. Acknowledgment (ITR-V) is produced by the Income-tax Department
Acknowledgment (ITR-V) is generated by the Income-tax Department and sent to your registered email address.
2. You sign the ITR-V and send to ITD
ITR-V needs to be printed, signed and sent to the Centralised Processing Centre (CPC), Bangalore.
ITR-V can also be e-verified. From here on, the process at CPC begins.
3. CPC processes the returns
CPC goes through each e-filed return and generates intimation notice u/s 143(1). This carries calculation done on your tax as computed by the Income-tax Department compared to the computation in your return.
Once the intimation u/s 143(1) is generated, it is sent to your email address. This activity happens usually within 30 days of e-verification or receiving of ITR-V at CPC.
You are required to read the intimation carefully. The different versions found here have majorly three meanings:
(a) No demand No Refund
In this situation, the adjustments, as referred to in section 143(1), have been made resulting in increase/reduction in loss declared by the taxpayer and no interest or tax is payable/ refundable by/to the assessee.
(b) Demand Determined
Here, any interest or tax is found payable after making adjustments as referred to in section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.
(c) Refund Determined
In this case, any interest or tax is found refundable after making adjustments as referred to in section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.