What is Tax Demand Intimation? How to Respond to Income Tax Notice Under Section 143(1)?

This intimation is sent when the Income Tax Department finds small errors while processing your ITR, for example, excess deduction claimed, reporting in the incorrect schedule, using the incorrect ITR form, or even failing to claim a deduction that you might be eligible for.

Having said that, if you have received intimation under section 143(1), it is important to understand the reason, what it means, and decide the correct course of action to be taken. Let’s understand more about section 143(1) of the Income Tax Act.

What is Income Tax Intimation Section 143(1)?

Tax Demand Intimation or Income Tax Notice under section 143(1) is an Income Tax Intimation that provides you with a summary of your ITR assessment. After you file an ITR, it is assessed by the Income Tax Department. After assessing, it might find arithmetical errors, errors in tax calculation, wrongly reported income, or missing out on claiming a tax refund that is due. If the department finds any such discrepancy, it might send an income tax intimation section 143(1). However, you must respond to this notice accurately within the given time frame. This intimation under section 143(1) should be processed within 9 months from the end of the financial year in which the return is filed.

Intimation u/s 143(1) of the Income Tax Act is a summary of the details you have submitted to the tax department and the details the department has considered while processing your return. Basically, the intimation u/s 143(1) contains the following information:

1. Permanent Details of the assessee like name, address, etc.
2. Income Tax Return filing details like acknowledgment number, filing date, etc.
3. Refund sequence number
4. Tax Calculation as provided by you in the Return of Income
5. Tax as Computed under section 143(1) of the IncomeTax Act {i.e., as per Department}

Sample of an Intimation under 143(1)

Why is the Intimation u/s 143(1) Issued?

Basically, when a return is submitted to the Income Tax Department, the department applies the following computerized checks as a part of its review procedure:

• An incorrect claim, which is apparent from any information in return. For example, if the deduction u/s 80C is claimed more than the maximum permissible deduction u/s section 80C, i.e., Rs 1,50,000, the excess shall be disallowed and reflected in your intimation u/s 143(1). Another example may be that rent income is deducted from business income, which is not shown under Income from House Property.
• Disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return
• Comparison of Advance Tax, Self-assessment tax, and TDS, etc., from 26AS.
• Addition of income appearing in Form 26AS, or Form 16A, or Form 16, which is not included in ITR.
• Claiming the losses for carry forward to next year when the return is submitted after the due date / set off of losses of the previous year where the return was filed after the due date.
• Whether deduction under section 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE has been taken after the due date of the Income Tax Return
• Calculation of Tax, Late filing fees, Interest, etc.

When does one Receive Intimation u/s 143(1)?

Every assessee receives an intimation u/s 143(1) when the return is processed successfully. The following are the primary instances for receiving an intimation under section 143(1):

Tax Refund:

If the taxpayer has paid an excess amount of tax, the notification will mention the refund amount. Refunds exceeding Rs. 100 will be disbursed to the taxpayer, while amounts below this threshold will not be paid out.

Tax Shortfall:

If the taxpayer has underpaid taxes, as determined through computation, the notice will specify the deficient amount. Additionally, a challan for making the required payment will be enclosed with the notice.

Conformance Notice:

A straightforward notice will be issued in cases where the tax returns filed by the taxpayer align with the assessment conducted by the assessing officer. In such instances, no separate 143 1 intimation is sent, and the taxpayer should consider the ITR V acknowledgment of filing the return of income as the intimation notice.

Centralized Processing Center

The volume of Income Tax Returns increased rapidly over the last few years, which made it difficult for the department to process Income Tax Returns. Therefore, CBDT made a scheme for the centralised processing of returns to determine the tax payable by, or the refund due, to the taxpayer.

It was established that CPC at Bangalore would process paper and e-returns without any interface with taxpayers and in a jurisdiction-free manner. This led to faster and hassle-free return processing and also relieved the department from the burden of preliminary assessment.

Preliminary Assessment u/s 143(1)

Intimation u/s 143(1) points out apparent mistakes found out in the ITR filed.

Once you file your income tax return, the Income Tax Department’s computerized system recomputes your total income or loss based on its records. It then compares this with the details you submitted in your return.

The intimation you receive includes two columns:

• As provided by the taxpayer in the Return of Income
• As computed under Section 143(1)

The system compares major categories such as:

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

Based on this comparison, the system makes necessary adjustments under Section 143(1) to determine your final tax liability or refund.

Before making any changes, the department informs you of the proposed adjustments via email or written communication, using the contact details provided in your return. If you respond within 30 days of receiving the intimation, your inputs will be considered. If not, the proposed adjustments will be finalized.

After calculating the final tax liability, the system adjusts it against TDS, advance tax, self-assessment tax, and any relief under Sections 90 or 91, if applicable. An intimation is then sent to you.

You may receive one of the following types of intimation:

• No demand, no refund: The department accepts your return as filed without any changes.
• Demand determined: A discrepancy was found, and additional tax is payable after adjustments under Section 143(1).
• Refund determined: A refund is due either because no discrepancy was found or after adjustments and considering taxes and interest already paid.

If a tax demand is raised, the department sends you a notice. If a refund is due, it will be credited to your account.

Adjustments Under 143(1)

Under Section 143(1), the total income or loss declared in the return is computed after making the following adjustments:

• Arithmetical Errors: Any calculation mistakes in the return.
• Incorrect Claims: Any claims that are clearly incorrect based on the information provided in the return. These may include:
  • Claims that are inconsistent with other entries in the return, such as deducting income from other sources from business income without declaring it under the "Income from Other Sources" section.
  • Disallowance of Loss Carry-Forward: If you attempt to carry forward losses from previous financial years, but the return for that year was filed after the due date, the set-off of those losses will be disallowed.
  • Disallowed Expenses: Any expenses mentioned in the audit report but not reflected in the return will be disallowed.

Time Limit for Issue of 143(1)

Intimation u/s 143(1) can be issued only up to 9 months from the end of the financial year in which the return is filed and not after that.

For example,

1. If you filed your return for the year 2023-24 on 21.07. 2024, then in that case, the financial year-end will be on 31st March 2025, and intimation can be issued upto 9 months from 31st March 2025. i.e., intimation u/s 143(1) can be issued for the FY 2023-24 only up to 31st December 2025.
2. Lastly, do not ignore this notice, as you must submit your response within the time specified in such notice in case any action is required.

How to Respond to Intimation Under Section 143(1)?

After receiving an tax demand intimation u/s 143(1), the taxpayer needs to -

• As a first step, review the Section 143(1) intimation to ensure it matches your return and the data pertains to the same financial year. Check the name, PAN, address, assessment year, and e-filing acknowledgment number.
• If you identify mistakes in your return based on the 143(1) intimation, you can correct them by filing a revised return on the income tax e-filing website.
• If no mistakes are found, but you disagree with the adjustments made by the CPC/computerized system, you can file an online rectification application under Section 154(1) to correct the errors in the Section 143(1) intimation. Refer to our article on filing rectification applications.
• Submit your response on the e-filing portal regarding any tax demand, indicating whether you agree or disagree.
• If you are unsatisfied with the processing of your rectification return by CPC, you can file online grievances or contact your assessing officer. If there is no satisfactory action from CPC or the assessing officer, you can file a complaint with the income tax ombudsman.

• In case you agree with the tax amount payable or the amount of refund due, You would be required to pay the amount of outstanding taxes, or you will simply receive the amount of refund shown in the intimation u/s 143(1).
• In case you do not agree with the calculations done by the income tax department, You can opt to file an online request to rectify your income tax return under section 154 or file an appeal under section 246A.
• And, if the net amount refundable or payable is zero, then you can treat the intimation received u/s 143(1) as the completion of the return filing process from the Income Tax Department for the financial year in relation to which the return was filed.

Have you received an intimation under Section 143 1? Don’t panic!! Tax2win tax experts can help with responding to and resolving the tax notice. Consult with our tax experts today and avoid further notices and penalties.

What if no Intimation is Received Till the Expiry of One Year?

If you do not receive any intimation till the expiry of one year from the end of the financial year in which you have filed your return, then your ITR–V acknowledgment will be deemed your intimation in that case. However, it is still suggested that you check online whether the Income Tax Department has processed ITR.

How is the Intimation u/s 143(1) Received?

These intimations are auto-generated and are sent to the Email address provided by you at the time of filing income tax returns online / mail id given at the time of registration on the income tax website after thorough ITR processing. The sender of these emails is Central Processing Centre (CPC), with the sender ID being [email protected], as the returns are processed at CPC only.

As technology is growing, so is the Income Tax Department. Now with Intimation u/s 143(1), a text message is also sent to the registered mobile number.

How Many Days Will it Take to Get the Refund After 143 1?

The credit of refund process typically takes 20-45 days from the date of e-verification of the income tax return. However, if the acknowledgement (ITR V) is physically sent to the CPC, it may take longer.

Common mismatch reasons and fixes

Here are the common reasons why a taxpayer may receive an intimation under Section 143(1), written in simple, plain English:

• Mismatch in income details: The income shown in your ITR does not match the income reported in Form 16, Form 16A, or Form 26AS.
• TDS/TCS mismatch: You claimed TDS or TCS in your return, but it does not fully reflect in Form 26AS or AIS.
• Arithmetical errors: There are calculation mistakes in total income, deductions, or tax payable while filing the return.
• Incorrect deductions claimed: You claimed deductions (like 80C, 80D, etc.) that exceed the eligible limits or are not supported by records.
• Incorrect tax rate applied: Tax has been calculated using the wrong slab or rate under the selected tax regime.
• Mismatch in advance tax or self-assessment tax: The tax paid does not match the challan details available with the department.
• Income not reported: Certain income (such as interest income, capital gains, or other income) appears in AIS/Form 26AS but is missing in your ITR.
• Late filing adjustments: Late fee under Section 234F or interest under Sections 234A, 234B, or 234C has been added by the department.
• Refund or demand determination: The department recalculates your tax and determines a refund, demand, or no-balance situation.

Rectification u/s 154

Rectification under Section 154 of the Income Tax Act allows you to correct mistakes apparent on record in an order or intimation issued by the Income Tax Department, including an intimation under Section 143(1). This provision applies only to clear and obvious errors, such as calculation mistakes, incorrect tax or interest computation, mismatch of TDS credit, or incorrect application of tax rates. You cannot use Section 154 to change income details, add new deductions, or revise facts that require further verification.

When does Section 154 apply?

You can file a rectification request when:

• There is an arithmetical or clerical error in the 143(1) intimation
• TDS/TCS or advance tax credit is not correctly considered despite appearing in Form 26AS/AIS
• Interest or late fee has been wrongly calculated
• An apparent error exists due to system or data mismatch

Time limit for filing rectification u/s 154

You can file a rectification request within 4 years from the end of the financial year in which the order or intimation (such as 143(1)) was passed. Once filed, the Income Tax Department is required to dispose of the rectification request within 6 months, where possible.

What is the Password to Open Intimation u/s 143(1)?

The attachment received is a password-protected file. The ITR intimation password for opening the attachment/file received is your PAN number in lowercase followed by your date of birth in DDMMYYYY format.

For example,
Suppose your PAN is AAGRK5803P and your birth date is 2nd November 1982, then the intimation order password to open your online intimation u/s 143 1 shall be “aagrk5803p02111982”.

How to Get the Intimation u/s 143(1) Again?

If you have not received your intimation on the registered mail Id or in case you are unable to find that mail, you can get your intimation u/s 143(1) again by following these steps :-

Step 1: Log in to the e-filing portal and enter your login credential.

Step 2: On your dashboard, click on the e-file and hover over the Income tax return. Click on ‘View Filed Returns.

Step 3: You will see a page with your filed returns. Click on the Download Intimation Order.

Check the Following Points When you Receive an Intimation u/s 143(1)

• The intimation has your name on it.
• The Intimation has a document identification number
• All Incomes are considered properly under the appropriate head, and the Income of one head is not considered under another head or repeated elsewhere.
• The deductions you have claimed under 80C and other sections of chapter VI A are considered.
• TDS/TCS claimed Advance Tax paid, and Self-Assessment Tax paid in the computation by CPC.
• Any relief u/s 89, 90/90A/91 or any rebate claimed/ allowable is considered in the Intimation.

What does a 143(1) intimation contain?

• Who it’s for: your name, PAN, address and ITR acknowledgement details.
• Return filing info: ITR form used, filing date and acknowledgement/reference number.
• Computation summary: the department’s computed figures (income, deductions, taxable income) vs the figures you filed — shown side-by-side. This is the core of the intimation.
• Tax outcome: whether you owe tax (demand), are due a refund, or neither — with amounts and interest (if any).
• Reason / mismatch codes: short notes or reason codes that explain differences (for example: TDS not matched in Form-26AS, arithmetic errors, unreported income).
• Refund details (if any): refund sequence number and bank details used for refund credit (to help you track).
• Next steps & timelines: how to respond — e.g., pay the demand, file a rectification under Section 154, or file a revised return if applicable — and where to do it (e-filing portal/CPC).

How to Respond to Intimation u/s 143(1) of the Income Tax Act?

• Step 1: Log in to the income tax e-filing portal.

• Step 2: Click on the “pending actions” tab and then select the e-proceedings option and select e-assessment.

• Step 3: Select adjustment u/s 143(1)(a)

• Step 4: Intimation notice details will be displayed; click on the submit button to start the process of responding intimation notice.

• Step 5: You will be able to see the mismatch found, select the drop-down next to the response, and submit a response to that particular mismatch.

• Step 6: Justify your response and submit the supporting documentation.

• Step 7: Your response will be acknowledged after clicking on submit button.

Do I Need to Respond to the Notice/Intimation under Section 143(1)?

Yes, you need to respond to a notice/intimation under Section 143(1) of the Income Tax Act. Here’s what to do:

Understand the Notice:

• No Adjustment: No action needed if no discrepancies.
• Refund: Intimation shows refund amount.
• Demand: Indicates additional tax due.

Verify Details:

• Cross-check the notice with your filed return for errors or discrepancies.

Respond:

• Agree: Pay the additional tax if you agree with the demand.
• Disagree: File a rectification request under Section 154 if you find errors.

Seek Help:

Consult a tax professional who can help you with responding to the notices correctly.

Responding promptly helps avoid penalties and interest on unpaid taxes.

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Income Tax Act 2025 Section Mapping

The following table shows how the sections mentioned in this guide correspond to the Income Tax Act 2025.