Section 143(1) of Income Tax Act

What is Section 143(1)?

Section 143(1) of the Income Tax Act is a notice sent by the Income Tax Department after reviewing your Income Tax Return (ITR). It shows one of three things:

• Your return matches the records, and no action is needed.

• You are eligible for a refund if you paid extra tax.

• You need to pay additional tax if there is a mismatch in the tax records.

This notice is sent within 9 months from the end of the financial year when you file your return. It also explains any changes made during the review.

What is the Letter of Intimation under Section 143(1)?

Section 143(1) intimation is a notification sent by the Income Tax Department after processing an Income Tax Return (ITR). It is generated by an automated system and compares the taxpayer's return details with the department's records to identify any discrepancies.

The Letter of Intimation is a preliminary result of the tax assessment. It includes:

• The total income reported by the taxpayer.

• Deductions claimed by the taxpayer.

• Tax liability as computed by the department.

• Any adjustments made during processing.

Centralised Processing Center

The Centralized Processing Center (CPC) in Bangalore is responsible for processing tax returns and issuing intimations. The CPC uses automated systems to compare the taxpayer’s information with data from various sources like TDS returns, bank interest, etc. Its benefits include:

• Faster, error-free return processing.

• Relief for taxpayers and reduced workload for tax officers.

Preliminary Assessment Process

The CPC verifies details in the return against its records (e.g., Form 26AS) and tax laws. Two columns are included in the intimation:

• As provided by the taxpayer.

• As computed under Section 143(1)

NOTE: Adjustments are made for errors, mismatches, or incorrect claims.

What Does the Notices u/S 143(1) State?

The intimation will include the following:

• Taxpayer’s Details: Name, PAN, and assessment year.

• Tax Computation: The total income, deductions, and tax liability as per the department's calculation.

• Refund/Tax Payable: Information about any refund or additional tax due.

• Adjustments: Any changes the department made to your tax return.

Types of Notices under Section 143(1)

The intimation can have different messages:

• No Change: If the department's calculations match your tax return, there’s no action required.

• Additional Tax Payable: If there are discrepancies, you may owe more tax along with interest.

• Refund Due: If you’ve overpaid taxes, a refund will be processed.

What are the Adjustments under Section 143(1)?

Adjustments made by the Income Tax Department can include:

• Missed Income or Deductions: If you forgot to report income or claim deductions.

• Mismatch with TDS/Other Records: If your records don’t match the information in Form 26AS, such as:

  • Inconsistent entries (e.g., income omitted under "Other Sources").

  • Losses claimed beyond the due date.

  • Disallowed expenses mentioned in the audit report but excluded in the return.

• Mathematical Errors: If you made calculation mistakes.

NOTE: These adjustments are based on the information the Income Tax Department has.

When Do You Receive a Letter of Intimation under Section 143(1)?

You will receive an intimation under Section 143(1) under the following circumstances:

• Refund Due: If there’s a refund, but the department has made changes to the return.

• Additional Tax or Interest: If the department finds discrepancies and demands more tax or interest.

• No Demand or Refund: If there are no discrepancies, and your return is processed without any changes.

How Do You Receive a Letter of Intimation under Section 143(1)?

The Income Tax Department sends the intimation through:

• Email: To your registered email address.

• E-Filing Portal: Available on your account on the Income Tax e-filing portal.

• SMS: You may also receive an SMS about the intimation being sent.

NOTE: Ensure your contact details are accurate when filing your return.

What is the Time Period to Receive Intimation u/ Section 143(1)?

Intimations under Section 143(1) must be sent within nine months from the end of the financial year in which the return was filed. For example, if the ITR for FY 2024-25 was filed in July 2025, the financial year ends on 31 March 2025, then the intimation would be sent by March 31, 2026 and not after this period.

What Happens If You Do Not Receive an Intimation Till the End of the Financial Year?

If no intimation is received by the end of the year, your return has been processed without any changes. This means the Income Tax Department has accepted your return.

How to Obtain Another Intimation Letter u/S 143(1)?

If you need another copy, you can download it from your account on the Income Tax e-filing portal by following these steps:

• Login to Income Tax e-filing portal.

• Go to My Account.

• Click “View e-Filed Returns/Forms”.

• Select the assessment year and click the acknowledgement number.

• Download the intimation in PDF format.

How Can I Open the Intimation Received u/ Section 143(1)?

The intimation is password-protected for security. To open it:

• The password is your PAN (in lowercase) followed by your Date of Birth in DDMMYYYY format.

• Example: If your PAN is "ABCDE1234F" and your DoB is 10th November 1995, the password would be "abcde1234f10111995".

What to Check in the Intimation?

When you receive the intimation, ensure the following:

• Verify Personal Details: Check if your PAN, name, and address are correct.

• Compare the Tax Details: Ensure the income, deductions, and exemptions match your return.

• Check for Additional Tax/Refund: Look for any additional tax demand or refund.

• Review Adjustments: Cross-check the department’s adjustments with your original return.

Do You Need to Respond to the Intimation Notice?

You do not need to respond if you agree with the intimation. However, if you disagree with the adjustments or need to provide more details, you must respond within 30 days of receipt of the notice.

What are the Steps to Respond to the Intimation Notice under Section 143(1)

You should follow these steps if you need to respond to the notice:

• Understand the Adjustments: Review the changes made.

• Prepare Your Response: Provide necessary explanations and documents.

• Submit Online or Offline: You can respond via the e-filing portal or visit a designated office.

• Keep a Copy: Save a copy of your response for future reference.

How Do You Get the Refund under Section 143(1)?

• If your intimation shows a refund, it will be processed and credited directly to your pre-validated bank account. Ensure your bank details are updated and linked to your PAN on the Income Tax portal.

• NOTE: Taxpayers can track the refund status online.

Conclusion

Section 143(1) of the Income Tax Act is a process where the Income Tax Department checks your tax return. It helps quickly process and verify your return. The department sends an intimation showing details of the tax you owe, any refund, or any mistakes. In 2025, this process will be quicker and more transparent due to automation. It is important to check the intimation carefully and reply within 30 days if needed. You can use an income tax calculator to check your tax details before filing to avoid mistakes.