Received “Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18” – What Next?

A lot of tax payers who had filed their return for AY 2017-18 have received email from [email protected] with subject “Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18”. The email reads as follows:

Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18

Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18

The PDF attachment is a notice from Income Tax Department with Subject “Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961”. You can read the complete letter below:

Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18

Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18 (Click on picture to enlarge & Read)

Here are important points:

The letter essentially says that there is a mismatch between the income and deduction you have filed when compared to Form 16, Form 16A or Form 26AS. So the income tax department has given a time of 30 days to respond to the notice.

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It goes on to say “In case, no response is received within 30 days (thirty days) of issue of this intimation, the return of income will be processed after making necessary adjustment(s) u/s 143(1)(a) of Income Tax Act, 1961 without providing any further opportunities in this matter.

Then it goes on to show the calculation as below:

Calculation as Per Income Tax Adjustments u/s 143(1)(a)

Calculation as Per Income Tax Adjustments u/s 143(1)(a)

Unfortunately the calculation is confusing and many taxpayers get confused on what it means. What is happening the income tax department is making the deductions you claimed while filing returns under Chapter VIA (which includes 80C, 80CCD(1), etc.) as invalid.

As in the above example,

  • The total income was Rs 5,95,156
  • The deduction was Rs 1,50,000 under section 80C and Rs 9,000 u/s 80TTA for interest in savings bank account – making total deduction as Rs 1,59,000
  • So Net Taxable income = Rs 5,95,156 – Rs 1,59,000 = Rs 4,36,160

The tax would be calculated on Rs 4,36,160 which comes out to be Rs 8,874 including cess (as tax payer in this case is senior citizen).

What is happening now the tax department calculation is ignoring the deduction which makes NET taxable amount as Rs 5,95,156 leading to tax of Rs 40,202 including cess.

Who are impacted?

I have been receiving a lot of queries regarding such notices and as this is happening for the first time NO one was aware what needs to be done. It seems all people who have even slightest mismatch in there Form 16/16A/26AS with the tax filing have got the notice. This has impacted all Pensioners as the numbers cannot match for them as they are not required to furnish proof of tax saving investments to anyone. Also people who have claimed deduction which was not part of their Form 16 such as exemption of Rs 10,000 under section 80TTA have got such notices.

What to Do?

A lot of tax payers have enquired about this letter/notice with the Income Tax Helpline @ 18001034455 and it says there was some bug in the system which has generated these emails. Unfortunately it has been more than 3 days but NO official communication has been forthcoming from income tax department.

As there is No further clarification from Tax department you should start responding to the notice. Learn How to Respond to Notice u/s 143(1)(a) for A.Y. 2017-18?

If you think you disclosed all information and there is no fault of yours I would recommend you to wait for few more days. Anyway the Income tax return filing website has started crashing and you would not be able to work on it until July 31. Hopefully they would have some confirmation by then!

We received this comment from Apurva:

Hi, I also received the same notice and while checking in E-Proceedings > E-Assessment/Proceedings section, I found message of ‘No records found’. I called to Call center no. 18001034455 mentioned in the communication and they told that ignore this communication for now and they will send the revised communication further. I also noted down the complaint no. while call. I request you to check E-Proceedings and call to Call Center if that is the case for you.

Please share your experience as it would be helpful for others too…

29 thoughts on “Received “Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18” – What Next?

  1. i got notice under section 143(1)(a) of 48574 because my employer not mentioned the employer contribution in NPS and also saving bank account interest is not in form 16.

    Please guide me how to fill the e proceedings

    vikas

  2. SANDEEP KUMAR says:

    I have deducted TDS of 1% from seller on purchase of property of >50 lakhs and provided him the form 16B last year. Now in this return correction they have added this >50 Lakhs as my income(!) and sent the notice under 143(1)(a) !! When I try to disagree on the portal it asks for a TAN number which obviously I wont have, since paying TDS doesnt need TAN. How do I proceed. CA”s are clueless. Clearly this is a mistake but I am not allowed to correct.

    Kindly advice

  3. Hello Sir – I have received a notice u/s 143(1) for addition of income which I got on FD plus I deducted HRA amount from my salary which is not reflecting in Form 16. I responded to the notice – Agreed on addition of income on FD but disagree on addition of income which I deducted for HRA exemption. Do I need to file revise return as well or only response to return is enough.

    Thanks

  4. Vrashabh Irde says:

    I have paid TDS of 1% on my property of 50 lakhs and received form 16B last year. Now in this return correction they have added this 50 Lakhs as my income(!) and sent the notice!! When I try to disagree on the portal it asks for a TAN number which obviously I wont have, since paying TDS doesnt need TAN. How do I proceed. CA”s are clueless. Clearly this is a mistake but I am not allowed to correct.

  5. I had filed my ITR V for 2017-18, but received a mailer that my taxable income does not match with that of Form 16. It is because I had not mentioned by income obtained from FD (11060/-) while filing ITR- V

    Now under e proceeding tab I am getting three line items :

    1. To add 11060/- in gross salary
    2. To add 11060/- in taxable income
    3. To add 11060/- in other salary.

    This makes me to add around 33000/- to my income which is incorrect.
    Please help me in this regard, also help me to file the revised details

    • Accept all 3 and file a revised return after paying taxes due!

      • Thanks for the great blog!

        I am in similar situation. If we were to take the example above, are you suggesting we submit a revised return adding 11060/- or around 33000?

        Assuming you mean 11060 won’t it lead to further mismatch in the ‘accepted’ income vs revised filing?

        Thanks
        R. Rao

  6. Last year many tax payers/tax brokers claimed refunds without investment/claims. So ITD using the weapon 143/1/a but govt might have asked this at the time of efiling.

  7. How to Respond to Notice u/s 143(1)(a)? I tried this. I wanted to tell them that my 80-D and 80-TTA exemptions. However, the submission window wants the Med Insurer’s TAN and other details which is NOT applicable for the 80-D / 80TTA deductions. The former is the Tax Payers money paid for a Medical Insurance and the latter is a permissible Saving Account interest (upto Rs 10000). Very frustration! And the IT Call-centres have not clue on this! This is Digital India.

  8. GUNDUBILLI VERA PRABHAKARA RAO says:

    I REQUEST YOU TO KINDLY SEND HOW TO PAY Rs.1140/-. PLEASE SEND CHALLAN FOR AHCPG8835G OR HOW TO EPAY?.

  9. Chirananda De says:

    I have received intimation under u/s 143(1)(a). As per IT instruction I have tried several times to send a reply uploading my proof for 80C claim of tax exemption on Rs. 150,000/= which they have not considered as it does not appear in Bank statement on total pension credited and total TDS made. In the Table row below the form to be filled there is a column with heading “Head of income/schedule under which reported in the return”. The answer to this should be numeric. I don’t know a numeric answer to this. Can you help me in submitting a reply? OR else should I send hard copy reply to Bangalore?. Please suggest in return mail at the earliest. Thanks in advance.

    • We checked this and even we have No answer to the same. You can contact Income Tax Helpline @ 18001034455 .

      • The Helpline is of no use – they listen to your problem and, at the end, ask you to contact and number 1800 425 00025! For last 3 days, this number is either engaged or there is no response. Therefore, brave up for a new Financial Terrorism unleashed by the Govt to a honest tax payer!

      • It a new way of extracting money. Income tax department help line is useless. Government is using complicated responses to prevent people from claiming refund. Provide uploading facility in the Return itself so that we can add savings proof while filing tax Returns

  10. I have received the same communication. What should I do now?

  11. I have already paid 1% TDS at the time of payment to seller. In form 26 QB.

  12. I have received notice 143(1)a. Deduction claimed under 80c,80DD,80TTA,80g inreturn is not consider by IT. & proposed to addition in income.I am a pensioner receiving pention from treasury though SBI. Also i was done job upto 15th aug.2016 Ileft job from15th aug 2016. So deduction was not reported to employer. And amout of salary is AS GT 95622.that is less than deduction under 80. But my pension and income from other sources aslo shown in return.Pesion office has not provided form 16. Only form 16 received for salary 95622. Total incomemention in return is 863237 now what tan number mention in response tab? Both or one . how mention other thing in colum given by IT. May I left some colums or not. Pl. advice on it thanks

  13. Harsh Poswal says:

    I received the same email. In return form, there is no column to show extra deduction on non taxable salary such as HRA, Children education allowance, TPTL etc. I filed NY return after deduction these allowance from gross salary. Now they matching form 16 with return form which can’t BR match as there is no spaces to show these allowances in ITR

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