Once you file your ITR it will be processed by the income tax department in a reasonable time. You need to wait until it is processed. It usually takes 6-9 months for the processing of Income-tax return. Once your ITR is processed CPC (Central Processing Center) issues intimation notice under section 143(1).
The issue of intimation notice 143(1) means your return is checked and found in order. In other words, income details and calculations mentioned in your ITR is matches with the record of the income tax department.
How ITR is processed by the Income Tax Department?
Once your ITR is verified on the income tax e-filing portal, CPC process your ITR. The step generally performed by CPC for processing return are given below.
- Verification of Income-tax return in terms of details mentioned and tax calculation.
- Matching of Form 26AS and TDS amount mentioned in the Income-tax return.
- Checking high-value transactions performed by you and matching it with income declared in the return.
- Cash deposit in the bank account or credit card transactions with higher value and matching it with income detail.
- Interest income calculation and rent amount mentioned in the case of immovable property (second house).
- Checking ITR for arithmetic errors and applicability of refunds.
These are a few basic checks. Apart from the above check, Income tax department has started making use of data mining and big data analytics. To find out the tax evaders income tax department is checking social profiles to find a mismatch between income declared and spending patterns.
Income tax department has to process the ITR with expiry of one year from the end of the financial year in which ITR is filed. This means if you have filed income tax return of FY 2018-19 it should be processed by March 31, 2021.
If your income return is not processed in the stipulated time period, you can raise grievance on the Income tax e-filing website. The steps for the same are given below.
ITR is not processed by the IT Department – What to do?
Follow the steps given below to raise grievance on income tax website.
- Visit https://www.incometax.gov.in website and login using your PAN card number and password.
- You will be able to see dashboard view.
- From the top menu go to e-Nirvan tab and click on “Submit Grievance”.
- You will be able to see two tabs. First one is containing instructions and second tab is for grievance.
- Click on the “Grievance” Tab.
- You will be able to see grievance form with auto populated personal detail section and grievance details section.
- In the Grievance detail tab select – Resolution Sought From – Central Processing Center for Income Tax Returns (CPC-ITR). Select category – PROCESSING and Sub-category – Others – Processing.
- Select the Assessment year for which returns is not processed. Suppose income tax return for the FY 2017-18 is not processed then select assessment year 2018-19.
- In the description tab given below you can add additional information such as when return was filed and any other supported information. You can even upload supporting document in PDF format.
Click on the Preview and Submit button. The system will open a new webpage containing information about the details given by you. If the mentioned details are in order you can click on the submit button. Once you submit the grievance new Grievance ID will be generated and shown on the screen. You will also receive a Grievance ID on your registered e-mail ID.
The income tax department responds to grievances in 8-10 days. You will be able to track grievances online on the Income-tax website by going to e-Nirvan tab and checking status.
Over to you –
I hope you have got a complete understanding of raising a grievance and tracking it online on the Income-tax website. If you have queries related to filing income tax grievance please post it in the comment section given below.