Income Tax Intimation Under Section 143(1): What It Means and How to Respond

Introduction

After you file your Income Tax Return (ITR), the Income Tax Department processes it through an automated system. This system checks for basic errors, compares your return with official data (like Form 26AS and AIS), and issues an Intimation under Section 143(1) of the Income Tax Act.

Receiving this intimation is standard. Often, it simply confirms that your return has been processed. But in some cases, it may show a refund or tax demand — and timely action is required.

What Is Section 143(1) of the Income Tax Act?

Section 143(1) refers to preliminary processing of your ITR by the Central Processing Centre (CPC). It includes:

• Arithmetic checks
• Verification of deductions and exemptions
• Comparison with Form 26AS, AIS (Annual Information Statement), and TIS

Once processed, the department sends you an intimation outlining:

• Whether your return has been accepted as-is
• If a refund is due
• If a tax demand has been raised

Types of Intimations Under Section 143(1)

1. No Discrepancy Found

• The income, deductions, and tax paid match official records
• Your return is accepted as filed

2. Refund Due

• Your total tax paid (TDS, advance tax, self-assessment) is higher than your actual liability
• Refund is processed and credited to your bank account

3. Tax Demand Raised

• Mismatch in income details
• Deductions disallowed or incorrect
• Additional income detected via AIS or Form 26AS
• A tax demand is raised, and you are notified to act

Example of Intimation Adjustment

Suppose:

• You report total income of Rs. 6,00,000 in your ITR
• Claim Rs. 1,50,000 under Section 80C
• However, Form 26AS shows income of Rs. 7,00,000

Outcome:

• Deduction disallowed (due to wrong section or no proof)
• Taxable income becomes Rs. 7,00,000
• Higher tax liability is computed
• Result: Tax demand is raised under Section 143(1)

What Details Does a 143(1) Intimation Contain?

• Income as reported by taxpayer and as computed by CPC
• Adjustments made by CPC with explanations
• Tax computation and comparison
• Refund or demand, if applicable
• Instructions for further action

This intimation is sent to your registered email and is also available on the Income Tax Portal under e-Proceedings.

Frequently Asked Questions

Is Section 143(1) a scrutiny notice?
No. It is not a scrutiny notice under Section 143(2). It is a summary processing of your return.

What should I do if a tax demand is raised?
You can:

• Agree and pay using Challan 280
• Disagree and file a rectification request under Section 154 with proof

Can I revise my return after receiving 143(1)?
No. Once processed under 143(1), you cannot revise the return. Only rectification can be filed.

Is the refund under Section 143(1) final?
Yes, unless your case is later selected for scrutiny or reassessment.

Common Mistakes That Lead to Intimation Errors

• Incorrect deduction claims (like 80C or 80G)
• Ignoring data in Form 26AS and AIS
• Mismatch in TDS figures
• Not reporting FD or savings interest
• Claiming old regime deductions while opting for the new tax regime

How to Respond to 143(1) Intimation

• Log in to the Income Tax e-filing portal
• Go to e-Proceedings > View Notices > 143(1)
• Review the adjustments and tax calculation
• If all is correct, no action needed
• If incorrect:
  • File a rectification request under Section 154
  • Attach relevant supporting documents
• If a demand is valid:
  • Pay the tax using Challan 280
  • Update compliance records

Final Thoughts from a Chartered Accountant

Most 143(1) intimations are routine, but you should still review them carefully. Even small errors can result in a large tax demand or missed refunds.

Always match your ITR with Form 26AS, AIS, and TIS before filing. If any adjustment or demand is raised, act promptly to pay or contest with appropriate documentation.

Need Help Reviewing or Responding to 143(1) Intimation?

At CallmyCA, we help:

• Interpret and explain your 143(1) notice
• Detect mismatches or incorrect adjustments
• File rectification requests professionally
• Manage tax payment and compliance if demand is valid

Click here to book your tax intimation or rectification service via CallmyCA