Simplified Laws Guide to Taxation and Legal Concern Section 143(1)(a) of income tax is amended to expand the scope of adjustment which can be made while processing income tax return filed for the Asst Year 2017-18 and thereafter.
Income tax department is empowered to make following adjustments before processing income tax return.
- Any arithmetical error in the return
- Incorrect claim which is evident from information provided in the return
- Brought forward loss of earlier years claimed, but the return of those years was filed after the due date.
- Disallowance of expenditure mentioned in the Audit report but not taken into account in computing the total income in the return
- Disallowance of claims under section 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE, if return furnished after the due date.
- The addition of income appearing in form 26AS or form 16A or form 16 which has not been included in computing the total income in the return.
However, before making any such adjustments, an intimation of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961 shall be given to the assessee either in writing or through electronic mode requiring him to respond to such adjustments.
The response received, if any, will be duly considered before making any adjustment. However, if no response is received within thirty days of issue of such intimation, the processing shall be carried out incorporating the adjustments.
Central Processing Centre (CPC) has started processing income tax return filed for the Asst Year 2017-18 and communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961 is sent to assessee giving an opportunity to respond to the adjustment proposed within 30 days of receipt of communication.
Assessee is require to file revised return after considering proposed adjustment if income was not considered or incorrect deduction claimed in the original return.
If proposed adjustment is incorrect, assessee has option to submit required information by way of online response by log in to www.incometaxindiaefiling.gove.in with used id and password and choose “e-Assessment/Proceeding” under the “e-proceeding” section. Necessary documents in support of claim can be uploaded along with the response.
The response received will be considered before making any adjustment. In case, no response is received within 30 days communication, the return of income will be processed after making necessary adjustments u/s 143(1)(a) of Income Tax Act, 1961 without providing any further opportunities in this matter.
Once proposed adjustment is done and processed return, intimation u/s 143(1)(a) of income tax Act will be served. Assessee has option to file online rectification application. However such online rectification will not be allowed to change in taxable income.
Hence it is important to address the issues raised in the communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961. Though the option of filing appeal is available under the income tax act against the adjustment made it is a very cumbersome process and it is advisable to file online response within 30 days of receiving communication without ignoring it.
Step by step procedure to responding communication received for proposed adjustment u/s 143(1)(a) of income Tax
Whenever notice is issued u/s 143(1)(a) of Income Tax Act, Department will give an opportunity to the taxpayers before making any adjustment to the returned income filed by him. The taxpayer will be given an opportunity through the “e-proceeding” to respond to the findings made by the department during the course of processing of the returns submitted. Taxpayer should respond to the each of the queries raised therein.
Step 1 : Visit the ‘e-Filing’ Portal http://incometaxindiaefiling.gov.in/
Step 2: Enter the valid ‘User ID’, ‘Password’ and ‘Date of Birth/Incorporation’ at e-Filing portal. Click ‘Login’
Step 3: Navigate to the ‘e-Proceeding’ tab -> Click ‘e-Assessment/Proceedings’
Step 4: Click on the proceeding name to view the proceeding details. By clicking the ‘Reference ID’, additional details will be displayed.
Step 5: Click ‘Submit’ button
Step 6: On clicking submit button, the following details of proposed additions wherever applicable in your case will be displayed.
- Arithmetical error in the return – u/s 143(1)(a)(i)
- Incorrect claim – u/s 143(1)(a)(ii)
- Disallowance of loss claimed of earlier years, but return of those years was filed after due date – u/s 143(1)(a)(iii)
- Disallowance of expenditure mentioned in the Audit report but not taken into account in computing the total income in the return – u/s 143(1)(a)(iv)
- Disallowance of claims under section 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE, if return furnished after due date – u/s 143(1)(a)(v)
- Addition of income appearing in Form 26AS or Form 16A, or Form 16 has not been included account in computing the total income in the return – u/s 143(1)(a)(v)
Step 7: following options are available in dropdown menu under response column
- Agree for addition
- Disagree to the addition
If you select “Agree for addition”, you will have to file revised return within 15 days of submission of response
If you select option “Disagree to the addition” you should provide justification for the disagreement after choosing any one of the following appropriate item in the dropdown menu available in the Reason column. You can also upload documentary evidence in support of your claim
- Income is not chargeable to tax or exempt
- DTAA income not taxable in India
- The TDS has been claimed on advance received. No income in the financial year
- Income/receipts offered in the previous years and TDS is claimed in financial year
- Construction business – Work-in-progress
- Interest income/net income is capitalised
- Income of the Trust/AOPis taxed in the hands of beneficiary/member. However, TDS is deducted on PAN of the Trust/AOP
- Allowance exempt claimed in return but not in form 16
- Deductions claimed in the return but not in Form 16
- Receipts considered under a different head in the return as against the section under which it is deducted
- other
Step 8: After successful submission, success message along with the Transaction ID will be displayed on the screen
We would be glad to know your doubts or queries. please feel free to post your queries and comment below
In case you need our assistance in analysing and submitting the response in relation to notice received for “Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961″, you may please email following details to team@simplifiedlaws.com. Our professional charges would be in the range of Rs. 3000/- to Rs. 5000/- plus tax,
- Communication received u/s 143(1)(a)
- Copy of income tax return filed
- Form 16/16A
- proof of additional deduction claimed in the return
Hi, I have also received Notice u/s 143(1)(a). I was make mistake while filing the ITR form. I selected let out by mistake in Income and deduction option, B1, Type of house property. The correct information is self-occupied Because, I am leaving in Ahmadabad (rented house) and I have also taken home loan for my mother father home in Vadodra. what we do now.
what I captue in:
1. Deduction made under section
2. Amount paid/credited by deductor
3. Nature of receipt as per the deductor
4. Income/Gross Receipts as per the return
5. Head of Income/Schedule under which reported in the return
6. Reason
Income from house property is -51513/- mentioned in my form 16
Hi team
I too received similar Intimation but in my case amount mismatch claimed by IT department is the same amount which is my home loan interest and I hv claimed it under 24b.
The funny story is that my form 16 has all the required deduction mentioned but still I received this intimation.
So my query is:-
1) Amount paid/credited by deductor:- interest of home loan which is mismatching as per IT department?
2) Nature of receipt as per the deductor ?
3) should I put he reason other or Deductions claimed in the return but not in Form 16
4) Should I upload my Interest certificate or the form 16 as amount mentioned in the form.
Hi,
I have taken a policy for around 58,000 rupees in march 2017 which is not added for form 16. I added the amount in the returns, so i got the cpc for the increased amount. should i give agree for the addition and submit. pls confirm
Hi,
I got notice from CPC under “adjustment u/s 143(1)(a)”. I made donation & I added it under sec 80G while filing returns. These donations are not visible in form16. I need clarification how should I file my response using “e-Assessment/Proceeding” under the “e-proceeding. I need to fill below section while filing my response in “e-proceeding” & need to know what should I fill in below field while responding in “e-proceeding”.
1. TAN : Do I have to give employer TAN here?
2. Deduction made under section : What should I write here (should I write Sec 80G)?
3. Amount paid/credited by deductor : What should I write here?
4. Nature of receipt as per the deductor : What should I write here?
5. Income/Gross Receipts as per return : What should I write here?
6. Head of Income/Schedule under which reported in return : What should I write here.
BR,
NS
Hi,
For me the differences are in three rows with the income to be added as shown below.
1 Form 16A/16-Other Income -7252375
2 Form 16-Gross Total Income-7252375
3 Form 16-Taxable Total Income -7252377
The difference is 50% of the agreement value of the property I purchased jointly with my wife.
now I had the following questions
when I opened the link with e proceedings as advised by ITax
a) there is a TAN to be filled ( I don’t have a TAN what should be entered here?)
b) Deduction made under section – I have put as 194 IA
Amount paid/credited by deductor – Should be the TDS amount I deducted for my share??
Nature of receipt as per the deductor – I have mentioned 1% TDS on agreement value of the property
Income/Gross Receipt as per Return – Should I be mentioning my Total Income as filed in Original return?
Head of income/Schedule under which reported in the return – This I believe would be the same as per the earlier amount
Reason – I have mentioned OThers? and I have put justification as this is not an income and this cant be included in Income as its an agreement value of the flat purchased. For proof should I be attaching 16B form for both my wife and myself??
Please do assist on this query
Hi i have filed my it return but got an intimation as i didnt fill my tds 2 the income from fd. Now there are three lines in which i need to agree or disagree. In the first line the income of my fd is there. In the second line my fd and salary gross is there. And in the third line my net salary is there after all the deductions. If i agree on all the three lines the income shows 11 lakhs will be added to ur total income which is way beyond my income of 8 laks. Please help in my e proceeding
I have received the intimation under section 143 1 (a) IV. if I disagree because deduction under section under 80 and 80TTA are not reported by Employer.
what should filled in first 4 column of reaponse submit.
What receipt I should i produce for 80 TTA
Hi , I received 143(1) a notice from income tax department per notice there are extra income in form 26AS which i have not added in my total income however tds on interest is already deducted by bank and tax deducted amount is also mentioned in form 26AS.
should I agree with this additon or disagree ? please suggest
Hi I got the intimation and I logged in and selected agree to addition and submitted. Is it necessary to file a revised return? I don’t have to pay the tax, only my refund amount will be lesser now. I am out of country currently and dont have my Aadhar card so cant file revised return . I had filed original return before 1st July to avoid filling Aadhar details. I am not able to submit revised return without these details. However, I have submitted response by accepting addition. Is this sufficient? Will I still receive my refund ?
Hello,
I have a small doubt about what to fill in below column:
TAN – this will my 1st employer
Deduction Made under section – ?
Amount paid/credited by deductor – will get from form-16
Nature of receipt as per deductor – ?
Income/gross recipt as per return – I know this
Head of income/Schedule under which reported in the return – ?
My case:
I got intimation that I have quoted less income as per Form 16 so Income Tax department asking to add the excess amount but the deduction I have made for FY2016-17 is correct. I have form-16 of 2 employers for FY16-17. HRA deduction was not given by 1st employer so I have deducted myself while filing return. Now for this reason I got intimation.
Now can you please help in filling above 3 column as per this case
Can anyone hep on this.
Thanks,
Jinesh
Even I have received this communication and I called the HelpDesk number. They told me not to respond to that. Looks like it came by mistake. They will send a new communication later to email.
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I received a 143/1 intimation and forgot to reply within 30 days. I cannot see an option to submit a response now. What should I do?
Hi friends,
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I wish you success..
Kanti Preeti
Hi,
I have received the intimation under 143(1)(a). Now, while I agree to all the adjustments in incometax site, I see additional income of 21036 in the Note, which should actually be 10518.
Is this some error? can I accept this proceeding and file a revised return?
If I disagree with any of them, it asks for TAN and other details. Please guide what to do
Filed ITR 1 on 3.7.2017 and e-verified it. Up till now the status shows Successfully E-verified. For a fact I know that I can expect intimation u/s proposed adjustment due to less reporting in form 16 of deductions.I have claimed refund of 4000.As I can see the hassle IT department has made, I don’t want to refund now. Can I file revise return right now & EVC it before the notice hits.?Will it be within laws?
Please help.
I deposited Rs 4000 in NPS contribution that is not shown in form 16. How to fill the columns (3,4,5,6) in the reason for disagreement
1.TAN: Employer Tan no.
2.Deduction made under section: 80ccd(1B)
3.Amount paid/credited by deductor 😕
4.Nature of receipt as per the deductor:?
5.Income/Gross Receipts as per the return:?
6.Head of Income/Schedule under which reported in the return:?
7.Reason : Claimed in the return but not in form 16A
8.Remarks:Deposit in NPS account
I recd sec 143 (1) (a) intimation to reply to deduction I showed under 80 c & 80 TTA both savings were shown in my return but not included in form 16.
I have 2 form 16 and 9 form 16a. Do I have to show details all TAN.If I have to show all under what TAN I have to show 80c and 80TTA deduction
Sec 143
Hi ,
I have received the intimation asking me to add the additional income which I found to be exactly same amount of the flat purchased. However we are buyer in this case so this amount should be calculated in as income. We have paid 1% TDS on the total amount which is shown in 26AS.
While trying to reply I have the following doubt:
1. TAN : What to fill here , since we are the buyer we don’t have TAN
2. Deduction made under section : I believe it should be 194IA
3. Amount paid/credited by deductor: Shall I put 1% TDS paid here?
4. Nature of receipt as per the deductor : What Shall I write here?
5. Income/Gross Receipts as per return : What shall I write here?
6. Head of Income/Schedule under which reported in return : What shall I write here?
Any help is highly appreciated.
I have 2 Form 16 for pension income and 9 Form 16A for bank interest including SB interest. I have a saving under 80 C for Rs1.5 lac and deduciton of Rs10000 under 80 TTA which were claimed in ITR 1 return but not included in Form 16 .
Is it enough I show only 1 TAN of one of the 2 From 16 and Amt Paid/credited of that TAN alone and below that 1 TAN of the 11 Form 16A to claim my 80 C savings and 80TTA savings and show the reduced amt against Income Gross receipts under the return column.
If I have enter the details of all the TAN there is no save option in the menu and loging off after 10 minutes and to enter again the whole thing.
S.Seshadri
Hi, Thanks for your help. If I am filing a revised return due to some minor mistake , do I still need to do the e proceedings? I made a very minor arithmetical error and will file a revised return
Hello Sir,
I have received the intimation under 143(1)(a) :-Addition of income appearing in Form 26AS or Form 16A, or Form 16 has not been included account in computing the total income in the return – u/s 143(1)(a)(vi)
i had invested rs 50000 in national pension scheme. as this can be claimed for deductions hence i had claimed deductions when filing return.
Now i got intimation as same was not available in my form 16. Kindly suggest what to do?
Hi ,
I have got communication mail from tax returns team
they have stated the amount which i have not included in the returns, but it is there in 26as form which is related to my non salary bank interest money.
So should i just to accept the additional amount which is under other income(form 16A/16-other income) and submit ,but what field should i take for other two options- Form 16 – gross-total income,form16-taxable total income because if i agree for 3 of them the total amount is adding more than my original money if i do disagree for last two options it is asking me tan and other details.
should i do revised return ,but in which category should i do .can i do in (17-Revised 139(5))..
Can you Please help me
Hi Kiran, did you get a solution for this? I am also having same issue. What did you mention in reply and which TAN you included? Help in this regard will be much appreciated
Looks like this problem exists for many. How did you disagree
Bank deducted tds @10%. But tax payable depends upon your tax slab. If net taxable income is above 5 lac, u have to pay balance tax and file revised return.
Hi, I have received the intimation under 143(1)(a)
Now, while I agree to all the adjustments in incometax site, I see additional income of 189461 in the Note, which should actually be 66682. Is this some error? can I accept this proceeding and file a revised return?
File revised return and pay balance tax on interest
Bank deduct TDS @ 10%. balance tax has to be paid on interest. TAN available in Form16/Form 26AS
You can select agree for addition for the first item. file revised return within 15 days
It is advisable to attach Form 16B
1. TAN : Do I have to give employer TAN here? – Yes
2. Deduction made under section : What should I write here (should I write Sec 80G)? Sec 80G
3. Amount paid/credited by deductor: What should I write here? – 0
4. Nature of receipt as per the deductor : What should I write here? NA
5. Income/Gross Receipts as per return : What should I write here? NA
6. Head of Income/Schedule under which reported in return : What should I write here. As per ITR she
If you have proof of payment of LIC payment, submit response with disagree for addition
Can’ t answer unless I see the form 16 and income tax return. Please send form 16 and copy of return to team@simplifiedlaws.com
Can’ t answer unless see the form 16 and income tax return. You can file revised return if mistake in original return
Hi, I have received income addition intimation under 143(1)(a).
I was with company X from april-2016 to august-2016.
The below are the details:
1. F&F statement shows 4,84,000 as gross salary, i checked the pay slips it confirms the amount in f&f. I have not received any other amount as salary from them beyond 4,84,000.
2. Form-16, part-a shows amount credited/paid as 4,84,000. Part-b shows 6,14,000 as gross salary.
3. TDS is same in both 26AS and Form-16.
I had filed the tax returns taking the f&f into consideration as it was the correct amount and as my previous company delayed providing the form-16. I have requested my previous company to provide a corrected form-16 and also an updated f&f but i am sure they will not provide.
The gross salary shown in f&f is what i have received as salary from april-aug 2016. the form 16 part A(484000)&B(614000) shows different amounts.
Now that the salary shown in f&f is the correct one, should i disagree with the income addition and attach f&f, payslips along with my response on e-assessment/proceeding or please suggest other options.
CPC will adjust additional tax with the refund. However, for your record purpose, it is advisable to file revised return
Thanks for the time and explanation.. Hello ..
Can you please confirm ..what i wrote in the lines ..is correct or not..
1st line added) I made 80c – ppf – 1,50,000 deductions i wrote
TAN – employer name ,
Deduction made under section – 80c
Amount paid/credited by deductor – 1,50,000 ( not salary )
Nature of receipt as per the deductor – sbi bank statement of PPF account
Income/Gross Receipt as per Return – My total income as written in form 16a or in 26as like maybe 5,25,000
Head of income/Schedule under which reported in the return – 1,50,000
Reason – claimed in the return but not in form 16A ( drop down )
Justification/Remarks – 80c Deductions of 1,50,000 has not been considered.
The proof of PPF investement in Section 80c is attached within this response together with 80g response
The total taxable income as such is also reduced by 1,50,000.
2nd line added ) i made an 80g contribution of 14400 to world vision
i wrote
TAN – world vision TAN ( should this be employer’s TAN just like above line )
Deduction made under section – 80g
Amount paid/credited by deductor – 14,400 ( not salary )
Nature of receipt as per the deductor – world vision tax receipt
Income/Gross Receipt as per Return – My total income as written in form 16a or in 26as like maybe 5,25,000
Head of income/Schedule under which reported in the return – 14,400
Reason – claimed in the return but not in form 16A ( drop down )
Justification/Remarks – 80g Deductions of 14,400 has not been considered.
The proof of contribution in Section 80g is attached within this response together with 80c response
The total taxable income as such is also reduced by 14,400
I will attach the world vision tax receipt pdf and the ppf account statement pdf together into 1 file ..
and upload this combined pdf file..
IS THE ABOVE STEPS CORRECTLY SPECIFIED . MY FORM 26AS does not specify any 80c or 80g ..?
Received the same notice. I have worked for 2 employers. IT dept has considered only form 16, 80C deduction from current employer accounting 125000 whereas EPF contribution to 80 C of which 25000 appears in form 16 of previous employer is not considered, Total gets 1.5 lacs. Both forms considered while filing ITR. what to do?
Hi Team ,
I received notice 431(1)a(vi) for addition of income. In used ITR1 and I incorrectly entered the ( salaries head – home loan interest) amount as income and then added letout property amount as income from house property. So in the notice they compared the head salaries amount from form16 with the net salary entered in return and demand the home loan interest as additional income to be added .
I learned that I need to file revised ITR2 instead of ITR1 for this scenario ( SOP with home loan interest as loss and letout property addition) .
Is it acceptable to upload only the revised return and not sumbit response via e-proceedings ?
If it is mandatory, then before uploading the revised ITR2, what options need to be selected for the notice?.
Agree for addition
Disagree for addition
I Clicked on “I Agree” by mistake. Is there any option to fix this ?
I have claimed 80C deductions in returns but not included in form 16 .Hence I got a notice regarding adjustments u/s 143(1)(a).When I give disagree for addition and mention the reason ,there are other fields to be filled as shown below. Can you please guide on how to fill these columns?
Hello, please help me with this….I had claimed additional deduction in the return filed for sections 80ccd and 80 c, which is not reflected in the form 16. Hence I too got the same notice. Please guide me which option should I select, agree or disagree. And If I select disagree, a column comes up with tan of the deductor etc, what should be entered there.
Adjustments u/s 143(1)(a)
income as per return income as per form proposed addition of income
1 Form 16A-VI Deduction 215607 161178 54429
Please guide me, thanks in advance.
hello Team,
I have got the notice with section 143(1)(a)(vi), it says “Addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total
income in the return”
I have income from salary (A), income from FDs (B) and Savings bank interests (C).
FD interest TDS and TDS on Salary income is shown in 26AS but savings bank interest is not shown on 26AS. Form 16 only shows income from salary.
and while filing ITR i showed the things properly like income from salary = A , income from other sources =B+C (FD and savings interest),
My savings bank interest was beyond 10000 so i claimed deduction under 80TTA .
I do not have any other sources of income but notice says there is still difference of Rs10000.
What should be done here? I cross checked all interests like FD, Savings acc interest but all is correct from my side , I dont understand how the system calculated this additional Rs10000 i dont see any form which shows this extra 10000. Should i go ahead and say disagree and provide the required docs?
Whats the process after i submit disagree response? Because site says once you file Disagree response option we cannot respond further online.
Could you let me know what detailed process happens after i submit disagree response?
Hi ,
I received intimation 143(1)a proposal for addition for AY2017_2018. I found that I used ITR1 incorrectly and Instead of head of salaries I entered net salary after the loss of self occupied house detected ( i.e detect interest paid component). Since there is another income from house property ( Letout fully ), I think I need to use ITR2 . Once I use ITR2 the difference goes away and the figure matches.
So now, is the following is right procedure to follow ?
1)Select Arithmetical error in the return – u/s 143(1)(a)(i) and agree for addition in response
2) File Revised ITR2 return for AY2017_2018.
I got the possession in june 2017 i have paid some amount as part of initial booking amount for the apartment in jan 2017. for the same i have also paid 1% TDS online. this amount shows up in the part F Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property) of Form 26AS. But the problem is it is showing up twice in the same section with one my PAN as deductee and the other as builder’s name as deductee. Now i filed returns, but i got an email from IT Department saying there is a mismatch in the income between form 26AS and form 16. When i tried to reconcile, i found that in traces file this amount that i paid to the builder is reflected twice. Now how should i respond to the clarification? please let me know.
I got the possession in March 2017 hence loss on house property was not mentioned in my Form16. For submitting the documents do i need to submit completion letter/possession letter along with interest certificate?Could you share the sample form for loss on house property?
HI Team. i have received a notice for addition of income appearing in
form 26 AS or form 16 or form 16A which has not been included in
computing total income..When I checked the amount ..its the FD Interest amount which is not reflected in my Form 16, for which TDS is already deducted by the respective bank .How should I respond for this intimation on the site??
in E-Proceeding which option i can Choose
Agree for Addition
Disagree for Addition
Hi, I have received the intimation Addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total. When I checked the amount ..its on the FD Interest amount which is not reflected in my Form 16 .How should I respond for this intimation on the site??
in E-Proceeding which option i can Choose
Agree for Addition
Disagree for Addition