What is the Income Tax Intimation Letter? Know Details Here

The Tax Department may have just sent you an income tax notification letter. After ITRs are processed, taxpayers receive the intimation notification. Following the taxpayer's ITR verification, income tax returns are processed.

In accordance with Section 143(1) of the Income Tax Act of 1961, the Department distributes Income Tax Intimation notices to tax filers' registered email addresses. The Department additionally notifies the tax filer by SMS that the notification has been delivered to the email address on file.

The time frame for issuing an Income Tax Intimation Notice has been extended by three months as of April 1, 2021. Tax rules stipulate that the department must deliver the notification letter within nine months of the end of the fiscal year for which the ITR was provided.

Therefore, the final date by which he would receive this notice is December 31, 2023, for instance, if someone checked his ITR today (nine months from the last date of the current financial year, I.e., March 31, 2023). Intimation notices are being sent out by the tax agency very quickly, sometimes just a few hours after ITR filing.

The notification notice describes whether the Department's calculation and the taxpayer's income tax calculation in the ITR agree or disagree with each other. The department checks for numerous errors as it processes the ITR. The intimation is sent following processing. Tax professionals advise people to thoroughly study the notification.

ITR processing by the Income Tax Department may not be complete because the department only conducts a prima facie investigation after receiving ITR verification from the taxpayer. In the future, the Department may issue a notice under a different section requesting additional information.

What is the tax intimation notice?

The intimation notice should be carefully examined by the taxpayer. It contains information on your income, any deductions you've taken, and if your calculations agree with the department's evaluations. The intimation notification could occasionally demand more money if the taxpayers neglected to record any income on their ITR or made a mistaken deduction. 

If the person overpaid taxes, the intimation notification might also mention the refund the taxpayer is entitled to. Your PAN number in the small case, followed by your date of birth in the format of DDMMYYY, serves as the password to open an Income Tax Intimation letter.