How to Respond to Notice u/s 143(1)(a)?

How to Respond to Notice u/s 143(1)(a) for A.Y. 2017-18?
How to Respond to Notice u/s 143(1)(a) for A.Y. 2017-18?

In an earlier Post regarding Communication u/s 143(1)(a) for PAN XXXxxxxxXX for the A.Y. 2017-18 we had asked readers to wait for further clarity from Income tax department as was communicated by them through their helpline number – 18001034455.

But it’s more than 10 days now and there have been NO further clarification coming from department, we thought we should start responding to Proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961 Notice.

Why taxpayers are getting Notice u/s 143(1)(a)?

The Section u/s 143(1)(a) existed earlier too but has not been used extensively by tax department. What has happened this time they are sending out notices even if there is slightest mismatch between Form 16, Form 16A and Form 26AS versus the return filed.

Even for deductions u/s 80TTA which exempts interest income up to Rs 10,000 in savings bank account which mostly do no figure out in Form 16 are receiving notices. The problem is we still do NOT know what proof tax department would require for this exemption.

Download: Ultimate Tax Saving ebook with tax calculator FY 2017-18

All pensioners who do not have to submit their investment declaration u/s 80C too are receiving this notice.

Other than that salaried employees who have not submitted their investment proofs or rent receipts to their employers and claimed such deductions at the time of filing the return are getting these notices.

How to respond to Notice u/s 143(1)(a)?

The notice mentions that you should respond to the same within 30 days of receiving it. We list down steps you should follow to respond to the notice.

Step 1: Login to the efiling portal – incometaxindiaefiling.gov.in

Step 2: Goto e- Proceeding > eAssessment menu

For some tax payers this section may show nothing even if they have received notice. This is because it takes 2 to 3 days for the details to appear.

This is what is visible on clicking the above menu options.

Also Read: How are your Investments Taxed?

e-Proceeding to Reply to Prima Facie Adjustment 143(1)
e-Proceeding to Reply to Prima Facie Adjustment 143(1)

Step 3: Click on Prmia Facie Adjustment u/s 143(1)

This will open the next screen

e-Assessment Proceedings Response for Section 143(1) - Screen 1
e-Assessment Proceedings Response for Section 143(1) – Screen 1

Also Read: Best Tax Saving Investments u/s 80C

Step 4: Choose “Submit” to Direct to the next page

e-Assessment Proceedings Response for Section 143(1) - Screen 2
e-Assessment Proceedings Response for Section 143(1) – Screen 2

Step 5: Choose to Agree or Disagree

The details show the same details as present in the notice. Now you have to choose from “Response” – Agree or Disagree.

In case you agree which means the tax department was right in its calculation, you should submit the response and file a revised return within 15 days after paying additional taxes.

Also Read: How to file Revised Income Tax return?

e-Assessment Proceedings Response for Section 143(1) - If you Agree
e-Assessment Proceedings Response for Section 143(1) – If you Agree for Addition

Another thing to notice is if you agree it sums up the Variance – which is a bug in the system. Both the rows question the same exemption and hence it should have shown addition of Rs 1,59,000 only (as in the above example).

Also Read: How to pay additional Self-Assessment Tax Online?

However in most cases Taxpayer would disagree to the addition. So if you respond by choosing Disagree, an additional response table opens up at the bottom asking for more details.

e-Assessment Proceedings Response for Section 143(1) - If you Disagree for Addition
e-Assessment Proceedings Response for Section 143(1) – If you Disagree for Addition

Also Read: Detailed explanation on Mutual Funds taxation

The Form for reply is shown below:

Reason for Disagreement Form
Reason for Disagreement Form

The form has the following fields. Read carefully on what needs to be filled:

TAN

  • Enter the TAN of the employer (available in the Form 16 or Form 26AS) for salary income
  • If you have income from interest etc, put TAN of bank/company (available in Form 16A or Form 26AS)

Deduction made under section

  • Mention 80C (for investment in PPF, Tax Saving Fixed Deposit, etc),
  • 80CCD(1), 80CCD(2) or 80CCD(1B) for NPS as the case may be,
  • 80TTA for taking deduction of Rs 10,000 on interest from savings account
  • 10(13A) for HRA
  • 80D for medical insurance
  • 80E for education loan
  • 80G for donation made to charity/NGOs, etc

You’ll get the complete list from the ITR form you filled

Also Read: 21 changes in Income Tax laws in FY 2017-18

Amount paid/credited by deductor

Put the amount paid – you’ll get this from Form 16 or 26AS (shown below) for salaried and Form 16A or 26AS for interest income, etc.

Form 26AS to reply to Notice 143
Form 26AS to reply to Notice 143(1)

Nature of receipt as per the deductor

This would be any of five types of income defined by income Tax – salary (Pension is salary income), Business, Capital Gains, income from house and other income (includes interest income)

Also Read: How to Pay 0 Income Tax on Rs 11 Lakh Salary?

Income/Gross Receipts as per the return

Enter the amount after taking on account the above deduction.

So for the case above I would put Rs 4,36,160 (5,95,156  – 1,59,000) which was the income filed in actual tax return

Head of Income/Schedule under which reported in the return

This should be same as “Nature of receipt as per the deductor” until you have put it differently in income tax return. For e.g. Pension income should be treated as salary income but someone unknowingly has put in other income. So in this case he has to fill “Other Income”

Head of Income/Schedule under which reported in the return IS ACCEPTING ONLY NUMERIC VALUE BUT YOU SAID IT IS SAME AS NATURE OF RECEIPT. So you’ll have to put following numbers (Sections) as the case may be:

  • Salary/Pension – 17 
  • Capital Gains – 54 
  • House Property – 24 
  • Business/Profession – 28 
  • Other Income (includes interest) – 56

This idea came from comment from Sagar (Thanks Sagar)!

Also I am surprised how tax department thinks all taxpayers would know these sections. If it was just 5 they should have given a drop down rather than fill numbers only!

Also Read: When and How can Tax Benefits Claimed Earlier be Reversed?

Reason

There are 10 reasons to choose from as shown below:

e-Assessment Proceedings Response for Section 143_1 - Choose Reply
e-Assessment Proceedings Response for Section 143(1) – Choose Reason

In case you claimed HRA which was not present in Form 16 then select reason as “Allowance exempt claimed in return but not in Form 16”

Also Read: How to claim Tax Benefit on both HRA & Home Loan?

For all deductions under chapter VIA (includes 80C, 80D, 80E, NPS related etc) which you claimed but were not part of Form 16 select “Deductions claimed in the return but not in Form 16”

In case everything was present in your Form 16 but still you got notice select “Others” and mention in Justification that the deduction already present in Form 16. Also attach the Form 16.

Justification/Remarks

Briefly state why your Allowance or deduction was not in Form 16. It could be “employer did not consider this deduction” or “investment was made after proof submission to employer” etc.

And most important DO NOT forget to attach relevant documents.

  • For 80C investments you can attach the investment proof.
  • For HRA you can submit rent receipt, etc.
  • I am still not sure what proof to attach for 80TTA!

Also Read: How to Claim Tax Exemptions while filing ITR?

Section 143(1) Acknowledgement

After all the process is complete you get the following acknowledgement:

e-Assessment Proceedings Response for Section 143(1) - Acknowledgement
e-Assessment Proceedings Response for Section 143(1) – Acknowledgement

Disclaimer: Please remember this post is best to my understanding and I am not a tax expert. You might want to consult a qualified tax consultant or CA for your specific case!

To Conclude:

This action was initiated by income tax department as some tax payers misused the “proof not required while filing tax return” part and used to claim deductions they were not eligible for. For e.g. with more strict polices at employer end many people could not claim HRA with fake receipts as rent receipt without landlord PAN in not accepted. But they claimed while filing ITR as this is allowed. We all know there are a lot of genuine tax payers who are not able to claim HRA as landlords DO NOT share their PAN number. Also some tax payers took advantage of 80C without making actual investment.

Also Read: 13 Tax Free Components You Must have in Salary

The intent of income tax department was good – to weed out such events. But unfortunately as we have seen with mot government initiatives – the plan is good on paper but execution is very poor. Same is the case here.

Even tax helpline is NOT able to guide people and telling them to wait. Also this should be stated while filing returns and not sending a notice after that. This would badly hurt people who are not tech savvy and do not check emails frequently & this means a lot of housewives, senior citizens on pension income.

Also sending notice for Section 80TTA – deduction up to Rs 10,000 for interest earned in savings account is ridiculous because I do not understand what proof would be required for the same.

Also Read: 25 Tax Free Incomes & Investments in India

The e- Proceeding form has bugs and it adds income across rows – as shown above. The department has still not corrected these and neither sent further communication. On one hand they want more and more people to file returns by telling it’s simple and then bowl a googly by sending such notices. Hopefully the tax department is working on it and would create more awareness on how to reply to these notices or at the end its tax payer would be sufferer.

273 thoughts on “How to Respond to Notice u/s 143(1)(a)?”

  1. SESHADRI SRINIVASAN

    hello
    Thanks for reply
    Sorry I am again bothering you.
    In your response to my doubt Do I have mention one below one and post the income of Rs 3 lac from one Form 16 and Rs50k from another Form 16 under the Amount paid/credited by the deductor to show my savings of Rs 1.5 lac under 80C your clarified to post one TAN with Rs3 lac.
    If I do not post income from salary of both form 16 how to agree with my Income from salaries I shown ITR1
    If both TAN are shown and Rs1.5 lac deduction is shown against one TAN what section I have to mention against the other TAN
    thanks
    S.Seshadri

    1. I believe the clarification asked in the notice is about the 80C exemption you have claimed. They just need the proof for the same. So filling 1.5 lakh deduction against one employer would be sufficient. While uploading you may upload both your Form 16.

  2. SESHADRI SRINIVASAN

    Hello
    I again want to confirm though I have 2 Form 16, one for Rs300000 and another for Rs50000 I can post the TAN of any one and under amount credited by the deductor the total Gross salary of Rs350000 and Rs20000 under Income Gross receipts as per return as I have to reduce Rs150000 towards 80C which was not shown deducted in Form16.
    pl clarify
    s.seshadri

  3. HI , i would like to agree the difference amount as response but as you mentioned it is summing up all the amount rm three rows and making three times higher . what would be the impact if we agree the with amount which add from all three rows .

    And

    other query is that . We can refile the ITR after 5th august as well right as they provided 15 days post response submission.

    1. As we know that is calculation error, so there would be NO impact. Once you agree just go ahead with revising the returns in next 15 days with the right figures. Yes you can file ITR even after August 5.

  4. SESHADRI SRINIVASAN

    Thanks for lot of clarification on sec143 (1) a notice
    I have form 16 from 2 employer and both put together only I have shown in the return under income from salary
    I have form 26as for FD receipts from 6 banks
    I have SB interest more than Rs10000 from 3 banks and all the 9 put together only I have shown in the return under other income.
    Do I have to mention the entire 11 TAN numbers one below one and show gross amount paid by them as per Form 16 and form 16A against each TAN
    Do I have to mention against all 11 TAN the Deduction made under sec 80 c and sec 80TTA
    If yes out of above 11 TAN under what TAN I have to reduce Rs150000/- my savings under 80 C and Rs10000/- under 80TTA to show my Income reduced by Rs160000/- under column Income Gross receipts as per the return as my savings are not included in Form 16.
    Thanks once again
    s.seshadri

    1. I think the notice would be related to one or more deductions. For e.g. it its related to 80C you can just fill one row stating the same. The idea is to show that the proof was not submitted to employer but you actually did it. However if its related to HRA you’ll have to upload both employer TANs. This also holds true for 80TTA deduction. Put any TAN where the saving interest is more than Rs 10,000.

  5. Hello Amit,
    Thanks a lot for the detailed information.
    I got intimation for 80G and 80TTA difference only. So as per my understanding I have added three rows in reason for disagreement. (Assuming 123456 is total income/gross receipt as per return after all deductions)
    This is how data looks in the rows:
    Row 1. , 80G, , Salary, 123456, 17, Deduction claimed in return but not in form 16,
    Row 2: , 80TTA, , Other income, 123456, 56, Deduction claimed in return but not in form 16,
    Row 3: , 80TTA, , Other income, 123456, 56, Deduction claimed in return but not in form 16,

    Now my queries:
    1. Can I have income/gross receipt as per return as 123456 in all rows (which is total income from employer + banks) after deduction or I have to do math to extract income from employer – deduction and income from bank – 80TTA deduction separately
    2. There is no column to capture actual amount that should be consider for deduction row wise ( for e.g. 7000 under TTA row and 12000 under 80G row). So this amount will be calculated purely based on attachments.

    1. Once you disagree your original ITR is considered as good. These rows of information is asked just in case the officer wants to verify if the reason to disagree was sufficient. That’s my thought regarding this additional notice.

      I think you should do calculation individually across banks/employer to put gross income. This figure might be 0 for 80TTA (in case the savings account interest is less than 0)

      1. Hello Amit,

        Thanks for you reply and blog. It really helped me to file the response successfully.
        Cheers to your efforts!!

      2. Hi,

        What will be the TAN Number incase of income from house. My Tax was deducted more than my income from house ..hence, I have not paid any advance tax.

        Please advise.

        1. You can put your employer TAN as we need to submit proof of rental income to employer and they make the entry for the same in Form 16

  6. for 80tta notice whether we have to fill tan of employer or bank or bot for salaried person. please explain with one example as i have got notice under 143 for 80 tta and i am a salaried
    thanks

  7. Hi,
    Please clear this doubt.
    “Deduction under section”
    Cleartax help section is telling to enter 192 (TDS on salary) there for salaried people. But here on some other sites it was suggested to write 80C.
    I feel that 80C should be right but please comment on this as well.

    Check screenshot: https://s2.postimg.org/kjrxr82k9/ittax.jpg

  8. I successfully completed my response few minutes back. Thanks to you Amit for your efforts in helping us to respond to this communication we received from CPC u/s 143(1)(a). Your this post would have given comfort to many honest taxpayers who are currently facing this unnecessary hardship created by IT department. My sincere thanks to others contributors as well who also helped to improve this post by sharing their experience over the time in their comments.
    My case was only related to Section 80TTA – deduction up to Rs 10,000 for interest earned in savings account. The response was not getting accepted without an attachment and I was not sure what document to attach for 80TTA. So I made a document by compiling the details of Interest credited to my different saving accounts in an excel sheet and made it a PDF file to attach with the response and hoping that it should work.

    1. Ideally No proof should be required for 80TTA. But good job — thanks for your appreciation and yes a lot of people were helpful in improving this further. Do share this with your friends & family who would be struggling with this!

      1. I put two rows in the “Reason for disagreement” because as per my Form 26AS, there are two deductors/depositors of TDS. 1st is my Employer for Salary income and 2nd is the Bank for Interest income from Fixed deposit.
        In First Row I put the TAN No. of Employer; Deduction made under Section:80TTA; Amount paid/credited by deductor: The amount same as it is in my Form 26AS from my Employer; Nature of Receipt: Salary, Income/Gross Receipt as per Return: The amount same as Salary Income I filled in my ITR-1; Head of Income/Schedule under which reported in the return: 17; Reason: Deductions claimed in the return but not in Form 16; Justification/Remarks: Since Interest Income from Savings Accounts with Banks (Rs.xx,xxx) had been added to the Income from Other Sources in the ITR-1. Therefore Rs.10,000 Deduction is claimed under Section 80TTA. TDS is not applicable on Interest from Saving accounts with Banks therefore this income is neither appearing in Form 26AS nor in Form 16 or 16A.

        In Second Row I put the TAN No. of Bank; Deduction made under Section:80TTA; Amount paid/credited by deductor: The amount same as it is in my Form 26AS from Bank; Nature of Receipt: Interest, Income/Gross Receipt as per Return: The amount same as Other Income I filled in my ITR-1; Head of Income/Schedule under which reported in the return: 56; Reason: Other; Justification/Remarks: Since Income from Other Sources mentioned in my ITR-1 at B3 (Rs. xx,xxx) includes Interest from Fixed Deposits (Rs. xx,xxx) and Interest from Saving Accounts with Banks (Rs. xx,xxx). Therefore Deduction under Section 80TTA (Rs.10,000) is valid. TDS is not applicable on Interest from Saving accounts with Banks therefore this income is not appearing in Form 26AS, Form 16 or Form 16A.

  9. Hi,

    I had declared PPF interest of previous year in exempt income column in income tax return and got notice for the same amount. Please tell which section to put for it. Also do i put TAN number of post office (As my account is in post office)

    I had claimed PPF deduction under 80C which has been accepted (as it was mentioned in form 16).

    Thanks

      1. Thanks i got the tan number and most of values.

        I have one more query

        “Income/Gross Receipts as per the return” – Thin means total taxable income in return or total income as such?

        Your guide is very helpful. I have a comment regard one column “Head of Income/Schedule under which reported in the return” – I think it refers to serial number in ITR form. In ITR form, it refers to different serial numbers as schedules (just check its help file). for example in ITR-1, Salary/pension is Schedule 1, Deductions are in schedule 5, Exempt income is schedule 26.

        Thanks

        1. I am referring to ITR file template file only. For example, when u open ITR-1 file, click help, it says

          Fill up applicable schedules: Navigate to each schedule applicable and fill the data.

          Another clue is ITR column of salary: it says: Income from salary/pension (Ensure to fill Sch TDS1)

          So they are only referring to this number in return form (not any act)

  10. I have received this 143(1)(a) for mis match in

    1. 80G
    2. Exempt Income section

    Form 16 from my employer for salary and FD interest from Bank are the only source of Income

    in this case are the below values on 2 different line items ( Records ) fine

    TAN : Will mention my employer’s TAN
    Deduction made under section : 80G and 10 (15) (iv) (h) and 10(34) and Sec. 10(35)
    Amount Paid/Credited by deductor : ??? ( What to enter here )
    Nature of receipt as per deductor : ??? ( What to enter here )
    income/Gross Receipt as per return : ??? Should i eneter my gross total taxable Income ?
    Head of Income/Schedule under which reported in Return : may be 80 and 10
    Reason : with choose one of the reason from Dropdown
    Justification/Remark : Have attached all releveant documents

    Can somebody tell me what should i enter here (???) for above columns

    1. Amount Paid/Credited by deductor : ??? ( What to enter here ) – total amount paid/credited by employer as per form 26AS
      Nature of receipt as per deductor : ??? ( What to enter here ) – SAlary
      income/Gross Receipt as per return : ??? Should i eneter my gross total taxable Income ? – Total Income – all deductions

  11. I have filled ITR for Asssement year 2017-18
    A)I have reciveid the intimation adjustment u/s 143(1)(a) of Income Tax Act, 1961. as see image

    It dept is saying that my gross salary is not matching with my form 16
    Actually my gross salary is as perform 16 is 790450
    But my last company submitted my PF 49565.00 INR & IT department is considering this PF is as my income for financial year As per Form 26AS
    on this PF my last company deducted the TDS 8678.00 also
    Can i get refund againnst this PF amount?
    How have to respond this notice

    1. I hae some confusion here. In case the EPF was transferred from one company to other there should have been NO Tax or TDS. I did not get why TDS was deducted in the first place.

  12. my employer not considered March month ELSS in My Form 16 , i got notice for 1100 what should i do for while filling my Response

  13. Arjuun Sethuraman

    I also have the same problem – what is the number value to be filled under Head of Income. Only numeric values. Should it be 1 as in the serial number it appears in the ITR form – the first line item of gross salary.

  14. Hello Team,

    I have doubt about e-proceeding. I have two Form 16 for FY16-17. My 1st Employer didn’t gave HRA exemption as they collect the proof for HRA deduction during Dec-Jan of financial year but I already left 1st employer in August.

    Now while filing ITR, I have made HRA deduction from salary of my 1st employer so I received Intimation 143(1)a for Adjustment in income. I want to disagree with this so selected “Disagree” option.

    Now my doubt is when giving TAN of my 1st employer, what needs to be filled in following column:

    1) Amount paid/credit by deductor – This would be amount paid by 1st Employer or Total amount paid by both employer

    2) Income/Gross Receipt as per Return – This would be gross given by 1st employer or total gross by both employer

    3) Head of Income – This will be Head salary of 1st Employer or Head salary of both employer

    Please help in clarifying this doubt.

    Thanks,
    Jinesh

    1. 1.The amount paid should be corresponding to first employer payment as per Form 26AS
      2. First employer only
      3. In both cases the head would be just “salary” no need to mention employer

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