Intimation under Section 143(1) of Income Tax Act

Once you submit your Income Tax Return (ITR), the Income Tax Department carries out an initial computer-based review of the details provided. After this processing is complete, you receive an intimation under Section 143(1) of the Income Tax Act. This communication outlines important information such as your ITR acknowledgement number, total income reported, deductions claimed, taxes already paid, and the final tax calculation made by the department.

This intimation acts as a summary comparison between the figures you submitted and the department’s own records. It helps you confirm whether everything matches or if there is any difference that needs attention. Understanding the importance of intimation under Section 143(1) allows taxpayers to respond promptly, correct errors if required, and remain compliant with the rules prescribed under the Income Tax Act.

Key aspects of Section 143(1) intimation

Section 143(1) intimation mainly serves to verify whether the tax details mentioned in your filed return align with the records available with the Income Tax Department, such as the Annual Information Statement (AIS) and Form 26AS. This automated comparison ensures that income, tax credits, and deductions are correctly reported and calculated.

Possible outcomes

• No difference: If all details match, your return is accepted as filed and no further action is required.
• Refund: If you have paid more tax than required, the excess amount (for example, Rs. 5,000 or any applicable sum) will be refunded to your registered bank account.
• Tax demand: If there is a shortage in tax payment, a demand notice is issued specifying the payable amount along with instructions for payment.
• Time frame: The department must send this intimation within nine months from the end of the financial year in which the return was submitted.

What is intimation under Section 143(1)?

After a return is filed, either voluntarily under Section 139 or upon request under Section 142(1), it undergoes a process known as assessment.

This preliminary check is carried out by the income tax department through a fully automated system at the CPC. The system scans for arithmetical mistakes, inconsistencies in declared income, miscalculations of tax, or mismatch in tax payment details.

Once the analysis is complete, the CPC issues an intimation under Section 143(1). This document simply highlights any glaring errors found and compares the taxpayer's declared information against the records maintained by the department.

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When does one receive an intimation u/s 143(1)?

You will receive an intimation under Section 143(1) once your return is successfully processed by the system. This processing includes checks against department records and arithmetical accuracy of your filed return.

The Centralised Processing Centre verifies all details (like income declared, tax deducted, deductions claimed, and tax paid) and compares them against departmental data and provisions of the Income Tax Act. The system then auto-generates an intimation that outlines any errors or mismatches, if present.

If your return shows excess tax paid, the intimation includes details of the refund (issued only if it exceeds Rs. 100). On the other hand, if there is a shortfall in payment, it shows the demand raised and includes a challan to make the payment.

If no discrepancy is found, the intimation acts as a confirmation that the return filed matches the department’s records. It’s not something to be alarmed about—it’s just a system-generated update on your return status.

Centralised Processing Center

With rising volumes of income tax returns, manual and jurisdiction-based assessment systems led to delays and inefficiencies. To solve this, the Finance Act, 2008 empowered the CBDT to create a system for centralised processing.

As a result, the CPC in Bangalore was established to handle returns—both e-filed and paper-based—without any direct interaction between the taxpayer and the assessing officer. This made processing faster and more streamlined, removing jurisdictional delays. The CPC system is fully automated and works in a jurisdiction-free environment.

The CPC’s key benefit to taxpayers is the quick and hassle-free processing of income tax returns. Since the system handles basic checks like calculation errors or mismatches automatically, it saves time for both the department and taxpayers.

Section 143(1) intimation, issued through this process, is not a notice or demand in most cases; it’s just a record of how your return has been processed. It often reassures taxpayers that their return has been accepted, or, if required, indicates any corrections or adjustments needed.

Don’t be alarmed if you receive this document; it is standard and sent to almost every filer.

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Preliminary assessment Under 143(1)

Once you file your tax return, it is automatically processed by the CPC system. Here’s how the initial check works:

• The system compares the data you submitted with the data available with the Income Tax Department (from sources like Form 26AS, TDS returns, and bank-reported transactions).
• The return is recomputed based on department records, and a side-by-side comparison is generated.
• The intimation document has two columns:\
  • As declared in the return
  • As calculated under Section 143(1)

What Does a Letter of Intimation Under Section 143(1) Include?

• Income under different heads (salary, business, capital gains, etc.)
• Gross total income
• Deductions under Chapter VIA (like 80C, 80D)
• Taxes paid, including TDS, advance tax, and self-assessment tax

Next, the CPC applies necessary adjustments, and final tax liability or refund is computed. These adjustments are communicated to the taxpayer via email or the e-filing portal.

If you respond to the notice within 30 days, your reply is considered before finalising the return. Otherwise, the system proceeds with the adjustments as initially proposed.

Key components of intimation under Section 143(1)

The Centralised Processing Centre (CPC) carefully checks several important elements while issuing an intimation under Section 143(1). The aim is to ensure that the details provided in the return are accurate and consistent with official records.

The intimation usually includes verification of income declared under different heads, calculation of gross total income, deductions claimed under Chapter VIA, and taxes paid such as TDS, advance tax, and self-assessment tax. It also shows the final computation, clearly stating whether you are eligible for a refund or required to pay additional tax. These checks help resolve any mismatch before the return is considered final.

Types of intimation

• No demand/ no refund: No discrepancies; your return is accepted as is.
• Intimation with demand: Tax mismatch; additional payment required.
• Intimation with refund: Excess tax paid; refund due.

Refunds are credited to your account, and any final demand must be paid using the appropriate challan. The system removes manual handling, ensuring transparency and speed.

Nature of adjustments under 143(1) Section of Income Tax Act

While processing your return, CPC may make the following changes to determine your correct income:

• Maths or calculation errors in the return.
• Inconsistent claims: If any figures do not match, such as declaring income under one head but claiming deductions elsewhere.
• Incorrect claims: For example, claiming deductions not supported by data in Form 26AS or other reports.
• Disallowance of loss carry-forward: If previous losses are claimed in the return but the earlier return was not filed within due date, such claims may be rejected.
• Expenditure not reported in return: If your audit report mentions expenses that are not included in the return, those could be disallowed.

Each adjustment is mentioned in the intimation sent to the taxpayer.

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Time limit for issue of 143(1)

The intimation under Section 143(1) must be issued within nine months from the end of the financial year in which the return was filed. This defined period ensures transparency and gives taxpayers clarity about their return status.

Example

If the return relates to Financial Year 2024–25 and is filed in July 2025, the intimation should be sent on or before 31 December 2026. If no communication is received within this time, the return is treated as accepted as filed, and no additional action is required from the taxpayer.

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

Here’s how to respond to a Section 143(1) intimation:

• Verify your details: Make sure the PAN, name, assessment year, and return acknowledgement number match your filing.
• Understand the differences: Compare your return figures with those shown in the intimation.
• If mistakes were made: You can revise your return by logging into the e-filing portal and submitting a revised return.
• If you disagree with the adjustments: File a rectification request under Section 154(1) to point out the errors in the intimation.
• Respond on the portal: If the intimation raises a tax demand, log in to the portal and submit your response—agreeing or disagreeing.
• Still not satisfied? Contact your Assessing Officer or raise a grievance online. You can also write to the Income Tax Ombudsman.
• If you agree with the tax demand: Use OLTAS challan with code 400 (Tax on regular assessment) to make the payment online.

Always respond within the timeline mentioned in the notice to avoid issues.

Process of Intimation under Section 143(1)

The process of intimation under Section 143(1) involves several steps:

1. Submission of income tax return: The taxpayer submits their income tax return for the relevant assessment year, detailing their income, deductions, and tax liability.
2. Preliminary assessment: The Income Tax Department conducts a preliminary assessment of the return. This involves checking for arithmetical errors, internal inconsistencies, and incorrect claims.
3. Adjustments: If any discrepancies are found, adjustments are made. These adjustments can pertain to:
   • Arithmetical errors.
   • Incorrect claims of deductions.
   • Mismatches between the income reported and the information available with the department (e.g., TDS details).
4. Generation of intimation: Based on the preliminary assessment, the department generates an intimation. This document indicates:
   • The total income or loss as per the return.
   • Adjustments made during the assessment.
   • The amount of tax or interest payable by the taxpayer, or the refund due.
5. Communication to taxpayer: The intimation is communicated to the taxpayer via email or through the online portal. It is essential for taxpayers to review this intimation carefully to ensure accuracy.

Types of intimation under Section 143(1)

There are three possible outcomes of an intimation under Section 143(1):

1. No adjustments: If the preliminary assessment matches the return filed, no adjustments are made. The intimation confirms that the return is accepted as is.
2. Tax refund: If the taxpayer has paid more tax than required, the intimation will show the amount refundable.
3. Tax demand: If the preliminary assessment reveals that additional tax is payable, the intimation will show the amount due along with interest, if applicable.

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Addressing discrepancies

Upon receiving an intimation under Section 143(1), taxpayers should:

1. Verify the details: Check the details mentioned in the intimation against the original return filed.
2. Respond promptly: If there are discrepancies, respond promptly by filing a rectification request under Section 154 to correct any errors.
3. Make payment: If there is an additional tax demand, make the payment within the stipulated time to avoid penalties.
   

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

Intimation sent under Section 143(1) is password-protected. The password is a combination of your PAN (in lowercase) and your date of birth in DDMMYYYY format, with no space.

For instance, if your PAN is ABCDE1234Z and your date of birth is 15 September 1995, the password will be: abcde1234z15091995.

This ensures your sensitive financial information remains secure.

How to know the password to access section 143(1) income tax intimation PDF?

• The password to open the Section 143(1) intimation PDF is a combination of your PAN (entered in lowercase letters) and your Date of Birth in the format DDMMYYYY.
• For example, if your PAN is abcde1234f and your Date of Birth is 15 August 1990, the password would be: abcde1234f15081990.
• Enter this exact combination without spaces while opening the downloaded PDF file.
• This password format ensures that your tax information remains secure and can only be accessed by you.

How to open ITR intimation notice under Section 143(1)?

The intimation under Section 143(1) is sent as a password-protected PDF file to your registered email ID. The password format is standard and linked to your personal details, so you do not need to contact the Income Tax Department to obtain it.

To open the PDF, you must enter your Permanent Account Number (PAN) in lowercase letters, followed immediately by your date of birth in the DDMMYYYY format. There should be no spaces between the PAN and the date of birth.

For example, if your PAN is ABCDE1234F and your date of birth is 15 August 1995, the password will be: abcde1234f15081995

Once you enter this password, the file will open, and you can read the details of how your return has been processed. It is advisable to save a copy of this document on your device or cloud storage, as it is an important tax record. Always ensure you open such emails only from the official email ID of the Income Tax Department to avoid phishing or fraud.

Why do taxpayers receive an intimation notice under Section 143(1)?

The main purpose of an intimation under Section 143(1) is to inform you about the outcome of the initial processing of your ITR. It shows whether the tax calculation submitted by you matches the computation done by the Income Tax Department.

This notice may state one of three outcomes. First, it may confirm that there is no difference between your return and the department’s records, meaning no action is required from your side. Second, it may inform you that you are eligible for a tax refund, mentioning the refund amount in Rs. and the method of payment. Third, it may indicate that additional tax is payable due to differences in calculations or disallowed claims.

Ignoring this notice can be risky, especially if it shows an outstanding tax demand. If the payable amount is not cleared on time, interest at 1% per month (or part thereof) may continue to apply until the dues are settled. Although this is not treated as tax evasion, it is considered non-compliance and should be addressed promptly.

What does CPC Check in Your ITR?

The CPC carries out a preliminary and automated review of your ITR. This is not a detailed assessment but a basic verification based on the information already available with the department.

During this process, the CPC checks for obvious errors, internal mismatches, and incorrect claims that do not align with the details provided in your return. It verifies whether losses from earlier years are eligible for set-off, especially if the earlier return was filed after the due date. Certain expenses mentioned in audit reports but not included in the income calculation may also be disallowed.

The CPC may disallow specific deductions, such as those under Sections 10AA or 80IA to 80-IE, if the return was filed late. It also compares your declared income with data available in Form 26AS, Form 16, and Form 16A, and may add income if it has not been reported.

If you do not receive a Section 143(1) intimation, it usually means your return is still pending processing. The CPC can issue this intimation within nine months from the end of the financial year in which the return was filed.

Conclusion

Section 143(1) intimation is a routine part of the income tax return filing process. It represents the preliminary assessment carried out by the CPC and informs taxpayers about any adjustments, refunds, or additional tax liability. Understanding this intimation helps you stay compliant and avoid penalties. Always review the document carefully upon receipt and respond promptly if any action is required. Keep your tax records organised and ensure all information submitted is accurate to minimise discrepancies. If you have doubts or disagree with the adjustments made, use the rectification process or seek professional tax guidance. Being proactive with your tax obligations protects your financial standing.

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