Monday 29 August 2016

What to do after filing IT Return

Most of the TaxPayers, who try to file their IT Returns of their own, do not know as to what to do after filing or uploading their IT Returns. In this article I will explain not only the basic things to be kept in mind while filing IT returns but also the steps to be taken after filing or uploading IT Returns so as to complete the process. Before you start filing your IT return for the first time please check your profile thoroughly and ensure that you have provided the following particular correctly.
  • Profile is Linked to your Aadhaar. In case of any mismatch visit Samadhan Kender for updation or rectification of your Name, Date of Birth and Address. Once your Aadhaar is Linked to your IT Profile, you will get rid of digital signing of IT Return or physical despatch of IT Return to CPC Bengaluru. Aadhaar Linking will enable you to e-verify your IT Return up to Rs.5 lacs through OTP on mobile number linked to Aadhaar or IT Profile.
  • Complete your profile with accessible email ID and Mobile Number along with secret questions so that you can easily recover your account in case you forget the password.
  • Add you Bank Account Number details to your IT Profile which can also help you recover your IT account.
  • Never discard your Mobile Number and do not close the bank account till you get all the refunds against IT returns filed.
What to do after filing IT Return?

  • After you file or upload your IT Return the Income-Tax Department generates Acknowledgement (ITR-V). Most of the Tax payers think that their job is over and they have filed their IT Return. But it is not true. The Generated Acknowledgement (ITR-V) will get dumped after 120 days.
  • Tax Payers need to either physically submit the ITR-V after signing to CPC Bengaluru or they need to e-verify the IT Return.
  • After this the duty of the taxpayer is over and it is for the IT Department to respond.
  • After physical submission or e-verification, the Income Tax Department processes the IT Return and generates Intimation u/s 143(1).
What is Intimation u/s 143(1):

An intimation u/s 143(1) is just an intimation ( not an order/scrutiny) . It is the first stage where all income tax returns are processed to correct the arithmetical mistakes, internal inconsistencies, tax calculation and verification of tax payment. At this stage, no verification of income is undertaken. It is completed through computerized processing and there is no human interference.
Intimation under section 143(1) is sent to a taxpayer only in case any tax or interest is found payable or refundable or there is any increase / reduction in loss. In case , one has received such an intimation , he should first check the reason for receiving it.  The intimation would contain the details of return filed by you and the computation as done by the income tax department. Please refer to the below image:

The tax payer has to critically examine the intimation u/s 143(1) to know if there is:

1. No Demand, No Refund
2. Demand Determined
3. Refund Determined.

Taxpayer may not be required to take any action in case of situations at Sr. No. 1 or Sr.No.3 and wait for the refund to land in his or her bank account. However in case there is demand the tax payer needs to check his or her IT Return for errors and omissions and file the rectification online either by rectifying the figures or after paying the demanded tax.

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