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.
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.
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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.
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?
Step 3: Click on Prmia Facie Adjustment u/s 143(1)
This will open the next screen
Also Read: Best Tax Saving Investments u/s 80C
Step 4: Choose “Submit” to Direct to the next page
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?
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.
The Form for reply is shown below:
The form has the following fields. Read carefully on what needs to be filled:
TAN
Deduction made under section
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.
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)
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:
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:
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.
Section 143(1) Acknowledgement
After all the process is complete you get the following 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!
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.
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.
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View Comments
Hi, I am a pensioner and I never get form 16 from bank. every year I get pension certificate.this yr I got some 146000 as pension arrears and 14600 tds was cut on this by bank. I have shown my full year pension of 520000(this includes arrears) in ITR. deduction-ppf 150000. 100000 under 80tta. other source income 30000 (simple int.FD int post office mis int.and bonus of MIS). Now I received notice first figure of 160000 for deduction. and other amount same as deduction that is difference of 550000 (that is gross income)and 390000( total taxable) now my form 16 and 26as shows only arrears and tds amount. now how to fill that response table.as per return I am suppose to get refund. Please guide how to fill that response table.
The tax department needs proof for deduction of 1.6 lakh - 1.5 lakh for PPF u/s 80C & 10,000 for 80TTA. Just use the TAN of your pension payer and upload PPF statement. The idea is to tell tax department that you have invested the money in PPF and eligible for 80C deduction.
in notice the first row difference amount is 160000 that is for deduction. the second row amount is same 160000 that is for taxable total income. Can i upload ppf passbook front page and ppf amount entry scan copy. what about other figure of 160000 that is difference in taxable total income.
how to fill that table.
that mean for deduction I have to add one more row for 10000
Tan of bank - yes available
under section - 80c
amount paid by creditor - 146000
nature of receipt - salary
income as per return - 390000 taxable
head of income - 17
reason - ?
remarks - ?
Under Section is 80TTA
Nature of receipt - other income
Reason - other
remarks - 10,000 deducted u/s 80TTA from Saving account interest income
The difference is because of addition of this 1.6 lakh to your income. So proof is required for this 1.6 lakh tax saving investment. I am assuming your case similar to what I have shown as example in the post.
Hey Amit
I have some queries regarding the response to 143(1)(a). The intimation letter only states
My ITR contains the errors/incorrect claims/ inconsistencies which attract adjustment(s), as specified u/s. 143(1)(a) of Income Tax Act, 1961, as annexed in Part-A [(i) to (vi), as applicable].
Now I have 80C, 80E and 80G deductions which were not mentioned in form 16. for response do I have to add three separate rows for each section as shown bellow
TAN of Deductor 80C Deduction amount Income
TAN of Decuctor (same as above) 80E Deduction amount Income(same as above)
TAN of Decuctor(same as above) 80G Deduction amount Income(same as above)
I do not have any additional income or additional employer or additional tax payment.
please help me in clarifying these doubts.
Thanks in advance
TAN of Deductor (employer), 80C, Deduction amount Income
TAN of Decuctor (same as above), 80E Deduction amount Income(same as above)
TAN of Decuctor(same as above), 80G, Deduction amount Income(same as above)
Yes you are right.
Now it is not compulsory to enter numeric only in Head of income field.
Thanks for the info :)
Sir,
SBI branch refused to provide their TAN as Savings Bank Interest is not fall under TDS. Please advise what to do now (which TAN to mention) for claiming 80TTA benefit in responding 143(1)a
I think there is no need to mention the interest income from saving bank ac in ITR as the same is not available in 26AS. If you add it in ITR, then it is also mandatory to quote TAN in ITR. Saving bank interest is the income from other sources.
Thats expected from SBI. But in case you do not get TAN number you have NO option but to use your employer TAN then!
If I use TAN of my employer in case of 80TTTA benefit, then what should I write against 'Amount paid/credited by deductor' and 'Income/Gross Receipts as per the return' column. Please guide, Sir.
Write employer details
Nature of receipt – other income
Reason – other
remarks – 10,000 deducted u/s 80TTA from Saving account interest income
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
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.
VERY NICELY EXPLAINED ALL THE SECTIONS AND SUB SECTIONS WITH PROPER EXAMPLE.
THANK YOU
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
Use the one with gross of Rs 3 lakhs as in the 50,000 case you won't be able to show full 1.5 lakhs deduction
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.
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.
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
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.
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.
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)
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.
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
Hello Amit,
Thanks for you reply and blog. It really helped me to file the response successfully.
Cheers to your efforts!!
Some info got lost:
Row1: TAN of employer
Row2: TAN of bank 1
Row 3: TAN of bank 2