Latest news with #CentralProcessingCentre
Time of India
05-07-2025
- Business
- Time of India
Big I-T Scam Busted: Citizens Manipulate Online System, Pose As Foreigners To Claim Tax Refund
Nagpur: A big scam involving income-tax refunds was busted by taxmen here, after scores of I-T returns were filed by salaried individuals declaring themselves as foreign citizens. Earnings of foreign nationals in India and staffers in diplomatic missions are exempt from tax on several counts. The scamsters used a loophole in the online filing system and clicked the option for non-Indian citizens and claimed exemptions under this category. After the wake-up call, the income tax department is mending the systems to bar Indian citizens from clicking on the option at the time of filing returns, said sources. The first link was unearthed following a raid in Gondia town, where a small-time tax professional assisting people in filing returns was found to have manipulated the system in this way. This led to a probe on as many as 2,000 IT returns, triggering nationwide scrutiny, said sources. The exact amount of tax evaded from the modus operandi is yet to be ascertained, said sources. Section 10(6) of the Income Tax Act and its clauses deal with exemptions for foreign citizens and embassy staffers. Fraudulent exemptions were claimed by local taxpayers by clicking on options available under this Section of the Income Tax Act. In some cases, a simpler method was adopted. There is an 'any other' option in the drop-down menu, which was clicked to claim sizable deductions from the tax liability. The returns were filed by taxpayers in the jurisdiction of Nagpur chief commissionerate of income tax department, which covers Vidarbha and Marathwada regions of Maharashtra. The probe alerted the tax department and suggestions were made to the Central Processing Centre (CPC) to set up security checks, including automatic firewalling of I-T returns by Indian citizens who select the foreign citizens' option in the menu, said sources. The new suggestions to CPC call for barring returns for Indian citizens if exemptions under Section 10 (6) or its relevant clauses are claimed.
Mint
09-06-2025
- Business
- Mint
Income tax notice under Section 143(1)? Here's what it means and what to do
After you file your Income Tax Return (ITR), the Income Tax Department runs a preliminary check to verify your submission. Based on this review, it sends you an automated notice under Section 143(1) of the Income Tax Act. Section 143(1) of the Income Tax Act pertains to the preliminary assessment of an Income Tax Return filed by a taxpayer. It involves an automated and detailed intimation issued by the Income Tax Department after conducting basic checks to reconcile the information declared in the return with its own records. At its core, this is a summary assessment notice. It indicates whether the return is accepted as filed, a refund is due, or there is a difference resulting in a tax payable. It is not a punitive notice but simply a comparison of your reported income, deductions, tax calculations, and payments with the department's data. The intimation confirms whether everything aligns correctly or if any errors or miscalculations have led to a refund or additional tax liability. Section 143(1) is a simple communication issued after processing of ITR is completed. Common triggers include TDS mismatches, mistakes in deductions, or missed income. If everything matches, no more action is required from the taxpayer's end. Disagreements can be resolved through discussion, rectification or revision online. Timely response is vital to avoid interest or penalties on additional tax dues. A notice served under Section 143(1) is a part of the routine ITR processing. This routine is conducted by the Central Processing Centre (CPC) to create a feedback loop between the tax department and the taxpayer. The system simply matches your ITR with the information and details from Form 16, Form 26AS, AIS along with other sources such as bank interest or TDS returns. Finally if everything is as per the submitted details and aligns, then the notice just confirms the same. Still, any errors, mismatches or overclaims prompt an adjustment with tax implications clearly elaborated upon. Several unforeseen errors and mistakes can lead to a 143(1) intimation with adjustments: TDS mismatch: Reporting lower TDS than what appears in Form 26AS. Reporting lower TDS than what appears in Form 26AS. Incorrect deduction claims: Overstating deductions under Sections like 80C or 80D. Overstating deductions under Sections like 80C or 80D. Omitted income: Not reporting interest income, capital gains, or freelance earnings. Not reporting interest income, capital gains, or freelance earnings. Arithmetic and calculation mistakes: Manual entry errors in income or tax calculations. Manual entry errors in income or tax calculations. Late filing: Loss carry forward claims disallowed if ITR was delayed Log in to the Income Tax portal ( and download the intimation. Check the calculations and compare with Form 26AS along with your filed ITR. If the data matches and there's a refund or no tax due, no action is required. If extra tax is payable, pay online through a challan within 30 days. If you disagree, file a revised return or rectification under Section 154, attaching relevant proof. Therefore, a Section 143(1) notice is an essential part of India's digital tax compliance ecosystem. Rather than doubting and getting lost with panic, taxpayers should treat it as an automated check, a timely reminder to verify filings and ensure accuracy. Hence, with growing reliance on Form 26AS, AIS, and pre-filled ITRs, taxpayers now have tools to file error free returns in an easy and seamless manner. Embracing these systems can make future ITR filings smoother, and build long-term financial discipline. Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Readers are advised to consult a qualified tax professional or financial advisor for guidance specific to their individual tax filings or any notices received under Section 143(1) of the Income Tax Act.
