Detailed Guide On Section 143(1) Of Income Tax Act of 1961 

If you filed your ITR and then received an email or portal message stating your return has been “processed under Section 143(1),” you’re in good company. Almost every compliant taxpayer sees this communication at least once.  

Think of it as a computer‑generated summary: the Income Tax Department’s Centralised Processing Centre (CPC) compares what you reported with what the system knows and informs you whether everything matches, a refund is due, or if a shortfall needs to be paid. It’s not a scrutiny; it’s the first, automated checkpoint after filing. 

In this guide, we’ll walk you through the law in plain terms, show you how to read the intimation, and give you a step‑by‑step response pathway. We aim to make Section 143(1) of Income Tax Act simple, so you can focus on correcting, confirming, or calmly closing the loop. 

Explaining The Section 143(1) of the Income-tax Act 

Section 143(1) sets out what can be adjusted during automated processing: arithmetical errors, incorrect claims apparent from the return, late-filed loss set‑off, and audit-report indicated disallowances not reflected in the return.  

As per Chapter VI‑A/Section 10AA, deductions are disallowed if the return is filed beyond the due date, and the addition of income appearing in Forms like 26AS/16 that was omitted (subject to specific provisos).  

Before any adverse adjustment, an intimation is issued, and you get 30 days to respond; the CPC considers your reply before finalizing the adjustment. The intimation must be issued within nine months from the end of the financial year in which the return was filed. 

These boundaries ensure your ITR is checked for prima facie issues, nothing more. If deeper scrutiny is required, the law uses different sections. 

Section 143(1) vs. 143(1)(a) 

Many taxpayers conflate the routine intimation under Section 143(1) with the proposed adjustments notice under Section 143(1)(a). The former communicates outcomes (accepted, demand, refund/no change).  

The latter is the system proposing a specific adjustment (e.g., disallowing a deduction apparent on the face of the return) and invites your explanation within the response window. Actions differ: acknowledge/contest the proposal under 143(1)(a); handle final outcomes under 143(1).  

How To Read The Intimation 

Your intimation typically shows two columns: “As per return filed” vs “As per department.” Scan differences in income heads, deductions, and TDS/TCS credits. The PDF is password‑protected. Use your PAN (lowercase) + Date of Birth in DDMMYYYY.   

Outcomes include: (1) No change; (2) Demand (additional tax/interest/fee payable); or (3) Refund (amount due back to you). A refund is issued only if the above minimal thresholds are met, and the intimation consolidates CPC’s recalculation against your self-assessment figures. 

Response Walkthrough (Step-by-Step) 

When the intimation shows a demand, or you receive a 143(1)(a) proposed adjustment: 

• Log in to the Income Tax e‑filing portal and go to e‑Proceedings (or the specific communication panel shown). 
• Open the notice/intimation and compare the two columns (return vs department) for the flagged items. 
• If you agree: 
• For 143(1)(a) proposed adjustments, accept the proposed change. 
• For 143(1) demand, generate a challan and pay the demand online promptly to avoid additional interest. 
• If you disagree: 
• For 143(1)(a), submit a response explaining the discrepancy and attach evidence.  
• For the 143(1) outcome you believe is incorrect, choose between: 
  Rectification (Section 154) when your original return is otherwise correct, but the CPC computation missed/erred. 
  Revised Return (within the permitted window) when your own reported data was wrong. Use the latest data (26AS/AIS) and correct schedules. 

Note: Always respond within 30 days to 143(1)(a) proposals; the CPC considers your reply before finalizing adjustments. 

Timelines, Refunds, & “No Intimation” Scenarios 

Section 143(1) is a time-bound intimation. In other words, the timelines say a lot. Here is a rundown that you need to understand:  

• Issue window: CPC must issue the intimation within nine months from the end of the FY in which you filed the return. 
• If no intimation arrives: It typically implies the return is deemed processed as filed; you may still see status updates on the portal. 
• Refunds: The intimation will state the refund; processing timelines vary in practice, with some guides noting typical windows but emphasizing that actual credit depends on bank/KYC correctness. 

Smart Prevention Checklist (Pre-Filing) 

One must definitely follow a pre-filing hygiene to ensure that everything is in order. Here are some pointers that should help you with the cause.  

• Match credits: Align TDS/TCS in your ITR with Form 26AS/AIS/TIS, update before filing. 
• Respect limits: Keep Chapter VI‑A claims within statutory caps and note late‑filing consequences for deductions/loss carry‑forward. 
• Audit alignment: Ensure any audit‑report indications are reflected in your computation. 
• Bank/KYC accuracy: Correct IFSC and account details to avoid refund delays. 

Intimation & Not A Summon 

Section 143(1) of the Income Tax Act is an intimation, not a summons. As soon as someone sees this, they often get alarmed and become vigilant. However, this is just an intimation and not a summons. 

Therefore, there is no real reason to be alarmed. It is just a marker that ensures the tax department and the individuals are on the same page. Therefore, the next time you receive an intimation email, please understand that everything is in order. There is no reason to be alarmed.  

FAQs 

Q1: Is a 143(1) intimation the same as a scrutiny notice? 

Scrutiny Notice and Section 143(1) of Income Tax are not the same. The latter is an automated preliminary check, and scrutiny is under different sections (e.g., 143(2)).  

Q2: What’s the password to open the intimation PDF? 

The password to open is your PAN in lowercase + DOB in DDMMYYYY format. 

Q3: How long do I have to respond to a 143(1)(a) proposal? 

30 days from the issue date, through the portal. 

Q4: Should I file a revised return or a rectification? 

Rectification (s.154) when CPC’s computation missed updated facts (e.g., corrected 26AS). Revised return when your own ITR had errors/omissions.