Tax Toto explains why taxpayers have received notice u/s 143(1)(a) - H&R Block| Blog

Tax Toto explains why taxpayers have received notice u/s 143(1)(a)

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Tax Toto explains why taxpayers have received notice u/s 143(1)(a)

Hello friends, I am Tax Toto and I am back with yet another topic that needs to be discussed with you. A lot of taxpayers have received Income Tax notices for the Financial Year 2016-2017, the most common being notice u/s 143(1)(a). The taxpayers who have filed their returns have received a notice under this section from CPC (Central Processing Center) Bangalore asking for clarification for the mismatch between the income explained in the income tax return and Form 16, or the deductions claimed under Section 80C or Chapter VIA and Form 26 AS.

Rajesh filed his taxes well within time and was happy that he had already completed even the ITR verification process. However, he was aghast when he received a notice in his email. Panic stricken he went to his tax advisor. His advisor comforted him and said that there was nothing to worry. He further explained that Rajesh has ample time of 30 days to respond to this notice. However, if he fails to respond to the notice, the department will process the tax returns after making the necessary adjustments under section 143(1)(a), and he will not be provided with any further opportunities in this matter. The next thing that he asked Rajesh to do was to check the value of the taxable income and tax deductions reported on his tax return as against what is reported in his Form 16/ Form 16A/ Form 26AS. With the help of the reference details mentioned in the notice. If the addition proposed in the notice is justified considering the facts, then he can agree to the demand else he can disagree with it.

Reasons why Rajesh may have received notice u/s 143(1)(a):

  • Rajesh must have claimed investment under section 80C while filing his tax return, but it is not mentioned in his Form 16. This leads to a mismatch between the forms and the return that has been filed.
  • He might have income from interests on savings bank account, or from house property or from interest on Fixed Deposit on which taxes have been deducted, which he might not have mentioned in the returns but it cannot be seen in Form 16A/Form 26AS.
  • He might have worked for more than one employer during last year and missed to include any of the Form 16 income on his tax return
  • In some cases, it is also seen that the CPC has added the value of the property purchased or value of car purchased during the year as it is reflected in 26AS in TDS or TCS schedule.

He is most likely to receive a notice from the CPC Bangalore which will ask him to explain the mismatch. He can check whether the calculation done by the department is correct or not and if he finds out the discrepancies mentioned in the notice to be true, he can file a revised return within 15 days. If he disagrees to the addition in the notice he can prove so by attaching the proofs before he submits his response online.

You can know more about the step by step process of responding to notice u/s 143(1)(a) if you also have received it. If you need any assistance in responding to this notice or any other income tax notice, our advisors at H&R Block are ready to help you. We will help you respond to the notice and also make sure that you do not have to pay more taxes. H&R Block taxperts are your solution to all your tax worries.

Chetan Chandak
Chetan Chandak
Chetan is a Tax-Lawyer by profession and has been working with H&R block as Assistant Manager-Tax Advisory from last four years. He has more than 7 years’ experience in audit, taxation and finance fields. He specializes in personal taxation of HNIs and Top Management Executives. His major area of interest is tax litigation, tax research handling dual tax impact for ex-pat clients. He loves to travel, trek and cook.

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