Introduction
After filing an Income Tax Return (ITR), taxpayers receive an intimation under Section 143(1) from the Income Tax Department. This intimation is issued after the return is processed at the Centralized Processing Centre (CPC) and informs the taxpayer of any discrepancies, refunds, or additional tax liabilities.
Understanding this notice is crucial to ensure compliance and address any issues promptly.
What is an Intimation under Section 143(1)?
An intimation under Section 143(1) is a computer-generated notice that compares the taxpayer’s filed return with the department’s computed data. The assessment primarily checks for:
- Arithmetical errors
- Internal inconsistencies
- Tax calculation accuracy
- Verification of tax payments (TDS, advance tax, self-assessment tax)
The notice is issued in one of the following scenarios:
- No Discrepancy – When the return matches the department’s records, confirming no additional tax liability or refund.
- Refund Due – If excess tax has been paid, the intimation specifies the refund amount (issued only if it exceeds Rs. 100).
- Tax Demand – If there is a discrepancy and additional tax is payable, the notice mentions the amount along with a challan for payment.
When is the Intimation Issued?
As per Section 143(1), the intimation must be sent within nine months from the end of the financial year in which the return was filed. For instance, if a taxpayer files the return for FY 2023-24 in July 2024, the intimation can be issued until December 2025.
Structure of the Intimation Notice
The intimation notice contains two main columns:
- As Provided by the Taxpayer (Filed Return Data)
- As Computed Under Section 143(1) (CPC Computed Data)
A comparison is made for:
- Income under different heads (Salary, Business, Other Sources, etc.)
- Gross Total Income
- Deductions under Chapter VIA (Sections 80C, 80D, etc.)
- TDS and taxes paid (Advance Tax, Self-Assessment Tax)
- Adjustments made by the department, if any
Possible Adjustments Under Section 143(1)
The tax department may make adjustments for:
- Arithmetical errors in the return
- Inconsistent claims in different sections
- Disallowance of expenses mentioned in the audit report but not claimed in the return
- Disallowance of set-off of previous year’s losses if the return was filed late
The taxpayer is notified of such adjustments and has 30 days to respond before the final tax liability is determined.
What Should a Taxpayer Do After Receiving an Intimation?
- Verify the Details – Check PAN, name, assessment year, and return acknowledgment number to ensure the notice pertains to your return.
- Compare Figures – Match the details in the return with the CPC-computed figures to identify discrepancies.
- Action Based on the Intimation Type:
- No Discrepancy – No action required.
- Refund Due – Verify and wait for the refund.
- Tax Demand – If you agree with the demand, pay the tax using Challan No. ITNS 280 (Tax on Regular Assessment – Code 400).
- Disagree with Adjustments? File a rectification request under Section 154(1) on the income tax e-filing portal.
- Respond Within 30 Days – If a response is required, submit it within 30 days to avoid automatic confirmation of adjustments.
How to Open the Intimation Notice?
The intimation under Section 143(1) is password-protected. The password format is: PAN (lowercase) + Date of Birth (DDMMYYYY)
Example:
- PAN: ABCDE1234F
- Date of Birth: 01/01/2000
- Password: abcde1234f01012000
Conclusion
Receiving an intimation under Section 143(1) is a standard process after filing an ITR. It is not a notice of scrutiny or an audit but a preliminary check. Taxpayers must review the notice carefully, respond within the deadline if necessary, and ensure any discrepancies are rectified to stay compliant with tax laws.
For any assistance regarding Section 143(1) intimations, consulting a tax expert or CA is recommended.
