Getting a message from the Income Tax Department can feel nerve-racking, especially when it mentions something like “Intimation under Section 143(1).” You might wonder if you’ve made a mistake or if there’s some penalty heading your way. But here’s the truth, most of these intimations are simply automated updates and nothing to stress about.
In fact, this type of notice is just a confirmation that your tax return has been processed. It’s a way for the tax department to let you know whether your return has been accepted, if you’re getting a refund, or if there’s a mismatch you need to look at. So instead of panicking, let’s break down what this notice really means and how you can handle it confidently.
What is Section 143(1) of Income Tax Act?
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Section 143(1) deals with the initial processing of income tax returns. It verifies your ITR for basic errors and sends you a summary of the findings.
The moment you file your income tax return, it goes through a system-driven check by the Centralised Processing Centre (CPC). This isn’t a manual review but an automated assessment that cross-verifies the details you’ve submitted with the information already available with the tax department. It checks for common mistakes such as mismatched tax credits, incorrect deductions, or mathematical errors in the filing.
The outcome of this process is then shared with you in the form of an intimation under Section 143(1). This intimation doesn’t always mean there’s a problem. It could simply be a confirmation that your return has been accepted as-is, a notice that a refund is due, or an alert about a discrepancy you should look into.
t file your return, you will need to prepare the full set of documents required for regular ITR filing. Here is what to include.
When Do You Receive Intimation Under Section 143(1)?
All the taxpayers receive this intimation once their income tax return is processed by the Centralised Processing Centre. It communicates the final outcome of the department’s automated review. Here are the situations when the CPC can send you the Intimation letter:
When Return Is Accepted as It Is
In this case, the intimation simply confirms that the details you submitted in your return match the records of the tax department. There are no mismatches, errors, or adjustments required.
It acts as a formal acknowledgment that your ITR has been accepted without any further action needed from your side. This is the most common and favourable outcome for many salaried individuals.
When Tax Paid Is More Than Required
If the tax department finds that you’ve paid more tax than necessary, through TDS, advance tax, or self-assessment, you’ll receive an intimation showing the refund amount.
This often happens when you forget to claim deductions or if your employer deducts more TDS than required. The refund is generally processed automatically to your registered bank account after verification.
When Tax Department Identifies Underpayment or Discrepancies
This outcome means the tax department found a mismatch or underreporting in your return. It may be due to missed income details, incorrect deductions, or mismatch in TDS claims compared to Form 26AS.
The intimation will clearly show the additional tax payable. In such cases, you’ll need to either pay the tax or file a rectification if you believe the department’s calculations are incorrect.
How the Income Tax Department Processes Your ITR?
The intimation under Section 143(1) is part of a fully automated review carried out by the Income Tax Department. Here’s a step-by-step explanation of how it works.
Step 1: Return Is Filed by the Taxpayer
Once you file your Income Tax Return (ITR), the system records all the financial details you’ve submitted, including income, deductions, tax payments, and TDS claims. This is the starting point for the processing.
Step 2: Data Is Verified by the CPC System
The CPC automatically checks your return. During the preliminary check, the department’s system verifies multiple key data points in your return:
- Total income declared across different heads
- Deductions claimed under Chapter VI-A (such as 80C, 80D)
- TDS claimed, Advance Tax paid, and Self-assessment Tax
- Any set-off of losses from previous years
Step 3: Comparison Report Is Generated
The system then creates a comparison report. It shows two sets of numbers side by side: one from your submitted return and the other as computed under Section 143(1). It compares key figures like total income, deductions, and tax payable.
Step 4: Adjustments Are Made If Needed
If any discrepancies are found, like incorrect deductions or income mismatches, the system applies adjustments. You are notified of these adjustments through email or your e-filing portal. You are given 30 days to respond to the proposed changes.
Step 5: Outcome Is Finalised and Intimation Is Sent
After considering your response, or if no response is submitted, the system finalises the outcome. It then sends the Section 143(1) intimation, which will either reflect no change, a refund, or a demand for tax. This document is sent via email and is also available on the e-filing portal.
Types of Intimations Issued Under Section 143(1)
The intimation under Section 143(1) communicates one of three outcomes based on the comparison between your return and the Income Tax Department’s records. Here’s what each type of intimation means for you.
Intimation with No Demand, No Refund
This type of intimation means your filed return has been accepted as is. The department found no discrepancies, and there’s neither a tax refund nor additional tax liability. It’s essentially an acknowledgement that your return has been processed successfully and no further action is needed from your end. Many taxpayers receive this kind of intimation every year.
Intimation Determining Refund
If you’ve paid more tax than required, either through TDS, advance tax, or self-assessment, then the CPC issues an intimation stating that a refund is due. The notice will specify the refund amount and that it will be credited to your bank account. It’s important to verify your bank details in the return to avoid refund delays.
Intimation Determining Demand
When there’s a mismatch between your return and the department’s records, such as unreported income, incorrect deductions, or lower tax payments, the system raises a demand. The intimation clearly mentions the extra tax payable and provides a challan for payment. You can either agree and pay or disagree and file for rectification.
Time Limit to Receive an Intimation Notice Under Section 143(1)
Every taxpayer should be aware of the time frame within which an intimation under Section 143(1) may be issued. This helps avoid unnecessary confusion or anxiety during the post-filing period.
As per the Income Tax Act, the CPC must send an intimation under Section 143(1) within 9 months from the end of the financial year in which the return was filed.
For example, if you filed your ITR for FY 2024–25 on July 30, 2025, the Income Tax Department has time until December 31, 2025, to issue the intimation.
Note: If no intimation is received within this period, the original acknowledgment of your return is considered final. In such cases, it implies that the return has been accepted without any further adjustments or actions required. |
Password to Open Section 143(1) Intimation PDF
The intimation notice sent, is password-protected to keep your tax data secure. To open this PDF, you’ll need to use a specific password format set by the Income Tax Department.
The password is a combination of your PAN (in lowercase) and your date of birth (in DDMMYYYY format), typed without any spaces.
This ensures that only you can access your tax notice securely. Keep this password format in mind whenever you receive a protected intimation from the IT Department.
For Example:
If your PAN is GHIJK5678L and your date of birth is 15th August 1995, then your password will be: ghijk5678l15081995.
What to Do After Receiving an Intimation Notice?
Once you receive an intimation, it’s important to take a few simple but timely steps. This helps confirm your filing status, avoid confusion, and handle any tax demands or refunds properly.
Step 1: Verify Your Details
Start by confirming that the notice is indeed meant for you. Check key details such as your PAN, name, address, assessment year, and ITR acknowledgment number. These must match the information you provided while filing your return. If any of these details are incorrect or mismatched, it might be a case of misdirected intimation or a processing error that needs prompt clarification.
Step 2: Compare Return vs Intimation
Carefully go through both your filed ITR and the intimation. Focus on sections that show differences, such as income declared, deductions claimed, and tax paid. The intimation usually contains two columns: “As Provided by Taxpayer” and “As Computed by CPC.” This comparison helps you spot the exact source of the adjustment, if any.
Step 3: Respond Accordingly
If the intimation confirms that the return is accepted without any tax demand, no further action is needed. If there’s a tax refund, you can track its status on the portal. However, if the notice shows a tax demand, pay it using the correct challan type on the e-filing portal. If you don’t agree with the demand, the next step is to file a rectification.
Step 4: File Rectification (If Required)
If you believe the adjustment made in the intimation is incorrect, you can file a rectification request under Section 154. Log in to the e-filing portal, go to ‘e-File’ > ‘Rectification,’ and follow the on-screen steps. This allows you to explain the mistake and submit corrected data without needing to file a fresh return.
Read More: How To File Revised Return?- Section 139(5)
Common Reasons for Adjustments Under Section 143(1)
Adjustments made under Section 143(1) are usually based on clear discrepancies that can be identified through system checks. Below are the most common reasons why these adjustments occur.
Arithmetic or Clerical Errors
Adjustments are often made when a deduction or exemption is claimed without a matching income entry or supporting section. For instance, if a deduction under Section 80C is claimed but there is no investment or income to support it, the claim may be disallowed. The system checks for internal consistency and flags any mismatch that is visible within the return itself.
Incorrect or Ineligible Claims
One of the most frequent causes for adjustments is simple arithmetic mistakes made while calculating income or tax. These can include calculation errors in total income, incorrect addition or subtraction of deductions, or mismatches in figures across different sections of the return. Even a small manual entry mistake can trigger an automated correction from the CPC.
TDS or Income Mismatch
This happens when the TDS claimed in your return does not match the TDS reported in Form 26AS or AIS. Similarly, if the department finds income reported by a third party, like interest from banks or capital gains, that hasn’t been disclosed in your ITR, it will be flagged. These mismatches are usually corrected through adjustments and included in the intimation.
Importance of Responding to a Section 143(1) Intimation
It’s important to treat a Section 143(1) intimation as more than just a notification. This notification may highlight critical discrepancies in your tax calculations and the department’s records. Ignoring it, especially if it involves a tax demand, can result in penalties, interest, or additional legal consequences.
Timely review ensures that you don’t overlook mistakes in your return or miss out on refunds. Even when no action is required, verifying the details helps maintain clean tax records and peace of mind. If any adjustment seems incorrect, you should act immediately, either by paying the dues or filing a rectification to correct the issue.
How KoinX Helps You Handle Section 143(1) Intimations?
Whether it’s a crypto tax mismatch, crypto TDS refund issue, or other crypto-related query, a Section 143(1) intimation can feel stressful. KoinX simplifies how you deal with such notices. It auto-detects discrepancies, generates error-free tax reports, and supports you throughout the rectification or revised return process, helping you respond faster and stay compliant with confidence.
Automatic Import of Transaction Data
KoinX integrates with over 800 crypto exchanges and wallets to import data automatically. You don’t have to collect CSVs or manually enter transactions. Every buy, sell, and transfer is pulled in real-time, ensuring your tax records are complete and consistent. This is especially useful when reconciling mismatches flagged by the tax department in the Section 143(1) intimation.
Auto-Categorisation of Crypto Trades for Tax Purposes
Not every crypto transaction is a capital gain. KoinX categorizes your transactions, including spot trading, airdrops, staking, and P2P transfers, according to Indian tax rules. This auto-categorisation ensures that the correct tax treatment is applied to each trade, reducing errors and avoiding incorrect deductions or income classifications that often lead to notice adjustments.
Real-Time Tax Preview and Insights
With KoinX, you can preview your tax liabilities as your transactions are imported. This helps detect any underpayment or overpayment early. When you receive a Section 143(1) intimation, these insights enable you to quickly determine whether the demand raised is valid and whether you need to file a rectification or revised return.
Expert Support for Rectification Filing
If you disagree with the adjustments in your notification, KoinX provides step-by-step guidance on filing a rectification under Section 154. Their experts assist in drafting the correct reason, uploading supporting documents, and submitting the request on the e-filing portal. This support ensures that your response is accurate, timely, and effective.
KoinX ensures your crypto taxes are accurate, timely, and hassle-free. So why wait? Get started with KoinX today and take control of your tax compliance.
Conclusion
An intimation under Section 143(1) is not something to panic about; it’s simply the tax department’s way of updating you about your return. Reviewing it carefully and responding correctly helps you stay tax-compliant and avoid unnecessary penalties or delays in refunds.
If your ITR involves crypto transactions, tools like KoinX make the process much simpler. From auto-importing data to generating accurate reports and assisting with rectifications, KoinX ensures your response is timely and complete. Join KoinX today to manage tax notices effortlessly and keep your crypto tax filings error-free.
Frequently Asked Questions
Does an Intimation Under 143(1) Mean I’m Under Investigation?
No, receiving an intimation under Section 143(1) does not mean you’re under investigation. It’s an automated communication sent after processing your return, highlighting acceptance, refund, or a tax demand based on basic checks.
How to File Rectification Under Section 154?
Log in to the income tax e-filing portal, go to ‘My Account’ and select ‘Rectification.’ Choose the relevant assessment year, provide the reason for rectification, upload supporting documents, and submit your request online.
What If I Disagree With the Tax Demand in the Notice?
If you disagree with the tax demand, you can file a rectification under Section 154 or raise a grievance through the e-filing portal. Always ensure your records and documentation support your response to avoid further issues.
Is There a Time Limit to Respond to a 143(1) Intimation?
Yes, if the intimation proposes adjustments, you are expected to respond within 30 days from the date the issue was raised. Delays may lead to automatic acceptance of the adjustments, which could result in penalties or additional tax demands.
