Intimation Under Section 143(1): Meaning, Response & ITR Password Guide

Have you received an intimation under Section 143(1) and are unsure what it means? Don’t worry—this isn’t always a demand or a notice for payment. In many cases, it could simply indicate that a refund is due to you. Such intimations can be issued for a variety of reasons. In this article, we’ll cover the key aspects of Section 143(1)—why it is issued, how to respond to it, and what steps you should take after receiving it.

 

What is Intimation u/s 143(1)?

After filing your Income Tax Return (ITR)—either voluntarily under Section 139 or in response to a notice under Section 142(1)—the Income Tax Department conducts a preliminary assessment of your return. This process, known as summary assessment, involves checking for arithmetical errors, tax calculation accuracy, verification of tax payments, and identifying any internal inconsistencies. The process is automated, and if any discrepancies are found, an intimation under Section 143(1) is generated by the system.

The intimation under Section 143(1) provides a comparison between the data submitted by you and the calculations made by the Income Tax Department. It serves as a summary of the return filed and how it has been processed.

This intimation typically includes:

• Personal details of the assessee (name, address, PAN, etc.)
• ITR filing details (acknowledgment number, date of filing, etc.)
• Refund sequence number (if applicable)
• Tax computation as per the return filed by the taxpayer
• Tax computation as per Section 143(1) (i.e., as determined by the department)

 

Why Is an Intimation Under Section 143(1) Issued?

When you file your Income Tax Return (ITR), the Income Tax Department performs a computerized review of your return under Section 143(1). This review involves automated checks to identify any discrepancies or errors in the return. An intimation under Section 143(1) is issued to inform you of these findings.

Here are some common reasons for receiving an intimation:

• Apparent incorrect claims:
  If you claim deductions beyond the permissible limits—for example, claiming more than ₹1,50,000 under Section 80C—the excess will be disallowed and reflected in the intimation. Similarly, if rental income is deducted from business income without reporting it under “Income from House Property,” it will be flagged.
• Disallowance of expenses from audit reports:
  If expenses mentioned in the audit report are not considered while computing total income, the department may disallow them.
• Mismatch in tax payment details:
  The system compares Advance Tax, Self-Assessment Tax, and TDS/TCS details from Form 26AS with the return filed.
• Undisclosed income:
  Income reflected in Form 26AS, Form 16, or Form 16A but not reported in the return will be added.
• Incorrect claim of losses:
  If you’ve claimed carry-forward of losses but filed your return after the due date, the system will disallow such claims.
• Invalid deductions under special sections:
  Deductions under Sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, or 80-IE claimed after the return due date may be rejected.
• Errors in tax computation:
  Mistakes in calculating tax, interest, or late filing fees will be auto-corrected and reflected in the intimation.

In short, Intimation u/s 143(1) is issued to inform you about any differences between the return you filed and the department’s processing of that return.

 

When Is an Intimation Under Section 143(1) Received?

An assessee receives an intimation under Section 143(1) once the Income Tax Return (ITR) is successfully processed. This intimation reflects the outcome of the preliminary assessment and is issued in the following cases:

• Tax Refund:
  If excess tax has been paid, the intimation will mention the refund amount due. Refunds over ₹100 are processed and paid to the taxpayer, while amounts below ₹100 are not disbursed.
• Tax Payable (Shortfall):
  If the taxpayer has underpaid taxes, the intimation will show the amount due. A challan for making the payment is typically attached to the notice.
• No Discrepancy (Conformance):
  If the tax return filed by the taxpayer matches the department’s assessment, no separate intimation may be issued. In such cases, the ITR-V acknowledgment is treated as the intimation under Section 143(1).

 

Adjustments Under Section 143(1)

While processing a return under Section 143(1), the Income Tax Department may make certain adjustments to compute the total income or loss. These adjustments typically include:

• Arithmetical Errors:
  Corrections for any mathematical mistakes found in the return.
• Incorrect Claims:
  Disallowance of claims that are clearly incorrect based on the information provided. Examples include:
  • Claims inconsistent with other details in the return, such as deducting income from other sources under business income without reporting it under the “Income from Other Sources” head.
• Disallowance of Loss Carry-Forward:
  If you’re claiming losses from previous years, but the return for those years was filed after the due date, such losses will not be allowed to be carried forward.
• Disallowed Expenses:
  Any expenses reported in the audit report but not included in the return will be disallowed during processing.

 

Time Limit for Issuing Intimation Under Section 143(1)

An intimation under Section 143(1) must be issued within 9 months from the end of the financial year in which the return was filed. It cannot be issued after this period.

For example:
If you file your return for the FY 2023–24 on 21st July 2024, the financial year ends on 31st March 2025. Therefore, the intimation under Section 143(1) can be issued up to 31st December 2025.

Important:
Do not ignore this notice. If any action is required, make sure to respond within the time specified in the intimation.

 

What If No Intimation Is Received Within One Year?

If you do not receive any intimation within one year from the end of the financial year in which your return was filed, then your ITR-V acknowledgment will be treated as the intimation under Section 143(1).

However, it is advisable to check the status of your ITR online to confirm whether it has been processed by the Income Tax Department.

 

How Is Intimation Under Section 143(1) Received?

The intimation under Section 143(1) is auto-generated and sent to the email address you provided while filing your Income Tax Return or the email linked to your account on the income tax portal. These emails are sent by the Central Processing Centre (CPC) from the sender ID intimations@cpc.incometax.gov.in, as the returns are processed at CPC.

With advancements in technology, the Income Tax Department also sends a text message to your registered mobile number along with the email, notifying you about the intimation.

 

How Long Does It Take to Receive a Refund After Intimation Under Section 143(1)?

Once your Income Tax Return is e-verified, the refund is usually credited within 20 to 45 days. However, if you’ve sent the ITR-V (acknowledgment) physically to the Central Processing Centre (CPC), the process may take longer.

 

What Is the Password to Open the Intimation Under Section 143(1)?

The intimation you receive under Section 143(1) comes as a password-protected attachment. To open it, use a combination of your PAN (in lowercase) followed by your date of birth in DDMMYYYY format.

For example:
If your PAN is ABCDE1234F and your date of birth is 28th April 1982, then the password will be:
abcde1234f28041982.

 

Key Points to Verify When You Receive an Intimation Under Section 143(1)

When you receive an intimation under Section 143(1), make sure to carefully check the following:

• Your name is correctly mentioned on the intimation.
• The intimation includes a valid Document Identification Number (DIN).
• All sources of income are accurately reported under the correct income heads, without duplication or misclassification.
• Deductions claimed under Section 80C and other sections of Chapter VI-A have been properly considered.
• Details of TDS/TCS, Advance Tax, and Self-Assessment Tax paid are correctly reflected in the computation by CPC.
• Any relief claimed under Sections 89, 90, 90A, or 91, as well as rebates, are appropriately taken into account in the intimation.

 

Do I Need to Respond to an Intimation Under Section 143(1)?

Yes, it’s important to review and respond appropriately to an intimation under Section 143(1) of the Income Tax Act. Here’s how to proceed:

1. Understand the Nature of the Intimation:

• No Adjustment: If there are no discrepancies, no further action is required.
• Refund: The intimation confirms the refund amount due to you.
• Tax Demand: Indicates that additional tax is payable.

2. Verify the Details:

• Carefully compare the intimation with your filed return to identify any mismatches or errors.

3. Respond Accordingly:

• If you agree with the intimation, pay the additional tax as demanded.
• If you disagree: File a rectification request under Section 154 to correct any errors or omissions.

4. Seek Professional Help:

• If you’re unsure how to proceed, consult Taxsmooth to ensure the issue is handled accurately and on time.