such as form 26AS generated through details provided by collecting banks, form 16, TDS returns etc) and this notice usually only points out apparent mistakes found out by the mainframe system.

Once the return is filed, total income or loss is recomputed by the computerised system as per the department’s record and provides a comparison with data filed by the taxpayer.
The intimation has two columns: ‘As provided by the taxpayer in the Return of Income’ and ‘As computed under Section 143 (1).
Comparison is made for major categories such as
income under various heads,
Gross Total Income,
Deductions under Chapter VIA (80C, 80D etc), and
Tax deducted at source and tax payments by taxpayers in the form of advance tax and self assessment tax.
Appropriate adjustments are made to income as computed under Section 143(1) and final tax liability or refund is arrived at.
The adjustments are carried out only after giving an intimation to the taxpayer of the proposed adjustments either in writing or electronic mode i.e., to the email id provided in the income tax return filed.
Response received from the taxpayer within 30 days from the issuance date of intimation will be considered before making the final adjustment and in case no response received within such period, adjustments arrived at initially will be incorporated.
After arriving at final tax liability, the same is adjusted against TDS and tax payments and other relief under Section 90/91 if any.
An intimation shall be prepared and sent to the assessee.
Kind of intimations possible are discussed below:
Intimation with no demand or no refund – This generally happens if the department has accepted the return as filed without carrying out any adjustments to it.
Intimation determining demand – issued in case of adjustments made under Section 143 (1) due to a discrepancy found and tax liability is arrived at.
Intimation determining refund – issued where any interest or tax is found to be refundable either where no discrepancy is found in the return already filed or after making adjustments as referred to in Section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.
While demand notice is sent in case of final tax liability, refunds if any shall be granted to the taxpayer.

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