What Is Section 143(1) of the Income Tax Act?

Quick Overview:

• Income Tax Act, Section 143(1) is concerned with the automatic processing of your Income Tax Return (ITR) in preliminary stages once the returns are filed.
• The department will subsequently issue an intimation under Section 143(1) of the Income Tax Act, indicating to you whether there is no alteration, refund or tax demand.
• The Centralised Processing Centre (CPC), Bengaluru, undertakes the return in an automated system without subjecting it to detailed scrutiny.
• Section 143(1)(a) of the Income Tax Act permits limited adjustments due to arithmetic mistakes, misstatements, mismatches in tax credit, and misguided set-offs of losses.
• The intimation should usually be made within the period of nine months of the financial year during which the return is being submitted.
• Where you feel there is an error in adjustment, or in tax requirement, you may make a rectification request electronically in Section 154.
• Section 143(1) shares no similarity with Section 143(3); the former is the automated initial processing, whereas the latter is the elaborate examination by an Assessing Officer.
• When you get a 143(1) intimation, it does not imply that your case has been assigned to be scrutinised.
• The intimation PDF is encrypted (PAN lowercase + Date of Birth in DDMMYYYY format) to ensure security.

The Income Tax Department processes your Income Tax Return (ITR) when you file it to check the details that you have provided. Part of this is done under Section 143(1) of the Income Tax Act. A lot of taxpayers get an email that is labelled as an Intimation under Section 143(1), and they are always left wondering what this is all about.

What Is Section 143(1) of the Income Tax Act?

Income Tax Act section 143(1) is concerned with the preliminary assessment of an Income Tax Return on its filing. It offers automated processing of returns to verify arithmetical errors, improper claims and mismatch of tax calculations.

It is mostly a system-driven process that does not entail elaborate examination unless additional measures are necessary.
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Meaning of Intimation Under Section 143(1)

An intimation under Section 143(1) of the Income Tax Act is a communication sent by the Income Tax Department after processing your ITR. It informs you whether:

• Your return has been accepted as filed
• A refund has been determined
• An additional tax demand has been raised

It is not a scrutiny notice but a summary of processing results.

Purpose of Section 143(1)

The purpose of section 143 (1) of the Income Tax Act is to:

• Verify the accuracy of tax calculations
• Match tax payments with Form 26AS/AIS
• Check for mathematical errors
• Identify incorrect claims apparent from the return

It ensures quick processing of returns without requiring manual intervention.

What Is an Intimation Under Section 143(1)?

An intimation is an official communication generated after the Centralised Processing Centre processes your return. It contains:

• Details of income as filed
• Income as computed by the department
• Tax payable or refundable
• Adjustments made, if any

If there are no changes, the intimation simply confirms that the return is processed.

When Does One Receive an Intimation Under Section 143(1)?

Once the department has been filed and your ITR is verified, it is processed. Generally, the intimation is issued to the taxpayers within a period of a few weeks to a few months, depending on the workload and the assessment year.

According to the law, an intimation should be issued within nine months after the financial year has ended in which the return has been filed. Centralised 

Processing Centre (CPC) and Its Role

Automated processing of returns is done at the Centralised Processing Centre (CPC), Bengaluru. The CPC:

• Electronically processes ITRs.
• Verifies tax credits
• Calculates tax and interest
• Problems intimation under Section 143(1).

The whole system is technology-based to provide quicker turnaround on refunds and consistency.

Preliminary Assessment Under Section 143(1)

Section 143(1) consists of a preliminary examination and not an in-depth examination.

What Does the Income Tax Department Check?

When the processing is done under section 143(1)(a) of income tax act, the department examines:

• Arithmetical accuracy
• Correct application of tax rates
• Tax deducted at source (TDS) claims
• Advance tax and self-assessment tax paid
• Inconsistencies with Form 26AS/AIS

Key Components Verified During Processing

The CPC verifies:

• Total income
• Deductions claimed under Chapter VI-A
• Tax liability calculation
• Interest under sections 234A, 234B, 234C
• Late filing fee under section 234F

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Types of Intimation Under Section 143(1)

There are three possible outcomes after processing.

No Demand – No Refund

If the tax calculated by the department matches your filed return, and there is no refund or demand, the intimation simply confirms processing.

Refund Determined

If excess tax has been paid, the intimation specifies the refund amount along with interest under Section 244A, if applicable.

Demand Notice Raised

Suppose the department recalculates tax and finds a shortfall, a tax demand is raised. The intimation specifies the amount payable.

Nature of Adjustments Under Section 143(1) of Income Tax Act

Adjustments are limited to specific categories under section 143(1)(a) of the Income Tax Act.

Arithmetic Errors

Simple mistakes, such as addition or subtraction errors in income or tax computation.

Incorrect Claims in the ITR

Claims that are inconsistent with the information available in tax records or exceed statutory limits.

Disallowance of Inconsistent Claims

If a deduction is claimed without corresponding income or supporting disclosure, it may be disallowed.

Incorrect Set-Off of Losses

Losses incorrectly carried forward or set off against ineligible income heads may be adjusted.

Before making certain adjustments, the department may provide an opportunity to respond electronically.

What Does CPC Check in Your Income Tax Return?

The CPC verifies:

• PAN and Aadhaar details
• Bank account information
• TDS/TCS credits
• Advance tax payments
• Deductions and exemptions
• Capital gains computation
• Interest and penalty calculations

It compares your return with data available in Form 26AS, AIS, and other information statements.

Time Limit for Issue of Intimation Under Section 143(1)

The intimation must be sent within nine months from the end of the financial year in which the return is filed.

If no intimation is issued within this period, it is deemed that the return has been accepted as filed.

Sample Format of an Intimation Under Section 143(1)

An intimation generally contains:

• Reference number
• Assessment year
• Summary of income filed
• Summary of income computer
• Tax computation
• Refund or demand details
• Adjustment explanation (if any)

It is sent via email and also available for download from the income tax e-filing portal.

Why Do Taxpayers Receive an Intimation Under Section 143(1)?

Taxpayers receive it because:

• Every electronically filed return is processed
• The department must inform the taxpayer about the outcome
• Refunds cannot be issued without formal processing
• Demands must be communicated legally

It is a mandatory step in return processing.

Action to Be Taken After Receiving Intimation Under Section 143(1)

The action depends on the type of intimation received.

If There Is No Demand or Refund

No action is required. Keep the intimation for your records.

If a Refund Is Issued

Ensure your bank account details are correct. Refunds are usually credited directly to your pre-validated bank account.

If Additional Tax Demand Is Raised

You should:

• Verify the computation
• Compare it with your filed return
• Pay the demand if correct
• File a rectification request if incorrect

Ignoring a demand may attract interest.

How to Respond to Discrepancies in Section 143(1) Intimation

If you disagree with adjustments:

1. Log in to the income tax e-filing portal.
2. Select “Rectification” under services.
3. Choose the relevant assessment year.
4. Provide correction details.
5. Submit supporting information if required.

Rectification can be filed under Section 154 for errors apparent on record.

Process of Intimation Under Section 143(1) Step-by-Step

1. File ITR.
2. Verify return (Aadhaar OTP, EVC, or physical ITR-V).
3. CPC processes the return.
4. Adjustments made, if applicable.
5. Intimation generated.
6. Email and SMS sent to the taxpayer.
7. Refund issued or demand raised.

This entire process is automated.

What Is the Password for Intimation Under Section 143(1)?

When you receive an intimation under Section 143(1) of the Income Tax Act, it is usually sent to your registered email ID as a password-protected PDF attachment. The Income Tax Department encrypts this document to protect sensitive financial information such as PAN, income details, tax computation, and bank account information.

Why Is the Intimation Password-Protected?

The intimation contains confidential taxpayer data, including:

• PAN details
• Date of birth/incorporation
• Total income declared
• Tax liability computation
• Refund or demand details
• Bank account information

To prevent unauthorised access or misuse, the PDF is secured with a standard password format.

How to Know the Password to Open Section 143(1) Intimation PDF?

The password to open the Section 143(1) intimation PDF is generally:

PAN (in lowercase letters) + Date of Birth (in DDMMYYYY format)

Important Rules:

• PAN must be entered in lowercase (even though it appears in uppercase on the card).
• Date of Birth must be entered in DDMMYYYY format without spaces or special characters.
• No additional symbols, spaces, or characters should be added.

Example for Individuals

If:

• PAN: ABCDE1234F
• Date of Birth: 15 August 1990

Then the password will be:

abcde1234f15081990

For Non-Individual Taxpayers (Companies/Firms)

For companies, LLPs, or firms:

• Use PAN (lowercase)
• Date of Incorporation/Registration in DDMMYYYY format

Example:

• PAN: AABCD1234E
• Date of Incorporation: 01 April 2015

Password:

aabcd1234e01042015

Common Mistakes While Entering the Password

Many taxpayers face issues while opening the PDF due to:

• Entering PAN in uppercase
• Using an incorrect date format (like MMDDYYYY instead of DDMMYYYY)
• Adding spaces between PAN and DOB
• Entering an incorrect date of birth

Ensure that details exactly match those registered with the Income Tax Department.

What If the Password Does Not Work?

If the password fails:

1. Verify your PAN and Date of Birth from official documents.
2. Check whether your date format is correct (DDMMYYYY).
3. Download the intimation again from the Income Tax e-filing portal.
4. Ensure you are using an updated PDF reader.

If issues persist, you may contact the Income Tax Department helpdesk for assistance.

Is the Password the Same for All Assessment Years?

Yes, the format remains the same across assessment years unless the department changes the security format officially. It continues to follow the PAN + DOB/DDMMYYYY pattern.

Alternative Way to Access Intimation

You can also:

• Log in to the Income Tax e-filing portal
• Go to “e-File” → “Income Tax Returns” → “View Filed Returns”
• Download the intimation directly from your account

The downloaded file will still require the same password format.

How to Open ITR Intimation Notice Under Section 143(1)?

1. Download the PDF from your email or e-filing account.
2. Open it using a PDF reader.
3. Enter the password (PAN in lowercase + DOB).
4. Review tax computation and adjustments carefully.

Difference Between Section 143(1) and Section 143(3)

 

Basis	Section 143(1)	Section 143(3)
Nature of Assessment	Preliminary processing of the return after filing. It is a summary assessment based on data available in the return and department records.	A detailed scrutiny assessment was conducted to thoroughly verify the correctness and genuineness of the return filed.
Legal Provision	Governed under Section 143(1) and adjustments permitted under Section 143(1)(a).	Conducted under Section 143(3) after issuing a notice under Section 143(2).
Human Intervention	Fully automated and system-driven at CPC (Centralised Processing Centre).	Manual examination by an Assessing Officer (AO).
Selection Criteria	Applies to all electronically filed returns.	Only selected cases are picked for scrutiny based on risk parameters, random selection, or specific information.
Documents Required	No additional documents required at this stage. Processing is based on information already submitted in the ITR.	The taxpayer must submit books of accounts, bank statements, proofs of deductions, invoices, and other supporting documents as requested.
Scope of Verification	Limited to arithmetical errors, incorrect claims apparent from the return, tax credit mismatches, and internal inconsistencies.	Comprehensive verification of income, deductions, exemptions, losses, and overall tax liability.
Opportunity of Being Heard	In certain cases of proposed adjustments under Section 143(1)(a), a response opportunity may be given electronically.	Taxpayers are given multiple opportunities to respond to notices and present explanations.
Time Involved	Generally faster; completed within months after return filing.	It is a lengthy process that may take several months or even years to conclude.
Outcome	Intimation issued showing no change, refund, or demand.	Assessment order passed, determining final taxable income and tax liability.
Refund/Demand	Refund issued automatically or demand raised based on computation.	Tax demand may increase or decrease aftera detailed assessment.
Penalty/Prosecution Risk	Generally, not involved unless a serious discrepancy is found later.	If concealment or misreporting is detected, penalties and prosecution proceedings may be initiated.
Appeal Rights	Rectification can be filed under Section 154 for errors apparent on record.	A taxpayer can file an appeal before the Commissioner (Appeals) if dissatisfied with the assessment order.

Common Mistakes Leading to Adjustments Under Section 143(1)

• Claiming deductions without proper limits
• Mismatch in TDS claims
• Not reporting interest income
• Incorrect HRA calculation
• Wrong set-off of capital losses
• Errors in advance tax reporting

Careful cross-verification before filing reduces the chances of adjustments.

Conclusion: Understanding Section 143(1) of Income Tax Act

Understanding what section 143(1) of the Income Tax Act is essential for every taxpayer. It is a routine, automated processing step that ensures accuracy in tax returns. An intimation under section 143(1) of the Income Tax Act simply communicates the outcome of this processing.

In most cases, no action is required unless a demand is raised or discrepancies are noticed. Timely review and response help avoid penalties and interest.
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Frequently Asked Questions 

Is intimation under Section 143(1) a notice?

It is not a scrutiny notice. It is a communication informing you about the processing result of your return.

Can I ignore an intimation under Section 143(1)?

If there is no demand or refund, you may simply keep it for records. However, if a demand is raised, you must respond.

What should I do if I disagree with the tax demand?

You can file a rectification request online under Section 154 if you believe the adjustment is incorrect.

How long does it take to receive a refund after 143(1) intimation?

Refunds are generally processed shortly after the intimation is issued, subject to bank validation and verification.

Does receiving a 143(1) intimation mean my return is scrutinised?

No. It only means your return has been processed under section 143 (1) of the Income Tax Act. Scrutiny assessment is conducted separately under Section 143(3).