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.
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
Filed vs Computed – What Your 143(1) Intimation Shows
When your ITR is processed, the system compares what you filed with what the department has computed using its own data and rules. The 143(1) intimation shows this comparison in a side by side format so you can quickly spot differences and understand any refund or demand.
| Particulars | As per Return Filed (You) | As per Department Computation | What It Means for You |
|---|---|---|---|
| Total Income | Income you declared in ITR | Income recalculated after system checks | Higher “computed” income can lead to extra tax demand |
| Deductions (e.g. 80C, 80D) | Deductions you claimed | Deductions allowed as per data & rules | Disallowed / reduced deductions increase taxable income |
| Exempt Income | Exempt amounts you reported | Exempt income accepted / modified | Wrong reporting can trigger mismatch or clarification |
| Set off of Losses | Losses you set off or carried forward | Losses allowed as per past returns / records | Disallowed losses increase tax or reduce carry forward |
| Gross Tax Liability | Tax you calculated | Tax recalculated by the system | Difference here is the core of any refund or demand |
| TDS / TCS | TDS/TCS you claimed from Form 16/16A/26AS | TDS/TCS available in department’s records | Lower “computed” TDS means you may have to pay extra tax |
| Advance / Self Assessment Tax | Taxes you say you paid | Taxes traced in the department’s system | Missed challans or wrong CIN reduce credit given |
| Fee & Interest (e.g. 234F, 234A/B/C) | What you calculated (if any) | Late fee and interest recomputed by system | Extra fee/interest added if you filed late or paid late |
| Net Tax Payable / Refund | Final payable or refundable as per your ITR | Final payable or refundable as per department | This is the amount you actually have to pay or will receive |
Always start by scanning the bottom lines: “Net Amount Payable” or “Net Refund”. Then work upward to see which row is causing the difference.
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
Common Reasons for 143(1) Mismatches
Most 143(1) differences are routine and system driven. As a CA or taxpayer, you should know the usual triggers so you can correct them quickly and avoid future notices.
Typical reasons include:
- TDS / TCS mismatch
TDS claimed in ITR does not match TDS appearing in Form 26AS or AIS. Common causes are wrong PAN, missing entries, or delayed TDS filing by deductors. - Wrong or excess deductions
Deductions under sections like 80C, 80D, 80G etc. are higher than allowed based on limits, documentation or system cross checks, so part of them is disallowed in computation. - Arithmetic or data entry errors
Manual mistakes while entering income, deductions, tax, surcharge or cess. Even small errors can change tax payable and trigger an adjustment. - Mismatch between income reported and information available with department
Income from salary, interest, capital gains or other sources appearing in AIS/TIS or Form 26AS but not shown or under reported in the ITR. - Incorrect tax rate / slab or status
Using wrong slab, ignoring special rates (e.g. for capital gains) or selecting wrong age / residential status can make your self calculated tax lower than the system’s figure.
Late filing fee or interest not considered
When the return is filed after due date or taxes were paid late, the system adds late fee and interest even if you did not compute them in the ITR.
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
Possible Outcomes of a 143(1) Intimation (Refund / Demand / No Change)
Once the system finishes comparing “filed” vs “computed”, your 143(1) intimation will generally show one of three outcomes. Understanding each outcome helps you decide the next action.
1. Refund
If the tax computed by the department is lower than what you paid or claimed, the intimation will show a refund due.
- The refund is normally processed to your bank account if it is pre validated and ECS enabled.
- You should still verify the figures and keep the intimation safely for records.
2. Demand (Additional Tax Payable)
If the tax computed by the department is higher than what you paid, the intimation will show a demand payable along with reasons.
- If you agree, you should pay the demand within the specified time and keep challan details.
- If you disagree, you can submit a rectification request or respond online through the portal.
Ignoring a valid demand can lead to further notices, interest and adjustment of future refunds.
3. No Demand, No Refund (No Change)
Here, the tax as per your return and as per department computation is the same.
- It means the return has been processed without any adjustment.
- No further action is normally required from your side.
- Keep the intimation as proof that your ITR was processed and accepted as filed.
What to Do After Receiving a 143(1) Intimation?
- 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.
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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
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What is the password to open the 143(1) intimation PDF?
Usually, the password is your PAN in lowercase followed by your date of birth in DDMMYYYY format, without spaces. For non individuals, the date of incorporation is used. Example: PAN ABCDE1234F and DOB 15-08-1990 becomes password abcde1234f15081990.
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What should I do if I don’t receive my 143(1) intimation?
First, check your registered email ID, spam folder and SMS. Then log in to the income tax e filing portal, go to e File → Income Tax Returns → View Filed Returns and download the intimation from there. If it still is not available after a long time, contact the helpdesk or your Assessing Officer.
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Can I revise my ITR after receiving a 143(1) intimation?
Yes. You can usually revise your ITR under section 139(5) even after receiving a 143(1) intimation, provided you are within the revision time limit for that assessment year and a regular assessment has not been completed. If the time has passed, you may need to file a rectification instead.
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What if I disagree with the tax demand shown in 143(1)?
If you disagree, do not ignore the notice. Log in to the e filing portal, use the response / outstanding demand or rectification options, choose “disagree (full or part)” and submit reasons with correct data. You can pay only the undisputed part and contest the balance.