Got an Income Tax Notice? Your Simple Guide to Fixing Mistakes After ITR Processing

The Income Tax Department sends you a notice called an Intimation under Section 143(1) after they finish their initial, automated check of your tax return (ITR).

This intimation is their way of saying, "We've checked your numbers against our records." While a "No Demand, No Refund" notice is ideal, this intimation often points out discrepancies. If the notice asks you to pay more tax or cuts down your expected refund, you need to act. Your next step depends on whether the mistake was yours or the department's.

What the ITR Intimation Does

Think of the Section 143(1) intimation as a quick, computer-run comparison. The tax system compares your filed ITR data with other information it holds, such as your tax deducted at source (TDS), Annual Information Statement (AIS), and tax payments.

The automated process makes corrections for obvious issues like:

• Simple math errors.
• Claims you made that clearly go against the tax rules shown in your return.
• Losses you claimed that are disallowed because the return was filed late.
• Differences between the tax payments (TDS/TCS) you reported and what the department has on record.

The notice shows you two columns: "Your Numbers" and "The Department's Computed Numbers." The difference between the two tells you what needs fixing.

Choosing the Right Correction Tool

Once you see the difference, you must choose the correct way to inform the Income Tax Department of the correction.

Option 1: Filing a Revised Return

You must file a Revised Return if you realize you made a mistake or missed something important in your original ITR filing.

When to Use This:

• You didn't include some income (like bank interest or rent).
• You claimed a tax benefit (deduction/exemption) incorrectly.
• You want to change your choice of tax scheme (e.g., switching from the New to the Old scheme).

Important Rules:

• The revised return completely overrides your first filing.
• Your original return must have been filed before the final deadline.
• Deadline: You must file the revised return before the end of the financial year for which the return was filed (e.g., for ITR of FY 2023-24, the deadline is generally March 31, 2025) or before the department finishes its full assessment, whichever is sooner.

How to Do It Online:

1. Log in to the Income Tax portal.
2. Go to the section for e-Filing your ITR.
3. Choose the Assessment Year and your ITR Form.
4. Crucially, select "Revised Return" as the filing type.
5. Enter the unique number (Acknowledgement Number) and date of your Original Return.
6. Go through your return, make all necessary changes, and submit and verify the corrected ITR.

Option 2: Filing a Rectification Request

A Rectification Request is used to fix an obvious error in the department's processing of your return.

When to Use This:

• Math Mistake: The computer made an obvious calculation error.
• Missing Tax Credit: You have proof of a tax payment (TDS/TCS) that is visible in your Form 26AS/AIS, but the intimation failed to give you credit for it.
• Clerical Error: A simple typo was made by the processing center while noting your data.

How to Do It Online:

1. Log in to the e-Filing portal.
2. Go to the Services menu and select Rectification.
3. Choose the Assessment Year and the specific notice (the 143(1) intimation) you want to fix.
4. Select the type of correction needed, such as:
   • Reprocess the Return (for minor processing issues).
   • Tax Credit Mismatch Correction (if your TDS/TCS was ignored).
5. Explain the error, upload any supporting documents (like proof of tax payment if needed), and submit the request.

A Key Limitation: You cannot use a Rectification Request to report new income, claim a new tax deduction, or make any significant change that relies on new facts. It is only for correcting errors that are clearly visible on the record.

The Bottom Line

Don't panic when you receive your ITR intimation. It’s simply a prompt to check your work. If you made the mistake, file a Revised Return quickly. If the department made the mistake, file a Rectification Request. Taking the correct, timely action will help you avoid paying unnecessary interest and prevent further complications.

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