New process of refund under the Income tax Act

New process of refund under the Income tax Act

Refund process under the Income tax becomes more stricter than earlier through the amended Section 143 (1) A of the Income Tax Act, The Income tax department is suspecting that most of the taxpayers are getting refunds by declaring the taxable income comparatively lesser than the issued Form 16/16A.

The Income tax department also find out that most of the salaried employees are taking credit of House Rental Allowances, Leave Travel Allowances and deductions under 80C to 80U without supporting evidences or supporting with fake documents.

To come over from this issue, the Income tax department amended section 143(1) A, where the tax payer will get intimation from the department regarding the deviation from their salary shown as per filed Income tax returns with the calculated salary as per Form 16 issued by the company or deviation from the income shown as per the Form 16 A or as per the 26 AS.

The taxpayer who gets the intimation notice u/s 143(1) A should reply to the notice within 30 days along with the supporting documents in the Income tax portal. It is mandatory that the scan copies of genuine documents are available with them at the time of filing income tax returns or within 30 days from the date of notice.

The actual amount of taxable income as per the Form 16 or Form 16 A will be taken for the computation and it will be processed further by the income tax department if the taxpayer not replies to the notice within the prescribed time.

The taxpayers can verify the Part –A of Intimation u/s 143 (1) A, it will be very clear about the mismatches happened with your filed Income Tax return and Form 16.

Let us know the steps to be followed for replying to the notice u/s 143(1) A to get the refunds or to agree to the additions,

Steps to be followed to reply:

Step 1: Log on to

Step 2: Login through your User ID (PAN) and Password

Step 3: Choose E-Proceedings and then Click on e-Assessments/Proceedings

Step 4: Click on the link placed under Proceeding Name

Step 5: Click on the link placed under Reference ID to verify once with your return

Step 6: Click on the option ‘Submit’ to respond for the intimation u/s 143(1) A

Step 7: In the response column you can choose ‘Agree for Addition’

You can choose the above option if Income tax return filed with unintentional errors, further your total income will be considered with the actual additions as per the intimation and you have to file Revised return within 15 days from the date of response.

Step 8: In the response column you have to choose ‘Disagree to the addition’

If your form 16/form 16 A does not given effects to the deductions what actually it supposed to be then you can choose this option, further the relevant documents also to be upload for getting refunds along with the proper reason to be chosen from the drop box. Here no need to file a revised return after a given response.

For Example: (If Salaried employees)

Choose ‘Allowances exempt claimed under Return not in form 16’ for the below

Conveyance Allowance – To the maximum of Rs.19200 per Annum

HRA not clamed under Form 16 – But it should be under section 10(13A) of the Income tax Act

Choose ‘Deductions claimed under return not in Form 16’ for the below

LIC Premium, Medical Insurance, Recurring Deposits, House loan Repayments, Fixed Deposits above 5 Years, PPF and other 80C to 80U deductions

It is always better to file the tax returns with proper income as per your Form 16/Form 16A, the taxpayer can check 26 As once before filing their Income tax returns for better ideas. Even we can get refunds if there are genuine documents as per law. It’s always better to consult with an Expert before giving any response to the process mentioned above.

Disclaimer: The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon.

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