Tax Payers to get Alert about Proposed Income/ Loss Adjustments prior to Notice u/s 143(1) [Read Order]

Form 3CD - CBDT

The Central Board of Direct Taxes (CBDT) has, recently decided to issue an intimation to the tax payer in case of proposing income or loss adjustments before issuing a notice under Section 143(1) of the Income Tax Act, 1961.

This is with a view to draw the attention of the taxpayer to difference identified while processing ITRs u/s 143(1)(a)(vi). If taxpayer failed to submit respond within one month of receiving such communication, then a formal intimation u/s 143(1)(a)(vi) would be issued.

The intimation would be in form of an e-mail and SMS communication to the concerned taxpayer informing him about the variation in the tax. Return vis-a-vis the information available in the three Forms and requesting him to submit response to the variation within one month of receiving the communication electronically.

“In case the taxpayer does not respond within the available time-frame or the response is not satisfactory, a formal intimation u/s 143(1)(a)(vi) proposing adjustment to the returned income would be issued to him. As per the second proviso to section 143(1)(a)(vi) of the Act, in a case where no response is received from the taxpayer within thirty days of issue of such an intimation, the proposed adjustment shall be made to the returned income. Therefore, it is of utmost necessity that the concerned taxpayer files a prompt, timely and satisfactory response to the awareness campaign or subsequent intimation proposing adjustment u/s 143(1)(a)(vi) of the Act,” the Board said.

For furnishing the response electronically, taxpayer is required to login in his account in the e-filing site and choose the option (View-Returns/Forms). In a case where communication/ intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as Response to Communication/Intimation u/s 143(1)(a) is pending’. The taxpayer can click on the same and submit his response.

To Read the full text of the Order CLICK HERE