ITR Processing: Everything You Need to Know About Section 143(1) Intimation

The process of analysing an income tax return (ITR) by the Income Tax Department, after its filing by a taxpayer, is called assessment. This process is completely computer-based and is done through the Central Processing Centre (CPC). In this process, any kind of calculation error in the return, difference in tax payment or other discrepancies is checked. If any discrepancy is found, an intimation is sent to the concerned taxpayer under section 143(1).

When is a Section 143(1) Intimation Sent?

• Every taxpayer can receive a Section 143(1) intimation after the return is processed. If excess tax has been deposited, then a refund is issued if it exceeds Rs 100 and all bank/account details are valid. If the tax is less deposited, then a challan is issued for the demand amount and payment. Sometimes this is simply confirmation that the return has been found to be correct.

What Information Is Contained in Section 143(1) Intimation?

• This notice contains many important pieces of information, like the date of notice, PAN number, assessment year, acknowledgement number of ITR and document identification number. Along with this, a comparison of income, deductions and tax calculations made by the taxpayer and the department is also shown.

What Reforms are Examined in Section 143(1) Intimation?

• In this process, mathematical mistakes made in the returns are checked. Apart from this, wrong claims, like showing income at one place and not showing it at another place, are also checked. The process also includes incorrect set-off of losses from previous years and non-inclusion of expenses shown in the audit report in the returns.

Time Limit for Issuing Section 143(1) Intimation

• The Income Tax Department sends this intimation within nine months from the end of the financial year in which the return is filed. For example, if the return for FY 2023-24 is filed in July 2024, the notice can come anytime upto December 31, 2025. If no notice is received within this period, it means the return has been accepted without any changes.

What is Password of Section 143(1) Intimation?

• This notice is password-protected. Your PAN (in lowercase) and your DOB (in DDMMYYYY format, with no spaces) are the password. For example, if PAN is ABCDE1234E and the date of birth is 01 January 2000, then the password will be abcde1234e01012000.

What to do After Receiving Section 143(1) Intimation?

• After receiving the notice, first of all, ensure that the information given in it, like name, PAN, assessment year and ITR acknowledgement number, is correct. If any mistake is made while filing the return, it can be corrected through a revised return. If you do not agree with the changes made by the department, an application for rectification can be made under section 154.

Further process in case of tax demand

• If tax is demanded in the notice and you agree to it, you will have to pay. While making payment, it is necessary to select the option “Tax on Regular Assessment (400)” in the challan. If the issue is not resolved, a complaint can be filed on the e-filing portal, or the Assessing Officer can be contacted. If the notice contains a tax demand, it is mandatory for the taxpayer to respond within 30 days, whether he agrees or disagrees with it. Responding at the right time can avoid further legal action.