After filing and verifying an Income-tax Return (ITR), the taxpayer ordinarily receives an intimation under Section 143(1) once the return is processed by the Centralised Processing Centre (CPC).
Many taxpayers become worried when they see the words “Income Tax Intimation” in their email. However, receiving an intimation under Section 143(1) does not automatically mean that the return has been selected for scrutiny or that any penalty has been imposed.
It is primarily a computer-generated communication showing how CPC has processed the return and whether:
- the return has been accepted without any change;
- a tax refund is due;
- additional tax is payable; or
- an adjustment has been made to the income, deductions, losses or tax credits reported in the return.
This guide explains how to read a Section 143(1) intimation, understand the adjustments, identify tax mismatches and take the correct action.
What Is an Intimation Under Section 143(1)?
An intimation under Section 143(1) is a computer-generated communication issued after CPC processes an Income-tax Return.
CPC performs prescribed summary checks, including:
- arithmetic checks;
- internal consistency checks;
- verification of tax credits;
- identification of incorrect claims apparent from the return; and
- other prima facie adjustments permitted under Section 143(1)(a).
It then calculates the taxpayer’s total income, tax, interest, late fee, refund or outstanding demand.
This is a summary processing of the return and not a detailed scrutiny assessment. CPC cannot ordinarily use Section 143(1) to investigate complicated facts or decide a debatable legal question requiring detailed examination.
Although taxpayers commonly call it a “notice,” it is technically an intimation. Where an amount becomes payable, the intimation may also operate as a notice of demand.
Return Filed, Verified and Processed: What Is the Difference?
Uploading an ITR does not mean that the return has been processed. The return ordinarily passes through the following stages:
| Stage | Meaning | Required action |
| Submitted but not verified | The ITR has been uploaded, but verification is pending | E-verify within the permitted time |
| Successfully verified | The ITR has been validly submitted and entered the processing queue | Wait and monitor its status |
| Processed | CPC has completed the prescribed summary processing | Download and examine the intimation |
| Refund issued or demand outstanding | Post-processing action remains | Track the refund or respond to the demand |
An ITR ordinarily must be verified within 30 days of electronic filing. If it is not verified within the prescribed period, it may be treated as invalid unless the delay is condoned.
There is no fixed rule that every return will be processed within 15, 30 or 45 days. Processing time varies according to the return, tax-credit information, system checks and other factors. However, Section 143(1) prescribes an outer statutory time limit for issuing the intimation.
Adjustments CPC May Make Under Section 143(1)(a)
While processing the return, CPC may make only the adjustments authorised by law. These include:
1. Arithmetical errors
CPC may correct mistakes in addition, subtraction, tax calculation or other mathematical computations appearing in the return.
2. Incorrect claims apparent from the return
An incorrect claim apparent from the return may include:
- a figure inconsistent with another entry in the same return;
- a claim for which the information required in the return has not been furnished; or
- a deduction exceeding the statutory limit.
For example, if ₹2 lakh is claimed as a deduction where the applicable statutory ceiling is ₹1.5 lakh, the excess claim may be adjusted.
3. Prescribed inconsistency with an earlier return
CPC may make an adjustment for a prescribed inconsistency between information reported in the current return and information contained in the return of a preceding previous year.
This adjustment is subject to the conditions prescribed under the law. Therefore, every difference from an earlier return cannot automatically be treated as an incorrect claim.
4. Disallowance of certain losses due to late filing
A loss claimed for set-off may be disallowed where the return for the previous year in which that loss arose was furnished after the due date, and timely filing was legally required for carrying forward the loss.
5. Tax-audit adjustments
CPC may disallow expenditure or increase income where the tax auditor has indicated the item in the audit report but it has not been considered while computing the total income in the return.
6. Disallowance of specified deductions due to late filing
Specified deductions, including eligible claims under Section 10AA or Chapter VI-A under the heading “C—Deductions in Respect of Certain Incomes,” may be disallowed where the return was not furnished within the prescribed due date.
What Is a Proposed Adjustment Under Section 143(1)(a)?
CPC cannot make an adverse adjustment without informing the taxpayer and providing an opportunity to respond.
If CPC proposes an adjustment, it generally sends a communication identifying:
- the item proposed to be adjusted;
- the amount involved;
- the reason for the proposed adjustment; and
- the time available to accept or disagree with it.
The taxpayer normally gets 30 days from the date of issue of the communication to submit a response.
The usual portal route is:
Login → Pending Actions → e-Proceedings → Select the communication → Submit Response
The taxpayer may:
- agree with the proposed adjustment; or
- disagree and provide reasons and supporting details.
CPC must consider the response before completing the adjustment. If the taxpayer does not respond within the permitted time, CPC may process the return after making the proposed adjustment.
Examples of Proposed Adjustments
A proposed adjustment may arise from:
- an arithmetic mistake;
- inconsistent income or deduction figures in different schedules;
- a deduction exceeding the permitted ceiling;
- an incorrect rebate claim;
- a loss claimed for carry-forward despite late filing;
- an audit-report disallowance not considered in the return; or
- another incorrect claim apparent from the return.
The mere absence of a deduction from Form 16 or AIS does not automatically establish that the deduction is invalid. Similarly, every difference between the ITR and AIS cannot be added automatically through summary processing. The adjustment must fall within the scope permitted by Section 143(1)(a).
Can a Revised Return Be Filed After Receiving a Proposed Adjustment?
If the taxpayer discovers an omission or wrong statement in the filed return, a revised return may be filed under Section 139(5), subject to the applicable time limit and completion of assessment.
For AY 2026–27, a revised return may generally be filed:
- up to 31 December 2026 without a fee under Section 234-I; or
- from 1 January 2027 to 31 March 2027 on payment of the applicable fee under Section 234-I.
The fee for filing the revised return during the additional period is:
- ₹1,000 where the total income does not exceed ₹5 lakh; and
- ₹5,000 in any other case.
A revised return cannot be filed after completion of assessment, even if the general calendar deadline has not expired.
If a proposed-adjustment proceeding is already pending, the taxpayer should not assume that filing a revised return automatically closes it. The status of the pending communication should also be checked, and an appropriate response should be submitted where required.
Three Possible Outcomes of Section 143(1) Processing
1. No Demand and No Refund
This generally means that CPC’s computation agrees with the tax liability and tax payments reported in the return.
The taxpayer should:
- compare the main figures;
- ensure that no unexpected adjustment has been made;
- download the intimation; and
- retain it with the filed return and supporting records.
No separate response is ordinarily required if the computation is correct.
2. Refund Due
A refund arises when the taxes paid or credited exceed the final tax liability calculated by CPC.
The taxpayer should check:
- whether the refund amount matches the amount claimed;
- whether all TDS, TCS and tax payments have been allowed;
- whether any earlier outstanding demand has been adjusted;
- whether the correct bank account is validated; and
- whether that account is nominated for receiving the refund.
If the refund determined by CPC is lower than the amount claimed, the taxpayer should identify the adjustment or tax-credit mismatch before deciding whether rectification or another remedy is required.
3. Tax Demand Payable
A demand arises when CPC calculates a higher tax liability than the amount already paid or credited.
Possible reasons include:
- arithmetical errors;
- lower TDS or TCS credit allowed;
- incorrect challan particulars;
- disallowance of deduction;
- incorrect set-off or carry-forward of loss;
- interest under Sections 234A, 234B or 234C;
- late-filing fee;
- tax-audit adjustment; or
- an earlier tax liability not properly considered.
The taxpayer should not pay the demand without first examining its basis.
If the demand is correct, it should be paid through the e-filing portal and the appropriate demand response should be submitted. If it is incorrect, the taxpayer may disagree with the demand, seek rectification or consider an appeal, depending on the nature of the issue.
Related Reads: Capital Gains Tax in 2026: 5 Costly Mistakes Investors Must Avoid
Common Reasons for Refund Reduction or Tax Demand
Some common causes are:
- TDS claimed in the ITR does not match Form 26AS;
- incorrect TAN or TDS amount entered;
- self-assessment tax paid but not entered in Schedule IT;
- incorrect BSR code, challan serial number or payment date;
- deduction claimed under the wrong section;
- deduction exceeding the statutory limit;
- income entered in one schedule but omitted from total income;
- incorrect set-off or carry-forward of losses;
- wrong selection or application of the tax regime;
- advance-tax credit not allowed;
- interest or late-filing fee not properly calculated;
- tax-audit adjustment not considered; or
- refund adjusted against an earlier outstanding demand.
Example
Suppose a taxpayer claims TDS of ₹45,000 in the ITR, but CPC allows only ₹35,000 because the remaining amount does not match the available tax-credit record.
The difference of ₹10,000 may reduce the refund or create a tax demand. The taxpayer must determine whether:
- the deductor reported the wrong amount;
- the taxpayer entered incorrect TDS details;
- the credit appeared later in Form 26AS; or
- CPC failed to consider correctly reported credit.
The correct remedy will depend on the reason for the mismatch.
Related Reads: Advance Tax in India – Due Dates, Rules, Interest & Complete Guide (2026)
How to Read the Section 143(1) Intimation
The most important part of the intimation is the tax-computation sheet.
It generally shows comparative figures such as:
- As provided by the taxpayer; and
- As computed under Section 143(1).
Depending on the format, a separate variance or adjustment column may also appear.
Check the following items carefully:
1. Personal and return details
Verify:
- name;
- PAN;
- assessment year;
- ITR acknowledgment number;
- date of filing;
- date of processing; and
- tax regime considered.
2. Income under each head
Compare the figures for:
- salary;
- house property;
- business or profession;
- capital gains; and
- other sources.
An increase in CPC’s computation should be traced to the corresponding adjustment or schedule.
3. Gross total income and taxable income
Check whether CPC has changed the total income before or after deductions.
4. Chapter VI-A deductions
If CPC has allowed a lower amount, examine whether:
- the claim exceeded the permitted limit;
- the return was filed late;
- inconsistent figures were entered; or
- required information was missing.
5. Tax calculation
Check:
- tax on total income;
- rebate;
- surcharge, where applicable;
- health and education cess;
- interest;
- late-filing fee; and
- any other amount included in the calculation.
6. TDS, TCS and taxes paid
Compare the credit allowed for:
- TDS;
- TCS;
- advance tax; and
- self-assessment tax.
This is one of the most common areas in which differences arise.
7. Final refund or demand
Finally, check whether the intimation shows:
- refund due;
- tax demand payable; or
- no demand and no refund.
Do not examine only the final amount. First identify the row that caused the difference.
Documents That Should Be Compared
The intimation should be reconciled with:
- the filed ITR;
- ITR acknowledgment;
- tax computation;
- Form 26AS;
- AIS and TIS;
- Form 16 or Form 16A;
- advance-tax and self-assessment-tax challans;
- deduction records; and
- relevant income and investment documents.
AIS is an information statement and may contain duplicate, incorrect or non-taxable entries. Therefore, an AIS figure should not automatically be treated as taxable income without examining its nature.
Related Reads:
AIS vs Actual Income – Common ITR Filing Mistakes in 2026
How to Download the Intimation
The indicative procedure is:
- Log in to the Income Tax e-filing portal.
- Go to e-File → Income Tax Returns → View Filed Returns.
- Select the relevant assessment year.
- Click View Details.
- Download the intimation or order.
The menu wording may change when the portal is updated.
The intimation received through email is generally password-protected. The usual password format is:
PAN in lowercase followed by date of birth or incorporation in DDMMYYYY format
For example:
abcde1234f01011990
The taxpayer should follow the password instructions mentioned in the accompanying email because the prescribed format may vary according to the communication.
What Should the Taxpayer Do After Receiving the Intimation?
| Result | Suggested action |
| No demand and no refund | Verify the figures and retain the intimation |
| Correct refund | Check bank validation and track the refund |
| Lower refund | Identify the adjustment or tax-credit mismatch |
| Correct demand | Pay and submit the appropriate demand response |
| Incorrect apparent adjustment | Consider rectification under Section 154 |
| Proposed adjustment pending | Respond through e-Proceedings within 30 days |
| Debatable legal disallowance | Consider appeal or professional advice |
Not every Section 143(1) intimation requires a response. A routine intimation showing the correct figures may simply be retained for record.
Revised Return Versus Rectification
Taxpayers often confuse a revised return with a rectification request. The correct option depends on the nature and stage of the mistake.
| Particular | Revised return | Rectification request |
| Main purpose | Correct an omission or wrong statement in the filed return | Correct a mistake apparent from the processed record |
| Relevant provision | Section 139(5) | Section 154 |
| Appropriate stage | Within the revision period and before completion of assessment | After an eligible intimation or order |
| Forgotten income | Can be reported | Cannot ordinarily be introduced |
| Fresh deduction | May be claimed subject to law and time limit | Normally not permitted |
| Tax-credit mismatch | Can be corrected through revision if revision is available | Eligible credit details may be corrected after processing |
| Basic procedure | File a fresh ITR marked “Revised” | Submit a rectification request on the portal |
Rectification is not confined only to mistakes made by CPC. It applies to a mistake apparent from the record and may permit certain eligible corrections in return data or tax-credit particulars.
However, rectification cannot ordinarily be used to introduce a new source of income, make a fresh deduction claim or fundamentally rewrite the return.
Types of Rectification Requests
The e-filing portal generally provides the following rectification categories:
1. Reprocess the Return
This may be selected where the details in the filed return were correct, but CPC did not consider them properly during processing.
2. Tax Credit Mismatch Correction
This may be used for eligible corrections relating to:
- TDS;
- TCS;
- advance tax;
- self-assessment tax; and
- tax-payment challan particulars.
For example, an eligible self-assessment-tax challan may be added or corrected where the tax was paid but the particulars were not properly considered during processing.
3. Return Data Correction
This may permit correction of eligible return particulars, subject to the restrictions and facility available for the relevant assessment year.
A rectification request does not ordinarily allow:
- a fresh source of income;
- a new deduction claim;
- an additional carry-forward loss;
- a fundamentally different tax claim; or
- a revision of the entire return.
The indicative portal route is:
Login → Services → Rectification → New Request
A rectification request is ordinarily required to be filed within four years from the end of the financial year in which the order sought to be rectified was passed. In appropriate cases, the portal may provide an option to submit the request to the jurisdictional Assessing Officer.
How to Respond to an Outstanding Demand
The indicative procedure is:
- Log in to the e-filing portal.
- Go to Pending Actions → Response to Outstanding Demand.
- Select the relevant demand.
- Choose the appropriate response:
- demand is correct and not yet paid;
- demand is correct and already paid; or
- disagree with the demand fully or partly.
- Enter the required payment or disagreement details.
- Upload supporting documents, where permitted.
- Submit the response and retain the transaction ID.
Before selecting “Demand is correct,” examine the demand carefully because the portal may restrict a later disagreement after the demand has been accepted.
Time Limit for Issuing Section 143(1) Intimation
An intimation under Section 143(1) cannot ordinarily be sent after nine months from the end of the financial year in which the return was furnished.
Example
Suppose a return is furnished on 25 July 2026.
- It is furnished during FY 2026–27.
- That financial year ends on 31 March 2027.
- Nine months from the end of that financial year expires on 31 December 2027.
Therefore, the normal Section 143(1) time limit would expire on 31 December 2027.
After expiry of this period, an intimation making adjustments under Section 143(1) cannot ordinarily be issued. However, expiry of the Section 143(1) processing period does not automatically prevent scrutiny, reassessment or another proceeding lawfully initiated under a separate provision.
Section 143(1) Versus Other Income-tax Communications
| Provision | Purpose | Normal action |
| Section 139(9) | Defective return | Correct the defect within the period allowed |
| Section 143(1)(a) | Proposed prima facie adjustment | Accept or disagree within 30 days |
| Section 143(1) | Summary processing of the return | Verify refund, demand and adjustments |
| Section 143(2) | Scrutiny assessment | Respond with the information requested |
| Section 154 | Rectification of mistake apparent from record | File an eligible rectification request |
| Section 156 | Notice of demand | Pay or take the appropriate remedy, generally within 30 days |
| Section 245 | Proposed adjustment of refund against demand | Respond within the time mentioned in the communication |
A defective-return notice under Section 139(9) should be corrected through the facility provided for that notice. It should not automatically be described as filing a revised return.
Does Section 143(1) Mean That Scrutiny Is Complete?
No. Section 143(1) processing and scrutiny assessment are separate proceedings.
An intimation showing “no demand and no refund” does not necessarily prevent:
- scrutiny assessment;
- reassessment;
- rectification; or
- another proceeding permitted under law.
At the same time, receiving a Section 143(1) intimation does not mean that the taxpayer has been selected for scrutiny.
Which Income-tax Act Applies in 2026?
This distinction is important during the transition to the Income-tax Act, 2025.
Income earned during FY 2025–26 is returned for AY 2026–27 under the Income-tax Act, 1961. Therefore, processing of that return continues under Section 143(1) of the 1961 Act, even though the return is filed after 1 April 2026.
Income earned from 1 April 2026 onward is governed by the Income-tax Act, 2025 and uses the new “Tax Year” framework. Its return will ordinarily be filed after the end of Tax Year 2026–27.
The two frameworks should not be mixed merely because both may operate on the e-filing portal during the transition period.
Frequently Asked Questions
1. Is Section 143(1) intimation an income-tax notice?
It is primarily an intimation communicating the result of CPC processing. It is not, by itself, a scrutiny or penalty notice. Where tax is payable, it may also function as a notice of demand.
2. Do I need to respond if there is no demand and no refund?
Normally, no response is required if the figures are correct. The taxpayer should download and retain the intimation.
3. What should I do if the refund is lower than the refund claimed?
Compare the filed return with CPC’s computation. Check deductions, TDS/TCS credit, tax challans, interest and any adjustment of an earlier demand. The appropriate remedy may be rectification, correction by the deductor or another response depending on the reason.
4. What happens if I ignore a proposed adjustment?
If no response is submitted within 30 days, CPC may process the return after making the proposed adjustment. This may reduce the refund or create a tax demand.
5. Can a revised return be filed after Section 143(1) intimation?
A revised return may be filed only if the time allowed under Section 139(5) is still available and assessment has not already been completed. After processing, the correct remedy may instead be rectification or appeal, depending on the issue.
6. Can a TDS mismatch be corrected through rectification?
Yes, eligible TDS/TCS and tax-payment mismatches may be corrected through the Tax Credit Mismatch Correction facility. If the deductor has reported incorrect information, the deductor may first need to revise the TDS statement.
7. Can scrutiny notice be issued after Section 143(1) processing?
Yes. Summary processing under Section 143(1) does not prevent scrutiny proceedings within the applicable legal time limit.
8. Can an appeal be filed against a Section 143(1) adjustment?
An appeal may be filed against an appealable Section 143(1) intimation where the taxpayer is adversely affected. A simple mistake apparent from the record may instead be addressed through rectification. The proper remedy depends on the nature of the dispute.
Conclusion
An intimation under Section 143(1) is a routine but important communication. It tells the taxpayer how CPC has processed the return and whether a refund, demand or adjustment has resulted.
The taxpayer should compare CPC’s computation with the filed return, Form 26AS, AIS, tax challans and deduction records. A proposed adjustment should be answered within the permitted time, while an incorrect apparent adjustment may be addressed through rectification. Where the dispute involves interpretation of law or examination of evidence, an appeal or professional assistance may be more appropriate.
The key is not to panic or ignore the communication. Read it carefully, identify the exact difference and select the remedy appropriate to that difference.
Official Sources
- Income-tax Act, 1961—Section 143
https://www.incometaxindia.gov.in/w/section-143-64 - Income Tax e-Filing Portal
https://www.incometax.gov.in/ - Rectification Request FAQs
https://www.incometax.gov.in/iec/foportal/help/perform-rectification-faq - Respond to Outstanding Demand—User Manual
https://www.incometax.gov.in/iec/foportal/help/respond-to-outstanding-demand - e-Proceedings—User Manual
https://www.incometax.gov.in/iec/foportal/help/respond-to-e-proceedings - CBDT FAQs on Interplay and Transition from the Income-tax Act, 1961 to the Income-tax Act, 2025
https://www.incometaxindia.gov.in/income-tax-act-20251
Disclaimer
This publication is intended solely for informational and educational purposes and does not constitute professional, legal, tax, or financial advice. While reasonable care has been taken to ensure the accuracy and relevance of the information at the time of publication, tax laws, rules, notifications, circulars and judicial interpretations may change over time. The views and opinions expressed herein reflect the author’s understanding at the time of publication and are subject to change without notice.
Readers are strongly advised to seek independent professional advice before making any decision or taking any action based on the information contained in this publication. The author and publisher expressly disclaim any responsibility or liability for any loss, damage, or consequence arising directly or indirectly from reliance on this content or from any action taken or not taken based on it.