Section 143(1) of Income Tax Act provides for the first, automated check of every return: the Centralized Processing Centre recomputes your income and tax from the return and its own data, then sends an intimation saying there is nothing to pay, a refund is due, or a demand is raised. It is not a scrutiny notice and nobody has examined your books.
The intimation arrives by email and SMS as a locked PDF and can also be downloaded from the portal. Most people need to do nothing. If the department's figures differ from yours, you can respond to the demand or seek rectification under section 154. For other kinds of notice, see the notices guide.
Quick facts
What it is
Automated processing of a filed returnWho sends it
Centralized Processing Centre, BengaluruTime limit
Nine months from the end of the FY in which the return was filedPossible results
No demand no refund, refund, or demandPay a demand within
30 days, else interest under 220(2) at 1% a monthCorrection route
Rectification under section 154 on the portalPDF password
PAN in lowercase + date of birth as DDMMYYYY
What 143(1) of income tax act checks
Processing under this section is a desk check by software. It compares your return with Form 26AS, AIS, Form 16 data and audit reports, and makes only the adjustments the law allows at this stage.
| Adjustment | Example |
|---|---|
| Arithmetical error | Total income added wrongly in the return |
| Incorrect claim apparent from the return | 80C claimed above ₹1,50,000 |
| Loss set off claimed in a late return | Business loss carried forward though filed after the due date |
| Expense the auditor disallowed but the return claimed | Audit report says an expense is not allowable |
| Certain deductions claimed in a late return | Deductions that need a return filed on time |
| Income in Form 26AS or Form 16 missing from the return | Bank interest reported by the bank but left out |
Before making any adjustment, the CPC must send a proposal and give you 30 days to reply. The reply goes through the e-Proceedings tab or Pending Actions.
Reading an income tax intimation under section 143(1)
Its password is the lowercase PAN joined to the eight digit birth date; see the password guide if it fails. Inside, there are two columns: the figures you gave, and the figures computed under section 143(1). Look at the final line.
| Result shown | What it means | Next step |
|---|---|---|
| Net amount nil | Your figures were accepted | Keep it with your records |
| Refund due | The department agrees tax was overpaid | Check the bank account; interest under 244A may be added |
| Demand payable | Tax computed is more than tax paid | Check each line, then pay or respond within 30 days |
Worked example: an income tax demand notice from TDS mismatch
Amit, salaried, files for AY 2026-27. He claims TDS of ₹42,000: ₹30,000 from his employer and ₹12,000 deducted by his bank on deposit interest.
- The bank did not file its TDS return on time, so Form 26AS shows only ₹30,000.
- The intimation allows ₹30,000 and raises a demand of ₹12,000 plus interest.
- Amit asks the bank to file its TDS statement. After it appears in Form 26AS, he files rectification with the request type for tax credit mismatch.
- The CPC reprocesses the return and the demand falls to nil.
In the meantime he files a response to the outstanding demand saying he disagrees because the credit is pending with the deductor.
How to respond to a demand
- Reach the e-filing portal and log on.
- Go to Pending Actions, then Response to Outstanding Demand.
- Pick the demand and choose: demand is correct, demand is partially correct, or disagree with the demand.
- If you disagree, choose the reason, such as a rectification already filed or a credit not given, and add details.
- If the demand is correct, pay it with Challan ITNS 280 through e-Pay Tax and enter the challan details.
Ignoring a demand is costly. Interest at 1% a month under section 220(2) starts once 30 days pass, and the CPC can adjust the demand against a future refund under section 245 after giving notice.
Section 154 of income tax act: rectification
Section 154 lets you ask for a mistake apparent from the record to be corrected. The application must be made within four years, counting from the last day of the financial year when the intimation was passed. It suits clear errors: a tax credit not given, a challan not counted, or a wrong figure carried from the return. It does not suit a fresh claim you forgot to make; that needs a revised or updated return.
- Log in and open Services, then Rectification.
- Choose New Request and pick the assessment year.
- Select the request type, for example reprocess the return or tax credit mismatch correction.
- Submit and track the request from the same screen.
Common mistakes after an intimation
| Mistake | Fix |
|---|---|
| Assuming the email is a scrutiny notice | Check the section on the PDF; 143(1) is routine processing |
| Paying a demand that came from a missing TDS credit | Ask the deductor to correct its return, then rectify |
| Filing a revised return to fix a processing error | Use rectification under section 154 |
| Ignoring a 30 day adjustment proposal | Reply in e-Proceedings with reasons |
| Clicking links in a fake intimation email | Open the portal directly and download the intimation there |
This explanation is general and does not replace advice on your own notice. Processing rules are amended often; read the notice itself, the portal help pages, or take a chartered accountant's view.
Time limits and the 2025 Act
No intimation can be sent once nine months pass after the last day of the financial year when you filed the return. A return for AY 2026-27 filed during FY 2026-27 therefore has to be processed by 31 December of FY 2027-28. Returns for tax year 2026-27, filed under the Income-tax Act, 2025, go through the same kind of automated processing under that Act's own provision, so their intimations will quote the new section. Read more on the 2025 Act and on refund delays.
Sources we checked
- Income-tax Act, 1961, section 143(1)
- Income-tax Act, 1961, section 154
- Income-tax Act, 1961, sections 220(2) and 245
- E-filing portal help: Response to Outstanding Demand
- E-filing portal help: Rectification
Frequently asked questions
What is 143(1) of income tax act?
This is the provision under which the processing centre checks a filed return by computer and sends an intimation. The result is either no change, a refund, or a demand.
Is an intimation under section 143(1) a notice?
It is an intimation of processing, and where a demand is raised it also works as a notice of demand. It does not mean your return has been picked for scrutiny.
How do I open the income tax intimation PDF?
Type the PAN in lowercase and add the birth date as day, month and year in eight digits. You can also download it from View Filed Returns on the portal.
What is the use of section 154 of income tax act?
Section 154 lets the taxpayer ask for correction of a mistake apparent from the record, such as a TDS credit not given. The request is filed online under Services, then Rectification.
What if I do not pay a 143(1) demand?
Interest at 1% a month under section 220(2) applies after 30 days, and the demand can be adjusted against later refunds. Respond online if you disagree.