Quick answer: A Section 143(1) intimation is the Income Tax Department’s confirmation that your return has been processed. It is not a scrutiny notice and not, by itself, a penalty. It simply compares what you filed with what the department computed — and the result is one of three things: no change, a refund, or a tax demand you must deal with within 30 days.
What is a Section 143(1) intimation?
After you file your income tax return and e-verify it, your return goes to the Centralised Processing Centre (CPC) in Bengaluru. The CPC runs an automated check on it. This check is called processing under Section 143(1) of the Income Tax Act, 1961.
No officer sits down and examines your case at this stage. The system compares your return with the department’s own records — your Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) — and redoes the tax calculation. The result of that check is sent to you as an “intimation” under Section 143(1).
That is an important distinction. A 143(1) intimation is a summary, computer-based check. It is not scrutiny under Section 143(2), where an officer can ask questions and call for documents. Most taxpayers who file correctly will only ever see a 143(1) intimation, and for most of them it will say nothing is due.
The intimation is sent to your registered email as a password-protected PDF, and it is also available on the e-filing portal. The PDF password is your PAN in lowercase followed by your date of birth in DDMMYYYY format, with no spaces. For example, PAN ABCDE1234F with date of birth 10 April 1990 gives the password abcde1234f10041990.
How to read your 143(1) intimation
The heart of the intimation is a comparison table with two columns:
- As provided by you in the return of income — what you filed.
- As computed under Section 143(1) — what the CPC computed.
The rows walk through your gross total income, deductions claimed, taxable income, tax payable, interest, taxes already paid (TDS, TCS, advance tax, self-assessment tax), and finally the net result: amount payable or refundable.
If the two columns match, there is nothing to worry about. If they differ, the intimation shows the difference line by line. That line is where you should focus. It tells you exactly what the CPC changed — a deduction it did not allow, TDS credit it did not find, or income it added from your AIS.
By the numbers, from the department’s own framework: the intimation must be sent within 9 months from the end of the financial year in which you filed the return. A demand shown in it is payable within 30 days. And if a proposed adjustment is sent to you first under Section 143(1)(a), you get 30 days to respond before the department finalises it.
The 3 outcomes of a 143(1) intimation
1. No demand, no refund
This is the most common outcome for salaried taxpayers whose employer deducted the right TDS and whose Form 16 matches the return. The CPC agrees with your calculation. You do not need to reply, file anything, or pay anything. Save the PDF with your tax records for the year and move on.
2. A refund
You paid more tax than you owed — through TDS, advance tax, or self-assessment tax — and the department will send the extra back to your pre-validated bank account. If a refund is due, interest on it may also be payable to you under Section 244A for the period of delay.
“Processed” does not by itself mean the money has reached your account. Open the intimation to confirm the refund amount, then track the credit in your bank account and on the portal. If a refund fails — usually because the bank account is not pre-validated — raise a Refund Reissue request under Services on the portal.
3. A tax demand
The CPC computed more tax than you paid. Only this outcome is called a “demand notice” in everyday language, and only this outcome needs action from you. The intimation will show the extra tax plus interest, if any. A demand is payable within 30 days of the intimation.
Why does a 143(1) demand arise?
In practice, a demand almost always comes down to one of a few causes:
- Income you did not report. The most common is interest income — savings account interest, fixed deposit interest — that appears in your AIS but was left out of the return.
- A TDS credit mismatch. You claimed TDS that does not appear in your Form 26AS, or the deductor has not yet filed the TDS return, so the credit is not visible to the CPC.
- A deduction the CPC did not allow. A Chapter VI-A deduction claimed without matching proof, or a deduction that does not apply to your case.
- Tax paid but not credited. Advance tax or self-assessment tax paid under the wrong assessment year or with the wrong challan details.
- Interest differences. Interest under Sections 234A, 234B or 234C — for late filing, short payment of advance tax, or deferred instalments — recomputed by the CPC. Under the Income-tax Act, 2025, these interest sections carry the new numbers 423, 424 and 425, but intimations for returns filed under the earlier Act continue to cite the 1961 numbers.
Before you react, compare the intimation with your return line by line and with your Form 26AS and AIS. Most demands are small and come from one identifiable line.
What to do if you agree with the demand
If the CPC is right — say you genuinely forgot to include interest income — the fastest path is to pay and close the matter:
- Log in to incometax.gov.in and go to e-Pay Tax.
- Pay the demand amount, choosing Minor Head 400 (Tax on Regular Assessment) and the correct assessment year.
- After payment, go to Pending Actions on the portal and submit your response under “Response to Outstanding Demand”, selecting the option that you agree with the demand and have paid it.
Keep the challan receipt (BSR code and challan serial number) with your records. Once the payment is matched, the outstanding demand is cleared.
What to do if you disagree with the demand
Do not just ignore a demand you believe is wrong. You have two different routes, and which one fits depends on where the error sits:
If the error is the CPC’s — file a rectification under Section 154. This is for processing mistakes: TDS credit that exists in Form 26AS but was not given, an arithmetic error, a deduction wrongly disallowed. File the rectification request online on the e-filing portal, point to the exact line, and attach supporting proof such as the challan, Form 26AS, or deduction document. The CPC reviews it and issues a corrected intimation if your claim is valid.
If the error is in your own return — file a revised return under Section 139(5). If you left out income or claimed something wrongly, correcting your own return is the cleaner fix. A revised return replaces the original, and once it is processed a fresh 143(1) intimation is issued. For assessment year 2026-27, a revised return can be filed up to 31 March 2027 — see our revised ITR guide for the full steps.
You can also respond directly to the outstanding demand on the portal, selecting “Disagree with Demand” and explaining why, with documents attached. Use this route alongside rectification or revision, not instead of understanding which error you are correcting.
What is a 143(1)(a) proposal, and how is it different?
Sometimes, before the final intimation, the CPC sends a proposal under Section 143(1)(a) saying it plans to make an adjustment — for example, to disallow a deduction or add income found in your AIS. This is not the final demand. It is a chance to respond.
You get 30 days to reply to a 143(1)(a) proposal on the portal, agreeing or disagreeing with reasons. If you do not reply, the department finalises the adjustment as proposed. So if you receive a 143(1)(a) communication, treat its 30-day deadline as seriously as a demand deadline.
What happens if you ignore a 143(1) demand?
Ignoring a valid demand does not make it go away. Interest accrues at 1% per month under Section 220(2) until the demand is paid. The department can also adjust the demand against a future refund under Section 245 — it must give you a chance to respond to a refund-adjustment proposal within 30 days, but the adjustment itself is routine. An unpaid demand stays visible as an outstanding demand on your portal account and can complicate later filings. If the demand is wrong, the cost of acting — a rectification request — is far lower than the cost of ignoring it.
Is your 143(1) intimation genuine? How to check
Fake refund and demand messages are common. A genuine intimation:
- Comes from an @incometax.gov.in address — CPC intimations use intimations@cpc.incometax.gov.in.
- Carries a Document Identification Number (DIN), which you can verify on incometax.gov.in.
- Is also visible after you log in, under e-File, View Filed Returns, or Pending Actions.
Never pay through a link in an email or SMS. Always log in to incometax.gov.in yourself and pay through e-Pay Tax. No genuine message will ask you to click a “claim refund” link.
How to download your 143(1) intimation
- Log in at incometax.gov.in.
- Go to e-File, then Income Tax Returns, then View Filed Returns.
- Find the assessment year and click Download Intimation.
- Open the PDF with your PAN in lowercase plus your date of birth in DDMMYYYY format.
If you filed through a chartered accountant or a filing portal, ask for a copy of the intimation and check the final row yourself. Do not rely on a summary alone.
Frequently asked questions
What should I do if I receive a notice under Section 143(1)?
First, read the final row of the intimation. If it shows no demand and no refund, no action is needed. If it shows a refund, it will be credited to your pre-validated bank account. If it shows a demand, pay it within 30 days if it is correct, or challenge it through rectification under Section 154 or a revised return if it is wrong.
Is a 143(1) intimation a notice I must reply to?
Not if it shows no change or a refund — in those cases no reply is needed. If it shows a demand you believe is wrong, you should act: file a rectification under Section 154 for a processing error, file a revised return if the error is in your return, or respond to the outstanding demand on the portal with your reasons and proof.
How do I correct a genuine mistake in a 143(1) demand notice?
File a rectification request under Section 154 through the income tax e-filing portal. Point to the exact line that is wrong, explain the error in simple terms, and attach supporting documents such as your challan, Form 26AS, or deduction proof. The CPC reviews valid errors and issues a corrected intimation.
How many days do I get to reply to a 143(1) notice?
A demand in a final intimation is payable within 30 days. A proposed adjustment under Section 143(1)(a) also gives you 30 days to respond before it is finalised. A refund-adjustment proposal under Section 245 likewise gives 30 days. Do not let these windows pass without acting.
What happens if I ignore a 143(1) demand?
Interest of 1% per month applies under Section 220(2) until payment, and the department can adjust the amount against a future refund under Section 245. The demand also stays outstanding on your portal account. Acting early — by paying, rectifying, or revising — always costs less than waiting.
Why is my refund lower than the amount I claimed?
Usually because the CPC adjusted something: TDS credit it could not find in Form 26AS, a deduction it disallowed, or income added from your AIS. Compare the two columns of the intimation line by line. If the adjustment is wrong, file a rectification under Section 154 with proof. If the adjustment is right, the lower refund is the correct figure.
Official sources
- Income Tax e-Filing Portal: incometax.gov.in
- Central Board of Direct Taxes, Income Tax Department: incometaxindia.gov.in
Reviewed by Asuthod Rathod, CA
Last updated: 31 October 2026
Disclaimer: This article is for general information only and is not tax advice. Tax rules and portal steps change from time to time. Check the official income tax portal or consult a chartered accountant for your specific case.
Editorial byline for eircicai freelancer tax and ITR filing guides — covering 44ADA presumptive tax, advance tax, and ITR filing. Content is reviewed by Asuthod Rathod, CA.