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Income Tax Intimation under section 143(1)

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Sakshi Shah

Income Heads
IT Notice
Section 143(1)
Last updated on July 13th, 2021

Intimation received u/s 143(1) is not a Notice but a communication received from the income tax department. Once the assessee files his income tax return, the income tax department does a preliminary assessment. This includes verifying arithmetical errors, any incorrect claim in the return, the difference in tax calculation, verification of tax payment etc. This letter basically matches the calculations in the Income Tax Return filed with the calculations computed by the income tax department.

Intimation u/s 143(1)

Intimation 143(1)

How will I receive Intimation u/s 143(1)?

Communication on Email

Intimation 143(1) - Email Communication

Communication on SMS

Intimation 143(1) - SMS Communication

Time Limit for issue of Intimation u/s 143(1)

The income tax department can send intimation u/s 143(1) within one year from the end of the financial year in which the return is filed.

Example

Taxpayer files ITR for FY 2018-19 in July 2019 or October 2019
End of financial year in which return is filed – 31st March 2020
One year from end of financial year – 31st March 2021
Therefore, intimation for ITR of FY 2018-19 can be sent up to 31st March 2021

If a taxpayer does not receive any intimation within such period, it means that there are no adjustments and changes to the ITR filed. There is no change in tax liability or refund. Thus, the Income Tax Return filed is deemed to be intimation u/s Section 143(1).

Action to be taken against Intimation u/s 143(1)

Action Reason
No Action required Calculation in the ITR filed matches with the calculation as per income tax i.e. No Demand & No Refund
No action required. Refund would be credited to your bank account Tax payable as per ITR filed is more than the tax payable as per income tax calculation i.e Refund
File Revised Return u/s 139(5) If you observe any mistakes in the ITR filed
Pay Demand and File Response (within 30 days) Tax payable as per ITR filed is less than the tax payable as per income tax calculation i.e. Outstanding Demand – If you Agree
File Rectification Request u/s 154 Tax payable as per ITR filed is less than the tax payable as per income tax calculation i.e. Outstanding Demand – If you Disagree

FAQs

There is no mismatch, no additional demand and no refund in the intimation u/s 143(1), what should I do?

The income tax department has successfully processed the income tax return. You can simply ignore the notice. No further action is required.

Is income tax notice u/s 143(1) different from notice u/s 143(1)(a)?

Communication u/s 143(1) is just an intimation and not a notice. Under this intimation, there is a preliminary check whether the calculations as per ITR match with the calculations as per tax department.
If there is any mismatch in the data, the department issues a notice for adjustment u/s 143(1)(a) The taxpayer needs to respond to this notice within 30 days.

Two months have passed since the e-verification of my ITR for F.Y. 2018-19, but I have not received the Intimation u/s 143(1). What should I do?

You can check your ITR status online on Income Tax Portal. In case, it has been processed then you can request for reissue of intimation online and you will receive it on your mail after request. If your ITR has not been processed by the department till now then either wait for the ITR to be processed or submit a grievance. Sometimes the department takes longer to process the return.

What happens if I do not respond to the intimation within 30 days of receiving the intimation?

In case, if we do not respond within 30 days (thirty days) of the issue of this intimation, the return of income will be processed after making necessary adjustment(s) u/s 143(1)(a) of Income Tax Act, 1961 without providing any further opportunities in this matter.

Is intimation u/s 143(1) and tax assessment order the same?

No, tax assessment order and intimation are not the same.

Do I need to reply to a 143(1) intimation, if I have 0 refunds and 0 tax demand, and proper sync on the taxpayer and 143(1) section columns?

No, you are not required to reply if everything is as per the details submitted by you in your ITR. It means the department has accepted the return as filed without carrying out any adjustments to it.

Got Questions? Ask Away!

  1. Hey @TanyaChopra

    An Intimation u/s 143(1)(a) is issued when there’s a mismatch between your tax credit statement i.e. Form 26AS and your tax return. This happens through automated checks at CPC (Centralized Processing Center) in Bangalore where your returns are processed.

    You can respond to this intimation by registering and logging in to your account on the Income-tax website. You need to determine how you’re going to be responding to the intimation - there are three options available.

    • Agree - This means that you agree with the mismatch. If you do choose this option, you’ll also have to revise your filing.
    • Partially agree - Some of the mismatch is true, the rest of it isn’t - so you’ll choose this option and will need to revise your filing.
    • Disagree - This would mean that you’re not accountable for the mismatch and as a next step, you’ll provide accounts that add up to the difference in mismatch.

    As you might imagine, there’s no real need to panic here as the intimation can be easily taken care of.

    Hope this helped! If you have any further questions, feel free to ask.