New Process of Refund under the Income Tax Act

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The section 143(1) A of the Income Tax Act was already a stern but the Government has amended the above-mentioned section to overcome certain issues that increased during the earlier process.

It is being alleged by the Income Tax department that most of the taxpayers are getting refunds by reaffirming the taxable income analogously lesser than the issued Form 16/16A; also most of the white-collar employees are taking credit of House Rental Allowances, Leave Travel Allowances and deductions under 80C to 80U with neither auxiliary evidence nor with fake documents.

To over shine the issue, government amended the section 143(1) A of the Income Tax Act, wherein the tax payer will get intimation from the department regarding the anomaly from their salary showed as per filed Income Tax Return with the figured salary as per Form 16 issued by the company or anomaly from the income shown as per the Form 16 A or as per the 26 AS.

Once the taxpayer receives the intimation notice u/s 143(1) A, it is obligatory for him to reply to the notice within 30 along with the necessary documents in the Income tax portal; also the scan copies of genuine documents are submitted at the time of filing Income tax return or within the 30 days from the date of notice. The computation will be taken for the authentic amount of taxable income as per the Form 16 or Form 16 A which will be processed by the income tax department in case the taxpayer fails to reply to the notice within the arbitrary time.

The taxpayer can double-check the Part-A of intimation u/s 143(1) will be crystal clear about the disproportion happened with your filed Income Tax return and Form 16.

Following steps can be used to reply to the notice u/s 143(1) A to agree to the additions:
1. Log on to http://www.incometaxindiaefiling.gov.in/
2. Log in through your User ID (PAN) and Password.
3. Choose e-Proceedings and then click on e-Assessments/Proceedings.
4. Click on the link placed under Proceeding name.
5. Click on the link placed under Reference ID to verify with your return.
6. Click on the option Submit to respond for the intimation u/s 143(1) A.
7. In the response column, you can choose to Agree for Additions.

** One can choose the above option if Income tax return filed with unintentional errors, further your total income will be considered with the actual additions as per the intimation and you have to file the Revised return within 15 days from the date of response.

8. In the response column, you chose to Disagree to the Additions.

**If Form 16/ Form 16A doesn’t give effects to the deduction what actually it supposed to be then you can choose this option, further, the relevant documents are also to be uploaded for getting refunds along with the proper reason to be chosen from the drop box. Here no need to file a revised return after a given response.

For instance: (If salaried employees)
•Choose Allowances exempt claimed under Return not in Form 16 for the below

Conveyance Allowance- To the maximum of Rs 19200 per Annum HRA not claimed under Form 16 But it should be under section 10(13A) of Income Tax Act.
•Choose Deductions claimed under return not in Form 16 for the below

LIC premium, Medical Insurance, Recurring Deposits, House loan Repayments, Fixed Deposits above 5 years, PPF and other 80C to 80U deductions.

It is advisable to file the tax returns with proper income as per your Form 16/Form 16A, for better ideas the taxpayer must check 26AS before filing their Income tax return refunds. If genuine documents are available, one can get refunds as per law. Therefore, it is judicious to consult with an expert before responding to the process mentioned above.

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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