Got Notice After Filing Income Tax Returns? Here’s What To Do

New Delhi: If you have filed your income tax return (ITR) on or before July 31, then you need to track your mailbox to see if you have received any messages from the income tax (I-T) department. With the processing fully automated in the I-T department, the post-filing returns are processed at the department’s centralised processing centre (CPC). Most of the communications are computerised, and the department may send you intimations and notices.

When do you get I-T department intimation?

Once ITR is filed you have to either e-verify it or send the signed copy of ITR-V to the CPC within 120 days (30 days for returns filed on and after August 1, 2022) of the date of filing returns to complete the process from your end.

It is important to note that it can be just an intimation and you are not required to do anything, but in certain cases, you may have to act. After the return is verified, you get an email confirming the receipt of the return. It is then that the processing starts and the submitted return is initially checked for mistakes and discrepancies.

The data filled by the taxpayer is compared with the details available to the income tax department. "The notice is sent under Section 143(1) in case of any discrepancies in arithmetical errors, internal inconsistencies, tax calculation, and tax payment verification,” Deepak Jain, chief executive, TaxManager.in has been quoted as saying in a Money Control report.

There is a limit to sending such notices.

What should you do?

The intimation is mostly seen as a formality and you may not require to do anything. However, the taxpayer should check the reason for such a notice and the details of the return filed by the assessee and the computation stated in the intimation letter.

It’s always advised to check your I-T calculations or through your chartered accountant immediately.

The intimation email mostly has an attached statement with two columns. One will show the details as per the return filed by you and another will have details as computed by the department.

There can be scenarios such as no difference between the return you filed and what the department computed, a need to pay additional tax or if there is a tax refund. In case of a shortfall in the taxes, the letter will clearly mention saying, “You have a demand for AY 2022-23.”

If the information provided by you in the ITR and information available in the IT department’s database matches, you are not supposed to respond to intimation under Section 143 (1).

What to do after receiving intimation?

There are basically two instances that can potentially arise when you check the difference between the return filed and the data available with the department. It may mean you need to pay additional tax or either get a refund. Once you agree with the tax demand raised by the income tax department, the extra tax can be paid through a pre-filled challan sent along with the notification.

If you abide by the tax demand, then you must pay it within 30 days of receipt of this intimation or as stipulated in it. After paying the tax, submit a copy of the challan to your ward or send a softcopy online to the tax authorities. In case you disagree with the tax demand raised, you can then file a rectification request under Section 154, along with supporting documents.

Also, in case you have paid more tax than what is actually required according to the I-T department’s calculation, you will get a refund amount.