Taxpayers in India need various documents for e-filing taxes, including Form 168 (AIS/TIS) and notices from the Income Tax Department. Security is ensured through passwords, typically combining the taxpayer’s PAN and date of birth. Different file types require unique passwords, which are outlined for easy reference.
Every taxpayer who is supposed to e-file their taxes in India are required to access several documents as a part of tax return preparation process. The documents include Form 168 of IT Act 2025 (Form 26AS, AIS of IT Act 1961), TIS, intimations, notices, ITR Forms, Form 130 of IT Act 2025 (Form 16 of IT Act 1961) etc.
The Income tax department will protect some of these documents with a password to ensure the security and confidentiality of taxpayer’s sensitive financial information.
The Income Tax Department typically uses a standard password format to secure these files. Learn more on different types of passwords needed to open different documents.
1. Annual Information Statement (Form 168 of IT Act 2025 (Form AIS of IT Act 1961)) or Tax payer Information Summary (TIS)
Form 168, aka Form AIS / TIS is a comprehensive statement which contains the details of the financial transactions undertaken by a taxpayer in a given financial year.
Form 168, aka Form AIS / TIS can be downloaded in pdf and JSON
The password for opening both pdf/JSON file is taxpayer pan in small case followed by date of birth in ddmmyyyy format
Example: Mr Laxman wants to access his Form 168, aka Form AIS in pdf format and his PAN is AAAPA1234A and date of birth is 10th April 1990 The password is
aaa
p
a
1234
a
10
04
1990
2. Defective Notice u/s 139(9) or Intimation u/s 143(1) or Rectification order u/s 154
Once the taxpayer files the income tax return or files rectification u/s 154, the Income Tax Department will process the income tax return and sends the intimation u/s 270(1) of IT Act 2025 (u/s 143(1) of IT Act 1961) or order u/s 287 of IT Act 2025 (u/s 154 of IT Act 1961) or defective notice u/s 263(9) of IT Act 2025 (u/s 139(9) of IT Act 1961) saying that the return has been processed without demand or refund, with demand or refund.
The intimation will be sent to taxpayer email or the taxpayer can download the same from Income tax portal.
The password for opening pdf files is taxpayer pan in small case followed by date of birth in ddmmyyyy format
Example: Mr Laxman received an intimation u/s 143(1) with demand and he wants to view the intimation and his PAN is AAAPA1234A and date of birth is 10th April 1990 The password for opening intimation u/s 143(1) is
aaa
p
a
1234
a
10
04
1990
3. Survey Notice u/s 133(6)
Generally Income Tax Department issues survey notices u/s 252(6) of IT Act 2025 (u/s 133(6) of IT Act 1961) asking for information on any transactions entered by taxpayer
The notices u/s 133(6) will be sent to email id of taxpayers or the taxpayers can download the same from e proceedings in Income Tax Portal
The password for opening the notice u/s 133(6) is PAN in uppercase
Example: Mr Laxman has received a notice u/s 133(6) asking to furnish more information on fixed deposits made by him during FY 2023-24 and his PAN is AAAPA1234A and date of birth is 10th April 1985 The password for opening Survey notice u/s 133(6) is
AAA
P
A
1234
A
4. Form 168 of IT Act 2025 (Form 26AS of IT Act 1961)
Form 168, aka Form 26AS is an important tax document in India, that every taxpayer need to refer at the time of Income Tax Filing, broadly contains the taxes that are paid on your PAN number.
Form 168, aka Form 26AS can be downloaded from Income tax portal and Traces
Income Tax Portal: The Form 168, aka Form 26AS can be viewed in HTML and downloaded in pdf and text file. It doesn’t have any password.
Traces: The Form 168, aka Form 26AS can be viewed in HTML and downloaded in pdf, Excel and text file. The file downloaded in pdf, excel , HTML don’t have any password. The file downloaded in text format has password which is date of birth of taxpayer in ddmmyyyy format
Example: Mr Laxman has downloaded Form 168, aka Form 26AS in text file from Traces portal and his PAN is AAAPA1234A and date of birth is 10th April 1990 The password for opening Form 168, aka Form 26AS in text format is
10
04
1990
5. Permanent Account Number (PAN)
PAN is a 10-digit alphanumeric number issued by the Income Tax Department.
If any person applies for the PAN, soft copy of PAN will be sent to email Id and hard copy will be delivered to address
Soft Copy of PAN is password protected and the password for opening file is date of birth of taxpayer in ddmmyyyy format
Example: Mr Laxman has applied for PAN and he has received PAN in his email and his PAN is AAAPA1234A and date of birth is 10th April 1990 The password for opening soft copy of PAN is
10
04
1990
6. Tax Deduction & Collection Account Number (TAN)
TAN means Tax Deduction Account Number or Tax Collection Account Number.
If any person applies for the TAN, soft copy of TAN will be sent to email Id and hard copy will be delivered to address
Soft Copy of TAN is password protected and the password for opening file is “six digit pincode mentioned in TAN Application”
Example: Mr Laxman has applied for TAN and he has received TAN in his email and his pincode is 307867. The password for opening soft copy of TAN is
307867
7. TDS Intimation
The taxpayer’s files TDS returns in Form 138 of IT Act 2025 (Form 24Q of IT Act 1961), Form 140 of IT Act 2025 (Form 26Q of IT Act 1961), Form 144 of IT Act 2025 (Form 27Q of IT Act 1961) and Form 143 of IT Act 2025 (Form 27EQ of IT Act 1961) for any deduction of TDS / TCS
The Centralized processing centre (TDS) will process the TDS/TCS returns and give the intimation if there are any defaults in the filed returns
The Password for opening such intimation is first four characters of your TAN in capital letters, followed by an underscore (_) and date of filing of regular statement in the format DDMMYYYY.
Example: Mr Laxman has filed his TDS return in Form 138, aka Form 24Q on 01st April 2026 and his TAN is HYDD12345A. He has received a intimation with defaults. The Password for opening such intimation is
HYDD
_
01
01
2026
8. TDS-Conso File
Conso file means a consolidated file containing the details of filed TDS Returns including Original and Corrections (Challans and deductee). It is mandatory for filing the TDS corrections, requesting form 130’s (aka form 16’s) or for any other activity etc.
The password for opening such Conso File is your TAN in Capital letters followed by an underscore (_) and Request number.
Example: Mr Laxman wants to file correction and requested for Conso file vide request number 6345690 and his TAN is HYDD12345A. The password for opening conso file is
HYDD
12345
A
_
6345690
9. Justification Report
Justification Report means a report which contains the reasons for the defaults filed in TDS/TCS return.
The password for opening such justification report is JR_TAN_Form type (Form 138, aka Form 24Q / Form 140, aka Form 26Q / Form 144, aka Form 27Q / Form 143, aka Form 27EQ ) _ quarter (Q1/Q2/Q3/Q4)_Financial Year
Example: Mr Laxman wants to verify the defaults in Form 138, aka Form 24Q filed by him for Q4 2024-25 and his TAN is HYDD12345A. The password for opening Justification report is
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 u/s 143(1)?
Every assessee shall receive the intimation under section 143(1) upon successful processing of the return.
As mentioned above, it is an automated system-driven process that verifies the arithmetical accuracy, information available with the department, details available in return, and the provision of income tax law, and it generates the comparison report. Such an automated process eliminates the manual job of the income tax officer to a great extent.
If a taxpayer has paid excess tax, then it mentions tax refund. A refund will be issued only if the amount is more than Rs.100.
If the tax paid by the taxpayer has fallen short, it mentions the amount of demand and a challan to make the payment.
It’s a simple acknowledgement that the ITR filed by the taxpayer is consistent as per the Assessing Officer.
Centralized Processing Center
With the rapid increase in the number of income tax returns and a jurisdiction-based processing model for all the returns filed, the tax department faced problems leading to delayed processing of income tax returns.
Therefore, the Finance Act, 2008 empowered the Central Board of Direct Taxes (CBDT) to make a scheme for the centralised processing of returns with a view to expeditiously determine the tax payable by, or the refund due to the taxpayers. Based on the recommendations of the Technical Advisory Group, the department adopted the strategy that CPC at Bangalore would process paper and e-returns without any interface with taxpayers and in a jurisdiction free manner.
CPC project envisaged benefits for the citizens as well as the tax department. For citizens, it led to faster and hassle-free preliminary processing of their returns and also relieved the department from the burden of preliminary assessment that can be computerised, enabling them to concentrate on hardcore activities.
Any communication from the income tax department creates panic for taxpayers. However, Section 143(1) intimation is not something one needs to worry about. In this article, we would be discussing the intimation sent under Section 143(1) in detail to help taxpayers easily deal with such intimation.
Preliminary Assessment Under 143(1)
Initial processing of returns by CPC is completely automated and Section 143(1) Intimation is also a computer generated record. CPC validates data provided in each tax return with details available with the income tax department’s own record (such as Form 26AS generated through details provided by collecting banks, TDS returns, etc.) and this notice usually only points out apparent mistakes found out by the mainframe system.
Once the return is filed, total income or loss is recomputed by the computerised system as per the department’s record and provides a comparison with data filed by the taxpayer
The intimation has two columns: ‘As provided by the taxpayer in the Return of Income’ and ‘As computed under Section 143 (1)’
Comparison is made for major categories such as
Income under various heads,
Gross total income,
Deductions under Chapter VIA (80C, 80D, etc.), and
Tax deducted at source, and tax paid by taxpayers in the form of advance tax and self assessment tax
Appropriate adjustments are made to income as computed under Section 143(1) and final tax liability or refund is arrived at
The adjustments are carried out only after giving an intimation to the taxpayer of the proposed adjustments either in writing or electronic mode i.e., to the email id provided in the income tax return filed
Response received from the taxpayer within 30 days from the issuance date of intimation will be considered before making the final adjustment and in case no response is received within such period, adjustments arrived at initially will be incorporated.
After arriving at final tax liability, the same is adjusted against TDS and tax payments and other relief under Section 90/91, if any.
An intimation shall be prepared and sent to the taxpayer. Kind of intimations possible are discussed below:
Intimation with no demand or no refund – This generally happens if the department has accepted the return as filed without carrying out any adjustments to it.
Intimation determining demand – Issued in case of adjustments made under Section 143(1) due to a discrepancy found and tax liability is arrived at.
Intimation determining refund – Issued where any tax is found to be refundable either where no discrepancy in the return filed or after making adjustments as referred to in Section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.
While demand notice is sent in case of final tax liability, refunds if any shall be granted to the taxpayer.
Nature of Adjustments Under 143(1)
Total income or loss is computed under Section 143(1) after making the following adjustments:
Arithmetical error in the return
Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:
The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.
Disallowance of set-off of loss in the financial year which is carried forward from previous years in which return was filed beyond the specified due date
Disallowance of expenditure is indicated in the audit report but not indicated in the return of income.
Time Limit for Issue of 143(1)
Section 143(1) intimation has to be sent within nine months from the end of the financial year in which the return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2023-24 in July 2024, intimation can be sent any time till 31 December 2025. If a taxpayer does not receive any intimation within such period, it simply means there are no adjustments carried out to the return filed by the taxpayer and no change in tax liability/refund, and the acknowledgement filed itself is deemed to be Section 143(1) intimation.
What is the Password for Intimation u/s 143(1)?
The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by your date of birth in DDMMYYYY format without giving any space.
For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.
Action to be Taken by the Taxpayer after Receiving a 143(1)
As a first step, review certain things in Section 143(1) intimation to ensure the document pertains to your return itself and the data provided pertain to the same financial year as mentioned in Section 143(1) intimation.
Check the name, PAN, address, assessment year for which notice has been sent and e-filing acknowledgement number.
In case you are able to identify the mistakes you have made while filing your return from the 143(1) intimation, and they can be rectified by filing a revised return, please do so by logging into the income tax e-filing website. Please refer our article on how you can go about revising your return online.
However, if no mistakes have been made and you do not agree with the adjustments made by CPC/computerised system, you can file an online rectification application under Section 154(1) intimating the correction of mistake appearing in the Section 143(1) intimation. Refer our article on filing rectification application.
Also, submit your response in the e-filing portal where there is a tax demand- whether you agree or disagree with the same.
In case you are not satisfied with the processing of your rectification return by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from CPC/assessing officer, you can file a complaint to the income tax ombudsman.
However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. Refer our article on OLTAS challan payment on how to pay taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan. If you wish to pay challan physically, the pre-filled challan is attached with the intimation as below.
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:
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.
Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.
Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.
One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.
What is Intimation u/s 143(1)?
The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):
Sequence number of refund
Details of assesses, such as name, address, etc.
As per Tax Department, the tax computed under section 143 (1)
Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
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:
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.
What is the password for intimation under Section 143(1)?
The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by date of birth in DDMMYYYY format without giving any space.
For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.
Nature of adjustments under 143(1)
Total income or loss is computed under Section 143(1) after making the following adjustments:
Arithmetical error in the return
Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:
The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.
Disallowance of set off of loss in the financial year which is carried forward from previous years in which return was filed beyond specified due date
Disallowance of expenditure indicated in the audit report but not indicated in the return of income.
Time Limit for issue of 143(1)
Section 143(1) intimation has to be sent within one year from the end of the financial year in which return is being filed. For eg: if the taxpayer has filed return pertaining to the financial year 2021-22 in July 2022, intimation can be sent any time till 31 March 2024. If a taxpayer does not receive any intimation within such period, it simply means there are no adjustments carried out to the return filed by the taxpayer and no change in tax liability/refund, and the acknowledgement filed itself is deemed to be Section 143(1) intimation.
Action to be taken by the taxpayer after receiving a 143(1)
As a first step, review certain things in Section 143(1) intimation to ensure document pertains to your return itself and data provided pertain to the same financial year as mentioned in Section 143(1) intimation.
Check the name, PAN, address, assessment year for which notice has been sent, e-filing acknowledgement number.
In case you are able to identify the mistakes you have made while filing your return from the 143(1) intimation, and they can be rectified by filing a revised return, please do so by logging into income tax e-filing website. Please refer our article on how you can go about revising your return online.
However, if no mistakes have been made and you do not agree with the adjustments made by CPC/computerised system, you can file an online rectification application under Section 154(1) intimating the correction of mistake appearing in the Section 143(1) intimation. Refer our article on filing rectification application.
Also, submit your response in the e-filing portal where there is a tax demand- whether you agree or disagree with the same.
In case you are not satisfied with the processing of your rectification return by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from CPC/assessing officer, you can file a complaint to income tax ombudsman.
However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. Refer our article on OLTAS challan payment on how to pay taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan.
Income tax 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.
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.
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.
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.
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.
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.
Sample of an Intimation Under 143(1)
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.
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.
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.
Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.
Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.
One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.
What is Intimation u/s 143(1)?
The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):
Sequence number of refund
Details of assesses, such as name, address, etc.
As per Tax Department, the tax computed under section 143 (1)
Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
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:
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.
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 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.
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.
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.
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 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.
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.
Section 143(1) of the Income Tax Act, 1961, is essentially a computer generated automated message which lets the taxpayer know of any error that exists in his/her tax filing. It also tells the taxpayer if he/she has any interest that is payable.
Anytime someone receives a notice from the Income Tax Department, there seems to be an overwhelming sense of trepidation that goes with it. Just looking at such envelopes can bring thoughts of impending fines and appearances and adds to the stress of daily life. But not all notices come bearing bad news. While some bear great news such as tax refunds, there are a few that are more of an announcement or statement of facts and have no positive or negative impact.
One such notice is the Intimation under section 143(1). This notification is a computer generated message stating any errors made or any interest found payable or refundable. This message is generated automatically and has no human intervention. These intimations are often sent via email within a time frame of 1 year from the financial year in which the return was filed.
What is Intimation u/s 143(1)?
The details submitted to the tax department and the details considered by the department to process the tax return are summarised in the Intimation u/s 143(1). The following are the details present in the Intimation u/s 143(1):
Sequence number of refund
Details of assesses, such as name, address, etc.
As per Tax Department, the tax computed under section 143 (1)
Other details related to Income Tax filing, such as filing date, acknowledgement number, etc.
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:
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.
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.
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.
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.
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.
