Tag: 143(1) of Income Tax Act

Intimation under Section 143(1) of Income Tax Act communication

Intimation under Section 143(1) of Income Tax Act is a communication sent by the Income Tax Department (ITD) after processing your Income Tax Return (ITR) filing. It essentially acts as a summary of the ITD’s assessment of your tax liability. This ITR intimation details the income you declared, compares it with information received from third parties, and presents the calculated tax amount. It also highlights any discrepancies, specifies any tax demand or refund you’re entitled to, and includes a processing code indicating the outcome of your ITR processing.

What Does an ITR Intimation Contain?

Your ITR intimation under 143(1) of income tax act acts as a summary of the details you filed and the ITD’s evaluation. Here’s a breakdown of the key information you’ll find:

  • Assessee Details: This section confirms your basic information like name, Permanent Account Number (PAN), and Assessment Year (AY).
  • ITR Filing Details: It details your acknowledgement number, filing date, and chosen ITR form type.
  • Income Details: This section compares the income figures you declared with any information the ITD may have received from third parties, such as employers, banks, or investment sources.
  • Tax Calculation: It presents the tax liability as per your calculations and the ITD’s assessment, highlighting any discrepancies.
  • Demand and Refund: The intimation specifies any tax demand you need to pay or confirms the amount of tax refund you’re entitled to receive.
  • Processing Code: This code indicates the outcome of your ITR processing. Common processing codes include “143” (intimation issued with no changes), “143(1)(a)” (demand for additional tax), and “143(1)(b)” (intimation of tax refund).

Why Intimation under Section 143(1) of  Income Tax Act is issued?

An income tax notice under Section 143(1) of Income Tax Act will be issued in any of the following scenarios after automated verification of the tax return filed:

  1. Any arithmetical error in the return;
  2. An incorrect claim, if such claim is wrong in the tax return filed;
  3. Disallowance of loss claimed if the return of the previous year for which set off of loss is claimed was furnished beyond the due date for filing an income tax return;
  4. Disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in return (applicable from AY2017-18);
  5. Disallowance of deduction claimed under Section 10AA, 80-IA, 80-IAB, 80-IC, 80-ID, or 80-IE, if the return is furnished beyond the due date specified under Section 139(1). 
  6. Addition of income appearing in Form 26AS or Form 16 which has not been included in computing the total income in the return;
  7. Information with is inconsistent with another entry of the same or some other return;
  8. Information required to substantiate an entry which has not been provided, like donation information;
  9. If any deduction exceeds the statutory limit allowed,

When Intimation under Section 143(1) Tax Notice is Issued?

You’ll receive this intimation in various scenarios, depending on the outcome of your ITR assessment:

  • Tax Refund with Adjustments: If the ITD determines you’re entitled to a tax refund but has made certain adjustments to your return during processing, you’ll receive an intimation under Section 143(1) of Income Tax Act outlining the revised tax calculation, the final refund amount, and details of any changes made.
  • Demand for Additional Tax or Interest: In cases where the ITD calculates a higher tax liability than you declared or identifies additional interest payable, you’ll receive an intimation under Section 143(1) of Income Tax Act specifying the revised tax amount, the reason for the demand, and any applicable interest charges.
  • Return Processed with No Change: Even if there’s no change to your declared tax liability, resulting in neither a demand nor a refund, you’ll still receive an intimation under Section 143(1) confirming that ITD has processed your return and accepted the information you provided. This serves as an official acknowledgement of your ITR filing.

Time Limit

Assessment under section 143(1) of Income Tax Act can be made within one year from the end of the financial year in which the income return is filed. Thus, the intimation for tax or interest due under Section 143(1) should not be sent after the expiry of one year from the end of the financial year in which the return is filed.

How is the ITR intimation received?

The Income Tax department in India will send you your ITR intimation electronically after processing your tax return. There are two main ways you’ll receive it:

  • Email: The intimation will be sent to the registered email address that you provided while filing the return or registering on the income tax e-filing portal. The sender will be the Central Processing Centre (CPC) with the email ID.
  • SMS: You may also get an SMS alert on your registered mobile number informing you that the intimation has been sent to your email.

To open the intimation, you need to use the password for the ITR intimation. You can also view or download the intimation again by logging in to the income tax e-filing portal.

What is the ITR intimation password?

The file you downloaded is password-protected to ensure your privacy. “To open your ITR intimation notice under Section 143(1), the password is a combination of your PAN (in lowercase letters) and your date of birth in DDMMYYYY format, without any spaces or special characters.“ For example, if your PAN is ABCDE1234E and your date of birth is January 1st, 2000, the password to access the document would be “abcde1234e01012000”.

How to read the received intimation tax notice under Section 143(1)?

The ITR intimation notice under Section 143(1) of Income Tax Act can seem complex at first glance, but it’s essentially a summary of your tax return compared to the Income Tax department’s assessment. Here’s a breakdown of how to read it: 1. Verify Basic Details:

  • Confirm that the name, address, PAN number, and assessment year mentioned in the notice are correct.
  • Check the e-filing acknowledgement number matches the one you received when filing your return.

2. Compare Income and Deductions: The notice will have side-by-side columns showing:

  • The income you declared in your return.
  • The income as per the department’s records.

This includes details like salary, interest income, capital gains etc. Similarly, it will compare the deductions you claimed (like those under sections 80C, 80D etc.) with what the department allows.

  • If there are any discrepancies, investigate the reason. It could be a mistake you made or information the department has that you don’t.

3. Review Tax Calculations: The notice will show how your tax liability is calculated based on your net taxable income. This includes details like:

  • Tax rate applicable to your income slab.
  • Any tax reliefs or pre-paid taxes considered.
  • Interest or penalties (if any) levied by the department.
  • Ensure you understand each element contributing to your final tax liability.

4. Look for Refund or Demand:

  • The intimation will state whether you are entitled to a tax refund or owe tax to the department.

5. Take Action (if required):

  • If there are discrepancies or you need to pay additional tax, you may have to file a revised return within a specific timeframe.
  • If you’re due a refund, the intimation will provide details on the processing timeline.

Action to be Taken by the Taxpayer after Receiving a 143(1)

  • As a first step, review certain things in Section 143(1) intimation to ensure the document pertains to your return itself and the data provided pertain to the same financial year as mentioned in Section 143(1) intimation. 
  • Check the name, PAN, address, assessment year for which notice has been sent and e-filing acknowledgement number. 
  • In case you are able to identify the mistakes you have made while filing your return from the 143(1) intimation, and they can be rectified by filing a revised return, please do so by logging into the income tax e-filing website. Please refer our article on how you can go about revising your return online.
  • However, if no mistakes have been made and you do not agree with the adjustments made by CPC/computerised system, you can file an online rectification application under Section 154(1) intimating the correction of mistake appearing in the Section 143(1) intimation. Refer our article on filing rectification application. 
  • Also, submit your response in the e-filing portal where there is a tax demand- whether you agree or disagree with the same.
  • In case you are not satisfied with the processing of your rectification return by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from CPC/assessing officer, you can file a complaint to the income tax ombudsman. 

How to Respond to Income Tax Notice under Section 143(1)?

To respond to an income tax notice under Section 143(1) of Income Tax Act, follow the steps below: 

Step 1: Log in to your account on the Income Tax Department E-Filing website. 

Step 2: Click on the E-Proceedings tab and select E-Assessment/Proceedings. 

Step 3: Select Prima Facie Adjustment u/s 143(1)(a). 

Step 4: You will see the details of the notice received. Click on Submit to submit the response. 

Step 5: You will now see the list of all mismatches identified. Click the drop-down next to the Response to submit a response to the mismatch. 

Step 6: Enter the same in the justification or remarks if you have any specific information or explanation. 

Step 7: Submit any supporting documents regarding the discrepancy amounts before submitting your response. 

Step 8: Click on “Submit”. Once the response is submitted, an acknowledgement will be provided.

Important Frequently Asked Question

What if I do not receive my intimation under section 143(1) even after the end of the specified period?

The acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by or refundable to, the taxpayer and where no adjustment has been made.

I received a demand notice under section 143(1) of Rs5000. What should I do

First of all, verify the reason for tax liability and if you agree with the tax demand, you are required to pay the tax. 
Choose the Tax on regular assessment (400) under type of payment in the challan. If you don’t agree with the demand, submit a response for the same.

What is the reason for the difference in TDS as per taxpayer and as computed u/s 143(1)?

The difference in TDS as per taxpayer and as computed u/s 143(1) is because the TDS reflected in 26AS is different from that of the TDS claimed in your tax return. If the TDS claimed in your tax return is correct, then you can file an online rectification application under section 154(1) for mistakes in intimation order under section 143(1).

If I have a disagreement with the refund mentioned in the intimation order, what can be done?

If you disagree with the reduced refund calculated by the CPC in the intimation order, you will either be required to file a revised or rectification return. A revised return can be filed for any mistakes committed in your original return. A rectification return can be filed only if you find any error in the order passed by the Income Tax Department.

How to get the Intimation u/s 143(1) again?

The following are the steps to get intimation u/s 143(1) again, in case you are not being able to receive your intimation on your registered mail ID: 

  • Visit the e-filing portal
  • Log into the portal by entering your login credentials
  • Click on the ‘Income Tax Return’ option under ‘e-file’ option
  • Click on ‘View Field’
  • A new page will appear showing the filed returns
  • Click on the ‘Download Intimation Order’

What if I have not received an intimation order even after one year from the relevant Assessment year?

If you have not received an intimation order till the expiry of one year, then it means that there is no tax liability nor there is a refund due to you. In such a case, ITR filed is deemed to be your intimation. 

How to file rectification for intimation u/s 143?

Filing rectification for intimation u/s 143, Log into your account, and go to ‘My Account’ and select ‘Rectification’ and provide the required details and click on submit.

What is the password for intimation received under section 143 (1)?

You will receive the intimation under section 143(1) password protected. You have to enter your PAN in lowercase and followed by your date of birth without giving space.

Intimation Notice Under Section 143(1) of Income Tax Act

Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.

Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.

One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.

What is Intimation u/s 143(1)?

The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):

  1. Sequence number of refund
  2. Details of assesses, such as name, address, etc.
  1. As per Tax Department, the tax computed under section 143 (1)
  2. Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
  3. The tax calculation as provided in the Income Tax return

When does One Receive an Intimation under Section 143(1)?

The below three instances are the primary reasons for having an intimation notice generated.

  1. If the taxpayer has paid extra tax then the notification will mention the amount of tax refund. If the refund value is above Rs. 100, then the refund will be paid out to the taxpayer. Refund values below Rs. 100 will not be paid out.
  2. If the taxpayer has paid taxes, which after computation are found to be short, then the notice will state the amount of tax due by the taxpayer and will also enclose a challan for the same payment.
  3. A simple notice which states that the tax returns filed by the taxpayer fall in line with the computation made by the assessing officer. In such cases no specific intimation is sent to the assessee and the assessee should treat the ITR V acknowledgement of filing of return of income as the intimation notice.

Till when can I receive intimation u/s 143(1)?

Intimation can be received up to one year from the end of the financial year in which the return is filed.

For example, if the return for the year 2021-22 was filed on 18 June 2022, then the financial year ends on 31 March 2023, and you can receive intimation till 31 March 2024 and not after that. The response should be submitted within the specified timeframe in case any action required to avoid legal complication.

What if no intimation is received till the expiry of one year?

Your ITR–V acknowledgment will be considered your intimation; in case you do not receive intimation till expiry of one year from the end of the financial year in which you have filed your return.

How is the intimation u/s 143(1) received?

Here are the required details regarding how the intimation is received:

  1. Intimation is received in your registered email ID
  1. This email ID is the same one that you provided during registration on the income tax website or at the time of filing income tax returns online
  2. The Central Processing Centre (CPC) is the sender of these emails
  3. Sender ID is intimations@cpc.incometax.gov.in
  4. Text message is also sent to the recipient to their registered mobile number.

What is the password to open intimation u/s 143(1)?

To open the intimation u/s 143(1) you need to enter the correct password to access the file. The password for these files is your PAN number in lower case and your date of birth in DDMMYYYY format. For example, if your PAN number is MARGK5108Q and your date of birth is 11 October 1984, then the password will be ‘margk5108q11101984’.

How to get the Intimation u/s 143(1) again?

The following are the steps to get intimation u/s 143(1) again, on case you are not being able to receive your intimation on your registered mail ID: 

  1. Visit the e-filing portal
  2. Log into the portal by entering your login credentials
  1. Click on the ‘Income Tax Return’ option under ‘e-file’ option
  2. Click on ‘View Field’
  3. New page will appear showing the filed returns
  4. Click on the ‘Download Intimation Order’

Check the following points when you receive an intimation u/s 143(1)

The following are the points that you must check when you receive an intimation u/s 143(1): 

  1. The document identification number in the intimation 
  2. Name on the intimation 
  3. Check whether the deduction claimed under 80C, and sections are considered or not 
  4. Income is mentioned under appropriate head 
  1. Check whether the income is repeated or not 
  2. Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  3. Self-Assessment Tax paid and TDS/TCS claimed Advance Tax paid in the computation by CPC (Central Processing Centre) 

How to deal with Intimation under section 143(1)?

  1. Firstly, a taxpayer should not fret if they receive such an intimation. They should check for particulars and see if the details mentioned do belong to them such as name, PAN number, and assessment year.
  2. The second step would be to check if the notice was sent either due to tax refundable or tax payable. In cases of tax refundable, only those values exceeding Rs. 100 will be refunded and this refund will be paid out in due course of time without the taxpayer having to provide any additional details.
  3. If the notice was sent due to tax payable, then the taxpayer needs to see the cause of discrepancy. These causes may be due to simple arithmetic errors, inadequate documents submitted, undeclared sources of income, or deductions filed under the wrong sections.
  4. If the computation seems satisfactory, then the taxpayer must proceed to pay the tax difference immediately but if the taxpayer is unhappy with the computation made and would like to refute the notice then they can consult with a competent CA and contact their income tax officer.

After 143 (1), How many Days will it take to Receive the Refund?

It normally takes 20 to 45 days from the date of the income tax return’s e-verification for the credit of refund to be processed. It might take longer, though, if the acknowledgement (ITR V) is delivered to the CPC in person.

FAQs on Intimation Under Section 143(1) of Income Tax Act
How to open intimation u/s 143(1)?
To open intimation u/s 143(1) use your PAN and date of birth as password. For example, if your PAN is DARGK6914q, and your birth date is 3rd October 1993, then the password will be dargk6914q03101993.

How will I receive Section 143(1) notice from the IT Department?
You will receive the Section 143(1) notice from the Income Tax Department through email with the subject line ‘Your ITR intimation’ and you will also receive an SMS alert informing that intimation notice has been sent to your registered email ID.

How to file rectification for intimation u/s 143(1)?
Log in to your income tax portal account to rectify the intimation u/s 143(1) and click on the Service tab. Select the rectification option and choose relevant A.Y. and file.

What to do if there is no mismatch in an intimation u/s 143(1) notice, demand, or refund?
If there is no mismatch in an intimation u/s 143(1) notice, demand, or refund, then you need not do anything, as it means that the ITR has been processed successfully.

Is intimation u/s 143(1) an assessment order?
No, intimation u/s 143(1) intimates about the processing of the return, and hence, it is not an assessment order.

If I have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then do I need to reply to 143(1) intimations?
If you have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then you need not reply.

Can I revise the income tax return after receiving the intimation u/s 143(1)?
Even after receiving intimation u/s 143 (1), you can revise your income tax return by 31 December of the relevant assessment year.

Is the tax assessment order and intimation u/s 143(1) the same?
No, the intimation u/s 143(1) and the tax assessment order are not the same.

Can I use intimation u/s 143(1) as address proof?
Yes, you can use the intimation u/s 143(1) as an address proof.

Which method will the IT department use to notify me under Section 143(1)?
The IT department will send you an email with the subject “Your ITR intimation.” The tax filer receives an SMS alert from the department notifying them that the notification under section 143-1 has been sent to their registered email address.

Can we disregard notification u/s 143 (1)?
The Income Tax Department has effectively processed the notification, and the taxpayer need not take any further action if there is no mismatch, no demand, and no refund due.

When will you be notified in accordance with section 143 (1)?
After filing the income tax return, the taxpayer must confirm it. The income tax department then notifies the taxpayer by registered email address and mobile number under section 143(1) of the income tax act that the ITR has been processed.

What does the Income Tax Act’s section 143(1) cover?
After adjusting for any mathematical errors or claims, the adjusted income is determined. The tax, interest, and charge (if any) are calculated based on this sum. Any balance or refund to which the taxpayer is entitled is communicated to him.

I was given a demand notice for Rs. 5,000 under clause 143(1). How should I proceed?
You must first confirm the basis for your tax liability. If you accept the tax demand, you must pay the tax. In the challan, select the Tax on Regular Assessment (400) payment type. Please provide a statement stating your disagreement with the requirement.

What causes the discrepancy between the taxpayer’s TDS and the amount estimated under Section 143(1)?
The TDS shown in 26AS differs from the TDS claimed in your tax return, which accounts for the difference between the TDS as reported by the taxpayer and as computed under section 143(1). You can make an online rectification application under section 154(1) for errors in the intimation order under section 143(1) if the TDS claimed in your tax return is accurate.

What can I do if I disagree with the refund that was stated in the notification order?
You will need to file a revised or rectification return if you disagree with the decreased refund that the CPC estimated in the intimation order. If you made any mistakes on your initial return, you can file an amended return. Only, if you discover an error in the order issued by the Income Tax Department, you may file a rectification return.

Intimation Under Section 143(1) of Income Tax Act

Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.

Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.

One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.

What is Intimation u/s 143(1)?

The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):

  1. Sequence number of refund
  2. Details of assesses, such as name, address, etc.
  1. As per Tax Department, the tax computed under section 143 (1)
  2. Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
  3. The tax calculation as provided in the Income Tax return

When does One Receive an Intimation under Section 143(1)?

The below three instances are the primary reasons for having an intimation notice generated.

  1. If the taxpayer has paid extra tax then the notification will mention the amount of tax refund. If the refund value is above Rs. 100, then the refund will be paid out to the taxpayer. Refund values below Rs. 100 will not be paid out.
  2. If the taxpayer has paid taxes, which after computation are found to be short, then the notice will state the amount of tax due by the taxpayer and will also enclose a challan for the same payment.
  3. A simple notice which states that the tax returns filed by the taxpayer fall in line with the computation made by the assessing officer. In such cases no specific intimation is sent to the assessee and the assessee should treat the ITR V acknowledgement of filing of return of income as the intimation notice.

Till when can I receive intimation u/s 143(1)?

Intimation can be received up to one year from the end of the financial year in which the return is filed.

For example, if the return for the year 2021-22 was filed on 18 June 2022, then the financial year ends on 31 March 2023, and you can receive intimation till 31 March 2024 and not after that. The response should be submitted within the specified timeframe in case any action required to avoid legal complication.

What if no intimation is received till the expiry of one year?

Your ITR–V acknowledgment will be considered your intimation; in case you do not receive intimation till expiry of one year from the end of the financial year in which you have filed your return.

How is the intimation u/s 143(1) received?

Here are the required details regarding how the intimation is received:

  1. Intimation is received in your registered email ID
  1. This email ID is the same one that you provided during registration on the income tax website or at the time of filing income tax returns online
  2. The Central Processing Centre (CPC) is the sender of these emails
  3. Sender ID is intimations@cpc.incometax.gov.in
  4. Text message is also sent to the recipient to their registered mobile number.

What is the password to open intimation u/s 143(1)?

To open the intimation u/s 143(1) you need to enter the correct password to access the file. The password for these files is your PAN number in lower case and your date of birth in DDMMYYYY format. For example, if your PAN number is MARGK5108Q and your date of birth is 11 October 1984, then the password will be ‘margk5108q11101984’.

How to get the Intimation u/s 143(1) again?

The following are the steps to get intimation u/s 143(1) again, on case you are not being able to receive your intimation on your registered mail ID: 

  1. Visit the e-filing portal
  2. Log into the portal by entering your login credentials
  1. Click on the ‘Income Tax Return’ option under ‘e-file’ option
  2. Click on ‘View Field’
  3. New page will appear showing the filed returns
  4. Click on the ‘Download Intimation Order’

Check the following points when you receive an intimation u/s 143(1)

The following are the points that you must check when you receive an intimation u/s 143(1): 

  1. The document identification number in the intimation 
  2. Name on the intimation 
  3. Check whether the deduction claimed under 80C, and sections are considered or not 
  4. Income is mentioned under appropriate head 
  1. Check whether the income is repeated or not 
  2. Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  3. Self-Assessment Tax paid and TDS/TCS claimed Advance Tax paid in the computation by CPC (Central Processing Centre) 

How to deal with Intimation under section 143(1)?

  1. Firstly, a taxpayer should not fret if they receive such an intimation. They should check for particulars and see if the details mentioned do belong to them such as name, PAN number, and assessment year.
  2. The second step would be to check if the notice was sent either due to tax refundable or tax payable. In cases of tax refundable, only those values exceeding Rs. 100 will be refunded and this refund will be paid out in due course of time without the taxpayer having to provide any additional details.
  3. If the notice was sent due to tax payable, then the taxpayer needs to see the cause of discrepancy. These causes may be due to simple arithmetic errors, inadequate documents submitted, undeclared sources of income, or deductions filed under the wrong sections.
  4. If the computation seems satisfactory, then the taxpayer must proceed to pay the tax difference immediately but if the taxpayer is unhappy with the computation made and would like to refute the notice then they can consult with a competent CA and contact their income tax officer.

After 143 (1), How many Days will it take to Receive the Refund?

It normally takes 20 to 45 days from the date of the income tax return’s e-verification for the credit of refund to be processed. It might take longer, though, if the acknowledgement (ITR V) is delivered to the CPC in person.

FAQs on Intimation Under Section 143(1) of Income Tax Act
How to open intimation u/s 143(1)?
To open intimation u/s 143(1) use your PAN and date of birth as password. For example, if your PAN is DARGK6914q, and your birth date is 3rd October 1993, then the password will be dargk6914q03101993.

How will I receive Section 143(1) notice from the IT Department?
You will receive the Section 143(1) notice from the Income Tax Department through email with the subject line ‘Your ITR intimation’ and you will also receive an SMS alert informing that intimation notice has been sent to your registered email ID.

How to file rectification for intimation u/s 143(1)?
Log in to your income tax portal account to rectify the intimation u/s 143(1) and click on the Service tab. Select the rectification option and choose relevant A.Y. and file.

What to do if there is no mismatch in an intimation u/s 143(1) notice, demand, or refund?
If there is no mismatch in an intimation u/s 143(1) notice, demand, or refund, then you need not do anything, as it means that the ITR has been processed successfully.

Is intimation u/s 143(1) an assessment order?
No, intimation u/s 143(1) intimates about the processing of the return, and hence, it is not an assessment order.

If I have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then do I need to reply to 143(1) intimations?
If you have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then you need not reply.

Can I revise the income tax return after receiving the intimation u/s 143(1)?
Even after receiving intimation u/s 143 (1), you can revise your income tax return by 31 December of the relevant assessment year.

Is the tax assessment order and intimation u/s 143(1) the same?
No, the intimation u/s 143(1) and the tax assessment order are not the same.

Can I use intimation u/s 143(1) as address proof?
Yes, you can use the intimation u/s 143(1) as an address proof.

Which method will the IT department use to notify me under Section 143(1)?
The IT department will send you an email with the subject “Your ITR intimation.” The tax filer receives an SMS alert from the department notifying them that the notification under section 143-1 has been sent to their registered email address.

Can we disregard notification u/s 143 (1)?
The Income Tax Department has effectively processed the notification, and the taxpayer need not take any further action if there is no mismatch, no demand, and no refund due.

When will you be notified in accordance with section 143 (1)?
After filing the income tax return, the taxpayer must confirm it. The income tax department then notifies the taxpayer by registered email address and mobile number under section 143(1) of the income tax act that the ITR has been processed.

What does the Income Tax Act’s section 143(1) cover?
After adjusting for any mathematical errors or claims, the adjusted income is determined. The tax, interest, and charge (if any) are calculated based on this sum. Any balance or refund to which the taxpayer is entitled is communicated to him.

I was given a demand notice for Rs. 5,000 under clause 143(1). How should I proceed?
You must first confirm the basis for your tax liability. If you accept the tax demand, you must pay the tax. In the challan, select the Tax on Regular Assessment (400) payment type. Please provide a statement stating your disagreement with the requirement.

What causes the discrepancy between the taxpayer’s TDS and the amount estimated under Section 143(1)?
The TDS shown in 26AS differs from the TDS claimed in your tax return, which accounts for the difference between the TDS as reported by the taxpayer and as computed under section 143(1). You can make an online rectification application under section 154(1) for errors in the intimation order under section 143(1) if the TDS claimed in your tax return is accurate.

What can I do if I disagree with the refund that was stated in the notification order?
You will need to file a revised or rectification return if you disagree with the decreased refund that the CPC estimated in the intimation order. If you made any mistakes on your initial return, you can file an amended return. Only, if you discover an error in the order issued by the Income Tax Department, you may file a rectification return.

Intimation under Section 143(1) of Income Tax Act communication sent by the Income Tax Department

Intimation under Section 143(1) of Income Tax Act is a communication sent by the Income Tax Department (ITD) after processing your Income Tax Return (ITR) filing. It essentially acts as a summary of the ITD’s assessment of your tax liability. This ITR intimation details the income you declared, compares it with information received from third parties, and presents the calculated tax amount. It also highlights any discrepancies, specifies any tax demand or refund you’re entitled to, and includes a processing code indicating the outcome of your ITR processing.

What Does an ITR Intimation Contain?

Your ITR intimation under 143(1) of income tax act acts as a summary of the details you filed and the ITD’s evaluation. Here’s a breakdown of the key information you’ll find:

  • Assessee Details: This section confirms your basic information like name, Permanent Account Number (PAN), and Assessment Year (AY).
  • ITR Filing Details: It details your acknowledgement number, filing date, and chosen ITR form type.
  • Income Details: This section compares the income figures you declared with any information the ITD may have received from third parties, such as employers, banks, or investment sources.
  • Tax Calculation: It presents the tax liability as per your calculations and the ITD’s assessment, highlighting any discrepancies.
  • Demand and Refund: The intimation specifies any tax demand you need to pay or confirms the amount of tax refund you’re entitled to receive.
  • Processing Code: This code indicates the outcome of your ITR processing. Common processing codes include “143” (intimation issued with no changes), “143(1)(a)” (demand for additional tax), and “143(1)(b)” (intimation of tax refund).

Why Intimation under Section 143(1) of  Income Tax Act is issued?

An income tax notice under Section 143(1) of Income Tax Act will be issued in any of the following scenarios after automated verification of the tax return filed:

  1. Any arithmetical error in the return;
  2. An incorrect claim, if such claim is wrong in the tax return filed;
  3. Disallowance of loss claimed if the return of the previous year for which set off of loss is claimed was furnished beyond the due date for filing an income tax return;
  4. Disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in return (applicable from AY2017-18);
  5. Disallowance of deduction claimed under Section 10AA, 80-IA, 80-IAB, 80-IC, 80-ID, or 80-IE, if the return is furnished beyond the due date specified under Section 139(1). 
  6. Addition of income appearing in Form 26AS or Form 16 which has not been included in computing the total income in the return;
  7. Information with is inconsistent with another entry of the same or some other return;
  8. Information required to substantiate an entry which has not been provided, like donation information;
  9. If any deduction exceeds the statutory limit allowed,

When Intimation under Section 143(1) Tax Notice is Issued?

You’ll receive this intimation in various scenarios, depending on the outcome of your ITR assessment:

  • Tax Refund with Adjustments: If the ITD determines you’re entitled to a tax refund but has made certain adjustments to your return during processing, you’ll receive an intimation under Section 143(1) of Income Tax Act outlining the revised tax calculation, the final refund amount, and details of any changes made.
  • Demand for Additional Tax or Interest: In cases where the ITD calculates a higher tax liability than you declared or identifies additional interest payable, you’ll receive an intimation under Section 143(1) of Income Tax Act specifying the revised tax amount, the reason for the demand, and any applicable interest charges.
  • Return Processed with No Change: Even if there’s no change to your declared tax liability, resulting in neither a demand nor a refund, you’ll still receive an intimation under Section 143(1) confirming that ITD has processed your return and accepted the information you provided. This serves as an official acknowledgement of your ITR filing.

Time Limit

Assessment under section 143(1) of Income Tax Act can be made within one year from the end of the financial year in which the income return is filed. Thus, the intimation for tax or interest due under Section 143(1) should not be sent after the expiry of one year from the end of the financial year in which the return is filed.

How is the ITR intimation received?

The Income Tax department in India will send you your ITR intimation electronically after processing your tax return. There are two main ways you’ll receive it:

  • Email: The intimation will be sent to the registered email address that you provided while filing the return or registering on the income tax e-filing portal. The sender will be the Central Processing Centre (CPC) with the email ID.
  • SMS: You may also get an SMS alert on your registered mobile number informing you that the intimation has been sent to your email.

To open the intimation, you need to use the password for the ITR intimation. You can also view or download the intimation again by logging in to the income tax e-filing portal.

What is the ITR intimation password?

The file you downloaded is password-protected to ensure your privacy. “To open your ITR intimation notice under Section 143(1), the password is a combination of your PAN (in lowercase letters) and your date of birth in DDMMYYYY format, without any spaces or special characters.“ For example, if your PAN is ABCDE1234E and your date of birth is January 1st, 2000, the password to access the document would be “abcde1234e01012000”.

How to read the received intimation tax notice under Section 143(1)?

The ITR intimation notice under Section 143(1) of Income Tax Act can seem complex at first glance, but it’s essentially a summary of your tax return compared to the Income Tax department’s assessment. Here’s a breakdown of how to read it: 1. Verify Basic Details:

  • Confirm that the name, address, PAN number, and assessment year mentioned in the notice are correct.
  • Check the e-filing acknowledgement number matches the one you received when filing your return.

2. Compare Income and Deductions: The notice will have side-by-side columns showing:

  • The income you declared in your return.
  • The income as per the department’s records.

This includes details like salary, interest income, capital gains etc. Similarly, it will compare the deductions you claimed (like those under sections 80C, 80D etc.) with what the department allows.

  • If there are any discrepancies, investigate the reason. It could be a mistake you made or information the department has that you don’t.

3. Review Tax Calculations: The notice will show how your tax liability is calculated based on your net taxable income. This includes details like:

  • Tax rate applicable to your income slab.
  • Any tax reliefs or pre-paid taxes considered.
  • Interest or penalties (if any) levied by the department.
  • Ensure you understand each element contributing to your final tax liability.

4. Look for Refund or Demand:

  • The intimation will state whether you are entitled to a tax refund or owe tax to the department.

5. Take Action (if required):

  • If there are discrepancies or you need to pay additional tax, you may have to file a revised return within a specific timeframe.
  • If you’re due a refund, the intimation will provide details on the processing timeline.

Action to be Taken by the Taxpayer after Receiving a 143(1)

  • As a first step, review certain things in Section 143(1) intimation to ensure the document pertains to your return itself and the data provided pertain to the same financial year as mentioned in Section 143(1) intimation. 
  • Check the name, PAN, address, assessment year for which notice has been sent and e-filing acknowledgement number. 
  • In case you are able to identify the mistakes you have made while filing your return from the 143(1) intimation, and they can be rectified by filing a revised return, please do so by logging into the income tax e-filing website. Please refer our article on how you can go about revising your return online.
  • However, if no mistakes have been made and you do not agree with the adjustments made by CPC/computerised system, you can file an online rectification application under Section 154(1) intimating the correction of mistake appearing in the Section 143(1) intimation. Refer our article on filing rectification application. 
  • Also, submit your response in the e-filing portal where there is a tax demand- whether you agree or disagree with the same.
  • In case you are not satisfied with the processing of your rectification return by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from CPC/assessing officer, you can file a complaint to the income tax ombudsman. 

How to Respond to Income Tax Notice under Section 143(1)?

To respond to an income tax notice under Section 143(1) of Income Tax Act, follow the steps below: 

Step 1: Log in to your account on the Income Tax Department E-Filing website. 

Step 2: Click on the E-Proceedings tab and select E-Assessment/Proceedings. 

Step 3: Select Prima Facie Adjustment u/s 143(1)(a). 

Step 4: You will see the details of the notice received. Click on Submit to submit the response. 

Step 5: You will now see the list of all mismatches identified. Click the drop-down next to the Response to submit a response to the mismatch. 

Step 6: Enter the same in the justification or remarks if you have any specific information or explanation. 

Step 7: Submit any supporting documents regarding the discrepancy amounts before submitting your response. 

Step 8: Click on “Submit”. Once the response is submitted, an acknowledgement will be provided.

Important Frequently Asked Question

What if I do not receive my intimation under section 143(1) even after the end of the specified period?

The acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by or refundable to, the taxpayer and where no adjustment has been made.

I received a demand notice under section 143(1) of Rs5000. What should I do

First of all, verify the reason for tax liability and if you agree with the tax demand, you are required to pay the tax. 
Choose the Tax on regular assessment (400) under type of payment in the challan. If you don’t agree with the demand, submit a response for the same.

What is the reason for the difference in TDS as per taxpayer and as computed u/s 143(1)?

The difference in TDS as per taxpayer and as computed u/s 143(1) is because the TDS reflected in 26AS is different from that of the TDS claimed in your tax return. If the TDS claimed in your tax return is correct, then you can file an online rectification application under section 154(1) for mistakes in intimation order under section 143(1).

If I have a disagreement with the refund mentioned in the intimation order, what can be done?

If you disagree with the reduced refund calculated by the CPC in the intimation order, you will either be required to file a revised or rectification return. A revised return can be filed for any mistakes committed in your original return. A rectification return can be filed only if you find any error in the order passed by the Income Tax Department.

How to get the Intimation u/s 143(1) again?

The following are the steps to get intimation u/s 143(1) again, in case you are not being able to receive your intimation on your registered mail ID: 

  • Visit the e-filing portal
  • Log into the portal by entering your login credentials
  • Click on the ‘Income Tax Return’ option under ‘e-file’ option
  • Click on ‘View Field’
  • A new page will appear showing the filed returns
  • Click on the ‘Download Intimation Order’

What if I have not received an intimation order even after one year from the relevant Assessment year?

If you have not received an intimation order till the expiry of one year, then it means that there is no tax liability nor there is a refund due to you. In such a case, ITR filed is deemed to be your intimation. 

How to file rectification for intimation u/s 143?

Filing rectification for intimation u/s 143, Log into your account, and go to ‘My Account’ and select ‘Rectification’ and provide the required details and click on submit.

What is the password for intimation received under section 143 (1)?

You will receive the intimation under section 143(1) password protected. You have to enter your PAN in lowercase and followed by your date of birth without giving space.

MSME Section 43B(h): New MSME 45 Days Payment Rule

Section 43B(h), which stipulates that any sum owed to Micro and Small enterprises for goods supplied or services given may be deducted in the same year if it is paid within the deadline stipulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

This amendment aims to address the issue of working capital scarcity in the MSME industry and promote prompt payments to micro and small businesses. The assessment year 2024–2025 and any following years will be covered by this change, which will come into effect on April 1, 2024.

Read along this blog to gain important insights about the section 43B(h) of the IT Act:

MSME Section 43B(h): New MSME 45 Days Payment Rule

The newly added clause (h) states that any sum payable by the assessee to a Micro & Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act shall be allowed as a deduction only in the previous year in which the sum has been actually paid (irrespective of the accounting method employed).

MSME Turnover Limit

Micro and Small Enterprises are classified on the following basis:

Micro Enterprises, means an entity having an investment in plant & machinery not exceeding 1 Crore and turnover not exceeding 5 Crores. Small Enterprises, on the other hand, should invest in plant & machinery not exceeding 10 Crores and turnover not exceeding 50 Crores.

Section 43B(h) Applicability

This clause is applicable when an enterprise is buying goods or taking services from Micro and Small enterprise registered under the MSMED Act, 2006. Notably, the registration of the buyer under the MSMED Act, 2006 is not mandatory. Clause (h) of Section 43B comes into effect from April 1, 2024.

Example: Mr A (Unregistered under the MSMED Act) purchased Goods from Mr B (Registered under the MSMED Act). Whether section 43B(h) applicable.?

Yes, section 43B(h) applicable as a supplier is registered under MSMED Act.

Section 43B(h) Applicability On Traders

As per Office Memorandum No. 5/2(2)/2021-E/P and G/Policy dated July 2, 2021, wholesale and retail traders are entitled to Udyam registration only for the benefit of Priority Sector Lending. So, Section 43B(h) is not applicable for dues outstanding to traders as per the MSMED Act’s definition of enterprise.

Example: Mr. A purchased Goods from Mr. B. Mr.B is a trader. Is section 43B(h) applicable?

No, section 43B(h) is not applicable as the supplier is a trader. It is applicable to Manufacturing and services Providers Only.

Section 43B(h) Effective Date

Section 43B Clause (h) is applied from April 1, 2024. This amendment applies from assessment year (AY) 2024-25.

Example: Mr A purchased Goods from Mr B on 31.03.23. Whether section 43B(h) is applicable?

No, section 43B(h) is Not applicable for the purchases made before 31.03.2023.

Section 43B(h) Time Limit

Business enterprises are required to pay MSMEs within 45 days, as per section 15 of the MSMED Act, 2006, depending on the presence of a written agreement. In case there is no written agreement, payment should be made within 15 days. In case there is a written agreement, payment shall be made as per the agreed-upon timeline, not exceeding 45 days.

Example Of Section 43B (h) 

Sr. No.Day of acceptance of any goods or services by a buyer from a supplierCredit period (Days)Due Date as per MSME ACT Actual date of paymentDeduction allowed in which FY
129/03/20246013/05/202425/05/2024FY 2024-25
201/04/20244516/05/202421/05/2024FY 2024-25
331/01/20241515/02/202420/02/2024FY 2023-24
411/09/20232001/02/202303/10/2023FY 2023-24
530/11/20233030/12/202320/12/2023FY 2023-24
621/04/20244031/05/202420/06/2024FY 2024-25
715/12/2023–30/12/202305/04/2024FY 2024-25
810/11/2023–25/11/202330/11/2023FY 2023-24

Penalties For Failure To Pay MSMEs 

In the case of late payment to an MSME, interest is applicable.

Rate of interest: Compound interest at the 3 times the bank rate notified by the Reserve Bank of India (RBI).

Date from which interest is payable: The date as per the agreement or the day following immediately after the expiry of the period of fifteen days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier (appointed day), as the case may be.

The deduction of this interest is not allowed as an expense, as per the Income-tax Act (ITA), 1961.

Benefits Of Clause(h) Of Section 43B

Benefits for MSMEs: 

  • Smooth Payment Cycle: Section 43B(h) incentivises large companies or entities to settle dues with MSMEs within the specified time frame, which is 15 days without a written agreement and 45 days with an agreement. This way, MSMEs are assured of timely cash flow, which is important for their sustainability and growth.
  • Better Bargaining Power: The provision ensures better bargaining power for MSMEs when negotiating payment terms with larger enterprises or entities. It is possible for them to confidently push for deadlines aligned with the stipulated time frame, as they remain assured of consequences in case of delayed payments. 
  • Reduced Disputes: Due to timely payments, potential disputes and legal wrangles, which may arise out of outstanding dues, are minimised. Thus saving time and resources for both MSMEs and larger businesses alike. 

Benefits For Larger Enterprises: 

  • Tax Planning: While adhering to the stipulated timelines, larger enterprises or companies can claim deductions for payments provided to MSMEs in the same year, resulting in reduced tax liabilities. 
  • Compliance and Transparency: Income-Tax Section 43B(h) promotes transparent financial practices and regulation adherence, promoting a responsible business environment.
  • Strong MSME Ecosystem: Ensuring prompt payments to MSMEs incentivises a robust MSME ecosystem. In the bargain, benefiting larger entities through a vibrant supply chain and ease of access to various resources.

In short, if invoices between 01.04.2023 to 15.02.2024 were paid before 31.03.2024, then Expenses are allowable in FY 2023-2024.

If Invoices between 16.02.2024 to 31.03.2024 were paid within 45 days days, then expenses are allowed in FY 2023-2024.(Assuming a written agreement of 45 Days is present between buyer & Supplier)

If it is not paid within the due date, then it is allowable in the year of Payment only. For Example, If invoices purchased in March 2024 were paid in June 2024, it is allowable as expenses  in FY 2024-25.

How To Check MSME Registration Status

Through the MSME Portal, one can verify MSME registration and the type of enterprise (Micro/Small/Medium) by the registration number using the following link:

https://udyamregistration.gov.in/Udyam_Verify.aspx

Frequently Asked Questions

What does Section 43B(h) cover?

The newly added clause (h) in Section 43B specifically covers any sum payable by the assessee to a micro or small enterprise. The amendment is introduced to ensure timely payments to such enterprises within the deadline stipulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The payments that go beyond the specified time limit under Section 15 of the MSMED Act are covered under this clause and are allowed as deductions only upon actual payment.

Who is affected by Section 43B(h)?

Businesses that deal with Micro, Small and Medium Enterprises (MSMEs) will need to be more diligent in tracking and ensuring timely payments to these entities. Since deductions for delayed payments to micro and small enterprises can only be claimed upon actual payment, businesses may need to adjust their accounting and tax planning practices. 

This would include potentially revising their cash flow management to accommodate timely payments or facing the tax implications of delayed payments. The amendment highlights the importance of adhering to the payment timelines specified under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, to avail of tax deductions efficiently.

Furthermore,  the tax auditor shall be required to report unpaid dues to micro and small enterprises in Form 3CD of the Tax Audit Report. The assessee shall be required to add back to its total income the disallowance reported in Form 3CD of its Tax Audit Report. Accordingly, such assesse will be required to file its Income Tax Return (ITR), failing which the income-tax department through the Centralised Processing Centre (CPC), Bengaluru, shall add back the disallowance and recompute tax liability while processing the ITR.

What is the timeframe for payments under Section 43B(h)?

Large enterprises or entities are obligated to pay Micro, Small and Medium Enterprises (MSMEs) within 45 days, depending on the presence of a written agreement. In the absence of a written agreement, payment is required to be made within 15 days. If there is a written agreement, payment shall be made as per the agreed-upon timeline, but not exceeding 45 days.

How to ensure compliance with Section 43B(h)?

Adhering to Section 43B(h) requires enterprises or entities to adjust their payment processes and ensure they have the necessary documentation and systems in place to verify MSME registration status and track payment deadlines accurately. 

Due diligence in terms of awareness and understanding of these requirements is fundamental to navigating the compliance landscape successfully. 

Section 43B(h) of the Income-Tax Act (ITA), 1961, introduces a significant compliance challenge for entities. However, with a clear understanding of the provision and a proactive approach to managing vendor payments, enterprises can navigate these requirements successfully. The provision, while contentious, highlights the significance of supporting the MSME sector, a critical component of the Indian economy. With further clarifications emerging from the government, businesses should keep themselves informed and adaptable to remain compliant and ensure positive vendor relationships.

Are there any penalties for non-compliance with Section 43B(h)?

In case outstanding payments are not made within the prescribed time limit, which cannot exceed 45 days, then that outstanding payable amount shall be added to the taxable income of the taxpayer.  The taxpayer has to bear the income-tax liability on the respective outstanding amount. The assessee gets a deduction in the previous year where payments is made.

In case the business enterprise does not make payments to Micro, Small and Medium Enterprises (MSME) in the above prescribed period, then it has to make payment of compound interest at monthly interests to the supplier at three times bank interest as same is notified by the Reserve Bank of India (RBI).

Can payments made after the due date be carried forward for deduction?

Payments that go beyond the specified time limit under Section 15 of the Micro, Small and Medium Enterprise Development (MSMED) Act. 2006, are covered under clause (h) of Section 43B and are allowed as deductions only upon ‘actual payment’.

Is Section 43B(h) applicable to traders?

No, as per the Office Memorandum dated 01.09.2021, retail and wholesale trade MSMEs are excluded. A Supplier who is a micro or small enterprise cannot be treated as a “Supplier” for section 15 and section 43B(h) purposes if his Udyam Certificate shows his activity as only a trader.

What is appointed day?

“Appointed day” means the day immediately after the expiry of the period of fifteen days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier

Is registration on Udyam portal compulsory?

No, the registration is not compulsory. However, a Declaration from supplier also be considered for recognising the Micro and Small Enterprises for this purpose of the Section. 

What is the method to verify the Udyam Registration Number provided by the Supplier?

Through the MSME Portal, one can verify MSME registration and the type of enterprise (Micro / Small/ Medium) using the registration number provided by the supplier in the following: https://udyamregistration.gov.in/Udyam_Verify.aspx

What is the limit specified in section 15 of MSMED Act?

The time limit specified in section 15 is, In case there is no written agreement, payment should be made within 15 days. In case there is a written agreement, payment shall be made as per the agreed-upon timeline, not exceeding 45 days.

Intimation Under Section 143(1) of Income Tax Act

Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.

Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.

One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.

What is Intimation u/s 143(1)?

The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):

  1. Sequence number of refund
  2. Details of assesses, such as name, address, etc.
  1. As per Tax Department, the tax computed under section 143 (1)
  2. Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
  3. The tax calculation as provided in the Income Tax return

When does One Receive an Intimation under Section 143(1)?

The below three instances are the primary reasons for having an intimation notice generated.

  1. If the taxpayer has paid extra tax then the notification will mention the amount of tax refund. If the refund value is above Rs. 100, then the refund will be paid out to the taxpayer. Refund values below Rs. 100 will not be paid out.
  2. If the taxpayer has paid taxes, which after computation are found to be short, then the notice will state the amount of tax due by the taxpayer and will also enclose a challan for the same payment.
  3. A simple notice which states that the tax returns filed by the taxpayer fall in line with the computation made by the assessing officer. In such cases no specific intimation is sent to the assessee and the assessee should treat the ITR V acknowledgement of filing of return of income as the intimation notice.

Till when can I receive intimation u/s 143(1)?

Intimation can be received up to one year from the end of the financial year in which the return is filed.

For example, if the return for the year 2021-22 was filed on 18 June 2022, then the financial year ends on 31 March 2023, and you can receive intimation till 31 March 2024 and not after that. The response should be submitted within the specified timeframe in case any action required to avoid legal complication.

What if no intimation is received till the expiry of one year?

Your ITR–V acknowledgment will be considered your intimation; in case you do not receive intimation till expiry of one year from the end of the financial year in which you have filed your return.

How is the intimation u/s 143(1) received?

Here are the required details regarding how the intimation is received:

  1. Intimation is received in your registered email ID
  1. This email ID is the same one that you provided during registration on the income tax website or at the time of filing income tax returns online
  2. The Central Processing Centre (CPC) is the sender of these emails
  3. Sender ID is intimations@cpc.incometax.gov.in
  4. Text message is also sent to the recipient to their registered mobile number.

What is the password to open intimation u/s 143(1)?

To open the intimation u/s 143(1) you need to enter the correct password to access the file. The password for these files is your PAN number in lower case and your date of birth in DDMMYYYY format. For example, if your PAN number is MARGK5108Q and your date of birth is 11 October 1984, then the password will be ‘margk5108q11101984’.

How to get the Intimation u/s 143(1) again?

The following are the steps to get intimation u/s 143(1) again, on case you are not being able to receive your intimation on your registered mail ID: 

  1. Visit the e-filing portal
  2. Log into the portal by entering your login credentials
  1. Click on the ‘Income Tax Return’ option under ‘e-file’ option
  2. Click on ‘View Field’
  3. New page will appear showing the filed returns
  4. Click on the ‘Download Intimation Order’

Check the following points when you receive an intimation u/s 143(1)

The following are the points that you must check when you receive an intimation u/s 143(1): 

  1. The document identification number in the intimation 
  2. Name on the intimation 
  3. Check whether the deduction claimed under 80C, and sections are considered or not 
  4. Income is mentioned under appropriate head 
  1. Check whether the income is repeated or not 
  2. Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  3. Self-Assessment Tax paid and TDS/TCS claimed Advance Tax paid in the computation by CPC (Central Processing Centre) 

How to deal with Intimation under section 143(1)?

  1. Firstly, a taxpayer should not fret if they receive such an intimation. They should check for particulars and see if the details mentioned do belong to them such as name, PAN number, and assessment year.
  2. The second step would be to check if the notice was sent either due to tax refundable or tax payable. In cases of tax refundable, only those values exceeding Rs. 100 will be refunded and this refund will be paid out in due course of time without the taxpayer having to provide any additional details.
  3. If the notice was sent due to tax payable, then the taxpayer needs to see the cause of discrepancy. These causes may be due to simple arithmetic errors, inadequate documents submitted, undeclared sources of income, or deductions filed under the wrong sections.
  4. If the computation seems satisfactory, then the taxpayer must proceed to pay the tax difference immediately but if the taxpayer is unhappy with the computation made and would like to refute the notice then they can consult with a competent CA and contact their income tax officer.

After 143 (1), How many Days will it take to Receive the Refund?

It normally takes 20 to 45 days from the date of the income tax return’s e-verification for the credit of refund to be processed. It might take longer, though, if the acknowledgement (ITR V) is delivered to the CPC in person.

FAQs on Intimation Under Section 143(1) of Income Tax Act
How to open intimation u/s 143(1)?
To open intimation u/s 143(1) use your PAN and date of birth as password. For example, if your PAN is DARGK6914q, and your birth date is 3rd October 1993, then the password will be dargk6914q03101993.

How will I receive Section 143(1) notice from the IT Department?
You will receive the Section 143(1) notice from the Income Tax Department through email with the subject line ‘Your ITR intimation’ and you will also receive an SMS alert informing that intimation notice has been sent to your registered email ID.

How to file rectification for intimation u/s 143(1)?
Log in to your income tax portal account to rectify the intimation u/s 143(1) and click on the Service tab. Select the rectification option and choose relevant A.Y. and file.

What to do if there is no mismatch in an intimation u/s 143(1) notice, demand, or refund?
If there is no mismatch in an intimation u/s 143(1) notice, demand, or refund, then you need not do anything, as it means that the ITR has been processed successfully.

Is intimation u/s 143(1) an assessment order?
No, intimation u/s 143(1) intimates about the processing of the return, and hence, it is not an assessment order.

If I have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then do I need to reply to 143(1) intimations?
If you have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then you need not reply.

Can I revise the income tax return after receiving the intimation u/s 143(1)?
Even after receiving intimation u/s 143 (1), you can revise your income tax return by 31 December of the relevant assessment year.

Is the tax assessment order and intimation u/s 143(1) the same?
No, the intimation u/s 143(1) and the tax assessment order are not the same.

Can I use intimation u/s 143(1) as address proof?
Yes, you can use the intimation u/s 143(1) as an address proof.

Which method will the IT department use to notify me under Section 143(1)?
The IT department will send you an email with the subject “Your ITR intimation.” The tax filer receives an SMS alert from the department notifying them that the notification under section 143-1 has been sent to their registered email address.

Can we disregard notification u/s 143 (1)?
The Income Tax Department has effectively processed the notification, and the taxpayer need not take any further action if there is no mismatch, no demand, and no refund due.

When will you be notified in accordance with section 143 (1)?
After filing the income tax return, the taxpayer must confirm it. The income tax department then notifies the taxpayer by registered email address and mobile number under section 143(1) of the income tax act that the ITR has been processed.

What does the Income Tax Act’s section 143(1) cover?
After adjusting for any mathematical errors or claims, the adjusted income is determined. The tax, interest, and charge (if any) are calculated based on this sum. Any balance or refund to which the taxpayer is entitled is communicated to him.

I was given a demand notice for Rs. 5,000 under clause 143(1). How should I proceed?
You must first confirm the basis for your tax liability. If you accept the tax demand, you must pay the tax. In the challan, select the Tax on Regular Assessment (400) payment type. Please provide a statement stating your disagreement with the requirement.

What causes the discrepancy between the taxpayer’s TDS and the amount estimated under Section 143(1)?
The TDS shown in 26AS differs from the TDS claimed in your tax return, which accounts for the difference between the TDS as reported by the taxpayer and as computed under section 143(1). You can make an online rectification application under section 154(1) for errors in the intimation order under section 143(1) if the TDS claimed in your tax return is accurate.

What can I do if I disagree with the refund that was stated in the notification order?
You will need to file a revised or rectification return if you disagree with the decreased refund that the CPC estimated in the intimation order. If you made any mistakes on your initial return, you can file an amended return. Only, if you discover an error in the order issued by the Income Tax Department, you may file a rectification return.