My mail box is full of communication from Income Tax department. Of course, it is my profession, so I get the mails sent by the department to our clients. Believe me, reading and understanding the ‘intimations’ is a big task. Look at the following types of letters you may get –
- Intimation u/s 143(1 ) after processing income tax return
- Rectification order passed by CPC after processing rectification application filed for rectifying any mistake in the order.
- Notice u/s 245 giving an opportunity of being heard to the assessee for adjustment of refund
- Order issued intimating core defects in the return of Income filed.
- Intimation Letter for Demand Follow-up
- Intimation Letter for Refund failure
- Communication confirming receipt of ITR-V
- Reminder on account of Non-receipt of ITR-V
- Communication to tax payer intimating transfer of processing/ rectification rights to field assessing officer.
- Intimation to tax payer detailing tax mis-match in the income tax return filed by him.
- Communication with respect to tax deducted on Interest paid on Refund u/s 244A.
Intimation u/s 143(1 ) after processing income tax return or rectification order u/s 154
Sub: “Intimation U/S 143(1) for PAN ADDxxxxx4P AY:2014-15”
This communication will be sent u/s 143(1) of Income tax Act, immediately after processing your return, which shows tax computation as per return filed by you and the tax computation as done by the income tax department. You have to check if tax computation made by the CPC is matching with your computation more particularly “Net Amount Payable” & “Total Income Tax Refund.
If you are not satisfied with the computation made by the CPC, you have an option to file rectification application u/s 154.
Rectification order passed by CPC
Sub: “Income Tax Return for PANADOxxxxx3C AY:2013-14”
If you file rectification application, you will receive rectification order from CPC after processing rectification application which exactly looks like intimation u/s 143(1) showing tax computation as per rectification application and tax computation as done by CPC. Further rectification application may also be filed for rectifying any mistake in the order.
Intimation under section 245 of Income Tax Act
Sub: “Notice U/S 245 of Income Tax Act, 1961” : “The Refund determined during processing is being adjusted against the outstanding demands. The details of demand are given in the table annexed”
This is the notice giving an opportunity of being heard to the assessee when refund due to the assessee is sought to be adjusted against any previous outstanding demand. You can check content of the table annexed to the notice with the intimation order for the relevant assessment year. If you don’t have copy of intimation order, you can request for the same.
If you are satisfied with the order, give your consent in writing to your assessing officer concurring to this adjustment. If you are not satisfied with the order, please file a rectification application seeking revision of order raising demand.
Order issued intimating core defects in the return of Income Filed
Sub: “Notice under section 139(9) of Income Tax Act,1961- Your Return of Income for AY 2013-14. Ref: Section 143 1B Income Tax Act, 1961 read with Clause 2C(iv) of Centralized Processing of Returns Scheme 2011, Notification No S.O 17(E) dated 04/01/2012”
“Reminder 1 – Your Return of Income for AY 2013-14 – Notice under section 139(9) of Income Tax Act, 1961. Reference: The Communication dated 27-03-2014”
Orders are issued intimating core defects in the return of income when the return of income filed by the tax payer has defects as laid down by the Income Tax Act, 1961.
The order requires tax payer to file a new Income Tax Return rectifying the mistakes as annexed to the order, else return of income filed earlier would be treated as null and void.
After correction, generate new XML file and chose “e-Filing in response to notice u/s 139(9) of the efiling portal and upload the rectified xml using the above password as the verification PIN.
Intimation Letter for Demand Follow-up
Sub: “Income Tax Demand Outstanding and to be paid for PAN ACHxxxxx5B A.Y.2013-14”
“Verification of records shows that the following Demand/s as raised in the demand notice mentioned above is/are still outstanding and are payable by you please arrange to make immediate payment of the above outstanding amount(s), if not already done.”
You will receive demand follow-up mail, if there are any outstanding income tax demands for any earlier assessment year’s raised on account of processing of income tax return filed by you.
Verify the demand as per the follow-up notice with the intimation order you would have received earlier. Amounts should match. If further clarification is required, call up CPC helpdesk.
If you are satisfied with the response, pay the amount. If not satisfied, you have the option of filing rectification application seeking rectification of mistake in the order passed by CPC.
Non payment of tax demand attracts penalty and prosecution as per the provisions of the Income tax. You are also liable to pay simple interest at the rate of one per cent for every month or part of a month for the period the default continues. Hence you are advised to take action immediately.[READ: Have you checked your Outstanding Income Tax Demand appearing in e-Filing portal?]
Intimation Letter for Refund failure
Sub: “Refund Non Issuance with reason and solution thereof”
The following Refund processed at Centralized Processing Center (CPC) could not be credited to your bank account or the Response Sheet sent by you is rejected at CPC (as the case may be) due to the following reasons:
When a refund is failed, communication will be sent to the assessee giving the reasons for failure of the refund. On receipt of the communication, the assessee can place a request for reissue.
If your refund is processed by CPC, you can make online request for refund reissue for which you must have “CPC communication Reference Number” along with “Refund Sequence Number” available in the first page of intimation received u/s 143(1) / rectification order u/s 154.
If your refund is processed by Assessing officer (AO), you must first approach AO with an application for correcting “Bank Account” or Change of Address” due to which refund has failed.
Communication confirming receipt of ITR-V:
“Income Tax Return for PAN AQWxxxxx0J A.Y. 2014-15- Receipt of ITRV at CPC”
This is the communication for receipt of ITR V at Central Processing Centre, Bangalore for the income tax return filed for the relevant assessment year. Alternatively you can download receipt of ITR V after logging into to your account in the e-Filing portal.
As you aware ITR-V is required to be submitted to CPC, by the assessees who upload e-return without digital signature within 120 days of filing income tax return. Your efiling will only be completed after receipt of ITR-V by the CPC. If you fail to submit your ITR-V within 120 days, your e-filing will be considered invalid. It will be treated as if you have not yet filed your return. You then have to file a revised return.
Reminder for Non Receipt of ITR – V:
“Non-Receipt of ITR V for PAN CCQXXXXX7D and AY 2014 at Income Tax Department – CPC, Bangalore – Reminder.”
On regular intervals, CPC sends reminders in the form of email & SMS to those assesses who have filed their ITR-V, but have not sent a valid physical copy to CPC within 120 days of e-filing. CPC sends up to 3 reminders to the assessees to submit the valid physical copy of ITR-V.
First : e-filing date plus 30 days,
Second : e-filing date plus 60 days
Third : e-filing date plus 90 days.
[Recommended Read: Procedure changed Now you can e-Verify already uploaded return: No need to send ITR V]
Transfer of processing/ rectification rights to Assessing Officer:
“Your return for the above mentioned assessment year will henceforth be rectified by your Assessing Officer APR/W/87/4. You are requested to contact your Jurisdictional assessing officer for any rectification related issues.”
This communication mail will be sent for intimating transfer of processing /rectification rights for particular assessment year to assessing officer. In such cases you will have to contact Assessing Officer for any query related to processing or request for rectification. In case of demand for such assessment year rectification rights will be shown as “AST” under status of outstanding demand in the e-filing portal.
Similar notice will also be sent if the return has been selected for scrutiny as the return will not be processed in CPC and will be transferred compulsorily to Assessing Officer (AST).
Tax Mis-Match Communication
Sub: “Report on Matching of Tax Claims considered in Intimation u/s 143(1) of Income Tax Act, 1961 of PAN ABQxxxxx3M for AY2010-11”
This communication is issued to tax payer when there is a mismatch between the tax credits claimed (Tax Deducted at source or Self-Assessment Tax deposited in bank or Tax Collected at source) by him & credits available with CPC as declared by the tax deductor or details received thru the bank.
This mis-match can be on account of mistake committed by the tax payer while filing income tax return or deductor or non-filing of TDS return by tax deductor.
If there is typo error made by you while filing your income tax return, you have the option of filing a revised return or on receipt of intimation order from CPC, you can also file a rectification application, seeking rectification of mistake committed by you.
If there is an error by the deductor, you would need to reach out to him & request him to file his TDS return, if not already filed or file a revised return rectifying his mistake.
Communication in respect of tax deducted on Interest paid on Refund u/s 244A.
“Find attached Form 16A issued for PAN (Permanent Account Number) ADYxxxxx6E for the Financial Year 2013-14 in respect of tax deducted on Interest paid to you on Refund u/s 244A”
If you are an NRI and claimed refund amount in the return of income filed by you, income tax department will withhold tax at source on the interest paid to you on refund u/s 244A. Along with this communication CPC will send Form 16 for TDS amount deducted from the interest amount.