How to Handle Income Tax Intimation Under Section 143(1)

After you file your Income Tax Return (ITR), the Income Tax Department sends you an Intimation under Section 143(1). This is not an audit notice. It simply shows how your return was processed by the Central Processing Centre (CPC).

What the Intimation Can Say

• No Change: Your return is accepted as filed. No tax due, no refund.
• Refund Due: You will get a refund. The CPC calculated less tax than you paid.
• Tax Demand: You owe more tax. The CPC found a mismatch or missing income.

If you see a tax demand or refund mismatch, act quickly. Here's what to do.

Step 1: Download and Review the Intimation

• Log in: Visit the Income Tax e-Filing Portal.
• Go to: E-File > Income Tax Returns > View Filed Returns.
• Download: Get the Intimation PDF.
• Open: Use your PAN (lowercase) + Date of Birth (DDMMYYYY) as the password.
• Compare: Look at the page showing "As Computed by Taxpayer" vs. "As Computed by Department."

Common mismatches include missing TDS/TCS credits, unreported bank interest, or incorrect deductions.

Step 2: Choose Your Response

Option A: Agree with the Demand

• Generate Challan 280 and pay the tax online.
• Go to Pending Actions > Response to Outstanding Demand.
• Select "Agree with the Demand" and enter Challan details.

Option B: Your Mistake (Revised ITR)

This is rare after receiving the Intimation, as the deadline for revised returns usually ends. If the error is serious, consider filing a rectification or consult a tax expert.

Option C: Disagree with the Demand (Rectification U/S 154)

• Go to Services > Rectification on the portal.
• Select the Assessment Year and type of rectification (e.g., TDS mismatch).
• Upload supporting documents like Form 16, bank statements, or deduction proofs.
• Then go to Pending Actions > Response to Outstanding Demand.
• Select "Disagree with the Demand" and mention "Rectification filed at CPC." Enter the Acknowledgement Number.

Important Deadlines

Final Tip: The Intimation under Section 143(1) is just a summary. Respond calmly and correctly, and you’ll be fine.

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