Have you received a Income Tax Noitice u/s 143(1) ? Don't Panic ! Check the basics below first

Is it really your name on the notice?

Is your PAN number mentioned correctly?

Which assessment year is it meant for?

Who is the issuing officer? What is their designation?

Is there a document identification number? What is it?

The new intimation format has 2 columns.If a particular row shows different amounts in these two columns, that is the source of your discrepancy.

This is known as summary assessment and income as computed by you is summarily checked by the income tax department and your tax obligation is reworked based on information provided by you in income tax return and information available with the department.

Procedure for making summary assessment

A)The total income or loss shall be computed after making the following adjustments, namely

-any arithmetical error in the return; or

-an incorrect claim, if such incorrect claim is appa-rent from any information in the return

-disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139 (with effect from 1-4-2017)

-disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return (with effect from 1-4-2017)

-disallowance of deduction claimed under sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or section 80-IE, if the return is furnished beyond the due date specified under sub-section (1) of section 139 (with effect from 1-4-2017); or

-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 (with effect from 1-4-2017)

No such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode (with effect from 1-4-2017)

The response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made (with effect from 1-4-2017)

B)The tax and interest, if any, shall be computed on the basis of the total income computed under (a) above.

C)The sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under (b) above by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest.

D)An intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to the assessee under (c) above.

E)The amount of refund due to the assessee in pursuance of the determination under (c) above shall be granted to the assessee.

F)An intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to him.

G)No intimation shall be sent after the expiry of one year from the end of the financial year in which the return was made.

H)The acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under (c) above, and where no adjustment has been made under (a) above.

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