An overview of issues while issuing intimation u/s 143(1) by CPC

 

You might be thinking it is always the mistake of the department while issuing intimation u/s 143(1) if any variance is being reported, but most of the time errors are done by us while filing the return. A minor mistake by taxpayer while filing the return can lead to a variance in 143(1) intimation. It is always advisable to cross-verify the return twice before filing

Below are some of the issues you might have faced in 143(1)
1.   TDS credit not being granted inspite of TDS being reflected in 26AS
2.   Foreign tax credit not allowed
3.   Advance tax, Self-assessment tax not allowed
4.   Mismatch in Tax audit report and ITR
5.   115BAA, 115BAB and 115BAC Tax regimes not allowed
6.   Section 11/12 Exemption not allowed
7.   Income being considered twice
8.   Loss set off not allowed
9.   DTAA benefit not allowed, and income being taxed at normal rates
10. Chapter VIA deductions not allowed

Steps to be taken after receipt of 143(1) resulting in reduced refunds/increased demands. Instead of directly filing an appeal to CIT against 143(1), instead we can do the below

1.   Carefully check whether the return has been filed correctly.
2.   After verification, if we get to know the mistake was at the time of filing the return, kindly correct the mistake and try to file a revised return/rectification return
3.   Even after verification, if we are sure that there was no error while filing the return, then we can file an appeal to CIT

With the advent of digital transformation in tax administration, even routine return filing now demands specialized knowledge and expertise.