Intimation Under Section 143(1) of Income Tax Act

Section 143(1) of the Income Tax Act deals with the initial review of your tax return by the Income Tax Department. It is basically a summary assessment process conducted by the Income Tax Department after a taxpayer files their income tax return.

Under this Section, the tax authorities verify the return without requiring any detailed scrutiny. The department checks the return for:

• Arithmetic errors.
• Correctness of tax computation.
• Any missing or incorrect information.

The assessment primarily revolves around internal inconsistencies, arithmetical errors and more. This primary assessment process is fully digitalised and delegated to the Central Processing Centre (CPC).

Based on the assessment, the system generates the letter of intimation. The letter or order under Section 143(1) of the Income Tax Act generally contains the following information:

• Details of taxpayer such as name, address, etc
• The sequence number of refund
• Other details related to income tax filing include the filing date, acknowledgement number, etc.
• Tax computation as per the tax department under Section 143(1).

Also Read: Section 133(6) Of Income Tax Act

There are three kinds of intimations that taxpayers may receive from the Income Tax Department.

Intimation of Demand

The first type of intimation an individual may receive is demanding him to pay tax. Such an intimation is issued if there is any under-calculation of tax by the taxpayer.

Intimation of Refund

If the taxpayer has paid excess tax, the intimation will inform him of the same and specify the refund amount.

ITR 143 (1) Intimation of No Refund or No Demand

If the taxpayer’s calculation matches the data of the Income Tax Department and the income tax amount is correct, the intimation will be sent without any adjustments. This means that the department has accepted the return without any adjustment.

Once the department completes the scrutiny of the income tax return filed by a taxpayer, several factors may lead to an intimation being sent. The intimation highlights reasons for adjustments and errors. Here are some reasons why the intimation is sent:

TDS Mismatch

In some cases, the TDS details furnished by the taxpayer may not match the data available with the Income Tax Department. In such cases, the taxpayer may be informed about the discrepancy through a 143 (1) intimation.

Incorrect Income Details

If the taxpayer forgets to disclose a source of income such as income from interest or other source, etc., an intimation will be sent regarding the mismatch in the source of income.

Error in Tax Amount

Some returns may reflect a tax amount which does not match the calculations of the income tax department. Therefore, the department may send in intimation regarding the tax liability.

No Return Filed

If the income of an individual is above the threshold limit but he has not filed a return, he will receive a notice u/s 143 (1) asking him to file the return.

Non Verification

An intimation under section 143 (1) is also sent if the income tax file is not verified or not e-verified by the taxpayer.

Failure to Comply with Rules

If there is any non-compliance or failure to adhere to the income tax rules or provisions, an intimation u/s 143(1) will be issued.

Tax Refund

If an individual has paid excess tax, he will be informed about the tax refund amount through the intimation under section 143 (1).

Shortfall in tax

If there is a shortfall in tax calculation, the Income Tax Department sends an intimation to the taxpayer under section 143 (1).

Also Read: Benefits of Filing ITR (Income Tax Return)

The taxpayer or assessee will receive an intimation under Section 143(1) once the income tax department has finished processing the return. Usually, the taxpayer will get the letter of intimation within a month of filing the return.

But sometimes it may take longer. The income tax department has to process the ITRs of assesses within nine months from the end of the financial year in which ITR is filed. It simply means that if the taxpayer has filed the return for the financial year 2024-2025 inJuly, the income tax department has till 31st March of 2026 to send intimation.

However, in case if you do not receive the intimation or order under Section 143(1) of the Income Tax Act, then it is because of the two reasons mentioned below:

• The income tax department has not successfully processed the return, or there was an error in sending an intimation order. In this case, you can simply visit the income tax department's official website and check the details.

• Another reason is that you may have submitted the ITR with all the documents, but the income tax department might not be able to process it. In such a scenario, you need to contact the income tax department grievance cell and lodge a complaint.

Also Read: Section 56 Of Income-tax Act

The Central Processing Centre (CPC) carries out the preliminary assessment of the income tax return filed by the taxpayer. The CPC checks the information in each tax return against the records available with the Income Tax Department, such as Form 26AS generated from details provided by collecting banks, TDS returns, etc.

The notice typically highlights any obvious errors identified by the mainframe system. The preliminary assessment by CPC generally involves the below-mentioned process:

• After the return is filed, the computerised system recalculates the total income or loss according to the department's records and compares it with the data submitted by the taxpayer.
• The intimation letter has two columns: one provided by the taxpayer in the return of income and the other generated based on Section 143 (1).
• The comparison is based on major categories such as gross total income, income under various heads, tax deducted at source and deductions under Chapter VIA.
• After comparison, necessary adjustments are made to the income calculated under Section 143(1) and the final tax liability or refund is determined.
• The adjustments are made only after notifying the taxpayer of the proposed changes, either in writing or via electronic means, such as the email address provided in the income tax return.
• The taxpayer has 30 days from the date the intimation letter is issued to respond before making any final adjustment. If no response has been received, the adjustment initiated initially by the income tax department will be incorporated.
• Once the final tax liability is determined, it is adjusted against TDS, tax payments and any other reliefs under Section 90/91, if applicable.
• The prepared intimidation letter will be sent to the taxpayer.

As mentioned above, the Section 143(1) of the Income Tax Act time limit is nine months from the end of the financial year in which the income tax return is filed.

If a taxpayer does not receive an intimation within the specified period, it means no adjustments have been made to the return and there is no change in the tax liability or refund. In such cases, the acknowledgement filed is considered the Section 143(1) intimation.

If you have received the intimation under Section 143(1) of the Income Tax Act, below are the following actions you need to take:

• The first thing to do is review the intimation letter carefully. The data provided should relate to your return and correspond to the same financial year mentioned in the intimation.
• The next thing to do is check the address, name, PAN, etc, for which the notice has been sent.
• If you can find the mistakes you made while filing the income tax return from the intimation letter, you can rectify them by filing a revised return.
• Suppose you believe there are no mistakes, and you disagree with the adjustments made by the CPC. In that case, you can submit an online application for rectification under Section 154(1) to correct the mistakes in the Section 143(1) intimation.
• You also need to submit your response to the tax demand on the e-filing portal, indicating whether you agree or disagree with it.
• If you do not agree with the processing of your CPC rectification return, you can file an online complaint or reach out to your assessing officer. If you still have not received a satisfactory response from the assessing officer or CPC, you can file a complaint with the income tax ombudsperson.

Here are the steps for how to read an intimation under Section 143(1).

• Step 1: Go to the income tax e-filing portal, log in and download the intimation.
• Step 2: Open the downloaded file.
• Step 3: Enter the password. The password is your PAN number in lowercase, followed by your birthdate (DDMMYYYY).
• Step 4: Read the intimation contents carefully and check if the adjustments mentioned are correct.

If you agree with the adjustments mentioned under Section 143 (1), you must pay the outstanding taxes. In some cases, you may receive a refund. Here are the steps to follow if you want to respond to the intimation:

• Step 1: Log in to the income tax portal.
• Step 2: Navigate to the pending actions tab.
• Step 3: Next, select the e-proceedings option. Then, click one-assessment.
• Step 4: Choose adjustment u/s 143(1)(a).
• Step 5: You will see the intimation notice details.
• Step 6: Click on “submit” to respond to the intimation.
• Step 7: Once you see the mismatch found, click the dropdown and select your response.
• Step 8: Select the appropriate documents supporting your response.
• Step 9: Click submit.

Also Read: Income Tax Return (ITR) - How to File ITR Return

Understanding all about the intimation under Section 143(1) of the Income Tax Act is crucial as it saves you time and unnecessary litigation. All the taxpayers receive ITR intimation 143(1). It is an indication that your income tax return has passed through the preliminary assessment.

Do not be intimidated by the letter. Read it carefully and check all the details. Next, try to understand the objective of the notice, whether you are eligible for a refund, need to pay more tax, or none of them.

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