New Delhi: With the ITR filing 2024 deadline over and the refund amount already shared with most taxpayers who filed their tax returns in time, it is now important to know that there may sometimes be a difference between the estimated and actual refund.
What happens if the ITR refund amount shared by the Income Tax (I-T) department differs from the taxpayer’s calculation? Taxpayers will be relieved to know that the I-T department offers certain options to taxpayers to raise a request to rectify the difference between the refund processed and their refund calculation.
What is intimation under section 143(1)?
Under section 143(1) of the I-T Act, the I-T department issues an intimation to the taxpayer regarding their ITR refund. If the I-T department’s computed ITR refund does not match the taxpayer’s calculation, they can raise a rectification request under section 154 of the I-T Act. Taxpayers must know that only apparent mistakes will be rectified by the I-T department.
When can one file refund rectification request?
The I-T refund rectification request can only be processed if it has been filed within 4 years of the date of intimation under section 143(1).
Rectification requests do not need to be e-verified.
Rectification requests cannot be filed for any mistakes made by the taxpayer.
Types of rectification
The I-T department allows taxpayers to file 3 types of rectification requests:
ITR reprocessing
Correction of I-T credit mismatch
Correction of ITR data
Reasons behind intimation under section 143(1)
Intimation under Section 143 (1) of the I-T Act shows the tax credit sought by the taxpayer and the tax credit that has actually been allowed by the tax department. The I-T department will send a section 143(1) intimation under the following circumstances:
Arithmetic error
Incorrect claim
Loss claimed for set off against income
If return filed after due date
Tax audit related case
If claims are raised against certain components
ITR refund: Here’s what to do If the refund processed by the Income Tax department is lower than the amount calculated by the taxpayer. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
