INTIMATION U/S 143(1)

Intimation refers to the processing of returns by the Centralised Processing Centre (CPC). In this, all Income-tax returns filed under section 139 or in response to a notice under section 142(1) are processed to verify and fix the arithmetical errors, apparent errors, tax calculation, and tax payments. 

Cases when Intimation u/s 143(1) is received? 

• Intimation determining refund

This intimation has been issued where any tax is found to be refundable either where no discrepancy found in the return filed or after making adjustments as referred to in Section 143(1).

• Intimation determining demand

This intimation has been issued when discrepancy found in filed return and tax liability is arrived at.

• Intimation with no demand or no refund

This intimation has been issued if the department has accepted the return as filed without carrying out any adjustments to it.

Note: Refund is only initiated if amount is over INR 100. 

Check the following points when you receive an intimation u/s 143(1)

The following are the points that you must check when you receive an intimation u/s 143(1)- 

• The document identification number in the intimation. 
• Your Name on the intimation. 
• Check whether the deduction claimed under sec 80C, and other sections of chapter VIA are considered or not. 
• All Income are mentioned under appropriate head. 
• Check whether the income is repeated or not. 
• Check whether any rebate claimed or allowable, or relief u/s 89, 90/90A/91 are considered in the intimation or not. 
• Self-Assessment Tax paid and TDS/TCS claimed Advance Tax paid in the computation by CPC (Central Processing Centre). 

What Adjustment shall be made by CPC to compute total income or loss while processing ITR

Income-tax return is processed to compute total income or loss after making the following adjustments.

• Any arithmetical error in the return.
• An incorrect claim apparent from any information in the return.
• Disallowance of loss claimed if the return of the previous year for which set-off of loss is claimed was furnished beyond the due date.
• Disallowance of expenditure or increase in income indicated in the audit report but not considered in computing the total income in return.
• Disallowance of deduction claimed under Section 10AA or Chapter VIA under the heading "C-Deductions in respect of certain incomes", if the return of income is furnished beyond the specified due date.

Time limit for issuing intimation u/s 143(1)

Intimation is required to be issued within 9 months from the end of the financial year in which the return is furnished by the assessee.

​​​For eg: if the taxpayer has filed return pertaining to the financial year 2022-23 in July 2023, intimation can be sent any time till 31 Dec 2024. 

How to respond to intimation u/s 143(1) of the income tax act?

• Step 1: Log in to the income tax e-filing portal.
• Step 2: Click on the “pending actions” tab and then select the "e-proceedings" option and select e-assessment.
• Step 3: Select adjustment u/s 143(1)(a).
• Step 4: Intimation notice details will be displayed; click on the submit button to start the process of responding intimation notice.
• Step 5: You will be able to see the mismatch found, select the drop-down next to the response, and submit a response to that particular mismatch.
• Step 6: Justify your response and submit the supporting documentation.
• Step 7: Your response will be acknowledged after clicking on submit button.

For more details, Watch the video