What is Section 143 of Income-Tax Act?
- Blog|Income Tax|
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- By Taxmann
- Last Updated on 1 March, 2022
Preliminary Assessment Done under section 143(1) of Income-tax Act 1961:
This preliminary assessment done under section 143(1) of Income-tax Act 1961 is completely computerized and automated and the intimation going to taxpayer is also generated by these computer programs. CPC validates the tax returns filed by the taxpayer based on the records available with the tax department and generates a notification in case any kind of mismatch is found in what taxpayer have reported and what the records of the Income-tax department states. The various steps carried out by the CPC processor are as below-
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• Intimation with no demand or no refund –
This generally takes place when returns filed by the taxpayer is accepted as it is without carrying out any kind of adjustment.
• Intimation determining demand –
This kind of adjustments are made under Section143(1) when discrepancy is found in the return and tax liability is arrived.
• Intimation determining refund –
This kind of intimation is issued when the interest or tax is to be refunded to taxpayer. This may happen with two scenarios, one, where the return filed is found without any discrepancy or the adjustments are made under section 143(1) which results in refund, the credits are given to the taxpayer for his refund claimed and interest must be paid on such refund. Refunds are automatically transferred to taxpayer’s account while demand notice wait for taxpayer to fulfil his tax liability.
Different Kinds of Adjustments that are done under Section 143(1) of Income-tax Act 1961:
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