Home / Money / Personal Finance /  What to do if I don’t get intimation of ITR?

I filed my income tax return (ITR) in July 2022 but neither has it been processed till now, nor have I received any intimation from the income tax department. What should I do?

– Bimla

It is assumed that your query refers to the income-tax return for financial year (FY) 2021-22. The tax return filed and duly verified, is initially reviewed and processed by the tax authorities under the provisions of section 143(1) of the act for any prima facie adjustments required. Once the electronic processing is completed, an intimation is generated and sent to the taxpayer. As per the provisions, the tax authorities can’t send an intimation under section 143(1) after the expiry of nine months from the end of the FY in which return is filed. In your case, as tax return for FY 2021-22 was filed and verified during FY 2022-23, the intimation can be sent by 31 Dec ember 2023.

If a taxpayer does not receive any intimation within such period, the acknowledgement of the return filed may be deemed to be the intimation. In case you wish, you may still raise a grievance query through your online income-tax account to check on the status of processing.

Also, please note that the processing of the return under section 143(1) of the Act may not be final as it is only a preliminary assessment of the tax return by the tax authorities. The tax department may still send a notice under other sections of the act, seeking more information in future.

How much tax should be paid on long-term capital gains (LTCG) if I am not sure about securities transaction tax (STT) paid by the stock broking platform on stock transactions?

—Name withheld on request

If the subject shares were listed on a recognised stock exchange in India (at the time of both purchase and sale) and have never been delisted from such recognised stock exchange, then STT must have been levied on such transactions. Typically, such STT reflects as part of the broker’s statement / capital gain statement. You may accordingly check with your broker for such details. Regarding taxability of LTCG may be taxed as below (For FY 2022-23):

(i) As per section 112A of Income-tax Act, 1961, capital gains arising from transfer of a long-term capital asset being an equity share in a company shall be taxed at 10% plus applicable surcharge and cess of such capital gains exceeding 1 lakh, if STT has been paid at the time of acquisition and transfer of such capital asset. The LTCG in this case is to be calculated without giving benefit for cost inflation index. Where shares were acquired prior to 1 February 2018, grandfathering provisions shall be allowed while calculating cost of acquisition for such asset.

(ii) Under section 112: If STT has not been paid at the time of purchase and sale of equity shares, then the LTCG shall not be eligible for taxation under section 112A and should be taxed at 20% rate, plus applicable surcharge and cess, as per provisions of section 112. Benefit of indexation (under section 48 of the act) shall be allowed in this case.

Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.

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