Demand cut from ₹10,050 to ₹1,310
TaxSavvy for 143(1)(a) proposed adjustment
Proposed adjustment? You have 30 days to object.
We check each adjustment and file your agree or disagree reply online.
If you wait: No reply in 30 days: the adjustment is made in processing (Sec 270(2), old 143(1)(a))
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
PAN. Notice, all pages, with DIN
Discussion
Is the AIS entry correct, duplicate, or someone else's?. Was the income already shown under another head?
Forms
AIS feedback where entries are wrong. Agree / disagree response on e-Proceedings
Deliverables
Response and feedback acknowledgements. Tax payable note, if any
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹21,300 left every month
Sample ₹36,280 less tax in the new regime
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Section 245 (now 438): Refund adjustment without notice (what to do)
- Facts
- Sec 245 (now Sec 438, Income-tax Act 2025) allows the IT department to adjust your pending refund against an outstanding demand from a previous year, without first getting your consent, but after giving you prior intimation.
- Provisions and law
- IT Act 1961, Sec 245 (now 438) | Time limit: prior intimation required
- Analysis
- Common scenario: AY 2024-25 refund of ₹50,000 is due. But there's an old 143(1) demand from AY 2021-22 for ₹30,000 that was never addressed. The department issues 245 notice saying they'll adjust ₹30,000 from your refund. You get ₹20,000 instead of ₹50,000. Action: You have 30 days to respond agreeing or objecting to the adjustment. If the old demand was wrong, file 154 rectification simultaneously and respond to 245 objecting to adjustment until rectification is settled.
Section 270(1) (old 143(1)): Intimation and Demand
- Facts
- The most common IT notice, sent automatically by the CPC computer. Not a scrutiny notice. Not a raid. But if ignored or mishandled, the demand amount gets locked and interest begins. Most Sec 270(1), Income-tax Act 2025 (old Sec 143(1)) demands can be reduced to zero.
- Provisions and law
- Sec 270(1) (old 143(1)); Sec 270(2) (old 143(1)(a)); Sec 289 (old 156); Sec 154; Sec 263(5) (old 139(5))
- Analysis
- What triggers Sec 270(1) (old Sec 143(1)) demand: (1) AIS shows income not declared in ITR, most common. (2) TDS in Form 168 (old Form 26AS) not matching claimed TDS in ITR. (3) Deduction claimed exceeds limit. (4) Arithmetical mistake in ITR. (5) Carried-forward loss claimed without filing return in loss year. Three possible Sec 270(1) (old Sec 143(1)) outcomes: (A) Refund, CPC agrees with your return, issues refund. (B) No demand, no refund, CPC processing matches your return. (C) Demand, CPC finds discrepancy, raises a demand. Do NOT just pay the demand: Sec 270(1) (old Sec 143(1)) demands are often incorrect. In the most common case, FD interest in AIS that taxpayer forgot to declare, the demand is valid but the penalty is avoidable. In the second most common case, TDS credit mismatch due to PAN error by employer, demand is incorrect and should be rectified. Response options: (A) Agree, pay demand.
- Conclusion
- Download Sec 270(1) (old Sec 143(1)) intimation PDF from IT portal, check exact demand amount and reason
- Compare CPC's income computation vs your filed ITR line by line
- Check AIS, identify which item CPC flagged as not declared
- Check Form 168 (old Form 26AS) TDS credits vs TDS you claimed in ITR, any mismatch?
SCN: Show Cause Notice Under GST
- Facts
- A Show Cause Notice is the GST department's opening move in any demand action. Every SCN demands a written response explaining why the proposed tax demand should not be confirmed. Non-response = ex-parte order. Average demand confirmed: 90% when taxpayer does not respond. Average demand when CA responds with evidence: 40-60% reduction.
- Provisions and law
- Sec 73; Sec 74; Sec 75(6); Sec 75(4); Sec 107
- Analysis
- Most common SCN triggers: (1) ITC mismatch, GSTR-2A shows less than what you claimed in GSTR-3B. (2) GSTR-1 vs GSTR-3B mismatch, different outward supply totals. (3) Turnover mismatch, GSTR-9 vs GSTR-3B. (4) Excess ITC claimed including blocked credits. (5) Tax on advances received but not declared. (6) Place of supply incorrectly determined (IGST vs CGST+SGST applied wrong). Section 73 vs Section 74: If department alleges fraud, misstatement, or suppression → Section 74 notice (100% penalty). For normal differences without fraud allegation → Section 73 (10% penalty). In practice, many notices are wrongly issued under Section 74. If your CA can establish the discrepancy was not fraudulent → converted to Section 73, penalty drops from 100% to 10%.
- Conclusion
- Read SCN completely, identify: which section (73 or 74), which FY, which specific issue
- Note the response deadline on the SCN, never miss it, no automatic extension
- Calendar the personal hearing date if mentioned, request if not mentioned
- Identify the root cause: ITC mismatch? GSTR-1/3B mismatch? Wrong tax rate? Blocked credit?
Section 270(8) (old 143(2)): Scrutiny Notice
- Facts
- This is NOT automated, a human officer has selected your return for detailed examination. Specific income, deduction, or transaction is under review. Must be responded to with documentary evidence within the timeline given.
- Provisions and law
- Sec 270(8) (old 143(2)); Sec 270(10) (old 143(3)); Sec 144; Faceless Assessment Scheme 2020; Sec 271(1)(c)
- Analysis
- Why your return was selected: (1) Large refund claim, officer verifies legitimacy. (2) High deductions claimed relative to income (e.g. Sec 123, Income-tax Act 2025 (old Sec 80C) of ₹1.5L on ₹3L income). (3) AIS shows transactions not declared (property purchase, large FD). (4) Specific issue risk profiling by IT department. (5) Information from third party (bank, registrar). Faceless assessment, how it works: Notice arrives on IT portal (also email). You respond online through IT portal → e-Proceedings → Response. Upload documents in PDF. No personal appearance. Officer is anonymous, from a different city. National Faceless Assessment Centre (NFAC) coordinates. What to submit: Depends on the specific query in the notice. Common documents: Bank statements, salary slips + Form 130 (old Form 16), investment proofs (ELSS receipts, PPF passbook), home loan certificate, rent receipts, capital gains statement, property registration documents.
- Conclusion
- Login to IT portal → e-Proceedings → View notices (Sec 270(8) (old Sec 143(2)) notice visible)
- Read notice carefully, identify exactly which item / transaction is under scrutiny
- Note response deadline from notice, calendar the date immediately
- Gather all documents related to the queried item (not your entire file)
Proposed adjustment? You have 30 days to object.
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