The ITR has been submitted and verified; now you can let out a sigh of relief. Actually no.  We don’t mean to work your nerves but the fact is the processing of return just got started behind the curtains at IT Department! This write up tries to answer that one big question- What happens after ITR submission? Why notices from IT department are really important and your response might be the only thing standing between you and a hefty penalty!

  1. Look out for Acknowledgement

Acknowledgement is the evidence that department has received your verified IT return and would begin processing it. You can verify your return either electronically or by sending a signed physical copy of ITR to IT department’s central processing unit in Bangalore within 120 days of filing return. Failing to do so would invalidate your ITR. You can check the status of acknowledgement on IT department’s site under your account. They also send an e-mail acknowledging the receipt of return. Tax payer can exercise the option of contacting the CPC on 1800 4250 0025 in case the acknowledgement is not received even after duly completing the process.

  1. Intimation from the department

After checking and verifying your return, the IT Department sends intimation to the tax payer under section 143(1) of Income tax Act. Intimation can be sent anytime within a year after the end of assessment year. The intimation may contain one of the following:

  • Acceptance of Income tax calculated and paid. This intimation marks the end of ITR processing for the financial year.
  • Difference in Tax computation as per IT department and computation and payment by the tax payer. This could lead to recovery of tax and interest or a refund. A statement with comparison of computation as per Tax authorities and tax payer are given lends a clarity to such mismatches.
  1. Demand notice

If the Intimation as mentioned above shows recovery of tax and interest, then it automatically becomes a notice of demand under section 156 of Income Tax Act. If you think that demand is justified then make a payment to this effect otherwise furnish a response giving clear and crisp justification of your case and computation.

If the assessing officer remains dissatisfied with your reply then he might pass an order for recovery.

In such cases, tax payer can file an appeal with Income Tax commissioner (appeals).

  1. Revised Return

In case of mistakes and omissions, a tax payer can revise the return within one year from the end of assessment year in which it was filed. There is no ceiling for the number of times the revision can be done. However, one must know that this option of revision under section 139(5) is available only in cases where there is a genuine mistake and not a fraudulent intention. Once a revised return is filed, Original return shall be deemed to have been withdrawn.

  1. Tracking the Status

It is important that you continue to track of your return on department’s website from time to time to know the status until it shows “processed” against the return filed. It would be good to give an insight into various statuses for ITR here:-

  • Uploaded: Return uploaded but not verified
  • Acknowledged: When it is verified and received by the CPC.
  • Processed: After completion of processing of the return and closing of assessment by the department. 

IT department’s procedures of processing are quite detailed and in-depth. It is advisable that a tax payer engages professional services in complex cases and instances where response to IT department needs to be furnished. Letzbank’s portal allows you to file your IT return with great ease and understanding. Thanks to our tie-up with Clear Tax, we also provide professional services for the same. This is why filing returns with us is hassle-free and highly reliable way to do it right!