Section 143(1): Letter of Intimation

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Jayni Bhavsar

Income Heads
IT Notice
Section 143(1)
Last updated on October 26th, 2023

Once the taxpayer submits their return, the income tax department conducts an initial assessment. This involves checking for arithmetic errors, any inaccurate claims made in the return, disparities in tax calculations, and confirming tax payments. When discrepancies are identified, the department sends the taxpayer an intimation letter under section 143(1). This letter essentially compares the calculations provided in the filed Income Tax Return with those computed by the income tax department.

Intimation under section 143(1)

Section 143(1) of the Income Tax Act involves the initial assessment of a taxpayer’s return. The Central Processing Centre (CPC) calculates total income, tax liability, and potential refunds based on the provided information. After the assessment, the taxpayer receives an intimation detailing the computed tax liability or refund. If the taxpayer agrees with the adjustments then no action is required. However, if there are any discrepancies or disagreements then the taxpayer needs to provide clarification or file a revised return.

The Central Processing Centre (CPC) is being set up by the Central Board of Direct Taxes (CBDT). The purpose of the CPC is to centralize the processing of the returns with a view to promptly determining the tax liability or refund due to the taxpayer. The CPC project brought advantages to both taxpayers and the tax department. For taxpayers, it meant quicker and smoother initial processing of their returns. Additionally, it eased the department’s workload by automating preliminary assessments, allowing them to focus on more substantial tasks.

Preliminary Assessment

The initial processing of return is completely automated and the intimation u/s 143(1) is also a computer-generated document. While processing returns CPC validates the information provided in the filed return with the details available with the department such as TDS returns, Form 26AS, etc.

The process flow of the Preliminary Assessment is as follows:

Types of intimation:

Types of Adjustments under section 143(1)

The department may issue an intimation letter if it needs to make any of the following adjustments in the filed income tax return:

Sample Intimation letter u/s 143(1)

Sample intimation u/s 143(1)

Communication of Intimation under section 143(1)

The letter of intimation u/s 143(1) can be received by email or mobile number registered on the income tax portal. Further, the sender of the intimation will be the Central Processing Centre (CPC).

Time Limit for the issue of Intimation under section 143(1)

The income tax department can issue an intimation u/s 143(1) within 9 months from the end of the financial year in which the taxpayer has filed the return.

For example, Jay filed his income tax return on 20th July 2023 for the financial year 2022-23. In such case, the income tax department can send intimation u/s 143(1) up to 31st December 2024, which is 9 months from the end of the financial year 2022-23 in which the return was filed.

If a taxpayer doesn’t receive any communication within this timeframe, it indicates that there have been no alterations or revisions made to the initially filed Income Tax Return. This means there are no modifications in the tax liability or the refund due. Hence, the filed return is considered as having received an intimation under Section 143(1).

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portal

    Login to the income tax website using valid credentials.

  2. Navigate to View Filed Returns

    Go to e-file > Income Tax Returns > View Filed Returns

  3. Click on View Details

    For the relevant Assessment Year, click on View DetailsView Filed Returns_Income Tax Website

  4. Download Intimation Order under Section 143(1)

    In the next step, taxpayers can see the status of each filing stage. If it shows ‘Processed’, they can download the intimation by clicking on ‘Download Intimation Order’.

    Download Intimation Order_Income Tax Website

  5. Open Intimation Order under Section 143(1)

    The intimation order is password-protected. The password to open the intimation letter is PAN in lowercase and the date of birth (DDMMYYYY) is without any space. Eg: PAN is AAAPA1234A and the date of birth is 01/01/2000. The password would be aaapa1234a01012000.

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Response to Intimation under section 143(1)

Upon receiving the intimation, the taxpayer should initially verify the correctness of the information provided. This includes confirming details such as the Name, PAN, Assessment year, etc.

Case scenario Action
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds.In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes.In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer.The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return.If the taxpayer Agrees: They need to pay the outstanding demand and file a response.

If the taxpayer Disagrees:
They need to file a Rectification request u/s 154.

Consequences of Non-response

If the taxpayer receives the intimation letter under section 143(1), they must respond within the specified time limit. Failure to do so will result in the department treating the proposed adjustments as final. They will then calculate the ultimate tax liability or refund. Once these final calculations are done, the taxpayer will receive the final intimation letter.


What should I do when there are no adjustments in the intimation u/s 143(1)?

The income tax department has successfully processed the income tax return. You can simply ignore the notice. Taxpayers need not take any further action.

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

Communication under section 143(1) is an intimation, not a notice. It’s for verifying calculations or arithmetic errors. If there’s a data mismatch, a notice for adjustment under section 143(1)(a) is issued. The taxpayer must respond within 30 days.

What should I do if I don’t receive any intimation?

You can check your ITR status on the Income Tax Portal. If processed, request intimation reissue online for email delivery. If not processed, wait or file a grievance due to variable processing times.

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

Failure to respond within 30 days will result in the processing of the income return with necessary adjustments under section 143(1)(a), without further opportunities for correction.

What is the password to open an intimation letter?

The password to open the intimation is your PAN in a small case and your entire birth date i.e. DDMMYYYY.

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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