Intimation under Section 143(1) of Income Tax Act: Everything You Should Know

What is intimation under Section 143 (1)?

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Intimation under Section 143 (1) of the Income Tax Act of 1961 is generated after the CPC performs the preliminary assessment of the income tax return filed by the taxpayer . It is a system-generated intimation that is usually sent to an individual when there is an error in the income tax returns filed.

CPC performs the first line of assessment of the ITR like arithmetic calculations, verification and calculation of the tax, any inconsistency, etc. If an error is found, say excess or underpaid tax, the same is intimated to the concerned taxpayer through the intimation.

Who is sent intimation under Section 143 (1)?

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As discussed above, the CPC does a preliminary examination of the income tax returns. It is done in an automated manner, and so every assesse (taxpayer) is liable to receive the intimation.

The CPC performs the entire preliminary assessment in an automated setup, and the intimation is also generated automatically. The intimation shows two columns of comparison report where one column has details of income tax returns filed by the taxpayer and the second column has the computed calculations done by the CPC.

This comparison is made for various particulars like gross total income, deductions, TDS (Tax Deducted at Source), self-assessment tax, advance tax paid, etc. The comparison report gives clarity to the taxpayer so they can take the necessary actions required (in case of less tax paid)

What does the intimation say?

Intimation is sent in three conditions; excess tax paid, less tax paid, or no adjustments required. Here’s when a taxpayer/assesse receives the intimation under Section 143 (1) of the Income Tax Act of 1961: ^¹

• Excess tax paid

  There may be chances that a taxpayer paid excess tax than required. In such a case, the income tax department will inform the taxpayer under Section 143(1) intimation that they are eligible for a refund.

Note: Refund is only issued when the total refund amount is above ₹100.^¹

• Less tax paid

  Similar to the above case, a taxpayer may pay less tax than required. So, the income tax department sends an intimation regarding the outstanding amount or interest payable by the taxpayer. The total amount payable and a challan is demanded in such a case.

• Successful assessment

  If the taxpayer has paid the exact tax required and no changes are needed, the income tax department informs the same to the taxpayer. It says that their ITR is consistent and successfully assessed.

Where do I receive intimation u/s 143(1)?

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The income tax department’s intimation under Section 143(1) of the Income Tax Act of 1961 is sent to the registered email address of the assessee. So, it is essential that personal details like contact number, email ID, etc., are correctly and carefully entered. You can access the intimation and download it from the e-filing portal.

What are adjustments made in the intimation?

The income tax department may make certain changes under Section 143(1) of the Income Tax Act of 1961. These adjustments may include: ^¹ 

• Adjustments to the incorrect tax calculations or mathematical errors
• If the taxpayer has claimed ineligible deductions
• In case the taxpayer has missed calculating any income or verifying the same such as

• Excess tax (if more than Rs. 100) or less tax paid by the taxpayer
• Any mistake in self-assessment or advance tax paid.

Deadline for issuing intimation u/s 143(1)

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There is a specific time limit under which the income tax department must issue the intimation under Section 143 (1) to the assessee.

The intimation u/s 143(1) must be issued within 9 months from the financial year's end in which the return is being filed . For instance, if you file the income tax returns in July 2024 for the financial year 2023-2024, the imitation can be issued to you before 31st December 2025 (which is 9 months from the end of the last financial year in March 2024).

Note: It may happen that some people do not receive any intimation. If no intimation is received, it means that your ITR does not require any adjustments.

Steps to download/read intimation u/s 143(1)

You can download or view the intimation u/s 143(1) of the Income Tax Act of 1961 by following these steps: ^³ 

• Login to the e-filing portal
• Click on ‘e-file’ and then choose 'Income Tax Returns’
• Now, click on the ‘view filed returns’
• Click on ‘download intimation order’
• The intimation will be downloaded successfully. You can open it to view or print

Response to the intimation u/s 143(1)

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Once you receive the intimation, make sure to go through it and understand what it demands carefully. Check the PAN number, date and year of assessment, personal details, etc.

Now, there can be the following conditions:

1. You want to rectify mistakes

   When you find mistakes in the ITR filed, you can rectify them by submitting a revised income tax return on the e-filing portal.

2. Disagreement with adjustments

   If you do not agree with the adjustments made by the CPC, you can file an application for rectification of the adjustments under Section 154(1) of the Income Tax Act of 1961.

3. Response to tax-demand

   If you have been demanded additional tax payment (in case of less tax paid), make sure to respond to the same on the e-filing portal (whether or not you agree with it).

4. Disagreement with rectification

   After rectification is done and you are still unsatisfied with the adjustments, you can file an online grievance with the income tax ombudsman or connect with your assessing officer.

Conclusion

Intimation sent by the income tax department is an essential document. If you have paid less tax, make sure to make the payment along with the challan. However, if you are eligible for a refund, the same will be processed to your bank account. So, make sure to enter the correct email address and other personal information so you do not miss out on any essential information.

FAQs

1. What is the time limit for submitting a response to the intimation?

   Response to the intimation u/s 143(1) of the Income Tax Act of 1961 must be submitted within 30 days of receiving the intimation. If no response is sent, the income tax department will consider their initial assessment and proceed with the same. ¹

2. What is the password to open the intimation u/s 143(1)?

   The intimation u/s 143(1) is protected by a password. The password is your PAN number followed by the D.O.B (DDMMYYYY format). Do not enter space or capital letters. ^¹ For instance, if your PAN number is FDNIK29GH and D.O.B is 14th Nov 1998, the password will be “fenik29gh14111998”.