Checkout the detailed procedure & Sample Format to Reply to a Notice form Income Tax Departments under section 143(1). The 143(1) Notice is one of the most frequent occurrence when you file Return of Income. When you receive a IT notice, you will need to reply back with a letter. This format of Reply Letter has been provided below.
This Reply Format and Analysis is applicable to those Assessees who have filed their Income-tax Return Online in Form No. ITR-2. Known Reason for Demand that have come to our notice are as mentioned below.
When do you receive 143(1) Notice
TDS Mismatch TDS Credit claimed in the Income-tax Return has not been considered by the Income-tax Department. There are various possibilities for this query: Viz.
Reason 2: Wrong data in Income-tax Return Wrong data in Income-tax Return (Difference in total Income as per ITR-V and notice of demand) While filing the return you had entered correct details & your tax was also calculated properly and the same details are reflecting on your ITR-V. But due to some mistake the amounts in ITR-V and your Income-tax return differs and therefore the demand.
Remedial Actions for the above
TDS Mismatch Check the Tax Credit claimed in the Income-tax Return and Credit actually allowed by the Income-tax Department. If you want to cross check your Tax Credit then make an application with TIN Facilitation Centre (TIN FC) for Form No. 26AS (your tax credit statement issued by Government via NSDL).
List of TINFC is available on http://tin.nsdl.com.
Cross Check TDS details considered by you and that mentioned in the Intimation letter received by the Income-tax Department.
Take photocopy of all the TDS Certificate on which you have relied and submit the copy of the same along with a covering letter (enclosed) to the concerned Income-tax Assessing Officer.
Wrong data in Income-tax Return Compare your ITR – V and Demand Notice and find the head of Income in which there is a difference .
Make a Rectification Application by writing a letter to the concerned Income-tax officer who has raised the demand requesting him to correct the mistake (Sample Letter enclosed).
Do remember to give all relevant documents viz.
- Form 16, ITR-V,
- Bank statements etc
for the corresponding year.
Please Note: This advice is of a general nature only, is not intended to be complete or definitive. It is not a substitute for professional and expert advice, and may not be appropriate or sufficient for your particular case.
You should obtain professional advice before taking any action in relation to any matter referred in this letter to address your particular situation.
Sample Reply (In Reply to Intimation under section 143(1)
Income-tax Officer (CPC) Post Bag 1 Electronic City Post Office Bangalore – 560100
Re: Your notice of demand for the A.Y. 2016-17 Communication Reference number: CPC/1611/_________ PAN: __________________- request regarding.
Sub: Request to check the details at your end due to difference in Total Income / Deduction and Tax thereon considered by you and reported by me. I am in receipt of Demand Notice for Rs. ____________ for the A.Y. 2016-17.
In this connection I would like to mention that there appears to be some error in Income considered by you and as reported by me in my Income-tax Return.
The Total income for the said year is Rs. ____________ (which is clearly reflected in my Income-tax Acknowledgement ITR-V) and the total Income considered by you is Rs. _____________.
There seem to be an apparent error in the in the demand raised by your good self.
May I therefore request you to kindly rectify the mistake and till then I further request your good self to keep the said demand in abeyance.
The income reported by me can be easily verified from ITRV attached herewith.
I once again confirm that I have reported all the Income chargeable to tax during the said year and no Income has remained to be offered for taxation.
I hope that you will take an early and necessary step to rectify the same.
In the ending,
I request you to kindly let me know, if I can provide you with any other details for verification and necessary rectification.
- Copy of Form 16 – for F.Y. 2015-16
- Copy of ITRV for F.Y. 2015-16
- Copy of Bank Statement for F.Y. 2015-16 (period 1st April 2015 – 31st March 2016).
The Format of Reply to 143(1) Notice is provided only as an example and readers are recommended to take due care in changing it as per their needs.