Intimation Under Section 143(1) Of Income Tax Act

Exploring the universe of income tax can sometimes feel like attempting to solve a tricky puzzle, particularly when official notifications come into play.

One quiet evening, Raj, a software engineer from Bangalore, was enjoying his usual cup of filter coffee when he received an email titled “Intimation under Section 143(1)” from the Income Tax Department. He had carefully filed his tax return and felt both eager and uneasy. Was this a standard confirmation or something more? Opening the email, Raj found the intimation was no ordinary notice—it detailed how his return was processed and flagged discrepancies, making it essential to grasp the impact of his filing.

Section 143(1) basically offers an initial assessment of your return, calling attention to any discrepancies or corrections made by the tax authorities.

In this article, we’ll explore what an intimation under Section 143(1) of Income Tax Act implies, breaking it down in simple terms so you can navigate your own tax notifications effortlessly and with certainty.
 

What Is Intimation U/S 143(1)?

In Indian taxation, an "Intimation under Section 143(1)" is a notice from the Income Tax Department that informs a taxpayer about the preliminary review and processing of their income tax return.

When you file your income tax return, the first thing that happens is it gets processed online at the Centralised Processing Centre (CPC). Once they’ve processed it, the Income Tax Department sends you what’s known as an intimation under Section 143(1). This helps in educating taxpayers on the outcomes and specifics of their return.
 

Why Intimation Under Section 143(1) Is Issued?

When you submit your income tax return, the Income Tax Department runs it through a bunch of computerised checks to see if everything’s in order. Then, they send out what’s called an Intimation under Section 143(1). This intimation serves specific purposes, which include -

1. Correction Of Arithmetic Errors: It finds any mathematical mistakes in the return and fixes them.
2. Reviewing Incorrect Claims: The intimation flags any obvious mistakes in claims based on the details in your return. For example, if you've claimed a Section 80C deduction that exceeds the Rs 1,50,000 limit, the extra amount will be disallowed and shown in the intimation. Likewise, if rent income is mistakenly deducted from business income instead of being reported under Income from House Property, this error will be pointed out.
3. Expenditure Disallowance: This accounts for any expenses mentioned in the audit report that weren’t included in the total income calculation on your return.
4. Verification Against Form 26AS: The intimation verifies that the Advance Tax, Self-Assessment Tax, and TDS reported in Form 26AS are correctly reflected in your return.
5. Income Addition Review: It highlights any income reported in Form 26AS, Form 16A, or Form 16 that hasn’t been included in your income tax return.
6. Evaluation Of Loss Claims: It verifies claims for carrying forward losses to the next year or offsetting losses from previous years, particularly if the return was filed after the due date.
7. Timeliness Of Deductions: The intimation checks if deductions under sections like 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE were claimed after the Income Tax Return's due date.
8. Tax Calculation And Penalties: It outlines the calculation of the tax due, any late filing fees, and accrued interest.

Ever wondered why you might get a ping from the Income Tax Department after filing your return? Here's a peek into what those notifications are all about and why you might be hearing from them!
 

When Does One Receive An Intimation Under Section 143(1)?

After you’ve filed your income tax return, you might get an intimation under Section 143(1) from the Income Tax Department. This usually happens after they've run their checks and processed your return. You’ll typically receive this notice in a few common situations -

1. Income Reporting Discrepancies
   You might receive an intimation if there's a discrepancy between what you reported in your tax return and the records the Income Tax Department has. This can happen if you overlooked reporting some income or if there were errors in the information you provided.
    
2. TDS Errors Issues
   A frequent problem involves TDS (Tax Deducted at Source) discrepancies. If there are mismatches between the TDS details reported by your employer and what you've submitted, or if there are inconsistencies in your reported TDS figures, you'll get a notification.
    
3. Additional Document Requests
   If the Income Tax Department needs more documents to verify the details in your return, they’ll send you an intimation. This will prompt you to submit the additional paperwork they’ve requested.
    
4. Asset Reporting Errors
   If you or your family members have acquired significant assets like property or fixed deposits, you need to include these in your tax return. If there are discrepancies or if these assets aren’t reported correctly, the Income Tax Department will send you an intimation to address the issue.
    
5. Random Audit Notifications
   Occasionally, the Income Tax Department might perform random audits on the data and records from your tax return. If this happens, you'll receive an intimation notifying you of the audit, and you'll need to provide all the required information to assist with the review.

And when you want to process the returns:

During the Section 143(1) intimation stage, the Income Tax Department zeroes in on fixing mathematical errors, ensuring consistency within the return, calculating tax liabilities, and confirming tax payments. This process relies on automated systems and data engineering, with minimal human involvement. It does not include income verification at this stage.

You can explore other sections of the Income Tax Act that might impact your finances, like Section 206AB Of Income Tax Act, which specifically deals with higher tax rates for those who haven't submitted their income tax returns.
 

How Will I Receive This Notice?

Intimations under Section 143(1) are automatically created once your income tax return has been processed. Here’s how they land in your inbox -

• Notification Through Email
  The intimation gets sent to the email address you listed when filing your tax return online or the one registered with the Income Tax Department. These notifications come from the Central Processing Centre (CPC) and are dispatched from the address intimations@cpc.incometax.gov.in, as the CPC handles the processing of returns.
   
• Text Message
  Along with the email, you’ll also get a text message on your registered mobile number, so you’re always up to date on the status of your return.

So, you’ve received an intimation under Section 143(1) from the Income Tax Department. What’s inside? Here’s a peek into the key details you’ll find in this important document!
 

Sample Of An Intimation Under 143(1)

An Intimation under Section 143(1) of Income Tax Act packs in a few crucial bits of information -

• Taxpayer Information Overview: The first thing you'll see is your personal information, including your name, PAN (Permanent Account Number), and the assessment year.
• Comprehensive Computation: It offers a detailed summary of your total income, allowable deductions, tax due, and any refunds you might be eligible for. This part also highlights any adjustments the Income Tax Department made while processing your return.
• Tax And Refund Breakdown: Here’s where the financial summary comes into play. The intimation outlines any extra tax or interest you might owe, along with any refunds that have been issued to you, if applicable.
   

What Do Notices Under Section 143 (1) Say?

When you receive a notice under Section 143(1), it’s essentially a summary of how the Income Tax Department processed your return. This notice will let you know if the tax amount you calculated lines up with what they’ve figured out and will detail any adjustments they’ve made.

Here’s a quick rundown of what you’ll find in the notice -

1. Matching Assessments
   If the department's calculations match up with the tax you assessed and the deductions you claimed, the notice will let you know that no extra tax is owed and that there’s no refund coming your way.
    
2. Additional Tax Liability
   If there are discrepancies between your calculations and the department’s, the notice will outline any additional tax you owe. This might be due to errors in math or incorrect deduction claims.
    
3. Refunds Due
   If you've overpaid your taxes, the notice will let you know about the refund you’re entitled to. The department will then handle the processing and send you the refund as appropriate.

What’s happening with those tax return fixes? Get the lowdown on the adjustments game!
 

Nature Of Adjustments Under 143(1)

Under Section 143(1), calculating your total income or loss involves a few key adjustments. Here's what typically gets looked at -

• Arithmetical Errors: Any mathematical mistakes in your return are corrected to ensure accuracy.
• Incorrect Claims: Adjustments are made for any obviously incorrect claims based on the details in your return. This might include -
  • Inconsistent Claims: If a claim doesn’t align with other entries in your return, like deducting income from other sources as business expenses instead of reporting it correctly, adjustments will be made.
  • Disallowed Loss Set-Off: If you file your return after the deadline, losses from previous years may not be allowed to be carried forward.
• Unaccounted Expenditure: Expenses listed in the audit report but missing from your income tax return will not be accepted.
   

Time Limit For Issue Of 143(1)

The intimation under Section 143(1) has a nine-month deadline from the end of the financial year in which the return was filed. For instance, if you filed your return for the financial year 2023-24 in July 2024, the Income Tax Department has until December 31, 2025, to send you this intimation. So, mark your calendar and keep an eye out for that crucial update! 

If you don’t get an intimation within this nine-month window, it simply means the Income Tax Department hasn’t made any changes to your return. In other words, your tax liability and refund remain as initially reported. In this case, your original return acknowledgement will act as your Section 143(1) intimation.
 

What If No Intimation Is Received Till The Expiry Of One Year?

If a full year has passed since the end of the financial year and you haven’t received an intimation, don’t worry—your ITR-V acknowledgement will be treated as the intimation. Still, it’s smart to check online to make sure the Income Tax Department has processed your return. A quick online check can give you peace of mind and confirm everything is on track.

Can’t find that intimation email? No worries—here’s how to summon it back with just a few clicks!
 

How To Get An Intimation U/S 143(1) Again?

You can get the notification by doing the following if you haven't received it in your registered email or can't find it -

Step 1: Log In

Enter your credentials to access the e-filing portal.

Step 2: Navigate To Returns

On your dashboard, click on the "e-File" tab, hover over "Income Tax Return," and then select "View Filed Returns."

Step 3: Download Intimation

On the page with your filed returns, click on "Download Intimation Order" to access your intimation u/s 143(1).
 

What Is The Password To Open Intimation U/S 143(1)?

The intimation u/s 143(1) is secured with a password. To unlock it, use a combination of your PAN in lowercase and your date of birth in the format DDMMYYYY. Just string them together without any spaces.

Here’s a quick example: if your PAN is ABCDE1234E and your birthday is January 1, 2000, your password would be “abcde1234e01012000.” Simple as that—your key to accessing all the details you need!

Trying to crack the code on your Section 143(1) notice? Follow these steps to clear things up!
 

How Can I Read An Intimation Received Under Section 143 Of The Income Tax Act?

Checking out your intimation notice under Section 143(1) might look a bit daunting at first, but think of it as a straightforward recap of how your tax return lines up with what the Income Tax Department has reviewed.

Here's a quick breakdown of it -

1. Double-Check The Basics
   First things first—make sure the basics are spot-on. Look over your name, address, PAN number, and the assessment year. It should all match up with the info you provided when you filed your return. Also, check that the e-filing acknowledgement number on the notice is the same as the one you received during the filing process.
    
2. Compare Your Figures- Income And Deductions
   Next up, dive into the numbers. The notice will lay out a side-by-side comparison of the income you reported versus what the department has on record. This includes everything from your salary and interest to capital gains. It also reviews the deductions you claimed—think of things like Section 80C and 80D—against what the department recognises. If there are any discrepancies, this is where you’ll spot them. Sometimes, these differences are just errors; other times, they might be due to variations in the information.
    
3. Review Your Tax Breakdown
   Here’s where it gets a bit more detailed. The notice will break down how your final tax liability is calculated based on your taxable income. Pay attention to:
4. 1. The Tax Rate: What rate applies to your income slab?
   2. Reliefs And Pre-Paid Taxes: Any tax reliefs or pre-paid taxes that have been accounted for.
   3. Interest And Penalties: Any additional charges or penalties.

Make sure you understand each part of this calculation to comprehend your final tax liability.

4. Refund Or Payment Due?
   Now, check if the notice is telling you that you’re due a refund or if there’s a tax demand. This section will clarify if you’ll be receiving money back or if you need to pay additional tax.
    
5. Take Action If Needed
   If there’s a discrepancy or if you owe additional tax, you might need to file a revised return within the given time frame. For those of you expecting a refund, the notice will give you a timeline for when you can expect to see that cashback in your account.

You can also dive into more sections of the Income Tax Act, such as Section 115BAA Of Income Tax Act, which offers reduced tax rates for domestic companies that opt out of certain deductions.
 

Check The Following Points When You Receive An Intimation U/S 143(1)

When you get an intimation u/s 143(1), here’s what you need to check -

• Verify Personal Information: Double-check that your name is accurately listed on the intimation.
• Check Document Identification Number: Verify that the intimation includes a unique document identification number for reference.
• Validate Income Classification: Ensure all your income sources are correctly categorised. Make sure no income is misplaced or duplicated under different headings.
• Review Claimed Deductions: Confirm that deductions claimed under Section 80C and other parts of Chapter VI-A are properly reflected.
• Confirm Tax Payments: Check that all TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Advance Tax, and Self-Assessment Tax have been correctly included in the calculations by the CPC.
• Validate Reliefs And Rebates: Make sure any reliefs under Sections 89, 90/90A/91, or any rebates you claimed, are accurately accounted for in the intimation.
   

Do I Need To Respond To The Notice/Intimation Under Section 143(1)?

Absolutely, it's crucial to address any notice or intimation u/s 143(1).

Here's a brief how-to guide -

• Decode The Notice:
  When you get a Section 143(1) notice, follow these steps to understand it and decide your next actions -
• • No Adjustment Needed: If the notice says everything is fine with no discrepancies, you're all set—no further action is required.
  • Refund Due: If it mentions a refund, check the amount to ensure it's accurate.
  • Additional Tax Demand: If it’s asking for an additional tax, take a closer look at the details provided.
  • Cross-Check Details: Compare the notice with your filed return to spot any mistakes or inconsistencies.
     
• Respond Appropriately:
  Here’s what you should do once you've reviewed the Section 143(1) notice-
• • Agree: If you’re on board with the additional tax demand, make the payment as instructed.
  • Disagree: If you spot errors, file a rectification request under Section 154 to get things corrected.
  • Seek Help: If you’re unsure how to proceed or need guidance, consulting a tax professional can be a wise move.

Acting quickly helps you avoid extra penalties and interest on any unpaid taxes.

Now, did you receive an Income Tax notice? Here’s your step-by-step guide to tackle it and sort things out!
 

How To Respond To Income Tax Notice Under Section 143 (1) Of The Income Tax Act?

Here's how to reply to an intimation u/s 143(1) of Income Tax Act step-by-step -

Step 1: Log In To The Portal

Log in to the Income Tax e-filing portal with your credentials.

Step 2: Go To Pending Actions

Go to the “Pending Actions” tab, select “e-Proceedings,” and then click on “e-Assessment.”

Step 3: Select The Adjustment Type

Select the “Adjustment under Section 143(1)(a)” option.

Step 4: Review Any Intimation Detail

The details of the intimation notice will appear. Click “Submit” to start the response process.

Step 5: Address Discrepancies

You’ll be presented with a list of discrepancies. For each one, use the drop-down menu to choose how you want to address it.

Step 6: Justify And Upload Documents

Explain your response with a justification and attach any necessary supporting documents.

Step 7: Obtain The Acknowledgement

Once you've submitted your response, make sure to obtain an acknowledgement that confirms your submission has been received.
 

How Will I Get The Refund?

So, let’s say you get an intimation u/s 143(1) that says you’ve got a refund coming your way—here’s what’s going down next -

1. Refund In Progress: Once the Income Tax Department processes your refund, the gears are set in motion.
2. Credited To Your Bank Account: Your refund will be deposited straight into your bank account, but make sure your account is pre-validated and linked to your PAN on the income tax e-filing portal—this step is crucial to ensure you get your money without any hiccups!
3. Track The Refund Status: You can keep an eye on your refund’s journey by checking its status online through the official Income Tax e-filing portal—like tracking a package, but it’s your money on the way!

Receiving an intimation u/s 143(1) is a pivotal moment in understanding your tax assessment. It provides a clear picture of your tax liability and highlights any adjustments the department has made. Be sure to review this information thoroughly and take any required actions to stay compliant with tax regulations.
 

Let’s Call It A Wrap,

Tax assessments can feel like a maze, but getting a handle on the intimation u/s 143(1) of Income Tax Act is like having a map. This notice gives you the lowdown on how the Income Tax Department has reviewed your return, pointing out any quirks or corrections needed. Think of it as your personal audit check-up. By giving this intimation a thorough once-over, you’re making sure everything adds up right and keeping things smooth with the tax authorities. Act quickly and accurately, and you’ll dodge any further tax headaches. Stay sharp, stay proactive, and keep your tax game on point!
 

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