What to do if Tax credit is not given in Section 143(1) Intimation

The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by date of birth in DD-MM-YYYY format without giving any space.

Total Income/Loss is computed after making an adjustment of Arithmetical error and an Incorrect claim.

The Time limit for Issue of Intimation U/s 143(1) is one year from the end of the Financial year in which return is filed.

Sometimes there can be error in Intimation issued by Income tax department due to which the amount of Refund claimed reduces or Demand raised. There can be several reason like Income considered higher, deductions considered less, tax paid not considered etc.

Lets discuss the key action needed to be taken if in case the Tax Credit (TDS) was not considered and consequence of which demand was raised.

Since, the rectification rights are with the CPC and not transferred to the Jurisdictional Assessing Officer, the company would require to file online request for rectification before the CPC. In this regard, please note that for filing online request, the company has 2 options to select with for filing online rectification request. Amongst 2 options, the company would require to opt for option ‘Reprocess the Return’. Post selection of the said option, the CPC would reprocess the return.

Step are as under:

Step 1 – Login at Income tax portal.

Step 2 – Services  > Rectification.

Step 3 – Select New request > Type Assessment year.

Step 4 – Opt “reprocess the return”.

Document the acknowledgement, Return will be reprocessed, by the time place a request for stay of Demand as the time limit to pay the demand is 30 Days of receipt of intimation.

The Stay Application can be filed Online through “Pending Action > Response to Outstanding Demand”.