What is Section 143 of Income-Tax Act?
- Blog|Income Tax|
- 3 Min Read
- 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-
Taxmann’s Income Tax Act covers the annotated text of the Income-tax Act, 1961, in the most authentic, amended & updated format. Amended by the Finance Act, 2021 & the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• 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:
For Section wise details of Income Tax Act 1961, subscribe to Taxmann’s Income Tax Module.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied