The Central Board of Direct Taxes (CBDT) has decided to issue an intimation of the proposed adjustment 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.
Circular No. 01/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi, the
10" of January, 2018
Order under
section 119 of the Income-tax Act, 1961
Subject: Processing of income-tax returns
under section 143(1) of the Income-tax Act which were filed in Forms ITR-l to 6
& applicability of section 143(1)(a)(vi)-reg.-
Sub-clause (vi) of clause (a) of sub-section (1) of
section 143 of the Income-tax Act, 1961 ('Act') as introduced vide Finance Act,
2016, w.e.f. 01.04.2017, while processing the return of income, prescribes that
the total income or loss shall be computed after making adjustment for addition
of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which
has not been included in computing the total income in the return . In this
regard, CBOT has issued Instruction No.(s) 9/2017 dated 11.lD. 2017 &
10/2017 dated 15.11.2017 for identification of instances in which section
143(1)(a)(vi) of the Act may be invoked by CPC-ITR, Bengaluru on the basis of
information contained in the ITR Form s 1 to 6.
2. As intimations proposing adjustments in
identified returns under section 143(1)(a)(vi) of the Act would be shortly
issued by the CPC-ITR, Bengaluru, the process to be followed by the taxpayers
for filing the response is as under:
2.1 Since section 143(1)(a)(vi) of the Act is
being applied for the first time while processing the returns, it has been
decided that before issuing an intimation of the proposed adjustment, initially
an awareness campaign would be carried out to draw the attention of the
taxpayer to such differences. This 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.
2.2 The
manner for furnishing re sponse by the taxpayer is as under:
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.
2.3 The
scenario(s) for furnishing response are as under:
I. Where
upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of
the Act, if the taxpayer fully agrees with the proposed adjustment, he is
required to file a revised return in response .
II. Where
upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of
the Act, if the taxpayer partially agrees with the proposed adjustment, he is
required to (i) file a revised return for the part of the proposed adjustment
with which he is in agreement & (ii) file a reconciliation statement (in
the format to be provided by CPC-ITR on the e-filing site) for the part of the
proposed adjustment with which he is not in agreement.
III. Where
upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of
the Act, the taxpayer disagrees with the proposed adjustment, he is required to
file a reconciliation statement (in the format to be provided by CPC-ITR on the
e-filing site) in support of his contention.
3. Based upon response of the taxpayer as indicated
in para 2.3 above and the information so available with the CPC-ITR,
thereafter, such returns shall be taken up for processing by CPC-ITR as per
provisions of section(s) 143(1), 143(1)(a)(vi) read with Instruction No.s 9
& 10/2017 of CBDT.
4. Hindi version to follow.
(ROHIT GARG)
Director-(ITA.II),CBDT
(F. No. 225/333/ 2017-ITA.II)
No comments:
Post a Comment