Tag: Income tax section 143(1)

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 Order 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):

  • Sequence number of refund
  • Details of assesses, such as name, address, etc.

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

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

  • 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.
  • 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.
  • 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:

  • Intimation is received in your registered email ID

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: 

  • 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’
  • New page will appear showing the filed returns
  • 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): 

  • The document identification number in the intimation 
  • Name on the intimation 
  • Check whether the deduction claimed under 80C, and sections are considered or not 
  • Income is mentioned under appropriate head 
  • Check whether the income is repeated or not 
  • Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  • 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)?

  • 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.
  • 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.
  • 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.
  • 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.

Read more at: ITR filing: What is the password to open income tax intimation notice under section 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.

Time Limit for issue of 143(1)

Section 143(1) intimation has to be sent within one year from the end of the financial year in which return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2021-22 in July 2022, intimation can be sent any time till 31 March 2024. 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 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. 

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.

Income Tax Notice Section 143(2) for Scrutiny u/s 143(3)

Income tax return filing is a legal obligation for individuals, firms, and companies. After the return is filed, the Income Tax Department may send a notice for scrutiny under section 143(2) of the Income Tax Act, 1961. The notice is an indication that the department wants to examine the details provided in the return and ensure that the tax payable is accurately computed. In this blog, we will discuss the income tax notice section 143(2) and its implications.

An income tax notice section 143(2) is issued by the Income Tax Department in India to inform taxpayers that their tax returns are selected for scrutiny. This means that the department would like to verify the accuracy of the information provided in the return. Taxpayers receiving such a notice are required to file income tax India and respond within the specified time frame. If the department is not satisfied with the response, it may issue a notice u/s 143(3) for a full-fledged scrutiny assessment. It is important for taxpayers to file income tax India accurately and promptly to avoid any inconvenience or penalties. If you have received a notice, it is advisable to seek professional help to ensure compliance with the tax laws.

Understanding the Notice u/s 143(2)

A income tax notice section 143(2) is sent to the taxpayer after the department has processed the return. The notice is a formal request to the taxpayer to provide additional information or documents that the department may require to complete the scrutiny process. The department can issue this notice if it suspects any discrepancy in the return or if it wants to verify the claim made by the taxpayer.

The notice may be sent either through post or electronically. The taxpayer is required to respond to the notice within the time limit specified in the notice, which is usually 30 days. In case the taxpayer does not respond within the time limit, the department may proceed with the scrutiny under section 143(3) of the Income Tax Act.

Implications of Scrutiny under section 143(3)

Scrutiny under section 143(3) is a detailed examination of the return filed by the taxpayer. The department may require the taxpayer to provide additional information and documents to support the claim made in the return. The taxpayer is also required to appear before the department if required.

The scrutiny process can be time-consuming and may cause inconvenience to the taxpayer. However, it is important to note that the scrutiny is a normal process and does not necessarily indicate that the taxpayer has committed any wrongdoing. The department may also adjust the return if it finds any discrepancy, which may result in the taxpayer paying additional tax or receiving a refund.

Benefits of Notice u/s 143(2)

The income tax notice section 143(2) for Scrutiny u/s 143(3) provides several benefits to both the taxpayer and the Income Tax Department.

For the taxpayer, the scrutiny process offers an opportunity to clarify any discrepancy or confusion in the return, which can lead to a more accurate determination of the tax payable. If the department finds any errors in the return, it may adjust the return and the taxpayer may have to pay additional tax or receive a refund. This helps to ensure that the taxpayer is paying the correct amount of tax.

For the Income Tax Department, the scrutiny process helps to promote compliance with tax laws and maintain the integrity of the tax system. The process provides a transparent mechanism for the department to examine the return and ensure that the taxpayer is paying the correct amount of tax.

In addition, the scrutiny process helps to reduce the risk of tax evasion by providing the department with a comprehensive understanding of the taxpayer’s financial position. This enables the department to make informed decisions and ensures that all taxpayers are treated fairly and equitably.

It is important to note that the scrutiny process is a normal process and does not necessarily indicate that the taxpayer has committed any wrongdoing. However, it is advisable for the taxpayer to respond to the notice within the time limit specified and provide all the necessary information and documents as required by the department.

How to Respond to the Income Tax Notice Section 143(2)

It is advisable to respond to the notice within the time limit specified in the notice. The taxpayer should provide all the necessary information and documents as required by the department. In case the taxpayer is unable to provide the required information, they should explain the reasons for the same in their response.

The taxpayer can respond to the notice either by visiting the department’s office or by sending the information and documents through post. In case the taxpayer needs to provide additional information or documents, they should request additional time from the department.

Conclusion

In conclusion, income tax return filing is a legal obligation for individuals, firms, and companies. Once the return is filed, the possibility of receiving a notice under section 143(2) of the Income Tax Act, 1961 exists. This notice serves as a signal from the Income Tax Department to scrutinize the details provided in the return and ensure accurate computation of the tax payable.

Receiving an income tax notice section 143(2) means that the department intends to verify the information provided in the return. Taxpayers are required to respond within the specified time frame and, if necessary, seek professional assistance to ensure compliance with the tax laws.

Responding to the notice within the specified time limit and providing all the necessary information and documents is crucial. It is an opportunity for taxpayers to clarify any discrepancies and ensure a fair determination of the tax payable.

Ultimately, the scrutiny process is part of the normal assessment procedure and aims to promote compliance with tax laws, maintain the integrity of the tax system, and reduce the risk of tax evasion. It is essential for taxpayers to engage with the department transparently and provide the required information to achieve a fair and accurate tax assessment.

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):

  • Sequence number of refund
  • Details of assesses, such as name, address, etc.

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

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

  • 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.
  • 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.
  • 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:

  • Intimation is received in your registered email ID

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: 

  • 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’
  • New page will appear showing the filed returns
  • 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): 

  • The document identification number in the intimation 
  • Name on the intimation 
  • Check whether the deduction claimed under 80C, and sections are considered or not 
  • Income is mentioned under appropriate head 
  • Check whether the income is repeated or not 
  • Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  • 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)?

  • 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.
  • 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.
  • 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.
  • 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.

Read more at: ITR filing: What is the password to open income tax intimation notice under section 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.

Time Limit for issue of 143(1)

Section 143(1) intimation has to be sent within one year from the end of the financial year in which return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2021-22 in July 2022, intimation can be sent any time till 31 March 2024. 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 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. 

Income Tax Notice Section 143(2) for Scrutiny u/s 143(3)

Income tax return filing is a legal obligation for individuals, firms, and companies. After the return is filed, the Income Tax Department may send a notice for scrutiny under section 143(2) of the Income Tax Act, 1961. The notice is an indication that the department wants to examine the details provided in the return and ensure that the tax payable is accurately computed. In this blog, we will discuss the income tax notice section 143(2) and its implications.

An income tax notice section 143(2) is issued by the Income Tax Department in India to inform taxpayers that their tax returns are selected for scrutiny. This means that the department would like to verify the accuracy of the information provided in the return. Taxpayers receiving such a notice are required to file income tax India and respond within the specified time frame. If the department is not satisfied with the response, it may issue a notice u/s 143(3) for a full-fledged scrutiny assessment. It is important for taxpayers to file income tax India accurately and promptly to avoid any inconvenience or penalties. If you have received a notice, it is advisable to seek professional help to ensure compliance with the tax laws.

Understanding the Notice u/s 143(2)

A income tax notice section 143(2) is sent to the taxpayer after the department has processed the return. The notice is a formal request to the taxpayer to provide additional information or documents that the department may require to complete the scrutiny process. The department can issue this notice if it suspects any discrepancy in the return or if it wants to verify the claim made by the taxpayer.

The notice may be sent either through post or electronically. The taxpayer is required to respond to the notice within the time limit specified in the notice, which is usually 30 days. In case the taxpayer does not respond within the time limit, the department may proceed with the scrutiny under section 143(3) of the Income Tax Act.

Implications of Scrutiny under section 143(3)

Scrutiny under section 143(3) is a detailed examination of the return filed by the taxpayer. The department may require the taxpayer to provide additional information and documents to support the claim made in the return. The taxpayer is also required to appear before the department if required.

The scrutiny process can be time-consuming and may cause inconvenience to the taxpayer. However, it is important to note that the scrutiny is a normal process and does not necessarily indicate that the taxpayer has committed any wrongdoing. The department may also adjust the return if it finds any discrepancy, which may result in the taxpayer paying additional tax or receiving a refund.

Benefits of Notice u/s 143(2)

The income tax notice section 143(2) for Scrutiny u/s 143(3) provides several benefits to both the taxpayer and the Income Tax Department.

For the taxpayer, the scrutiny process offers an opportunity to clarify any discrepancy or confusion in the return, which can lead to a more accurate determination of the tax payable. If the department finds any errors in the return, it may adjust the return and the taxpayer may have to pay additional tax or receive a refund. This helps to ensure that the taxpayer is paying the correct amount of tax.

For the Income Tax Department, the scrutiny process helps to promote compliance with tax laws and maintain the integrity of the tax system. The process provides a transparent mechanism for the department to examine the return and ensure that the taxpayer is paying the correct amount of tax.

In addition, the scrutiny process helps to reduce the risk of tax evasion by providing the department with a comprehensive understanding of the taxpayer’s financial position. This enables the department to make informed decisions and ensures that all taxpayers are treated fairly and equitably.

It is important to note that the scrutiny process is a normal process and does not necessarily indicate that the taxpayer has committed any wrongdoing. However, it is advisable for the taxpayer to respond to the notice within the time limit specified and provide all the necessary information and documents as required by the department.

How to Respond to the Income Tax Notice Section 143(2)

It is advisable to respond to the notice within the time limit specified in the notice. The taxpayer should provide all the necessary information and documents as required by the department. In case the taxpayer is unable to provide the required information, they should explain the reasons for the same in their response.

The taxpayer can respond to the notice either by visiting the department’s office or by sending the information and documents through post. In case the taxpayer needs to provide additional information or documents, they should request additional time from the department.

Conclusion

In conclusion, income tax return filing is a legal obligation for individuals, firms, and companies. Once the return is filed, the possibility of receiving a notice under section 143(2) of the Income Tax Act, 1961 exists. This notice serves as a signal from the Income Tax Department to scrutinize the details provided in the return and ensure accurate computation of the tax payable.

Receiving an income tax notice section 143(2) means that the department intends to verify the information provided in the return. Taxpayers are required to respond within the specified time frame and, if necessary, seek professional assistance to ensure compliance with the tax laws.

Responding to the notice within the specified time limit and providing all the necessary information and documents is crucial. It is an opportunity for taxpayers to clarify any discrepancies and ensure a fair determination of the tax payable.

Ultimately, the scrutiny process is part of the normal assessment procedure and aims to promote compliance with tax laws, maintain the integrity of the tax system, and reduce the risk of tax evasion. It is essential for taxpayers to engage with the department transparently and provide the required information to achieve a fair and accurate tax assessment.

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):

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

  • 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.
  • 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.
  • 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:

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: 

  • Click on the ‘Income Tax Return’ option under ‘e-file’ option
  • Click on ‘View Field’
  • New page will appear showing the filed returns
  • 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): 

  • The document identification number in the intimation 
  • Name on the intimation 
  • Check whether the deduction claimed under 80C, and sections are considered or not 
  • Income is mentioned under appropriate head 
  • Check whether the income is repeated or not 
  • Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  • 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)?

  • 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.
  • 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.
  • 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.
  • 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.

FAQs on Intimation Under Section 143(1) of Income Tax Act

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.

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):

  • Sequence number of refund
  • Details of assesses, such as name, address, etc.

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

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

  • 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.
  • 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.
  • 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:

  • Intimation is received in your registered email ID

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: 

  • 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’
  • New page will appear showing the filed returns
  • 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): 

  • The document identification number in the intimation 
  • Name on the intimation 
  • Check whether the deduction claimed under 80C, and sections are considered or not 
  • Income is mentioned under appropriate head 
  • Check whether the income is repeated or not 
  • Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not 
  • 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)?

  • 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.
  • 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.
  • 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.
  • 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.

Read more at: ITR filing: What is the password to open income tax intimation notice under section 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.

Time Limit for issue of 143(1)

Section 143(1) intimation has to be sent within one year from the end of the financial year in which return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2021-22 in July 2022, intimation can be sent any time till 31 March 2024. 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 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. 

Intimation Under Section 143(1) of Income Tax Act

A tax notice under Section 143(1) of the Income Tax Act can be issued to begin a summary assessment without calling the taxpayer. Section 143(1) notices are issued based on computerized processing of tax returns without any human interface. In a summary assessment, the Income Tax Department would not call for additional information or documents as requested in a scrutiny assessment.

Summary Assessment under Section 143(1)

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

  1. Any arithmetical error in the return;
  2. An incorrect claim, if such claim is apparently wrong in the tax return filed;
  3. Disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date for filing income tax return;
  4. Dissallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the 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 16A 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;

Responding to Tax Notice

Additional tax is payable by the assessee, after making adjustments mentioned below and giving credit to the taxes and interest paid. In such a case, the taxpayer will be asked to pay the amount due within 30 days. Tax is refundable to the assessee, after making adjustments mentioned below and giving credit to the taxes and interest paid.

There is an increase/decrease in the loss declared by the assessee and no tax or interest is payable by the assessee and no interest is refundable to the assessee.

Time Limit

Assessment under section 143(1) can be made within a period of one year from the end of the financial year in which the return of income 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 return is filed.

Process for Responding to Income Tax Notice under Section 143(1)

The tax notice u/s 143(1) will be sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to the taxpayer. In case there is no sum payable or refundable, the acknowledgement of the return of income will be deemed to be the intimation.

The taxpayer should note that merely because notice is received from the income tax department, it does not mean that it is mandatory for the taxpayer to appear in person before the authorities. In many cases, it shall be sufficient if the person receiving the notice furnishes a response to it in the physical or electronic mode.

If the taxpayer would like to revise the income tax return after receiving a notice under Section 143(1), the assessee must be aware that the deadline for revising the return is 15 days from the date of the notice. If the taxpayer fails to respond in a timely manner to the income tax notice u/s Section 143(1), the income tax return will be processed after making necessary adjustments mentioned in the income tax notice.

To respond to an income tax notice under Section 143(1), 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 being the process of submitting the response.

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

Step 6: In case you have any specific information or explanation, enter the same in the justification or remarks.

Step 7: Submit any supporting documents regarding the amounts of discrepancy before you submit your response.

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

Read more at: Income Tax Department has to send the intimation notice to the taxpayer

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): 

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

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’.

FAQs on Intimation Under Section 143(1) of Income Tax Act

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.

Read more at: Income Tax Notice: Know when and to whom the notice of section 143(1) comes, what to do if it comes

Income tax return filing: Did you get an intimation notice under Section 143(1)

After an income tax return (I-T return) has been filed, the tax department sends an intimation under section 143(1) to highlight any discrepancy that might arise from a lower tax paid than what was meant to be paid.

In case of a lower tax paid, the tax payer is meant to pay the balance amount and resolve the issue. And in case of excess amount, the tax refund is disbursed by the department to the assessee’s bank account that is linked for this very purpose.

What is intimation under section 143(1)?.1)?

Individuals are supposed to file their income tax returns on or before July 31 of the assessment year. After the return has been filed, the tax department carries out processing of the return.

During this process, the tax department might come across a number of discrepancies such as that of data, calculations, among others. In such cases, the department will send a notice — also referred to as intimation under section 143(1).

This notice is sent on the tax payer’s registered email ID. An SMS is also sent on the registered mobile number informing that the intimation notice has been sent to the registered email ID.

An array of scenarios

Once the intimation is received from the department, there could be a number of scenarios that follow, e.g., wrong deduction of TDS from salary and under-reporting of income.

Chirag Chauhan, Founder of CA Chauhan & Co, says there could be three likely scenarios. The first one is that the tax department does not raise any demand for income tax. In this case, assessee does not have to worry over anything. The second scenario could be that of a tax refund. And the third is that there is a tax demand.

“It is important for the tax payer to first identify the scenario, and accordingly rectify the computation. For instance, if TDS is not considered by the department, then one can apply for it to be considered — thereby reducing the tax liability. There are, therefore, multiple permutations and combinations and the response will vary from case to case,” says Mr Chauhan.

There could be a situation that these changes are not reflected in the tax return by December 31. In such a case, one can always rectify the return afterwards. “The deadline for filing a revised return gets over on Dec 31, but one can always rectify his/her return later. There is also an option of raising a grievance or approaching the CPC,” says Mr Chauhan.

Time period

Although the department usually sends a notice within a short period of filing of tax return, the maximum time limit of sending this intimation is nine months from the end of financial year in which the return has been filed.