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Section 143(1) Order Letter of Intimation

Section 143(1) of the Income Tax Act involves the initial assessment of a taxpayer’s return. The Central Processing Centre (CPC) calculates total income, tax liability, and potential refunds based on the provided information. After the assessment, the taxpayer receives an intimation detailing the computed tax liability or refund. If the taxpayer agrees with the adjustments then no action is required. However, if there are any discrepancies or disagreements then the taxpayer needs to provide clarification or file a revised return.

The Central Processing Centre (CPC) is being set up by the Central Board of Direct Taxes (CBDT). The purpose of the CPC is to centralize the processing of the returns with a view to promptly determining the tax liability or refund due to the taxpayer. The CPC project brought advantages to both taxpayers and the tax department. For taxpayers, it meant quicker and smoother initial processing of their returns. Additionally, it eased the department’s workload by automating preliminary assessments, allowing them to focus on more substantial tasks.

Preliminary Assessment

The initial processing of return is completely automated and the intimation u/s 143(1) is also a computer-generated document. While processing returns CPC validates the information provided in the filed return with the details available with the department such as TDS returns, Form 26AS, etc.

The process flow of the Preliminary Assessment is as follows:

After submitting the return, the total income or loss will be re-calculated by the computerized system based on the information available to the department.
Verification is to be done for major categories such as:
- Incomes under various heads
- Gross total income
- Deductions under chapter VIA
- TDS and tax paid by the taxpayer in the form of Self Assessment tax and Advance Tax
Once the verification is completed, relevant adjustments will be made to income computed as per section 143(1), and final tax liability or refund will be calculated.
Such proposed adjustments will be notified to the taxpayer by issuing an intimation letter. The taxpayer has to provide a response to such intimation within the prescribed time limit.
If the response is received by the department then they will make final adjustments accordingly. However, if a response is not received by the taxpayer then the proposed adjustment will be considered as final adjustment.
After determining the final tax liability, the same will be adjusted against TDS and other relief claimed u/s 90/91 if any.
After such adjustments, the final intimation will be sent to the taxpayer.

Types of intimation:

Intimation with No Demand or No Refund:
The department accepts the taxpayer’s filed return without making any adjustments. In this scenario, there will be no additional tax liability or refund.
Intimation with Demand:
The department will issue an intimation with a tax demand when there are adjustments resulting in additional tax liabilities to be paid by the taxpayer.
Intimation with Refund:
If after making final adjustments the tax liability is lower than the taxes already paid by the taxpayer while filing the return, the remaining amount of taxes will be refunded to them.

Types of Adjustments under section 143(1)

The department may issue an intimation letter if it needs to make any of the following adjustments in the filed income tax return:

Any arithmetical error.
Incorrect claims which are apparent from the information in the filed return.
Disallowance of expenses which are reported in audit report but not reported in income tax return.
Disallowance of the set-off of losses from the previous year when the return for the related year is filed beyond the prescribed due date.
Addition of income which is reflected in Form 26AS/16A/16 but not reported while filing the return.
An inconsistency arises when a declaration within a tax return contradicts another entry within the same return or in a different section of the return.

Communication of Intimation under section 143(1)

The letter of intimation u/s 143(1) can be received by email or mobile number registered on the income tax portal. Further, the sender of the intimation will be the Central Processing Centre (CPC).

Time Limit for the issue of Intimation under section 143(1)

The income tax department can issue an intimation u/s 143(1) within 9 months from the end of the financial year in which the taxpayer has filed the return.

For example, Jay filed his income tax return on 20th July 2023 for the financial year 2022-23. In such case, the income tax department can send intimation u/s 143(1) up to 31st December 2024, which is 9 months from the end of the financial year 2022-23 in which the return was filed.

If a taxpayer doesn’t receive any communication within this timeframe, it indicates that there have been no alterations or revisions made to the initially filed Income Tax Return. This means there are no modifications in the tax liability or the refund due. Hence, the filed return is considered as having received an intimation under Section 143(1).

Steps to download Intimation under Section 143(1)

Login to the e-filing portalLogin to the income tax website using valid credentials.
Navigate to View Filed ReturnsGo to e-file > Income Tax Returns > View Filed Returns

Click on View DetailsFor the relevant Assessment Year, click on View Details

Download Intimation Order under Section 143(1)

In the next step, taxpayers can see the status of each filing stage. If it shows ‘Processed’, they can download the intimation by clicking on ‘Download Intimation Order’.

Open Intimation Order under Section 143(1)The intimation order is password-protected. The password to open the intimation letter is PAN in lowercase and the date of birth (DDMMYYYY) is without any space. Eg: PAN is AAAPA1234A and the date of birth is 01/01/2000. The password would be aaapa1234a01012000.

Response to Intimation under section 143(1)

Upon receiving the intimation, the taxpayer should initially verify the correctness of the information provided. This includes confirming details such as the Name, PAN, Assessment year, etc.

Case scenario Action
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds. In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes. In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer. The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return. If the taxpayer Agrees: They need to pay the outstanding demand and file a response.

If the taxpayer Disagrees: They need to file a Rectification request u/s 154.

Consequences of Non-response

If the taxpayer receives the intimation letter under section 143(1), they must respond within the specified time limit. Failure to do so will result in the department treating the proposed adjustments as final. They will then calculate the ultimate tax liability or refund. Once these final calculations are done, the taxpayer will receive the final intimation letter.

Posted on October 29, 2025October 29, 2025Author TaxConceptCategories INCOME TAXTags Central Processing Centre, CPC, cpc Bangalore, Intimation under section 143(1), Section 143(1), Section 143(1): Letter of Intimation

Section 143(1) Order Letter of Intimation

Section 143(1) of the Income Tax Act involves the initial assessment of a taxpayer’s return. The Central Processing Centre (CPC) calculates total income, tax liability, and potential refunds based on the provided information. After the assessment, the taxpayer receives an intimation detailing the computed tax liability or refund. If the taxpayer agrees with the adjustments then no action is required. However, if there are any discrepancies or disagreements then the taxpayer needs to provide clarification or file a revised return.

The Central Processing Centre (CPC) is being set up by the Central Board of Direct Taxes (CBDT). The purpose of the CPC is to centralize the processing of the returns with a view to promptly determining the tax liability or refund due to the taxpayer. The CPC project brought advantages to both taxpayers and the tax department. For taxpayers, it meant quicker and smoother initial processing of their returns. Additionally, it eased the department’s workload by automating preliminary assessments, allowing them to focus on more substantial tasks.

Preliminary Assessment

The initial processing of return is completely automated and the intimation u/s 143(1) is also a computer-generated document. While processing returns CPC validates the information provided in the filed return with the details available with the department such as TDS returns, Form 26AS, etc.

The process flow of the Preliminary Assessment is as follows:

After submitting the return, the total income or loss will be re-calculated by the computerized system based on the information available to the department.

Verification is to be done for major categories such as:

Incomes under various heads

Gross total income

Deductions under chapter VIA

TDS and tax paid by the taxpayer in the form of Self Assessment tax and Advance Tax

Once the verification is completed, relevant adjustments will be made to income computed as per section 143(1), and final tax liability or refund will be calculated.

Such proposed adjustments will be notified to the taxpayer by issuing an intimation letter. The taxpayer has to provide a response to such intimation within the prescribed time limit.

If the response is received by the department then they will make final adjustments accordingly. However, if a response is not received by the taxpayer then the proposed adjustment will be considered as final adjustment.

After determining the final tax liability, the same will be adjusted against TDS and other relief claimed u/s 90/91 if any.

After such adjustments, the final intimation will be sent to the taxpayer.

Types of intimation:

Intimation with No Demand or No Refund:
The department accepts the taxpayer’s filed return without making any adjustments. In this scenario, there will be no additional tax liability or refund.

Intimation with Demand:
The department will issue an intimation with a tax demand when there are adjustments resulting in additional tax liabilities to be paid by the taxpayer.

Intimation with Refund:
If after making final adjustments the tax liability is lower than the taxes already paid by the taxpayer while filing the return, the remaining amount of taxes will be refunded to them.

Types of Adjustments under section 143(1)

The department may issue an intimation letter if it needs to make any of the following adjustments in the filed income tax return:

Any arithmetical error.

Incorrect claims which are apparent from the information in the filed return.

Disallowance of expenses which are reported in audit report but not reported in income tax return.

Disallowance of the set-off of losses from the previous year when the return for the related year is filed beyond the prescribed due date.

Addition of income which is reflected in Form 26AS/16A/16 but not reported while filing the return.

An inconsistency arises when a declaration within a tax return contradicts another entry within the same return or in a different section of the return.

Communication of Intimation under section 143(1)

The letter of intimation u/s 143(1) can be received by email or mobile number registered on the income tax portal. Further, the sender of the intimation will be the Central Processing Centre (CPC).

Time Limit for the issue of Intimation under section 143(1)

The income tax department can issue an intimation u/s 143(1) within 9 months from the end of the financial year in which the taxpayer has filed the return.

For example, Jay filed his income tax return on 20th July 2023 for the financial year 2022-23. In such case, the income tax department can send intimation u/s 143(1) up to 31st December 2024, which is 9 months from the end of the financial year 2022-23 in which the return was filed.

If a taxpayer doesn’t receive any communication within this timeframe, it indicates that there have been no alterations or revisions made to the initially filed Income Tax Return. This means there are no modifications in the tax liability or the refund due. Hence, the filed return is considered as having received an intimation under Section 143(1).

Steps to download Intimation under Section 143(1)

Login to the e-filing portalLogin to the income tax website using valid credentials.

Navigate to View Filed ReturnsGo to e-file > Income Tax Returns > View Filed Returns

Click on View DetailsFor the relevant Assessment Year, click on View Details

Download Intimation Order under Section 143(1)

In the next step, taxpayers can see the status of each filing stage. If it shows ‘Processed’, they can download the intimation by clicking on ‘Download Intimation Order’.

Open Intimation Order under Section 143(1)The intimation order is password-protected. The password to open the intimation letter is PAN in lowercase and the date of birth (DDMMYYYY) is without any space. Eg: PAN is AAAPA1234A and the date of birth is 01/01/2000. The password would be aaapa1234a01012000.

Response to Intimation under section 143(1)

Upon receiving the intimation, the taxpayer should initially verify the correctness of the information provided. This includes confirming details such as the Name, PAN, Assessment year, etc.

Case scenario Action
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds. In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes. In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer. The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return. If the taxpayer Agrees: They need to pay the outstanding demand and file a response.

If the taxpayer Disagrees: They need to file a Rectification request u/s 154.

Consequences of Non-response

If the taxpayer receives the intimation letter under section 143(1), they must respond within the specified time limit. Failure to do so will result in the department treating the proposed adjustments as final. They will then calculate the ultimate tax liability or refund. Once these final calculations are done, the taxpayer will receive the final intimation letter.

Posted on September 8, 2025September 8, 2025Author TaxConceptCategories INCOME TAXTags Central Processing Centre, CPC, cpc Bangalore, Intimation under section 143(1), Section 143(1), Section 143(1) Letter of Intimation

Intimation Under Section 143(1) of Income Tax Act

Income tax return can be either filed voluntarily under Section 139 or on demand by the income tax department under Section 142(1). It is necessary to understand what happens after the taxpayer has filed the return of income.

The process of examining the return filed by the taxpayer by the income tax department is termed assessment. The IT department carries out a preliminary assessment of all the returns filed and informs taxpayers of the result of such preliminary assessment. This assessment primarily includes arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment. The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).

Thereafter, the system generates the intimation under Section 143(1), which generally indicates obvious errors identified by the mainframe system.

When Does One Receive an Intimation u/s 143(1)?

Every assessee shall receive the intimation under section 143(1) upon successful processing of the return.

As mentioned above, it is an automated system-driven process that verifies the arithmetical accuracy, information available with the department, details available in return, and the provision of income tax law, and it generates the comparison report. Such an automated process eliminates the manual job of the income tax officer to a great extent.

If a taxpayer has paid excess tax, then it mentions tax refund. A refund will be issued only if the amount is more than Rs.100.

If the tax paid by the taxpayer has fallen short, it mentions the amount of demand and a challan to make the payment.

It’s a simple acknowledgement that the ITR filed by the taxpayer is consistent as per the Assessing Officer.

Centralized Processing Center

With the rapid increase in the number of income tax returns and a jurisdiction-based processing model for all the returns filed, the tax department faced problems leading to delayed processing of income tax returns.

Therefore, the Finance Act, 2008 empowered the Central Board of Direct Taxes (CBDT) to make a scheme for the centralised processing of returns with a view to expeditiously determine the tax payable by, or the refund due to the taxpayers. Based on the recommendations of the Technical Advisory Group, the department adopted the strategy that CPC at Bangalore would process paper and e-returns without any interface with taxpayers and in a jurisdiction free manner.

CPC project envisaged benefits for the citizens as well as the tax department. For citizens, it led to faster and hassle-free preliminary processing of their returns and also relieved the department from the burden of preliminary assessment that can be computerised, enabling them to concentrate on hardcore activities.

Any communication from the income tax department creates panic for taxpayers. However, Section 143(1) intimation is not something one needs to worry about. In this article, we would be discussing the intimation sent under Section 143(1) in detail to help taxpayers easily deal with such intimation.

Preliminary Assessment Under 143(1)

Initial processing of returns by CPC is completely automated and Section 143(1) Intimation is also a computer generated record. CPC validates data provided in each tax return with details available with the income tax department’s own record (such as Form 26AS generated through details provided by collecting banks, TDS returns, etc.) and this notice usually only points out apparent mistakes found out by the mainframe system.

Once the return is filed, total income or loss is recomputed by the computerised system as per the department’s record and provides a comparison with data filed by the taxpayer

The intimation has two columns: ‘As provided by the taxpayer in the Return of Income’ and ‘As computed under Section 143 (1)

Comparison is made for major categories such as

Income under various heads,

Gross total income,

Deductions under Chapter VIA (80C, 80D, etc.), and

Tax deducted at source, and tax paid by taxpayers in the form of advance tax and self assessment tax

Appropriate adjustments are made to income as computed under Section 143(1) and final tax liability or refund is arrived at

The adjustments are carried out only after giving an intimation to the taxpayer of the proposed adjustments either in writing or electronic mode i.e., to the email id provided in the income tax return filed

Response received from the taxpayer within 30 days from the issuance date of intimation will be considered before making the final adjustment and in case no response is received within such period, adjustments arrived at initially will be incorporated.

After arriving at final tax liability, the same is adjusted against TDS and tax payments and other relief under Section 90/91, if any.

An intimation shall be prepared and sent to the taxpayer.
Kind of intimations possible are discussed below:

Intimation with no demand or no refund – This generally happens if the department has accepted the return as filed without carrying out any adjustments to it.

Intimation determining demand – Issued in case of adjustments made under Section 143(1) due to a discrepancy found and tax liability is arrived at.

Intimation determining refund – Issued where any tax is found to be refundable either where no discrepancy in the return filed or after making adjustments as referred to in Section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.

While demand notice is sent in case of final tax liability, refunds if any shall be granted to the taxpayer.

Nature of Adjustments Under 143(1)

Total income or loss is computed under Section 143(1) after making the following adjustments:

Arithmetical error in the return

Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:

The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.

Disallowance of set-off of loss in the financial year which is carried forward from previous years in which return was filed beyond the specified due date

Disallowance of expenditure is indicated in the audit report but not indicated in the return of income.

Time Limit for Issue of 143(1)

Section 143(1) intimation has to be sent within nine months from the end of the financial year in which the return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2023-24 in July 2024, intimation can be sent any time till 31 December 2025. If a taxpayer does not receive any intimation within such period, it simply means there are no adjustments carried out to the return filed by the taxpayer and no change in tax liability/refund, and the acknowledgement filed itself is deemed to be Section 143(1) intimation.

What is the Password for Intimation u/s 143(1)?

The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by your date of birth in DDMMYYYY format without giving any space.

For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.

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.

However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. Refer our article on OLTAS challan payment on how to pay taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan.
If you wish to pay challan physically, the pre-filled challan is attached with the intimation as below.

Important

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.

Posted on November 23, 2024November 23, 2024Author TaxConceptCategories INCOME TAXTags CBDT, CBDT ANNOUNCEMENT, Centralized Processing Center, CPC, Income tax notice, income tax notice 143(1)(a), income tax notice 143(2), income tax notice 148, income tax notice action, income tax notice after cash transaction, Income tax notice after TDS deduct, Intimation under section 143(1), Intimation Under Section 143(1) of Income Tax Act, notice adjustment under section 143, Password for Intimation u/s 143(1), Preliminary Assessment Under 143(1), Time Limit for Issue of 143(1)

Letter of Intimation u/s 143(1)

Intimation Under Section 143(1) of Income Tax Act income tax returns filed by the taxpayers are first processed online at the Centralised Processing Centre (CPC). After processing the return, the income tax department then issues intimation under section 143(1) to the taxpayers informing them about the results.

Letter of Intimation u/s 143(1)

An income tax return can be either filed voluntarily under Section 139 or on demand by the income tax department under Section 142(1). It is necessary to understand what happens after the taxpayer has filed the return of income.

The process of examining the return filed by the taxpayer by the income tax department is termed assessment. The IT department carries out a preliminary assessment of all the returns filed and informs taxpayers of the result of such preliminary assessment. This assessment primarily includes arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment. The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).

Thereafter, the system generates the intimation under Section 143(1), which generally indicates obvious errors identified by the mainframe system.

When does one receive an Intimation under Section 143(1)

Every assessee shall receive the intimation under section 143(1) upon successful processing of the return.

As mentioned above, it is an automated system-driven process that verifies the arithmetical accuracy, information available with the department, details available in return, and the provision of income tax law, and it generates the comparison report. Such an automated process eliminates the manual job of the income tax officer to a great extent.

If a taxpayer has paid excess tax, then it mentions tax refund. A refund will be issued only if the amount is more than Rs.100.

If the tax paid by the taxpayer has fallen short, it mentions the amount of demand and a challan to make the payment.

It’s a simple acknowledgement that the ITR filed by the taxpayer is consistent as per the Assessing Officer.

Centralized Processing Center

With the rapid increase in the number of income tax returns and a jurisdiction-based processing model for all the returns filed, the tax department faced problems leading to delayed processing of income tax returns.

Therefore, the Finance Act, 2008 empowered the Central Board of Direct Taxes (CBDT) to make a scheme for the centralised processing of returns with a view to expeditiously determine the tax payable by, or the refund due to the taxpayers. Based on the recommendations of the Technical Advisory Group, the department adopted the strategy that CPC at Bangalore would process paper and e-returns without any interface with taxpayers and in a jurisdiction free manner.

CPC project envisaged benefits for the citizens as well as the tax department. For citizens, it led to faster and hassle-free preliminary processing of their returns and also relieved the department from the burden of preliminary assessment that can be computerised, enabling them to concentrate on hardcore activities.

Any communication from the income tax department creates panic for taxpayers. However, Section 143(1) intimation is not something one needs to worry about. In this article, we would be discussing the intimation sent under Section 143(1) in detail to help taxpayers easily deal with such intimation.

Preliminary Assessment under 143(1)

Initial processing of returns by CPC is completely automated and Section 143(1) Intimation is also a computer generated record. CPC validates data provided in each tax return with details available with the income tax department’s own record (such as Form 26AS generated through details provided by collecting banks, TDS returns, etc.) and this notice usually only points out apparent mistakes found out by the mainframe system.

Once the return is filed, total income or loss is recomputed by the computerised system as per the department’s record and provides a comparison with data filed by the taxpayer

The intimation has two columns: ‘As provided by the taxpayer in the Return of Income’ and ‘As computed under Section 143 (1)

Comparison is made for major categories such as

Income under various heads,

Gross total income,

Deductions under Chapter VIA (80C, 80D, etc.), and

Tax deducted at source, and tax paid by taxpayers in the form of advance tax and self assessment tax

Appropriate adjustments are made to income as computed under Section 143(1) and final tax liability or refund is arrived at

The adjustments are carried out only after giving an intimation to the taxpayer of the proposed adjustments either in writing or electronic mode i.e., to the email id provided in the income tax return filed

Response received from the taxpayer within 30 days from the issuance date of intimation will be considered before making the final adjustment and in case no response is received within such period, adjustments arrived at initially will be incorporated.

After arriving at final tax liability, the same is adjusted against TDS and tax payments and other relief under Section 90/91, if any.

An intimation shall be prepared and sent to the taxpayer.
Kind of intimations possible are discussed below:

Intimation with no demand or no refund – This generally happens if the department has accepted the return as filed without carrying out any adjustments to it.

Intimation determining demand – Issued in case of adjustments made under Section 143(1) due to a discrepancy found and tax liability is arrived at.

Intimation determining refund – Issued where any tax is found to be refundable either where no discrepancy in the return filed or after making adjustments as referred to in Section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.

While demand notice is sent in case of final tax liability, refunds if any shall be granted to the taxpayer.

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

The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by your date of birth in DDMMYYYY format without giving any space.

For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.

Nature of adjustments under 143(1)

Total income or loss is computed under Section 143(1) after making the following adjustments:

Arithmetical error in the return

Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:

The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.

Disallowance of set-off of loss in the financial year which is carried forward from previous years in which return was filed beyond the specified due date

Disallowance of expenditure is indicated in the audit report but not indicated in the return of income.

Time Limit for issue of 143(1)

Section 143(1) intimation has to be sent within nine months from the end of the financial year in which the return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2023-24 in July 2024, intimation can be sent any time till 31 December 2025. If a taxpayer does not receive any intimation within such period, it simply means there are no adjustments carried out to the return filed by the taxpayer and no change in tax liability/refund, and the acknowledgement filed itself is deemed to be Section 143(1) intimation.

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.

However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. Refer our article on OLTAS challan payment on how to pay taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan.
If you wish to pay challan physically, the pre-filled challan is attached with the intimation as below.

Frequently Asked Questions

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.

Posted on June 29, 2024June 29, 2024Author TaxConceptCategories INCOME TAXTags 143(2) income tax notice reply format, ai income tax notice, Authenticate income tax notice, Avoid Income tax notice, Cash Transaction income tax notice, CPC, cpc Bangalore, Income tax notice, income tax notice 143(1)(a), income tax notice 143(2), income tax notice after cash transaction, Income tax notice after ITR processed, Income tax notice after TDS deduct, income tax notice ass, income tax notice assessment, income tax notice avaid, intimation notice under section 143(1), intimation notices for mismatch of ITRs, Intimation Notices under Section 143(1), Intimation of Tax Refund under Section 143(1), Intimation U/S 143(1), Intimation under section 143(1), Letter of Intimation u/s 143(1)

CPC Bangalore ITR-V Address for Speed Post | Updated Income Tax Department Guidelines

Latest Updates
The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. For the income tax returns filed up to 31st July 2022, the time limit for ITR verification remains 120 days.

What is ITR-V?

ITR-V is a one-page document, which you need to sign preferably in blue ink and send via ordinary post or speed post.

With effect from 1st August 2022, i.e. for the returns filed after 31st July 2022, ITR-V should be sent via speed post within 30 days of return filing.

You cannot courier the ITR-V. You do NOT need to send any supporting documents along with the ITR-V. Just the one-page signed ITR-V.

Address of CPC, Bangalore for Speed Post

A unique PINCODE 560500 has been allotted to the Centralized Processing Centre (CPC), Income Tax Department located in Bengaluru by the Department of Post. Taxpayers can henceforth address their mails to “Centralized Processing Center, Income Tax Department, Bengaluru 560500” for the purpose of submission of ITR-V forms and other documents which require a physical mode of transmission.

CPC Address

Centralised Processing Center,

Income Tax Department,

Bengaluru, Karnataka 560500

Detailed instructions provided by Income Tax Department

Please use the ink Jet /laser printer to print the ITR-V Form.

Avoid printing on the Dot Matrix printer.

The ITR-V Form should be printed only in black ink.

Do not use any other ink option to print ITR V.

Ensure that printout is clear and not light print/faded copy.

Please do not print any water marks on ITR-V. The only permissible watermark is that of “Income tax Department” which is printed automatically on each ITR-V.

The document that is mailed to CPC should be signed in original in BLUE INK.

Photocopy of signatures will not be accepted.

The signatures or any handwritten text should not be written on the barcode.

Bar code and numbers below the barcode should be clearly visible.

Only A4 size white paper should be used.

Avoid typing anything at the back of the paper.

Perforated paper or any other size paper should be avoided.

Do not use stapler on ITR V acknowledgement.

In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.

More than one ITR-V can be sent in the same envelope.

Please do not submit any annexures, covering letters, pre-stamped envelopes etc. along with ITR-V.

The ITR-V form is required to be sent to the Centralised Processing Center, Income Tax Department, Bengaluru, Karnataka-560500, by ordinary post or speed post.

With effect from 1st August 2022, i.e. for the returns filed after 31st July 2022, ITR-V should be sent via speed post within 30 days of return filing.

ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

Please note, that if your verification is pending, then the ITR-V is not proof of having filed your return.

Posted on June 20, 2024June 20, 2024Author The Master WriterCategories INCOME TAXTags Address of cpc Bangalore, BELATED ITR, CBDT, CBDT ANNOUNCEMENT, CPC, cpc Bangalore, INCOME TAX, INCOME TAX DEPARTMENT, Income Tax Return, Income tax return 2024-25, ITR-V

Income Tax Notice: How to request for resending Intimation Order u/s 143 (1)

Letter of intimation u/s 143(1): An income tax return can be either filed voluntarily under Section 139 or on demand by the income tax department under Section 142(1). It is necessary to understand what happens after the taxpayer has filed the return of income.

The process of examining the return filed by the taxpayer by the Income tax department is termed as assessment. The IT department carries out a preliminary assessment of all the returns filed and informs taxpayers of the result of such preliminary assessment. This assessment primarily includes arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment. The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).

Thereafter, system generates the intimation under Section 143(1) that generally indicates obvious errors that the mainframe system has identified.

When does one receive an Intimation under Section 143(1)

If taxpayer has paid excess tax then it mentions tax refund. Refund is only initiated if amount is over INR 100.

If tax paid by taxpayer has fallen short, then it mentions the amount and a challan to make the payment.

Simple acknowledgment if the ITR filed by taxpayer is consistent as per the Assessing Officer.

Centralized Processing Center

With the rapid increase in the number of income tax returns and a jurisdiction-based processing model for all the returns filed, tax department faced problems leading to delayed processing of income tax returns.

Therefore, the Finance Act, 2008 empowered the Central Board of Direct Taxes (CBDT) to make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to the taxpayers. Based on the recommendations of the Technical Advisory Group, the department adopted the strategy that CPC at Bangalore would process paper and e-returns without any interface with taxpayers and in a jurisdiction free manner.

CPC project envisaged benefits for the citizens as well as the tax department. For citizens, it led to faster and hassle-free preliminary processing of their returns and also relieved the department from the burden of preliminary assessment that can be computerised and enabled them to concentrate on hardcore activities.

Any communication from the income tax department creates panic for taxpayers. However, Section 143(1) intimation is not something one needs to worry about. In this article, we would be discussing intimation sent under Section 143(1) in detail to make it help taxpayers deal with such intimation with ease.

Read more at; Section 143(1) of Income Tax Act 1961- All About Intimation U/S 143(1)

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

The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by date of birth in DDMMYYYY format without giving any space.

For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.

Nature of adjustments under 143(1)

Total income or loss is computed under Section 143(1) after making the following adjustments:

Arithmetical error in the return

Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:

The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.

Disallowance of set off of loss in the financial year which is carried forward from previous years in which return was filed beyond specified due date

Disallowance of expenditure indicated in the audit report but not indicated in the return of income.

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 document pertains to your return itself and 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, 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 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 income tax ombudsman.

However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. Refer our article on OLTAS challan payment on how to pay taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan.
If you wish to pay challan physically, the pre-filled challan is attached with the intimation as below.

After filing your income tax returns, the Income Tax Department conducts a computerized preliminary assessment. This assessment involves checking for arithmetical errors in tax calculations, internal inconsistencies, and verifying tax payments. If there is a mismatch between the tax exemptions reported in your IT return document and those shown in Form 16, you may receive a letter of intimation under Section 143(1).

It’s important to note that this initial evaluation is automated and doesn’t involve any checks by income tax officials. Once the Income Tax Return is processed by CPC (Centralized Processing Center), you will receive an intimation at your registered email ID.

Typically, you receive an intimation order under Section 143(1) if there is any demand for that particular assessment year. The intimation will provide information about the details of mismatch in TDS or tax paid. The tax department will inform taxpayers about this through their registered email ID. The intimation will specify either the sum determined to be payable or the amount of refund due to the taxpayer.

If you need to request a resend of the Intimation order, you can follow this step-by-step guide:

HOW TO REQUEST FOR RESENDING INTIMATION ORDER U/S 143 (1):

Log in to the ‘e-Filing’ Portal at www.incometaxindiaefiling.gov.in.

Navigate to the ‘My Account’ menu and click on ‘Service Request.

Choose ‘New Request’ as the ‘Request Type.’

Select ‘Intimation u/s 143(1)154/16(1)/35’ as the ‘Request Category,’ and click ‘Submit.

Provide the necessary details as requested and click on ‘Submit.

After submitting the request, you can check the status.

One can also check the status of the request under “My Request List” tab in your account. You will receive confirmation on the same and you will receive intimation to your mail ID in 5-6 working days.

Read more at: ITR Filing- What is Income tax Intimation Letter Under Section 143(1), Request for resenting

Posted on December 26, 2023December 26, 2023Author TaxConceptCategories INCOME TAXTags CPC, INCOME TAX, INCOME TAX DEPARTMENT, Income tax notice, income tax notice avoid, income tax notice on salary income, income tax notice property, income tax notice scrutiny, Income Tax Return, Intimation under section 143(1), Letter of Intimation u/s 143(1), Nature of adjustments under 143(1), PAN CARD, resending Intimation Order u/s 143 (1)

Case scenario	Action
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds.	In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes.	In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer.	The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return.	If the taxpayer Agrees: They need to pay the outstanding demand and file a response. If the taxpayer Disagrees: They need to file a Rectification request u/s 154.