ITR Series: Day 18: Understanding Intimation Under Section 143(1) – What It Means for Your ITR

Once you file your Income Tax Return (ITR), the process doesn’t end there. The Income Tax Department carries out a preliminary check known as processing under Section 143(1) of the Income Tax Act. This results in an intimation — a summary communication that tells you whether your return matches the Department’s records or if there are discrepancies.

Let’s break down what this intimation is, what it includes, and how you should respond.

What is Section 143(1)?

Section 143(1) deals with preliminary assessment, where the Income Tax Department processes the return using a computerized system without any human intervention.

The department checks for:

• Arithmetical errors
• Incorrect claims apparent from the return
• Disallowance of losses or deductions not supported by return
• Mismatch in tax credits (TDS/TCS or advance tax)

Based on this, they issue an Intimation under 143(1).

Types of Intimations You Can Receive

1. No Demand / No Refund
   Your return is in order; no action required.
2. Refund Determined
   A refund is due—usually processed to your bank account within a few weeks.
3. Demand Payable
   Discrepancies found; you owe additional tax. You need to review and pay or raise a grievance if incorrect.

Key Components of the Intimation

• Returned Income vs. Processed Income
  Shows comparison of what you declared vs what the system accepted.
• Adjustments Made
  Details of any additions, disallowances, or re-computations.
• Tax Liability / Refund Status
  Final tax payable or refund amount, with interest if applicable.
• Reasons for Adjustment
  Any mismatch in TDS, deduction under Chapter VI-A, or error in income computation.

Where Do You Get the Intimation?

• Sent to your registered email ID
• Also available in your e-filing portal under “View Intimations”

Ensure your email and mobile number are up to date in the portal to avoid missing these notices.

Common Reasons for Intimation Mismatches

• TDS mismatch: Cross-check with Form 26AS or AIS
• Incorrect deductions claimed: E.g., under Sections 80C, 80D without documentation
• Non-disclosure of income: Interest income, capital gains, etc.
• Mathematical errors: Wrong tax calculation or surcharge

What Should You Do After Receiving 143(1) Intimation?

1. Compare carefully: Use the side-by-side comparison of “As Provided by Taxpayer” vs. “As Computed under 143(1)”
2. Check Form 26AS / AIS: Ensure all TDS is reflected correctly
3. Agree with demand? Pay immediately via Challan 280
4. Disagree with demand? File a rectification request under Section 154 or submit a grievance online

Deadline to Act

If the intimation shows a tax demand, you are expected to respond and pay within 30 days from the date of issue. Ignoring it may lead to penalties or interest.

🧠 Pro Tips

• Always verify ITR before e-filing to minimize errors
• Respond quickly to any 143(1) discrepancies—most issues are auto-detected
• If your ITR is filed with audit or complex deductions, take professional help to preempt mismatches

Final Word

An Intimation under Section 143(1) is not a scrutiny—it’s a health check of your return. Treat it seriously, especially if it points out discrepancies. Timely review and response will keep you tax-compliant and stress-free.

Failure to respond or correct errors may lead to demand notices, interest, and even further scrutiny under Section 143(2).

✍️Whether you’re salaried, self-employed, or a trust filing ITR-7, understanding your 143(1) intimation is vital to closing the loop on your income tax return.