Section 143(1)(a): Notice for Proposed Adjustments

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Jayni Bhavsar

Due date
IT Notice
Section 139(5)
Section 143(1)(a)
Last updated on November 2nd, 2023

The Income Tax Department verifies the details provided in the return filed by the taxpayer. If any discrepancies exist, the department issues a notice or intimation to the taxpayer, instructing them to make corrections. However, before commencing any assessment procedure, the department provides a notice u/s 143(1)(a) mentioning the proposed adjustments to be made in the return. Once the taxpayer responds to the notice, the department initiates the assessment procedures and issues a final order.

What is Notice u/s 143(1)(a)

Section 143(1)(a) notice of proposed adjustments involves the electronic processing of tax returns by the Centralized Processing Center in Bengaluru. This is not a final assessment but a preliminary communication of the tax calculation based on the provided information. This notice may indicate any discrepancies or adjustments in the filed income tax return, allowing the taxpayer to respond before a final assessment is made.

Such notice is issued for the following reasons:

SectionReason
143(1)(a)(i)Arithmetical Error in ITR
143(1)(a)(ii)Incorrect Claim in ITR
143(1)(a)(iii)Disallowance of loss claimed in ITR
143(1)(a)(iv)Disallowance of expense claimed in ITR
143(1)(a)(v)Disallowance of deduction claimed in ITR
143(1)(a)(vi)Addition of income appearing in Form 26AS, Form 16 or Form 16A

Notice u/s 143(1)(a)(i)

Notice under this sub-section is issued when there is an arithmetical error in the return. The notice specifies the income categories where discrepancies exist between the calculations based on the taxpayer’s filed return and the department’s calculations.

Notice us 143(1)(a)(i)

Notice u/s 143(1)(a)(ii)

Under this sub-section, the notice is issued when there is an incorrect claim in the filed Income Tax Return.

Incorrect claim means:

Notice under sec 143(1)(a)(ii)

Notice u/s 143(1)(a)(iii)

As per the Income Tax Act, the taxpayer cannot carry forward the loss if they file the income tax return after the prescribed due date. If the taxpayer filed the return after the due date u/s 139(1) and still claims losses, then the department will issue a notice under section 143(1)(a)(iii) to disallow such loss.

Notice u/s 143(1)(a)(iv)

This notice is issued when an expense has been incorrectly claimed in the ITR filed. If the audit report disallows the expenses, and the taxpayer claims the same expenses while filing the return, then it will be disallowed.

Notice u/s 143(1)(a)(v)

Under this sub-section, the notice is issued when a deduction has been incorrectly claimed in the ITR filed. There are certain deductions such as Sec10AA and Sec 80H to Sec 80RRB under chapter VI-A that the taxpayer can not claim if they filed the ITR after the due date u/s 139(4). However, if they have claimed the same, then the department will issue a notice u/s 143(1)(a)(v).

Notice u/s 143(1)(a)(vi)

The notice under this sub-section is received when there is a mismatch in details of TDS on salary as per Form 26AS or Form 16 or a mismatch in TDS as per Form 16A and income details reported in the filed Income Tax Return. There can be the following 3 possibilities:

Notice u/s 143(1)(a)(vi)
Notice u/s 143(1)(a)(vi)
Notice u/s 143(1)(a)(vi) 3
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Communication of proposed adjustment u/s 143(1)(a)

Time Limit for issue of Communication for Proposed adjustment u/s 143(1)(a)

The income tax department can send notice within nine months from the end of the financial year in which the return is filed.

For instance, if Ms. Priya filed her income tax return on 25th July 2023, she may receive a notice under section 143(1)(a) until 31st December 2024. This period spans 9 months from the end of the financial year in which the return was filed.

If a taxpayer does not receive any intimation within such period, it means that the calculations of ITD matched with the ITR filed.

Due Date to submit response to notice u/s 143(1)(a)

If you have received a notice under section 143(1)(a), you must file a response within 30 days from the date of issue of notice.

Note: In all the cases mentioned above, taxpayers have the opportunity to submit a revised return under section 139(5).

How to File Response to Notice u/s 143(1)(a)

  1. Login to the e-filing portal and navigate to Pending Actions > e-Proceedings from the dashboard.

    step 1 to submit response to notice u/s 139(9) of income tax act

  2. View Notices

    Click on the option to View Notice for adjustment u/s 143(1)
    e-proceedings

  3. Notice pdf

    Click on the Notice/Letter pdf.
    view notice 143(1)

  4. Download the notice

    You will be able to view the notice issued to you. If you wish to download the notice, click Download.
    Download notice 143(1)(a)

  5. Respond to Notice

    Click on the option to submit a response.
    Provide response to 143(1)(a)

  6. Details of the Prima Facie Adjustments

    You will be able to view the details of the Prima Facie Adjustments found by CPC in your filed ITR. Click on each variance to respond.
    143(1)(a) response

  7. Provide Response

    On clicking the variance, details of the variance will be there. To respond to the particular variance, click Provide Response.
    143(1)(a) response

  8. Response from dropdown

    Select the relevant response from the dropdown and click Save after responding to each Prima Facie Adjustment.
    143(1)(a) response

  9. Proceed to e-verify your response

    After providing all the responses, click “Back.” This action will take you to the details of the Prima Facie Adjustment that CPC found in your filed ITR. Once you respond to each variance, the system will save your responses. Click Continue, Select the Declaration checkbox, and click Proceed to e-Verify.
    143(1)(a) response

  10. Successful Verification

    On successful e-Verification, a success message will be there along with a Transaction ID. You will also receive a confirmation message on your email ID registered on the e-filing.
    143(1)(a) response

FAQs

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

The tax department sends an intimation under section 143(1), acting as a communication, not a formal notice. It involves verifying if the calculations in the Income Tax Return (ITR) align with the department’s. If there’s a discrepancy, the department will issue a notice for adjustment under section 143(1)(a), requiring a response from the taxpayer within 30 days.

How do I check my 143(1) online?

Generally, the IT Department sends intimation u/s 143(1) on the registered mail. However, if you have not received you can still view/ download notice u/s 143(1) by logging into your Income tax account and navigating to Pending Actions.

How can I respond to the notice u/s 143(1)(a)?

The taxpayer can submit a response to notice u/s 143(1)(a) online by logging into the e-filing portal.

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.

  2. If you agree with the tax notice issued, there is an option to pay the outstanding demand under the option of e-proceedings. You can pay the tax from that option since the option for filing a Revised Return is not available after 31st march 2022.

    Read more - outstanding tax demand

  3. Hey @Sahil_1186

    If you have filed the original ITR u/s 139(1) before the due date, there is nothing to worry. You can carry forward the loss even if the ITR was revised. This looks like an error from the end of income tax department. They have sent system-generated notices to many taxpayers with the same query. You should submit a response to the tax notice from your account on the income tax website requesting them to re-process the ITR and allowing carry forward of loss since the original ITR u/s 139(1) was filed within the due date.

  4. When is the notice u/s 143(1)(a)(iii) issued?

  5. Hi @Nandana

    When the return is filed after the due date u/s 139(1) and yet the loss has been claimed, notice u/s 143(1)(a)(iii) is issued to disallow such loss.

    Hope this helps!

  6. Got following Notice for AY 2021-22

    “Disallowance of loss claimed, as the ITR of the previous year for which set off loss is claimed was furnished beyond the due date specified under sub-section(1) of section 139 - 143(1)(a)(iii)”

    A.Y. 2020-21 Filed on :Sep 25, 2020 (loss reported)
    A.Y. 2021-22 Filed on : Nov 23, 2021 (loss adjusted)

    I remember date was extended for both AY.
    Please help

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

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