Intimation under Section 143(1) of Income Tax Act

Receiving an intimation under Section 143(1) of the Income Tax Act can be an unexpected moment of anxiety for many taxpayers. It is easy to feel a surge of worry when you see an email from the Income Tax Department, but the truth is, this notice is often more routine than alarming. Think of it as a health check-up for your tax return—a way for the tax authorities to ensure that everything in your filed return matches their records.

So what exactly does this intimation mean, and how should you respond? Whether you see this notice for the first time or have received one, understanding the details can help you plan your next steps confidently and easily.

Understanding Intimation u/s 143(1)

Intimation u/s 143(1) means a preliminary assessment notice issued by the Income Tax Department after you file your Income Tax Return (ITR). It serves as a communication from the department, informing you whether the details you’ve provided in your ITR match their records. This intimation may indicate no discrepancies, demand for additional tax, or a refund if excess tax was paid.

When are Intimations Under Section 143(1) Issued?

Once their return is successfully processed, as a taxpayer, you will receive an intimation under Section 143(1). This process is automated and designed to verify arithmetical accuracy, match the information available with the department, and check the details provided in the return against the income tax law provisions. It then generates a comparison report. This automation significantly reduces the income tax officer’s manual workload.

If the taxpayer has paid excess tax, the intimation will indicate a tax refund, which will be issued only if the amount exceeds ₹100. If the tax paid falls short, the intimation will mention the outstanding amount and include a challan for payment. Essentially, it’s an acknowledgment that the filed ITR aligns with the records of the Assessing Officer.

How Will You Receive the Intimation Notice?

You will receive the intimation notice under Section 143(1) through the registered email address you provided while filing your Income Tax Return (ITR). Additionally, the notice will be available on the Income Tax e-filing portal, where you can log in and download it. The department sends these notices electronically, ensuring quick and efficient communication. Therefore, keeping your email address and contact details up-to-date is crucial to avoid missing any important notifications from the Income Tax Department.

Example of an Intimation Notice under 143(1)

An intimation notice usually includes a summary of the income reported, the taxes paid, and the department’s computation. For instance, if you reported ₹5,00,000 as income but the department’s records show ₹5,50,000, the notice will indicate the discrepancy and the additional tax payable.

Details Provided in Notices under Section 143(1)

Details provided in the notice under Section 143(1) include the following:

• Gross Total Income as per the ITR filed.
• Deductions are claimed under various sections (like 80C, 80D).
• Tax payable as per your ITR and as computed by the department.
• Refund due or the additional tax payable.
• Reasons for any discrepancy between your computation and the department’s records.

Nature of Adjustments under 143(1)

Total income or loss is computed under Sec 143(1) of the Income Tax after making the following adjustments:

• Arithmetical errors in the return.
• Incorrect claims that are apparent from the information provided in the return, which may include:
• Claims that are inconsistent with other entries in the return. For example, income from other sources may be deducted from business income but not declared under income from other sources.
• Disallowance of set-off of losses carried forward from previous years if the return for those years was filed after the specified due date.
• Disallowance of expenses is mentioned in the audit report but is not included in the return of income.

Time Frame for Issuing 143(1) Intimations

The intimation under Section 143(1) must be issued within nine months from the end of the financial year the return was filed. For example, if a taxpayer files a return for the financial year 2023-24 in July 2024, the intimation can be issued until 31st December 2025. If no intimation is received within this period, it means that no adjustments have been made to the return filed by the taxpayer, and there is no change in tax liability or refund. In such cases, the acknowledgment of the filed return is considered the Section 143(1) intimation.

What to Do If No Intimation is Received After One Year?

If you haven’t received an intimation notice under Section 143(1) within a year of filing your income tax return, it’s important to take the following steps:

• Ensure the address registered with the Income Tax Department is correct and up-to-date. If it has changed, update your information on the e-filing portal.
• Log in to the Income Tax Department’s e-filing portal and check the status of your return processing. This may provide information about the reason for the delay.
• Contact the Income Tax Department directly if you cannot find the intimation notice. You can visit their office or call their helpline number to inquire about the status of your return.
• If you’re not satisfied with the response from the Income Tax Department, you can file a complaint with the relevant authorities.

How to Retrieve an Intimation u/s 143(1) Again?

If you haven’t received the intimation on your registered email ID, or if you’re unable to locate the email, you can retrieve your intimation under Section 143(1) by following these steps:

• Log in to the e-filing portal using your login credentials.
• On your dashboard, click the “e-File” tab and hover over “Income Tax Return.” Then, select “View Filed Returns.”
• You will be directed to a page displaying your filed returns. Click on “Download Intimation Order” to access the document.

Locating the Password to Access Intimation u/s 143(1)

The intimation notice is password-protected. The password is usually a combination of your PAN (in lowercase) and your date of birth in DDMMYYYY format. For example, if your PAN is ABCDE1234F and your date of birth is 15th August 1990, the password would be abcde1234f15081990.

How to Read an Intimation Received Under Section 143(1)?

The ITR intimation notice might initially seem complicated, but it compares your tax return with the Income Tax department’s assessment. Here is how to read it:

Confirm Basic Details

Confirm that your name, address, PAN number, and assessment year mentioned in the notice are accurate.

Ensure the e-filing acknowledgment number matches the one you received when filing your return.

Compare Income and Deductions

The notice will present side-by-side columns showing:

• The income you declared in your return.
• The income is as per the department’s records.
• This includes details like salary, interest income, and capital gains. It will also compare the deductions you claimed (e.g., under sections 80C and 80D) with what the department allows.
• If there are discrepancies, investigate the cause—it could be an error on your part or information the department has that you don’t.

Examine Tax Calculations

The notice will show how your tax liability is calculated based on your net taxable income, including:

• The tax rate is applicable to your income slab.
• Any tax reliefs or pre-paid taxes considered.
• Interest or penalties (if any) levied by the department.

Make sure you understand each component contributing to your final tax liability.

Review for Refund or Demand

The intimation will indicate whether you are entitled to a tax refund or if you owe tax to the department.

Take Action (if required)

• If there are discrepancies or you need to pay additional tax, you may need to file a revised return within a specific timeframe.
• If you’re due a refund, the intimation will provide details on the processing timeline.

Key Aspects to Review in an Intimation u/s 143(1)

When reviewing an intimation notice under Section 143(1), it’s essential to examine the following aspects carefully:

Assessed Income

• Verify that the assessed income accurately reflects your total income for the financial year.
• Ensure that all sources of income, including salary, business income, capital gains, and rental income, have been correctly declared.

Deductions Claimed

• Check if all eligible deductions, such as standard deduction, HRA, investments under Section 80C, and other applicable deductions, have been claimed.
• Verify that the deduction amounts are correct and within the prescribed limits.

Tax Calculations

• Ensure that the tax amount calculated by the tax department is accurate based on your taxable income and the applicable tax slabs.
• Check for any errors in the tax calculations or the application of tax rates.

Adjustments Made

• Understand the reasons for any adjustments made to your income or deductions.
• Verify that the adjustments are justified and comply with tax laws.

Refund or Tax Demand

• If you’re entitled to a refund, confirm that the refund amount is correct.
• If a tax demand has been raised, ensure that the amount is justified and that you have paid the required amount on time.

Scrutiny or Assessment Proceedings

• If further scrutiny or assessment proceedings are mentioned, understand the reasons and the potential implications.

Is it Necessary to Respond to the Intimation Notice?

If you disagree with the assessment details provided, you must respond to the Intimation Notice under Section 143(1).

If you agree with the assessment, no further action is required. However, you must respond within the specified time frame if you have any objections or discrepancies. Failure to respond may result in the assessment becoming final, and you may lose the opportunity to challenge it.

It’s important to consult with a tax professional if you have any doubts or concerns about the intimation notice. They can guide the appropriate action and help you navigate the process effectively.

How to Address an Intimation Notice Under Section 143(1)?

To respond to an income tax notice under Section 143(1), follow these steps:

• Understand the Adjustments: Review the notice to comprehend the nature of the adjustments and the reasons provided.
• Prepare Your Response: Draft a response with the necessary explanations, supporting documents, or corrections.
• Submit Your Response: Submit your response within the specified timeframe, either online via the income tax e-filing portal or by visiting a designated office in person.
• Keep Records: Retain a copy of your response and proof of submission for future reference.

Procedure for Receiving Refunds Following an Intimation Notice?

If the intimation notice under Section 143(1) of Income Tax Act indicates that you are entitled to a tax refund, the Income Tax Department will typically issue the refund directly to your bank account. However, there are a few steps involved in this process:

• Verification of Bank Account Details: Ensure that the bank account details provided in your income tax return are correct and updated. If you have changed your bank account since filing your return, you may need to update your information with the Income Tax Department.
• Processing Time: The time taken to process and issue the refund can vary depending on the tax department’s workload and any additional verification required.
• Refund Status: You can track the status of your refund on the Income Tax Department’s e-filing portal.
• Communication: If there are any issues or delays in processing your refund, the Income Tax Department may contact you for further information or clarification.

FAQs on Intimation under Section 143(1) of Income Tax Act