How is my Income Tax return processed

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how is my income tax return processed
how is my income tax return processed

Now that you can easily register yourself on the income tax portal, file income tax returns online, receive notices and intimations, respond and track the status of your income tax refunds you do not really have an excuse to not file or delay the process any more. Basic computer literacy, an email and an existing phone number are all that’s required of you to register at the income tax login portal.

Income Tax return processed

There is also an online grievance redressal mechanism in the form of E-Nivaran available on the portal. But in certain situations things may still go wrong. Angel investors are at loggerheads with tax authorities over what they see as investments but an Assessing Officer may argue is a source of income instead.

This is significant because according to NASSCOM, India has the third most start-up businesses in the world with Bengaluru, Mumbai and Delhi emerging as the most favoured places for setting up new firms. Apart from the tax incentives offered to start-ups and small scale commercial entities, the trend of contract manufacturing by large companies to snip expenses in production are a factor.

What Does an Income Tax Assessing Officer Do?

Let us understand what goes into a decision by an IT Assessing Officer in processing your return.

After you submit your return and obtain an acknowledgement via ITR-V form submission it is the AO’s responsibility to flag files for scrutiny and make decisions with regard to rectification notices, intimations, re assessments, calls for audit, determination of income, penalties, interest on arrears, prosecutions, attachment orders for recovery of demand and so on. Further, she must also complete the process within the specified time.

She must also address grievances of tax assessees falling within her tax circle and ensure that a satisfactory resolution is reached before the matter is escalated.

Can You Personally Visit an AO?

Very often, the simplest way to redress a situation where you disagree with the demand is to discuss the issue with the AO herself. Some people may prefer visiting a tax office and personally talk to the officer instead of waiting for an emailed response.

You can seek clarifications in your response or express your dissatisfaction with an order in which case the AO usually has 30 days to dispose of the petition.

What Can I Do if my Dispute is Still Not Resolved?

In case you still disagree with your AO or if no reply is received you can approach the Commissioner of Income Tax (Appeals) for lodging your complaint.

If you have accepted a Tax Demand but lack the means to meet that demand then you can ask for more time from your AO. You will have 30 days to make the payment initially depending on the discretion of the AO (Section 220 of the Income Tax Act). If you fail to meet the deadline, you will be charged simple interest at the rate of 1% per month or part of a month.

Sub-section 2A of Section 220 allows the Principal Income Tax Commissioner to lessen or waive off the interest only of the taxpayer if you can convince her that you would face genuine hardships if tax demand were to be met, if the default was due to circumstances beyond your control and you have co-operated with the investigation and assessment so far.

Section 246 lists the orders and notices which you can appeal against. You or your representative may not appeal an order which is not a part of this section.

Responses need to be carefully drafted when incomes or investments are numerous. Call in a professional tax expert if you feel unwilling to expose yourself to further penalty. AllindiaITR is one such platform with very transparent charges and highly efficient services. The website is owned and promoted by Corwhite Solutions Private Limited.

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All India ITR
All India ITR, one of India’s leading tax prep websites offering personal tax solutions focussing on income tax return filing through tech platforms, be it the web, Android or iOS, is dedicated to making tax returns as easy and convenient and yet as complete as possible. With value added services to help maximise tax savings and minimise tax outgo and tax investment advice the comparative advantage of specialization allows us to uniquely serve our clients. All India ITR is certified to conduct E-return intermediary services by the Income Tax Department of India.

9 COMMENTS

  1. Thnx for this this really help me alot.This blog is really helpfull for us to know more about how actually income tax return process. This tell us everything that we should know about income tax return process. This is like a algorithm to fill taxes becaute it tell us step by step how we should fill taxes and yes it is also easy to understand. It tell breifly and accurately about taxes. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.
    Can you tell me more about Income from multiple house properties?

  2. This blog is really helpfull for us to know more about how actually income tax return process.This blog tell us step by step how we should fill taxes and yes it is also easy to understand.The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. Great work.. Thnx for this this really help me alot

  3. great work..i found this blog to be really helpful and simple to understand .i would prefer anyone to have a eye on it to clear all your doubts.
    i would clear one of my doubt that i heard that a no-demand notice under Section 143(1) is not the final assessment.?can u clear it?

  4. This post is really helpful. It tell us everything that we should know about income tax return process. Each and every details have been mentioned in simple and clear language.
    Great work..Keep posting these type of updates.

  5. This article is really helpful for me, after reading this article now I properly know about how my income tax returned works and more important topic for me that you mention we can able to appeal commissioner of income tax if AO doesn’t listen to us but please tell how can we appeal to commissioner of income tax ? Can you please tell me more about Section 246 lists the orders and notices which you can appeal against ?

  6. Thanks this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
    i would prefer anyone to have a eye on it to clear all their doubts. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. The blog is very detailed and the way it explains the things is very easy to understand and to retain it really helps a person on how to fill up the ITR and how to enquire about it. Great work from ALL INDIA ITR since it is a very well written and a very useful blog. I have one question though if we are unable to convince the AO then what is the next best alternative???

  7. Thanks for an amazing article, Now I know properly about how my income tax returned works & more important thing is that if there is any dispute now we can approach to the Commissioner of Income Tax, Can you tell more about Section 246, specially the orders and notices that we can appeal. Thanks again for this amazing article.

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