Tag: Intimation under section 143(1)

Income tax demand notice password for company

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. If there are arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment discrepancies, the department sends an intimation under section 143(1). The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).

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

Every assessee shall receive the intimation under section 143(1) upon successful processing of the return, for the following reasons:

  • 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. 

What does the intimation under Section 143(1) contain?

Usually, a notice under section 143(1) contains the following information:

  • Date of Notice
  • PAN
  • The relevant assessment year
  • Acknowledgement number of the return filed
  • Document Identification Number (of the notice)
  • Income computation, deductions and exemptions, tax paid and payable, as per the assessee’s computation and the department’s computation.

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.
  • Once the taxpayer receives an intimation under section 143(1), which involves a tax demand, the assessee needs to file an appropriate response within 30 days of issue of the notice. 

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

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

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

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

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

However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. 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.

Demand notice under section 156: Income tax outstanding demand already paid

Income Tax Department issues a demand notice under section 156 to taxpayers when they owe tax, interest, or penalty to the Income Tax Department. The intimation under section 143(1), issued by the Centralised Processing Centre (CPC), Bengaluru, is also considered a notice of demand when it demands the tax due from the taxpayer. Here, we are discussing the step-by-step guide on how taxpayers can respond to the demand notice from the Income Tax Department.

What is a Demand Notice?

Demand Notice under section 156 is the formal communication made by the Income Tax department to the taxpayer regarding the payment of taxes, interest or penalty due to the taxpayer. The payment has to be made within 30 days of the demand notice 

Types of (Deemed) Demand Notice under Section 156

The different types of demand notices or deemed demand notices under section 156 are as follows:

Intimation under Section 143(1)

The intimation under section 143(1) is also considered a demand intimation under section 156. The Central Processing Centre (CPC), Bengaluru, issue the intimation under section 143(1) to the taxpayer via email on their registered email address with the Income Tax Department as an acknowledgement that the department has processed the taxpayer’s Income Tax Return. The processing of ITR is done automatically, and the outcome of the ITR processing is intimated to the taxpayer. If the intimation asks for a tax, interest, or penalty to be paid, it is considered a demand notice under section 143(1).

Intimation under Section 200A(1)

Intimation under Section 200A(1) is the intimation issued by the Central Processing Centre (CPC), Bengaluru, regarding tax, interest, or penalty owed on the automatic processing of Tax Deducted at Source (TDS) by the Income Tax Department. It is also considered a demand notice under section 156.

Intimation under Section 206CB(1)

Intimation under Section 206CB(1) is the intimation issued by the Central Processing Centre (CPC), Bengaluru, regarding tax, interest, or penalty owed on the automatic processing of Tax Collected at Source (TCS) by the Income Tax Department. It is also considered a demand notice under section 156.

Payment of Advance Tax under section 210(3)

The demand notice issued by the Assessing Officer for the payment of advance tax under section 210(3) is also considered a demand notice under section 156. This notice under section 210(3) is issued when the Assessing Officer opines that the estimated income of the taxpayer justifies the higher payment of advance tax than paid by the taxpayer.

ESOP

The payment of tax owed on the income of the ESOPs of the eligible start-ups issued to the employees is due within 14 days of the earlier of any of the three events discussed below:

  • Date on which the employee leaves the organisation, 
  • 48 months have passed from the end of the relevant assessment year in which the employee owns these shares, or,
  • The date on which shares are sold.

The Centralised Processing Centre (CPC), Bengaluru, issues the intimation for the tax owed on ESOPS’ income. The intimation only sends the amount of tax liability. The payment of tax on ESOPs’ income is deferred until the time as discussed above.

Time Limit To Respond To Demand Notice

The tax, interest or penalty demand intimation under section 143(1), section 200A(1), section 206CB(1) must be paid within 30 days of receiving the intimation. However, the timeline to pay tax is different for ESOP, as discussed above. The payment under section 210(3) must be made within 30 days of the issue of the demand notice under section 156. However, if a demand notice is issued in the middle of the financial year, the due date is according to the due date for the payment of the advance instalment.

Ways to Respond to a Demand Notice

On receiving the demand notice, the taxpayer must assess why the demand notice is being issued and calculate the liability. Based on his assessment and calculations, the taxpayer can respond to the Demand Notice in the following ways:

  • Demand is correct
  • Demand is partially correct
  • Disagree with demand
  • Demand is not correct, but agrees to the adjustment

How to Respond to a Demand Notice from the IT Department

Your jurisdictional Income Tax Officer (ITO) will upload the Demand Notice online. You can access the content of this notice by logging into your e-filing account on the website www.incometax.gov.in, where you can record your responses.

Note: As per the latest CBDT Notification, the date for sending intimation under section 143(1) relevant to ITR filed for AY 2023-24(FY 2022-23) has been extended to 25 November 2025, which was initially 31 December 2024.

If you have already paid an outstanding income tax demand, you can resolve the issue by submitting a response on the e-Filing portal of the Income Tax Department. You may also need to take other steps depending on the reason for the mismatch. 

How to submit a response on the e-Filing portal

  1. Log in: Go to the e-Filing portal at incometax.gov.in and log in with your credentials.
  2. Navigate to Outstanding Demand: On your dashboard, go to Pending Actions > Response to Outstanding Demand.
  3. Submit your response: Click Submit Response for the relevant demand.
  4. Agree with the demand: Select the option Demand is correct. Check the disclaimer, which states you cannot disagree with the demand later.
  5. Provide payment details: Select Yes, already paid and challan has CIN. A Challan Identification Number (CIN) is generated by the bank when you make a tax payment.
  6. Add challan details: Enter the following details from your paid challan:
    • Type of Payment (minor head)
    • Challan Amount
    • BSR Code (Bank Specific Code)
    • Serial Number
    • Date of Payment
  7. Upload challan copy: Click on Attachment to upload a PDF copy of your challan as proof of payment. The maximum file size is 5 MB.
  8. Submit and confirm: Click Submit to finalize the response. A success message with a transaction ID will be displayed. Save this ID for future reference. 

Other actions to take

If the outstanding demand is not resolved through the above steps, consider these additional actions.

Rectification request

If there was a mistake in the original tax return (e.g., an error in quoting the challan details), you can file a rectification request on the e-Filing portal. 

  1. Go to Services > Rectification > New Request.
  2. Select the relevant Assessment Year and choose the request type Tax credit mismatch correction. 

Raise a grievance 

If the issue persists, you can raise a formal grievance with the Income Tax Department. 

  1. Log in to the e-Filing portal.
  2. Go to the Grievances menu and click Submit Grievance.
  3. Select the relevant department, such as CPC-ITR, and describe the issue with the paid demand. 

Contact the Assessing Officer (AO) 

If online methods fail, you can contact your Jurisdictional Assessing Officer (AO) directly via email, phone, or by visiting their office. You can find your AO’s details on the e-Filing portal under the Know Your AO quick link. 

How to avoid future discrepancies

To prevent this issue from happening again, always reconcile the tax details in your Form 26AS and Annual Information Statement (AIS) with your tax return before filing. 

Frequently Asked Questions

What is an IT notice?

An Income Tax notice is an official notification by the Income Tax Department issued to the taxpayer for compliance with the provisions of the Income Tax Act, 1961. The Income Tax  Department issues a notice to seek information related to discrepancies in the ITR filed, like mismatches in ITR and Form 26AS and AIS, arithmetic inaccuracies, high-value transactions, refund adjustments, etc or demand action from the taxpayer

What is the time limit for demand notice?

The Income Tax Act grants you 30 days from the date of notice to pay the outstanding amount. In exceptional cases, the assessing officer, with the prior approval of the Joint Commissioner, can reduce or extend the period or allow payment by instalment.

What is the penalty on demand notice?

The penalty under the demand notice is as follows: Under section 220(2), if you fail to pay the demand amount within 30 days of receiving the demand notice, you will be charged 1% simple interest per month or part thereof. Under section 270A, the penalty of 50% for underreporting income and 200% for misreporting income is imposed. A late filing fee for ITR is Rs. 1000 for income up to Rs. 5 lakh and Rs. 5000 for income exceeding Rs. 5 lakh. 

Will the refund be adjusted to outstanding demand?

If no action is taken until the date mentioned to respond on demand then the outstanding demand will be adjusted against the refund.

Can I not pay income tax notices?

No, you would have to pay criminal charges, fines and penalties and recovery proceedings if you do not respond to the income tax notice.

Can i file a revised return after receiving a demand notice?

Under 139(5) of the Income Tax Act, 1961 you can file a revised return if you face any discrepancy in the return that you have filed on or before 31 December or before the completion of assessment whichever is earlier. However, if the demand notice is under intimation 143(1), you can file a revised return. If the demand notice is scrutiny assessment order under section 143(3), you can not file revised ITR.

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

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

What Does an ITR Intimation Contain?

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

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

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

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

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

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

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

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

Time Limit

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

How is the ITR intimation received?

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

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

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

What is the ITR intimation password?

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

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

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

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

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

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

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

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

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

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

4. Look for Refund or Demand:

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

5. Take Action (if required):

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

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

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

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

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

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

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

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

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

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

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

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

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

Important Frequently Asked Question

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

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

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

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

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

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

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

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

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

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

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

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

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

How to file rectification for intimation u/s 143?

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

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

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

Income tax outstanding demand already paid

Income Tax Department issues a demand notice under section 156 to taxpayers when they owe tax, interest, or penalty to the Income Tax Department. The intimation under section 143(1), issued by the Centralised Processing Centre (CPC), Bengaluru, is also considered a notice of demand when it demands the tax due from the taxpayer. Here, we are discussing the step-by-step guide on how taxpayers can respond to the demand notice from the Income Tax Department.

What is a Demand Notice?

Demand Notice under section 156 is the formal communication made by the Income Tax department to the taxpayer regarding the payment of taxes, interest or penalty due to the taxpayer. The payment has to be made within 30 days of the demand notice 

Types of (Deemed) Demand Notice under Section 156

The different types of demand notices or deemed demand notices under section 156 are as follows:

Intimation under Section 143(1)

The intimation under section 143(1) is also considered a demand intimation under section 156. The Central Processing Centre (CPC), Bengaluru, issue the intimation under section 143(1) to the taxpayer via email on their registered email address with the Income Tax Department as an acknowledgement that the department has processed the taxpayer’s Income Tax Return. The processing of ITR is done automatically, and the outcome of the ITR processing is intimated to the taxpayer. If the intimation asks for a tax, interest, or penalty to be paid, it is considered a demand notice under section 143(1).

Intimation under Section 200A(1)

Intimation under Section 200A(1) is the intimation issued by the Central Processing Centre (CPC), Bengaluru, regarding tax, interest, or penalty owed on the automatic processing of Tax Deducted at Source (TDS) by the Income Tax Department. It is also considered a demand notice under section 156.

Intimation under Section 206CB(1)

Intimation under Section 206CB(1) is the intimation issued by the Central Processing Centre (CPC), Bengaluru, regarding tax, interest, or penalty owed on the automatic processing of Tax Collected at Source (TCS) by the Income Tax Department. It is also considered a demand notice under section 156.

Payment of Advance Tax under section 210(3)

The demand notice issued by the Assessing Officer for the payment of advance tax under section 210(3) is also considered a demand notice under section 156. This notice under section 210(3) is issued when the Assessing Officer opines that the estimated income of the taxpayer justifies the higher payment of advance tax than paid by the taxpayer.

ESOP

The payment of tax owed on the income of the ESOPs of the eligible start-ups issued to the employees is due within 14 days of the earlier of any of the three events discussed below:

  • Date on which the employee leaves the organisation, 
  • 48 months have passed from the end of the relevant assessment year in which the employee owns these shares, or,
  • The date on which shares are sold.

The Centralised Processing Centre (CPC), Bengaluru, issues the intimation for the tax owed on ESOPS’ income. The intimation only sends the amount of tax liability. The payment of tax on ESOPs’ income is deferred until the time as discussed above.

Time Limit To Respond To Demand Notice

The tax, interest or penalty demand intimation under section 143(1), section 200A(1), section 206CB(1) must be paid within 30 days of receiving the intimation. However, the timeline to pay tax is different for ESOP, as discussed above. The payment under section 210(3) must be made within 30 days of the issue of the demand notice under section 156. However, if a demand notice is issued in the middle of the financial year, the due date is according to the due date for the payment of the advance instalment.

Ways to Respond to a Demand Notice

On receiving the demand notice, the taxpayer must assess why the demand notice is being issued and calculate the liability. Based on his assessment and calculations, the taxpayer can respond to the Demand Notice in the following ways:

  • Demand is correct
  • Demand is partially correct
  • Disagree with demand
  • Demand is not correct, but agrees to the adjustment

How to Respond to a Demand Notice from the IT Department

Your jurisdictional Income Tax Officer (ITO) will upload the Demand Notice online. You can access the content of this notice by logging into your e-filing account on the website www.incometax.gov.in, where you can record your responses.

Note: As per the latest CBDT Notification, the date for sending intimation under section 143(1) relevant to ITR filed for AY 2023-24(FY 2022-23) has been extended to 25 November 2025, which was initially 31 December 2024.

If you have already paid an outstanding income tax demand, you can resolve the issue by submitting a response on the e-Filing portal of the Income Tax Department. You may also need to take other steps depending on the reason for the mismatch. 

How to submit a response on the e-Filing portal

  1. Log in: Go to the e-Filing portal at incometax.gov.in and log in with your credentials.
  2. Navigate to Outstanding Demand: On your dashboard, go to Pending Actions > Response to Outstanding Demand.
  3. Submit your response: Click Submit Response for the relevant demand.
  4. Agree with the demand: Select the option Demand is correct. Check the disclaimer, which states you cannot disagree with the demand later.
  5. Provide payment details: Select Yes, already paid and challan has CIN. A Challan Identification Number (CIN) is generated by the bank when you make a tax payment.
  6. Add challan details: Enter the following details from your paid challan:
    • Type of Payment (minor head)
    • Challan Amount
    • BSR Code (Bank Specific Code)
    • Serial Number
    • Date of Payment
  7. Upload challan copy: Click on Attachment to upload a PDF copy of your challan as proof of payment. The maximum file size is 5 MB.
  8. Submit and confirm: Click Submit to finalize the response. A success message with a transaction ID will be displayed. Save this ID for future reference. 

Other actions to take

If the outstanding demand is not resolved through the above steps, consider these additional actions.

Rectification request

If there was a mistake in the original tax return (e.g., an error in quoting the challan details), you can file a rectification request on the e-Filing portal. 

  1. Go to Services > Rectification > New Request.
  2. Select the relevant Assessment Year and choose the request type Tax credit mismatch correction. 

Raise a grievance 

If the issue persists, you can raise a formal grievance with the Income Tax Department. 

  1. Log in to the e-Filing portal.
  2. Go to the Grievances menu and click Submit Grievance.
  3. Select the relevant department, such as CPC-ITR, and describe the issue with the paid demand. 

Contact the Assessing Officer (AO) 

If online methods fail, you can contact your Jurisdictional Assessing Officer (AO) directly via email, phone, or by visiting their office. You can find your AO’s details on the e-Filing portal under the Know Your AO quick link. 

How to avoid future discrepancies

To prevent this issue from happening again, always reconcile the tax details in your Form 26AS and Annual Information Statement (AIS) with your tax return before filing. 

Frequently Asked Questions

What is an IT notice?

An Income Tax notice is an official notification by the Income Tax Department issued to the taxpayer for compliance with the provisions of the Income Tax Act, 1961. The Income Tax  Department issues a notice to seek information related to discrepancies in the ITR filed, like mismatches in ITR and Form 26AS and AIS, arithmetic inaccuracies, high-value transactions, refund adjustments, etc or demand action from the taxpayer

What is the time limit for demand notice?

The Income Tax Act grants you 30 days from the date of notice to pay the outstanding amount. In exceptional cases, the assessing officer, with the prior approval of the Joint Commissioner, can reduce or extend the period or allow payment by instalment.

What is the penalty on demand notice?

The penalty under the demand notice is as follows: Under section 220(2), if you fail to pay the demand amount within 30 days of receiving the demand notice, you will be charged 1% simple interest per month or part thereof. Under section 270A, the penalty of 50% for underreporting income and 200% for misreporting income is imposed. A late filing fee for ITR is Rs. 1000 for income up to Rs. 5 lakh and Rs. 5000 for income exceeding Rs. 5 lakh. 

Will the refund be adjusted to outstanding demand?

If no action is taken until the date mentioned to respond on demand then the outstanding demand will be adjusted against the refund.

Can I not pay income tax notices?

No, you would have to pay criminal charges, fines and penalties and recovery proceedings if you do not respond to the income tax notice.

Can i file a revised return after receiving a demand notice?

Under 139(5) of the Income Tax Act, 1961 you can file a revised return if you face any discrepancy in the return that you have filed on or before 31 December or before the completion of assessment whichever is earlier. However, if the demand notice is under intimation 143(1), you can file a revised return. If the demand notice is scrutiny assessment order under section 143(3), you can not file revised ITR.

Section 143(1) Order Letter of Intimation

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

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

Preliminary Assessment

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

The process flow of the Preliminary Assessment is as follows:

Types of intimation:

Types of Adjustments under section 143(1)

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

Communication of Intimation under section 143(1)

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

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

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

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

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

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portalLogin to the income tax website using valid credentials.
  2. Navigate to View Filed ReturnsGo to e-file > Income Tax Returns > View Filed Returns
  3. Click on View DetailsFor the relevant Assessment Year, click on View Details

Download Intimation Order under Section 143(1)

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

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

Response to Intimation under section 143(1)

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

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

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

Consequences of Non-response

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

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.

Section 143(1) Order Letter of Intimation

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

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

Preliminary Assessment

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

The process flow of the Preliminary Assessment is as follows:

Types of intimation:

Types of Adjustments under section 143(1)

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

Communication of Intimation under section 143(1)

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

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

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

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

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

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portalLogin to the income tax website using valid credentials.
  2. Navigate to View Filed ReturnsGo to e-file > Income Tax Returns > View Filed Returns
  3. Click on View DetailsFor the relevant Assessment Year, click on View Details

Download Intimation Order under Section 143(1)

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

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

Response to Intimation under section 143(1)

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

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

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

Consequences of Non-response

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

Intimation Under Section 143(1) of Income Tax Act

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

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

Preliminary Assessment

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

The process flow of the Preliminary Assessment is as follows:

Types of intimation:

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

Types of Adjustments under section 143(1)

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

Communication of Intimation under section 143(1)

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

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

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

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

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

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portalLogin to the income tax website using valid credentials.
  2. Navigate to View Filed ReturnsGo to e-file > Income Tax Returns > View Filed Returns
  3. Click on View DetailsFor the relevant Assessment Year, click on View Details

Download Intimation Order under Section 143(1)

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

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

Response to Intimation under section 143(1)

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

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

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

Consequences of Non-response

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

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) – ITR Intimation

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

What Does an ITR Intimation Contain?

Your ITR intimation acts as a summary of the details you filed and the ITD’s evaluation. Here’s a breakdown of the key information you’ll find:

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

Why Intimation under Section 143(1) is issued?

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

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

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

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

Read more at: Intimation Under Section 143(1) of Income Tax Act

Time Limit

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

How is the ITR intimation received?

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

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

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

What is the ITR intimation password?

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

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

The ITR intimation notice can seem complex at first glance, but it’s essentially a summary of your tax return compared to the Income Tax department’s assessment. Here’s a breakdown on how to read it:

1. Verify Basic Details:

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

2. Compare Income and Deductions:

The notice will have side-by-side columns showing:

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

3. Review Tax Calculations:

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

4. Look for Refund or Demand:

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

5. Take Action (if required):

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

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

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 submit the response.

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

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

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

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

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

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

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

What Does an ITR Intimation Contain?

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

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

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

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

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

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

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

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

Time Limit

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

How is the ITR intimation received?

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

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

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

What is the ITR intimation password?

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

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

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

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

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

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

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

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

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

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

4. Look for Refund or Demand:

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

5. Take Action (if required):

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

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

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

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

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

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

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

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

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

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

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

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

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

Important Frequently Asked Question

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

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

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

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

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

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

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

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

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

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

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

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

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

How to file rectification for intimation u/s 143?

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

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

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

Intimation Under Section 143(1) of Income Tax Act, 1961

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.

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.

Tax assessment order and intimation u/s 143(1) the same?

No, a tax assessment order and an intimation under Section 143(1) of the Income Tax Act are not the same. They represent different stages in the income tax return processing.

–Intimation under Section 143(1)

  • Preliminary Assessment: This is an automated, preliminary assessment of your income tax return. It is issued after your return is processed electronically at the Centralized Processing Centre (CPC).
  • Notifies of Adjustments: It informs you of any adjustments made to your return by the CPC, such as arithmetical errors, incorrect claims, or mismatches with information received from other sources (e.g., your employer).
  • Communicates Tax Dues or Refunds: It tells you if you have any outstanding tax payable or if you are entitled to a refund.
  • Not an Order: It’s not an order, but rather an intimation of the outcome of the initial processing of your return.

– Tax Assessment Order

A Tax Assessment Order is a crucial document issued by the Income Tax Department of India. It signifies the completion of a thorough examination of your income tax return and determines your final tax liability for a specific financial year.

Here’s a breakdown of what a Tax Assessment Order entails:

How to Access Your Tax Assessment Order:

You can access your Tax Assessment Order online through the Income Tax Department’s e-filing portal:

  1. Visit the official website: http://www.incometaxindia.gov.in
  2. Log in using your credentials (PAN, password, etc.).
  3. Navigate to “My Account” or “e-Filing.
  4. Look for options like “View Assessment Order” or “Order Status.”
  5. Select the relevant assessment year and download the order.

Importance of a Tax Assessment Order:

  • Finality: It provides a conclusive determination of your tax liability.
  • Legal Proof: It serves as legal proof of your tax compliance.
  • Record Keeping: It is essential for maintaining accurate tax records.
  • Dispute Resolution: It forms the basis for any appeals or further legal proceedings related to the assessment.
  • Detailed Scrutiny: This is issued when your return is selected for a detailed scrutiny or assessment by a tax officer.
  • In-depth Examination: It involves a thorough examination of your income, deductions, and tax liability.
  • May Require Further Action: You may be required to provide additional documentation or explanations to the tax officer.
  • Legal Order: It is a legally binding order that determines your final tax liability.

Key Differences

FeatureIntimation u/s 143(1)Tax Assessment Order
NaturePreliminary assessmentDetailed scrutiny
Issued byCentralized Processing Centre (CPC)Tax Officer
PurposeInform about adjustments and tax dues/refundsDetermine final tax liability
Legal BindingNoYes

In essence, an intimation under Section 143(1) is a communication about the initial processing of your return, while a tax assessment order is a legally binding decision on your final tax liability.

Important Note: If you receive an intimation under Section 143(1) and there are no discrepancies or adjustments, it is considered a deemed assessment order.

Reasons for getting an Intimation Under Section 143(1)

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.

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

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

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

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

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

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

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

Centralized Processing Center

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

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

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

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

Preliminary Assessment Under 143(1)

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

  • Once the return is filed, total income or loss is recomputed by the computerised system as per the department’s record and provides a comparison with data filed by the taxpayer
  • The intimation has two columns: ‘As provided by the taxpayer in the Return of Income’ and ‘As computed under Section 143 (1)
  • Comparison is made for major categories such as
    • Income under various heads, 
    • Gross total income,
    • Deductions under Chapter VIA (80C, 80D, etc.), and 
    • Tax deducted at source, and tax paid by taxpayers in the form of advance tax and self assessment tax
  • Appropriate adjustments are made to income as computed under Section 143(1) and final tax liability or refund is arrived at
  • The adjustments are carried out only after giving an intimation to the taxpayer of the proposed adjustments either in writing or electronic mode i.e., to the email id provided in the income tax return filed
  • Response received from the taxpayer within 30 days from the issuance date of intimation will be considered before making the final adjustment and in case no response is received within such period, adjustments arrived at initially will be incorporated.
  • After arriving at final tax liability, the same is adjusted against TDS and tax payments and other relief under Section 90/91, if any.
  • An intimation shall be prepared and sent to the taxpayer.  
    Kind of intimations possible are discussed below:
    • Intimation with no demand or no refund – This generally happens if the department has accepted the return as filed without carrying out any adjustments to it.
    • Intimation determining demand – Issued in case of adjustments made under Section 143(1) due to a discrepancy found and tax liability is arrived at.
    • Intimation determining refund – Issued where any tax is found to be refundable either where no discrepancy in the return filed or after making adjustments as referred to in Section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.
  • While demand notice is sent in case of final tax liability, refunds if any shall be granted to the taxpayer.

Nature of Adjustments Under 143(1)

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

  • Arithmetical error in the return
  • Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:
    • The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.
    • Disallowance of set-off of loss in the financial year which is carried forward from previous years in which return was filed beyond the specified due date
    • Disallowance of expenditure is indicated in the audit report but not indicated in the return of income.

Time Limit for Issue of 143(1)

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

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

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

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

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

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

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

Important

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

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

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

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

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

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

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

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

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

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

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

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

How to file rectification for intimation u/s 143?

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

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

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

Intimation 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.

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

  1. How to open intimation u/s 143(1)?To open intimation u/s 143(1) use your PAN and date of birth as password. For example, if your PAN is DARGK6914q, and your birth date is 3rd October 1993, then the password will be dargk6914q03101993.
  2. How will I receive Section 143(1) notice from the IT Department?You will receive the Section 143(1) notice from the Income Tax Department through email with the subject line ‘Your ITR intimation’ and you will also receive an SMS alert informing that intimation notice has been sent to your registered email ID.
  3. How to file rectification for intimation u/s 143(1)?Log in to your income tax portal account to rectify the intimation u/s 143(1) and click on the Service tab. Select the rectification option and choose relevant A.Y. and file.
  4. What to do if there is no mismatch in an intimation u/s 143(1) notice, demand, or refund?If there is no mismatch in an intimation u/s 143(1) notice, demand, or refund, then you need not do anything, as it means that the ITR has been processed successfully.
  5. Is intimation u/s 143(1) an assessment order?No, intimation u/s 143(1) intimates about the processing of the return, and hence, it is not an assessment order.
  6. If I have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then do I need to reply to 143(1) intimations?If you have zero refunds and tax demand, and proper sync on the taxpayer and 143(1) section columns, then you need not reply.
  7. Can I revise the income tax return after receiving the intimation u/s 143(1)?Even after receiving intimation u/s 143 (1), you can revise your income tax return by 31 December of the relevant assessment year.
  8. Is the tax assessment order and intimation u/s 143(1) the same?No, the intimation u/s 143(1) and the tax assessment order are not the same.
  9. Can I use intimation u/s 143(1) as address proof?Yes, you can use the intimation u/s 143(1) as an address proof.

Intimation Under Section 143(1) of Income Tax Act

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

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

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

What is Intimation u/s 143(1)?

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

  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.

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

Income Tax: 5 high-value cash transactions may attract I-T notice

The misconception that cashless transactions are less traceable by the Income Tax Department has arisen due to the increasing prevalence of such transactions. Nevertheless, this belief is incorrect. This is because banks and other financial institutions must notify the Income Tax department of transactions surpassing a specified threshold. This encompasses card payments, UPI transactions, as well as cash deposits, and withdrawals beyond a designated limit.

The department employs advanced data analytics tools to detect disparities between declared income and incurred expenses. It can cross-check information from diverse sources such as bank statements, property records, investment details, and travel records to construct a comprehensive financial profile of individuals. Apart, it also can collect information from external sources such as employers, travel agencies, and stock exchanges to validate income sources and pinpoint possible discrepancies.

This degree of scrutiny proves valuable in suspected cases of tax evasion, enabling the department to initiate scrutiny assessments, issue notices, and conduct inquiries directly to accumulate evidence and recover taxes. Below is a compilation of common transactions that could trigger a tax notice, even when conducted in cash:

Depositing large amounts in cash in savings accounts

Depositing an amount exceeding ₹10 lakh in a single or combined financial year attracts attention from the Income Tax Department (ITD) in India. Any cash deposit surpassing ₹10 lakh in a financial year (April 01 to March 31) across all your savings accounts is duly reported to the ITD. The Central Board of Direct Taxes (CBDT) requires banks to report such transactions. Even if the deposit is divided among multiple accounts, any cumulative amount exceeding ₹10 lakh will still be flagged.

Surpassing the ₹10 lakh limit doesn’t inherently suggest tax evasion, but it does prompt scrutiny from the Department. Explaining the source of the deposited funds becomes necessary, particularly if it doesn’t align with your declared income. If the explanation is considered unsatisfactory or if discrepancies arise in your tax returns, you could potentially face additional inquiries or penalties.

The ITD’s evaluation is also influenced by the intended use of the deposited funds. For instance, placing business income into a personal account could lead to concerns. Your comprehensive financial profile, encompassing income sources, expenses, investments, and other significant transactions, is taken into account by the ITD. Ensuring compliance is essential; maintaining accurate records and aligning your tax returns with your income and expenses is crucial to prevent unwarranted scrutiny.

Fixed deposits made with cash

Given the recent uptick in fixed deposit (FD) rates, these have become increasingly appealing choices for investors, especially for those in search of a steady and predictable income. The existing limit for reporting cash deposits to the ITD is ₹10 lakh within a single financial year (April 01 to March 31), irrespective of the purpose, including fixed deposits. It is crucial to take note of multiple deposits across different bank accounts. Even if you divide the cash deposit into smaller amounts across various accounts, any combined sum surpassing ₹10 lakhs will be brought to the attention of authorities.

Surpassing the limit doesn’t inherently indicate tax evasion, but it does attract the ITD’s attention, necessitating an explanation for the source of the funds. This scrutiny applies to any fixed deposit exceeding ₹10 lakhs.

The ₹10 lakh limit applies to the cumulative value of your FD holdings across all accounts and financial institutions, not solely to the individual deposit amount. Similar to cash deposits, surpassing this threshold may trigger inquiries regarding the source of funds, particularly if it doesn’t align with your declared income.

Purchases of shares, mutual funds, and bonds made in cash

Investing in bonds, shares, mutual funds, and debentures with cash transactions could result in an income tax notice if the investment surpasses a threshold of ₹10 lakh. Digital transactions, on the other hand, leave behind an online trail for both investors and the ITD alike.

Surpassing a particular threshold may prompt scrutiny from the ITD, but it does not automatically indicate the issuance of a tax notice or any wrongdoing. The ITD’s emphasis lies in identifying inconsistencies between declared income and expenses rather than discouraging investment through specific thresholds.

Repaying credit card bill in cash

There is no explicit rule mandating automatic scrutiny for cash payments towards credit card bills, irrespective of the amount. However, if you make a cash payment for a monthly credit card bill exceeding ₹1 lakh, the department automatically seeks information about the source of funds.

Surpassing any high-value transaction threshold, which includes cash payments, could initiate general scrutiny by the ITD. This examination is designed to uncover possible disparities between your declared income and expenses and is not specifically focused on credit card bill payments.

Cash payments related to properties

In India, when acquiring a property valued at over ₹30 lakhs, the ITD mandates the buyer to disclose the origin of the funds utilized for the purchase. This measure is implemented to counteract tax evasion and prevent money laundering activities.

The existing threshold for compulsory declaration of the source of funds is ₹50 lakhs for property acquisitions in urban areas and ₹20 lakhs for rural areas. Nevertheless, certain states may enforce more stringent thresholds, hence it is advisable to verify the specific regulations applicable in your region.

You have the option to declare the source of funds by including it in the registration documents or by submitting Form 26QB to the ITD. Even if the property purchase value is below the threshold, the Department retains the authority to request the source of funds if there are suspicions of discrepancies in your income or other transactions. Neglecting to declare the source of funds may result in penalties, tax assessments, and potentially lead to investigations.

To address an ITD notice concerning high-value cash transactions, it is essential to possess sufficient documentation substantiating your assertion about the source of funds. This documentation may include bank statements, investment records, or inheritance papers.

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.

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.

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

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

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

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

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

  • If taxpayer has paid excess tax then it mentions tax refund. Refund is only initiated if amount is over INR 100. 
  • If tax paid by taxpayer has fallen short, then it mentions the amount and a challan to make the payment. 
  • Simple acknowledgment if the ITR filed by taxpayer is consistent as per the Assessing Officer. 

Centralized Processing Center

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

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

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

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

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

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

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

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

Nature of adjustments under 143(1)

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

  • Arithmetical error in the return
  • Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:
    • The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.
    • Disallowance of set off of loss in the financial year which is carried forward from previous years in which return was filed beyond specified due date
    • Disallowance of expenditure indicated in the audit report but not indicated in the return of income.

Action to be taken by the taxpayer after receiving a 143(1)

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

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

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

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

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

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

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

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

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

Income Tax Return Filing: Scenarios, Solutions, and Provisions

The last date for filing income tax returns (ITR) is a critical deadline, and many taxpayers find themselves grappling with challenges post the deadline. In the fiscal year 2022-23, several issues have arisen from non-filing, delayed filing, or improper filing of returns. This article will provide insight into these various scenarios, offer potential solutions, and elucidate the provisions of the Income Tax Act, including belated return, verification of ITR, revised return, rectification of ITR, and defective return.

BELATED RETURN: 2.1 Scenario 1: Mr. Anuj is a salaried employee having Long Term Capital Loss in the FY 2022-23. He could not file his return till 31st July 2023. What shall he do now?

2.2 Solution: Mr. Anuj can file a belated return by 31st December 2023. However, he will not be able to carry forward the Long Term Capital Loss. 2.3 Relevant

Provisions:- The relevant provisions are as indicated below:-

(a) Belated return means the filing of income tax returns after the due date or extended due date under section 139(4) of the Income Tax Act.

(b) Belated returns can be filed by 31st December of the assessment year or before completion of the assessment, whichever is earlier. For FY 2022-23, the last date to file a belated return is 31st Dec 2023.

(c) A belated income tax return attracts a late filing fee of Rs 5000 /- under Section 234F of the Income Tax (I-T) Act. However, the fee payable shall not exceed Rs. 1,000 where the total income of the person does not exceed Rs. 500000.

(d) Apart from the penalty for late filing, interest under section 234A at 1% per month or part thereof will be charged on the unpaid tax amount.

(e) In addition to financial implications, the taxpayer will also stand to lose certain benefits. The losses under the head Profit & Gain from Business or profession or Capital Gain heads are not allowed to be carried forward in a belated return.

(f) Tax regime cannot be changed at the time of filing the belated return. This option is available to the individual having income from salary, house property, or other sources on filing the original ITR by the due date i.e. 31st July.

VERIFICATION OF ITR

3.1 Scenario 2 Mr. Arindam hurriedly filed his Income Tax Return on 31st July 2023 but forgot to verify the Return. He is worried about potential repercussions.

3.2 Solution: Mr. Arindam has time to E- Verify the return by 30th August 2023. In case he failed to verify the return by 30th August 2023, a request for condonation of delay by providing an appropriate reason for the delay needs to be submitted to the Department.

3.3 Relevant Provision (a) Verification of ITR is the most important step of the tax return filing process. Once the return has been filed or successfully submitted online, it needs to be verified by the assessee. After this, the income tax department considers it for further processing.

(b) The ITR will be treated as invalid in the absence of verification

(c) There are 2 ways to verify ITR, offline & online. Verifying a tax return using any online mode is called e-verification of income tax return (ITR) and when the acknowledgment (ITR V) is posted to CPC Bangalore it is called offline verification.

(d) The time limit for e-verification or submission of ITR-V is 30 days from the date of filing the return of income.

(e) If the ITR is verified beyond 30 days, the date of verification will be treated as the date of furnishing the Income Tax return. The consequences of belated filing will be faced by the taxpayer in such cases.

(f) The return can be e-verified online by using (a) OTP on a mobile number registered with Aadhaar, (b)EVC generated through a pre-validated bank account, or (c )EVC generated through pre-validated demat account, or (d)EVC through ATM (offline method), or (e) Net Banking, or (f)Digital Signature Certificate (DSC). (g) EVC (Electronic Verification Code) is a 10-digit alpha-numeric code that is sent to the taxpayer’s mobile number and email ID registered with the e-Filing portal/bank account / demats account (as the case may be) during the process of e-Verification. It has 72-hour validity from the time of its generation (h) The taxpayer can file a request for condonation of the delay in verification of ITR over the e-filing portal. If the income tax officers deem fit, they can accept the request and give the taxpayer a chance to verify the ITR beyond the stipulated date. Condonation of delay is a special relief provided by the Income Tax Department to taxpayers for late filing or verification of ITR.

REVISED RETURN:

4.1 Scenario 3: Mr. Bimal e-verified and submitted his return on 15 July 2023. Afterward, he realized that deductions under section 80 were not claimed by him. 4.2 Solution: Mr. Bimal can file a revised return by 31st December 2023. 4.3 Relevant Provision: Section 139(5) of the Income Tax Act prescribes the provision of Revise Return:-

(a) Any person, having furnished the original return discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the last date of filing the return (31st December) or before the completion of the assessment, whichever is earlier

(b) For the revised return related to the financial year 2022-23, the deadline would be on or before 31st December 2023, provided the assessment of the original return has not been completed before that date.

(c) The taxpayer shall ensure that the original income tax return is e-verified

(d) The original return filed will be substituted by the revised return.

(e) Revised Returns can be filed twice or even more.

(f) Tax regime cannot be changed at the time of filing a revised return

(g) Revised income tax return can be filed for belated return also

(h) ITR Form can be changed while filing a Revised Return

INTIMATION UNDER SECTION 143(1)

5.1 Scenario 4 Ms. Charu received intimation under section 143(1). The details provided in the tax returns are matching with that of the computerized returns, and the tax return has been processed without any adjustments. Solution: Ms. Charu need not do anything.

Relevant Provision: The income tax return filed by the taxpayer is processed by the Central Processing Centre (CPC) of the Income Tax Department. After processing the ITR, the department sends a notice cum communication to the registered e-mail address. A text message is also sent on the registered mobile number indicating that ITR for AY 2023-24 and PAN abcxxxxx1r has been processed at CPC & Intimation u/s 143(1) has been sent to your registered email ID. The details in the intimation notice will have tax computation details as reported in ITR with a table indicating the amount as computed by the department under section 143(1). In case the details provided in the tax returns matches with that of the computerized returns, and the tax return has been processed without any adjustments. Intimation notice received will be with no demand or no refund and the taxpayer need not do anything.

5A. RECTIFICATION OF ITR

5A.2 Scenario 5A Ms. Divya received intimation under section 143(1) received and it is showing the mismatch. The taxable income reported in the ITR is not matched with the taxable income as computed by the income tax.

5A.3 Solution: Ms. Divya can submit a request for rectification of errors under section 154 of the Income Tax Act.

5A.3 Solution: Ms. Divya can submit a request for rectification of errors under section 154 of the Income Tax Act.

5A.4 Relevant Provisions: Section 154 of the Income Tax Act prescribed provisions regarding requests for Rectification of Errors in ITR.

(a) Rectification is an option given by the Income Tax Department for correcting a mistake apparent from the record in Income Tax Return. The taxpayer needs to submit a rectification request if there is any mistake apparent from the record in the tax return notified in intimation issued u/s 143(1) by the CPC.

(b) The taxpayer can file online rectification with CPC after logging in to the e-Filing account.

(c) A rectification request can only be filed in response to a notice/order/intimation from CPC for a specific e-filed return.

(d) The mistakes apparent from the record are considered for rectification. The different request types for income tax rectification are

(i) reprocess the Return

(ii) Tax Credit Mismatch Correction

(iii) Additional Information for 234C Interest

(e) Claiming new deductions/claims/tax credits are not allowed in rectification requests

(f) The taxpayer cannot withdraw a rectification request already submitted. A rectification request once submitted will be closed only after a Rectification Order is passed

(g) Rectification requests cannot be revised

(h) ITR Form cannot be changed while submitting a rectification request.

(i) If the taxpayer had e-Verified the ITR through DSC, he needs to e-verify the rectification request using DSC only.

(j) The rectification request can be submitted within 4 years from the end of the financial year in which the order sought to be amended was passed. CPC Order No./ Intimation No. / DIN of the latest filed ITR is required to be quoted for rectification request. These details are auto-populated and non-editable for Income Tax

DEFECTIVE RETURN

6.1 Scenario 5: Mr. Sanjeev filed ITR 1 on 30th June 2023 and received notice under section 139(9) for defective return on 10 Aug 23. The reason for the defect is that he ignored his AIS (Annual Information Statement), showing the sale of securities. ITR 2 was required to be filed in case of Capital Gain/ Loss in the sale of securities.

6.2 Solution: Mr. Sanjeev can revise his ITR or submit his response within 15 days of receiving the said notice.

6.3 Relevant Provisions:

(a) Defective return is a return of income that is rejected by the Income Tax Department due to certain defects. After the defects are identified by the department, a notice under section 139(9) is issued to the assessee

(b) The Common reasons for a defective return notice include the usage of the incorrect ITR form, mismatch in 26AS details with income and TDS reported in ITR, incomplete or inconsistent information, or the absence of mandatory audit reports for certain entities.

(c) Time limit to respond to a notice for a defective return is 15 days from the date of receiving the notice or as the time duration specified in the notice to rectify the defect in the return filed.

(d) If the taxpayer fails to respond to the defective notice within the stipulated period then the return may be treated as invalid and therefore consequences such as penalty, interest, non-carry forward of losses, and loss of specific exemptions may occur, as the case may be in accordance with the Income Tax Act

(e) The taxpayer can correct a defective ITR by filing a revised return if the last date to file a return has not been over. For FY 2022-23 the last date to file a revised return is December 31, 2023.

(f) Another option with the taxpayer is to respond to the notice by login to e- filing portal. Go to the ‘e-File’ menu, and click ‘Response to Notice u/s 139(9)’. The portal will display details of the notice and identified defects in the ITR. Here, one can agree or disagree with the defects and provide necessary remarks. For any revisions made, it is recommended to use the latest ITR utility to generate the XML accordingly.

Conclusion – Action/Reaction The Income Tax Act has provided remedies for taxpayers who missed the due date or made errors in the filing of the ITR for FY 2022-23. Understanding these scenarios and following the prescribed steps can mitigate the consequences of these errors. It is vital to be vigilant about the deadlines and adhere to the correct procedures to avoid penalties and ensure compliance with the tax laws. Consulting with a professional or referring to educational resources can be beneficial in navigating these complex scenarios, thus fostering a more responsible and informed approach to taxation.

Educational purposes only.

CA Anita Bhadra MUMBAI, Maharashtra