Section 143(1)(a): Notice for Proposed Adjustments The Income Tax Department cross-checks the details submitted in the taxpayer’ return. If any inconsistencies are found, a notice or intimation is sent, requesting corrections. However, before initiating any assessment process, the department issues a notice under Section 143(1)(a) outlining the proposed adjustments in the return. Once the taxpayer provides a response, the department proceeds with the assessment and issues the final order.
Section 143(1)(a): Notice for Proposed AdjustmentsThe Income Tax Department cross-checks the details submitted in the taxpayer’ return. However, before initiating any assessment process, the department issues a notice underSection 143(1)(a)outlining the proposed adjustments in the return. Once the taxpayer provides a response, the department proceeds with the assessment and issues the final order.What is a Notice under Section 143(1)(a)?ASection 143(1)(a) noticeis a communication regarding proposed adjustments in a tax return, processed electronically by theCentralized Processing Center in Bengaluru. It is not a final assessment but a preliminary review of the tax computation based on the details submitted.
This notice highlights any discrepancies or necessary modifications in the filed return, giving the taxpayer an opportunity to respond before the final assessment.Reasons for Issuing a Section 143(1)(a) Notice:SectionReason143(1)(a)(i)Arithmetical error in the return143(1)(a)(ii)Incorrect claim in the return143(1)(a)(iii)Disallowance of claimed loss143(1)(a)(iv)Disallowance of claimed expense143(1)(a)(v)Disallowance of claimed deduction143(1)(a)(vi)Addition of income appearing in Form 26AS, Form 16, or Form 16ANotice under Section 143(1)(a)(i):This notice is issued when anarithmetical erroris detected in the return. It specifies the income categories where discrepancies exist between the taxpayer’ calculations and the department’ computed values.Notice u/ 143(1)(a)(ii)A notice under this sub-section is issued when anincorrect claimis identified in the filed Income Tax Return.An incorrect claim may arise due to:A mismatch between the details provided in different sections of the return.Failure to disclose information that is required to be reported in the return.Claiming a deduction that exceeds the statutory limit prescribed under the Act.Notice u/ 143(1)(a)(iii)According to the Income Tax Act, losses cannot be carried forward if the taxpayer files their Income Tax Return after the prescribed due date. If the return is filed late underSection 139(1)and still includes a claim for losses, the department will issue anotice under Section 143(1)(a)(iii)to disallow such claims.Notice u/ 143(1)(a)(iv)This notice is issued when anincorrect expense claimis made in the filed Income Tax Return. If anaudit report disallows an expense, but the taxpayer still claims it in the return, the department willdisallow the expenseand issue a notice underSection 143(1)(a)(iv).Notice u/ 143(1)(a)(v)A notice under this sub-section is issued when adeduction has been incorrectly claimedin the filed Income Tax Return.
Certain deductions, such as those underSection 10AA and Sections 80H to 80RRB of Chapter VI-A, cannot be claimed if the ITR is filed late underSection 139(4). If such deductions are claimed despite this restriction, the department will issue anotice under Section 143(1)(a)(v).Notice u/ 143(1)(a)(vi)This notice is issued when there is amismatch in TDS detailsbetween the Income Tax Return and official records. The discrepancy may occur in:TDS on salaryas perForm 26AS or Form 16.TDS details in Form 16Anot matching the income reportedin the return.TheBusiness or Profession Incomereported underSchedule BPin the Income Tax Return does not match thegross receipts/turnoveras reflected in theTax Credit Statement (Form 26AS).Thesalary reported under Schedule Sin the Income Tax Return does not match thegross salaryreflected in theTax Credit Statement (Form 26AS).Additionally, thetaxable salary in the ITRdiffers from thetaxable salary in Form 16, indicating that the taxpayer has claimed anadditional deductionin the ITR that is not reflected inForm 16.Communication of Proposed Adjustment u/ 143(1)(a)TheCentral Processing Centre (CPC)on the Income Tax portal sends an intimation letter under Section 143(1)(a)to the taxpayer’sregistered email or mobile number.The notice ispassword-protected, and the password to open it consists of thePAN in lowercasefollowed by thedate of birth in DDMMYYYY format.Example:ForPAN: AAGPR1212AandDOB: 02/10/1980, the password will beaagpr1212a02101980.Time Limit for Issuing Communication of Proposed Adjustment u/ 143(1)(a)the income Tax Departmentcan issue this notice withinnine monthsfrom the end of thefinancial yearin which the return was filed.Example:IfMs.