Readers' Corner: Taxation

Kuldip Kumar, partner and leader, personal tax, PwC India, answers your questions

What is the difference in getting an income-tax notice under Section 144 and Section 143? Is punishment more stringent in one than the other?

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Section 143 of the Income Tax Act, 1961 deals with the assessment procedure of the return filed by a taxpayer. If the revenue authorities discover an arithmetical error in the return or any apparently incorrect claim, an intimation under Section 143(1) is sent to the tax payer after making those corrections. A notice for scrutiny assessment under Section 143(2) may also be issued by the department, asking the taxpayer to produce evidence or supporting documents for the information furnished in the return. Where a taxpayer has not filed the return or fails to provide the information sought under section 142(1) or 142(2A) or 143(2), the tax officer makes the assessment under Section 144 on the basis of the information available with him. Findings out of these assessments could lead to levy of penalty, depending on the nature of non-compliance or offence committed. Penalty for the offences is the same whether an assessment is made under Section 143 or 144.

I got a notice from the I-T department that they have not received a physical copy of my returns. I had provided my Aadhaar number. Do I still have to send a physical copy of my returns?

You have not provided the complete details and I assume you filed your return online and tax authorities are asking you to file the acknowledgement ( ITR-V). Where a return is filed online, an e-generated acknowledgement, referred to as ITR-V, is required to be signed and physically sent to the Central Processing Centre (CPC), Bengaluru. Once the original signed acknowledgement is received by the CPC, a receipt acknowledgement is generated and thereafter, the process of filing return is construed as complete. You are not required to send the ITR-V where you e-verify the return by using Aadhaar Card number ( ACN) or through other modes. You may find more details in this regard on the income tax department website. Merely providing the ACN in the return does not relieve you from the obligation of sending the ITR-V to the CPC. Therefore, you will need to send ITR-V.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in