Income Tax Intimation Under Section 143(1) – What It Means and What to Do
Taxpayers often receive a communication from the Income Tax Department after filing their Income Tax Return (ITR). This communication is known as an Intimation under Section 143(1). Many people panic on receiving such notices, but in most cases, these intimations are routine and generated by the system to reconcile the information declared in the ITR with the records available with the tax department.
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What is Section 143(1) of the Income Tax Act?
Section 143(1) of the Income Tax Act deals with the preliminary assessment of the ITR filed by a taxpayer. It is not a scrutiny or detailed assessment but an automated check carried out by the Centralized Processing Centre (CPC).
The intimation under this section contains three important figures:
- The income reported by the taxpayer in the ITR
- The income processed as per CPC records
- The difference, if any, resulting in a refund, demand, or no change
Why Do You Receive an Intimation Under Section 143(1)?
The intimation is issued to:
- Confirm that the ITR filed by you has been processed successfully
- Highlight any arithmetic errors, incorrect claims, or mismatches with tax credit details (Form 26AS, AIS, TIS)
- Inform whether additional tax is payable, a refund is due, or no change is required
Important Facts to Keep in Mind About Section 143(1) Intimation
- It is a system-generated notice, not a scrutiny assessment.
- The intimation is sent within nine months from the end of the financial year in which the return was filed.
- It can show no demand/refund, a demand payable, or a refund due.
- The intimation is sent to the registered email and is also available in the income tax e-filing portal.
Common Mistakes Leading to Section 143(1) Notices
- Mismatch between TDS claimed and TDS available in Form 26AS/AIS
- Incorrect PAN or bank account details
- Non-disclosure of interest income from savings account or FDs
- Claiming deductions without eligibility
- Arithmetical errors in calculation of income or tax
Steps to Take if You Receive a Notice Under Section 143(1)
- Read the intimation carefully – Check whether it shows demand, refund, or no change.
- Compare ITR with intimation – Match the figures with your filed return and Form 26AS.
- If no mismatch – No action is required.
- If refund is due – It will be credited to your bank account after processing.
- If demand is raised – Verify correctness; if valid, pay the tax; if incorrect, file a rectification request online.
How to Respond to Intimation Under Section 143(1)?
- Log in to the Income Tax e-filing portal.
- Go to e-Proceedings → Response to Notice.
- Select the intimation and choose whether you agree or disagree with the computation.
- If you disagree, submit a rectification request under Section 154 with correct details.
Key Features of Section 143(1) Intimation
- Generated electronically without human intervention
- Sent to both email and e-filing portal
- Contains two columns: as provided by taxpayer vs. as computed by CPC
- Helps in faster processing of refunds and quick resolution of mismatches
Common Scenarios in Section 143(1) Intimation
- Refund Determined – If taxes paid (TDS, advance tax) exceed actual tax liability.
- Demand Payable – If taxes paid are less than actual liability.
- No Demand/No Refund – If taxes paid and liability match.
Planning for a Smooth Tax Experience Post-Intimation
- Always reconcile your ITR with Form 26AS, AIS, and TIS before filing.
- Ensure correct PAN, bank details, and income declaration.
- Maintain documentation for deductions and exemptions claimed.
- Use ITR filing accounting software or consult a professional to reduce errors.
Final Thoughts
Receiving an income tax intimation under Section 143(1) is a normal part of the ITR processing cycle. Instead of panicking, taxpayers should carefully review the intimation, understand the differences, and take corrective steps if needed. Timely responses, accurate filing, and reconciling with Form 26AS/AIS can help avoid unnecessary hassles.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions (FAQs)
- What does an intimation under Section 143(1) mean?It means your return has been processed, and the department is informing you of any mismatches, refund due, or additional tax demand.
- When is an intimation under Section 143(1) issued?Within nine months from the end of the financial year in which the return was filed.
- What should I do if the intimation shows additional tax demand?Verify the computation. If correct, pay the tax. If incorrect, file a rectification request under Section 154.
- How can I claim a refund if the intimation shows a refund due?Refunds are processed automatically and credited to the bank account linked with your ITR.
- What happens if I do not receive any intimation under Section 143(1)?It means your return has been accepted without adjustments.
- How long does the Income Tax Department take to send the intimation under Section 143(1)?Usually within a few weeks to months, but legally within nine months from the financial year-end.
- How to read and understand the details in the Section 143(1) intimation?Compare the columns “As Provided by Taxpayer” and “As Computed under Section 143(1)” for income, deductions, and tax amounts.
- Can I dispute or respond to discrepancies mentioned in the intimation?Yes, you can file an online rectification request under Section 154 to correct errors or mismatches.
