Income Tax Department never used Section u/s 143(1)(a) so extensively as it is using now. Earlier, Income Tax Department use to send notice u/s 143(1)(a) if there is a mismatch between Form 16, Form 16A and Form 26AS in return filed by the tax payers with gross income more than or equal to Rs. 10.00 Lakhs per annum. However, now they are sending the notices even if there is a minor mismatch between Form 16, Form 16A and Form 26AS in return filed by the tax payers. So, you need to know How to Reply to Notice u/s 143(1)(a)?
Here onwards, you will have to produce proof for deductions u/s 80TTA, which mostly is not clearly mentioned n Form 16. Under Section 80TTA, you get an exemption on interest income upto Rs.10,000.00 in Saving Bank Deposits. Mismatch in this amount may invite a notice u/s 143(1)(a) for you. So be prepared for giving Reply to Notice u/s 143(1)(a).
Also, pensioners those who have not submit their investment declaration u/s 80C too are receiving this notice. Earlier, pensions do not have to submit their investment declaration u/s 80C. Pensioners will also have to give Reply to Notice u/s 143(1)(a).
Moreover, if you are salaried & have not submitted your investment proofs or rent receipts to your employers. And claimed a deduction for the same in your Income Tax Return, you will get a notice u/s 143(1)(a). How to Reply to Notice u/s 143(1)(a)? Let’s find out.
How to Reply to Notice u/s 143(1)(a)?
You don’t have to appear in front of Income Tax Officer anymore. Now, you can reply to the notice u/s 143(1)(a) online through efiling portal from anywhere.
You get 30 days to reply to the notice u/s 143(1)(a) from the receiving date. So within these 30 days, you need to reply to the notice u/s 143(1)(a) with all your supportive documents.
Following are the steps to reply to notice u/s 143(1)(a) online:
- Login to the official efiling portal
- Goto e- Proceeding
- Click on eAssessment menu
You may see nothing under this section even if you have received notice u/s 143(1)(a). Because it takes 2-3 days for the details to appear.
Following are the windows you will see in case you have received notice u/s 143(1)(a):
- Click on “Prima Facie Adjustment u/s 143(1)”
- Choose “Submit” to go to the next page
- Select your response under Response section: Your responses could be Agree or Disagree.
- You will choose your response as “Agree” if Income Tax Department is correct in its calculation. In such cases, you need to submit your response, file your revised Income Tax Return and pay the additional taxes due on you. Within 15 days of response submission, you need to file a revised return.
- But, if you choose your response as “Disagree”, which most of the tax payers do, you will have to provide more details in such case.
- On next window, you will have to select the reason for your disagreement with Income Tax Department’s notice u/s 143(1)(a).
- The above window has the following fields, which you need to fill:
- You need to enter the TAN of the employer, which is available on Form 16 or Form 26AS for salaried income.
- Enter TAN of the bank or company (available on Form 16A or Form 26AS), if your income is from interest on savings bank deposits.
2) Deduction made under section:
- For investment in PPF, Tax Saving Fixed Deposit, etc. – 80C,
- As per the case in NPS 80CCD(1), 80CCD(2) or 80CCD(1B) ,
- Tax exemption of Rs 10,000 on interest income from the savings bank account, 80TTA,
- Use 10(13A) for HRA,
- Enter 80D for medical insurance,
- 80E is applicable for education loan,
- Any donation made to charity/NGOs, etc., use 80G
These are the main Income Tax Act section under which tax exemption is allowed. However, you will get the complete list of the same on e-filing portal while filing income tax return.
Recommended Read: How to file ITR (Income Tax Return) without consulting anybody?
3) Amount Paid/Credited by Deductor:
You will get this value on Form 26AS, next to the TAN of the deductor.
4) Nature of Receipt as per the Deductor:
This is of five following types:
- Salary or Pension
- Capital gains
- Income from House Property
- Other Income (Includes Interest Income as well)
5) Income/Gross Receipts as per the Return:
You will get this amount on this window of efiling portal:
5) Head of Income/Schedule under which reported in the Return:
It is the same as “Nature of Receipt as per the Deductor”, provided, you have not entered your income under any wrong head while filing Income Tax Return. For instance, Pension is considered as Salaried Income. Many of the tax payers, mention Pension as other income. In such cases, you need to enter the value under “Head of Income/Schedule under which reported in the Return”.
Following are the ten reasons out of which you can select yours:
Select the applicable reason in your case. And, if you do not find a proper reason, then select other.
You will have to explain in detail, why your deduction was not there in Form 16. You could write that the employer did not consider this deduction or investment was made after proof submission to the employer, etc. whatever it is.
Once you are done with all the required entries, make sure you attach all the documents in support of your reason/response.
Acknowledgment of your submission:
On completion of this process, you will receive an acknowledgment.
Income Tax Department has started this action to stop the wrongly claims claimed by tax payer while filing tax returns.
And, e-proceeding forms has bugs which add income across the rows instead of columns. Income Tax Department wants more and more tax payers to file returns online as well as use online option for giving a reply to Notice u/s 143(1)(a). However, there are some technical challenges in front of Income Tax Department regarding e- proceedings for Notice u/s 143(1)(a), which they will have to address on the priority to fix for the smooth functioning of their this action of e-proceedings.
So, now onwards, we all need to make sure that we file our tax returns correctly& with full responsibility to avoid discomfort from going through a reply to Notice u/s 143(1)(a).