Tag: Intimation of Tax Refund under Section 143(1)

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

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

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

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

What is Intimation u/s 143(1)?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Intimation Under Section 143(1) of Income Tax Act

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

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

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

What is Intimation u/s 143(1)?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Intimation 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 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. 

Intimation Under Section 143(1) of Income Tax Act

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

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

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

What is Intimation u/s 143(1)?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Intimation 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.

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. 

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

The Processing and Response to Intimation of Tax Refund under Section 143(1) of the Income Tax Act

Most people consider filing of tax returns to be the final process and to not keep track of the subsequent processing of the tax return by the tax authorities. The entire tax return filing and processing has been substantially digitized which makes it easier to check the status of tax returns on-line. 

Once the tax return is filed, the income tax authorities (central processing centre) would review the tax information provided by the taxpayer and process the tax return after examining its accuracy and compliance with the tax laws. 

Accordingly, an intimation is issued to the taxpayer on processing of tax return, containing adjustments made to the taxable income or taxes paid, if any and intimating the resulting tax demand or refund. Notably, as per the Central Board of Direct Taxes (CBDT) press release dated April 3, 2023, refunds of INR 3,07,352 cr have been issued in FY 2022-23 showing an increase of 37.42% over the refunds of INR 2,23,658 cr issued in FY 2021-22.

It is vital for the tax filers to review the assessment of demand or refund determination in order to ensure accuracy and address any discrepancies or issues that may arise. As such, the steps to be taken in this respect such as tracking of any notices, tax demands, making timely payment of the tax demands where due, confirming the accuracy of refund amounts issued by the department etc. are discussed in this article.

Track Intimation of Tax Refund

What is intimation under Section 143(1)?

Intimation under Section 143(1) of the IT Act is not in the nature of notice but a communication which is sent by the revenue authorities to the taxpayers. For the purpose of generating such intimation, processing of the tax return takes place wherein the information provided in the tax return is verified for its accuracy such as any arithmetical error, incorrect claim in the return, etc. and accordingly, the tax demand or tax refund is computed. 

Such intimation is issued within nine months (in fact even much shorter time observed in the past one year) from the end of the financial year in which the tax return is filed.

How to obtain such intimation under Section 143(1)?

Such intimation is generally mailed to the taxpayers by the centralised processing centre (CPC) on their email ids registered on the income tax portal as well as communicated to the taxpayer on the registered mobile number entered while furnishing the tax return. The taxpayers may also download the said intimation from the Income tax portal as follows:

  • Login to the e-filing income tax portal using the valid credentials.
  • In the e-file option on the dashboard, select Income tax returns > view filed returns.
  • Click on view details for the relevant assessment year.
  • Download intimation order under Section 143(1).

Reasons for Adjustments in the Tax Return Furnished 

The following are the causes generally observed for adjustments made by the revenue authorities:

The taxpayer may have claimed an amount of tax deducted at source (TDS) or tax collected at source (TCS) in his tax return which would be different from that as mentioned in their Form 26AS. This may occur due to various reasons such as error on the part of the deductor in computing the TDS or filing the TDS return, the taxpayer claiming TDS/TCS belonging to any previous or subsequent year other than the relevant financial year, etc.    

Taxpayers deriving certain income taxable at special rates such as capital gains may fail to disclose the same separately and subject the same to special tax rate. For instance, short term capital gains from listed equity shares would be subject to tax at 15% under Section 111A of the IT Act whereas long term capital gains from listed equity shares exceeding INR  1,00,000 would be subject to tax at 10% without indexation benefit under Section 112A of the IT Act. 

In case the taxpayers fail to disclose the special rate income separately, the same may result in adjustments in the intimation.

  • Variation in transaction amount as per Form 26AS/annual information statement (AIS)/tax information summary (TIS)  

At times, the amount as mentioned by the taxpayers in the tax return may vary from the amount as mentioned in the records available with the tax department such as Form 26AS, AIS and TIS. 

Such differences may be due to the taxpayer failing to report certain income or reporting of incorrect information. In such cases, adjustments may be made by the revenue in accordance with the information available with them.

  • Applicability of interest under Section 234A, 234B and 234C in case income assessed is more than the returned income

Interest under Section 234A, 234B and 234C of the IT Act deals with interest levied for delay in filing the return of income, non-payment or short payment of advance tax and non-payment or short payment of individual instalment or instalments of advance tax (i.e. deferment of advance tax) respectively. 

In case if the assessed income is more than the returned income due to variation of transaction amount as per AIS or incorrect disclosure of information, etc there will be additional levy of interest under section 234A, 234B and 234C of the IT Act.

Response to Intimation of Tax Refund

Such intimation provides a preliminary assessment of tax information to the taxpayer regarding the income, deductions, exemptions, interest, tax liability, etc. as per the tax return filed by the taxpayer as well as the amount computed by the revenue authorities. 

Thus, the taxpayers can analyse such comparative information for the purpose of understanding any discrepancy in the nature of adjustments or disallowances made by the revenue authorities. 

In case the taxpayer agrees to such adjustments made by the revenue, no further action is required to be taken except for payment of demand, if any. 

The outcome of the intimation can result in the following:

  • No adjustment in the tax return furnished 
  • Adjustment in the tax return furnished

An analysis on the action to be taken by the taxpayer in each of the above cases is discussed below.

No adjustment in the tax return furnished

In such a case, no adjustment is made from the revenue’s side and accordingly the tax return furnished by the taxpayer is considered to be final. The taxpayer is not required to carry out any action/ process in this regard.

Adjustment in the tax return furnished

In such cases, the taxpayer might need to analyse the reason for adjustment made and either accept the same or proceed for rectification. Rectification can be done by any of the below options:

  • Reprocess the return – This option can be selected when the taxpayer believes that information furnished in the tax return is correct and only reprocessing of return is required for rectification.
  • Return data correction – This option can be selected when the taxpayer has made any disclosure error and the same needs to be corrected by filing a rectified return through uploading the JSON or xml utility.
  • Tax credit mismatch correction – This option can be selected when income related information is correct but the taxpayer has made any error in inputting the information with regards to TDS credit or tax paid details.

The above rectification request can be placed by logging into the income tax website, selecting Services tab > Rectification > New Request > Income-tax > Select AY > Select 1 of above options.

Determination of Income Tax Demand

Any demand generated on account of interest and/or tax after making adjustments by the revenue in accordance with Section 143(1) of the IT Act would constitute outstanding demand payable by the taxpayer.

How to respond to outstanding tax demand?

In case where an outstanding demand is generated by the revenue, the taxpayer may or may not agree with such outstanding demand and accordingly respond to such demand as follows: 

  • Log in to the e-filing Income tax portal with valid login credentials.
  • On the dashboard, click on Pending Actions and select “Response to Outstanding Demand” to view a list of your outstanding demands. If the taxpayer wishes to pay the demand, click on “Pay Now” on pending actions to pay a demand and the taxpayer would be redirected to the e-pay tax page from where such tax payment can be made.
  • On the response to “Outstanding Amount” page, click on “Submit Response” to submit a response to an outstanding demand.

Further process for such response depends upon whether the taxpayer agrees to such demand raised by the revenue as follows:

  • After submission of the above, click on “Confirm” to confirm your submission.
  • On successful submission, a success message is displayed along with a transaction ID of which the taxpayers should make a note for any future reference.

*Note: The reason for disagreement may constitute any of the following:

  • Demand paid and challan has CIN (without open challan details).
  • Demand paid and challan has CIN (with open challan details)
  • Demand paid and challan has no CIN.
  • Demand already reduced by rectification/revision/appellate order.
  • Demand already reduced by Appellate order but appeal effect to the given.
  • Appeal has been filed: Stay petition filed.
  • Appeal has been filed: Stay granted.
  • Appeal has been filed: Instalment granted.
  • Rectification/ Revised Return filed at CPC.
  • Rectification filed with AO.
  • Other than above.

However, in case where the taxpayer disagrees with the adjustments made by the revenue, they may either opt for rectification under Section 154 of the IT Act or can even file for an appeal under Section 246A of the IT Act before the Commissioner of Income Tax (Appeals) as intimation under Section 143(1) is an appealable order.

Determination of Refund

What is income tax refund

Income Tax Refund is the excess of tax paid as against the tax liability of the assessee issued by the tax department after filing of ITR. The estimation of tax refund is reflected through the Income Tax Return filed by the taxpayer for each year and the refund is only initiated by the department once the same is processed/verified. 

Reasons for income tax refund 

Generally, refund is initiated on excess payment of tax which could be for various reasons such as: 

  • The sum of advance tax/self-assessment tax payments are in excess the actual tax liabilities for the financial year
  • The claim of TDS/TCS exceeds the final tax liability 
  • Tax relief claimed on Foreign Income with countries having Double Taxation Avoidance Agreement (DTAA) with India

Some of the prerequisites for availing income tax refund are

  • Filing of return on e-filing portal: The tax return has to be filed every year within the applicable due date (July 31 for individual taxpayers where audit is not applicable and Oct. 31 in audit cases). Certain deductions and exemptions are not allowed in case of belated return and accordingly, the refund in such cases would be reduced to such extent. 
  • E-verification and processing of return: The return of income has to be e-verified and processed following which refund, if any, shall be initiated.
  • Furnishing of valid bank account details: Bank account details need to be appropriately provided and pre-validated while furnishing the tax return. 

Cases where refund cannot be issued

In certain cases, some of the indicative cases where the refund cannot be issued are as follows:

  • Tax return has not been e-verified or the ITR-V (acknowledgement) is not sent to CPC, Bengaluru within 30 days from the date of filing of return.
  • Income tax return has not been processed or after processing there is no refund as verified by the department. Generally, the intimation under Section 143(1) issued by the Income Tax Department indicates whether or not refund will be issued to the taxpayer. 
  • The refund is not credited on account of not pre-validating the bank account details.
  • The refund payable to the taxpayer may be set off against any amount that remains payable against the same assessee under the IT Act. The taxpayer would be received an intimation under Section 245 in regard to such adjustment of refund against demand and accordingly, the taxpayer would be required to respond to such outstanding demand. 

Check Status of Income Tax Refund 

The Income Tax Refund status can be verified online via NSDL site or through e-filing portal of the assessee. 

  1. The TIN NSDL Portal
  2. The Income Tax E-filing Portal

In order to verify the refund status from the via TIN NSDL Website, the following steps would be followed:

Step 1 – 
Visit the official website of TIN NSDL https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

Step 2 – 
Enter the valid PAN of the taxpayer whose refund is to be tracked and provide the relevant Assessment Year (AY) of the refund.

Step 3 – 
Enter valid CAPTCHA and proceed. A screen will appear reflecting the refund status (whether paid or adjusted against any demand) of the PAN for the relevant year.  

  • How to Check Income Tax Refund Status through E-filing Income Tax portal? 

The taxpayers also have an option to verify the status of the tax refund from the e-filing Income tax portal as follows: 

Step 1 –
Login into the e-filing Income tax portal using valid credentials. 

Step 2 –
From the Dashboard, click on the e-file option and select “View Filed Returns” from the option income tax return.

Step 3 –
Click on the relevant assessment year of which refund status needs to be checked and click “View Details” to get the details of refund issued and paid to the taxpayer.

Step 4 –
On clicking the View details tab, the status of the refund will be reflected (such as refund paid, refund sent to the banker, processed with refund due etc).

Interest on Income Tax Refund

The taxpayer would be liable to receive an interest @ 0.5% per month or part of the month on the amount of refund from 1st day of April of the relevant assessment year (in case return filed up to due date under Section 139) or from the date of filing the tax return (in case return is filed after due date) till the date of granting of such refund. 

However, such refund corresponds to the self-assessment tax under Section 140A of the IT Act, such interest would be computed from the date of filing the tax return or the date of payment of taxes, whichever is later.