Section 143(1) Intimation Notice: Meaning, Reply & Deadline | AY 2025-26

Let's be honest about something first. When most people see an email with "Income Tax Department" in the subject line, their stomach drops a little. Maybe a lot. Suddenly the mind races: did I do something wrong? Is this an audit? Are they going to call me? In the vast majority of cases, the answer to all three questions is no. A notice under Section 143(1) of the Income Tax Act is, by its very nature, a routine communication. It is not a scrutiny notice. It is not a raid. It's the tax department's computer system, specifically the Centralised Processing Centre (CPC) in Bengaluru, running an automated check on your filed return and telling you what it found. That's it. Now, that doesn't mean you can simply ignore it. What it does mean is that you can approach it calmly, understand exactly what it says, and take the right action, which in many cases is no action at all. Here's everything you need to know. What Is a Section 143(1) Intimation, and Why Did You Get One? When you file your income tax return, it gets processed at CPC Bengaluru. The system doesn't just file it and forget it. It runs your numbers through a set of automated checks. It cross-references what you declared with data from Form 26AS, your Annual Information Statement (AIS), TDS certificates, and other records the department holds. If anything doesn't match, your income figures, the TDS you claimed, a deduction that looks off, the system flags it. The communication it sends you after completing this automated processing is called an intimation under Section 143(1). One important clarification: this is not technically a "notice" in the way Section 143(2) or Section 148 notices are. It's an intimation. The distinction matters because a 143(1) intimation doesn't mean you're being investigated. It just means the department processed your return and has something to tell you about the outcome. The department has up to nine months from the end of the financial year in which you filed your return to send this intimation. So if you filed your ITR for FY 2024-25 (AY 2025-26) in July 2025, CPC can send the intimation any time up to 31 December 2026. If you receive nothing within this window, your filed return acknowledgement itself is deemed to be your intimation, meaning everything matched. Note for AY 2026-27 and beyond: Under the new Income Tax Act, 2025 (applicable from 1 April 2026), Section 143(1) has been renumbered as Section 270(1). If your notice relates to AY 2025-26 or earlier, everything in this article applies fully. The 3 Types of 143(1) Outcomes, and Which One You Have This is where most confusion lives. A 143(1) intimation can say three different things, and they require three completely different responses. Open the PDF that was emailed to your registered address. The password is your PAN in uppercase followed by your date of birth in DDMMYYYY format, for example, ABCDE1234F01011985. You'll see two columns: Column A (what you declared) and Column B (what CPC computed). The difference between them determines which of the following categories you fall into. Case 1: Nil Demand and No Refund, No Action Needed If both columns match perfectly, or if no adjustment has been made to your return, you'll see a nil demand intimation. This is essentially the department confirming: "We processed your return, the numbers check out, you owe nothing and we owe you nothing new." No action is required. You can save the PDF as proof that your return was processed without issues. This is actually the most common outcome for salaried taxpayers whose TDS deduction closely matches their actual liability. Case 2: Tax Demand Raised Against You This is the one that causes anxiety. CPC has computed your tax liability differently from what you declared, and the intimation shows an amount payable by you. Don't assume it's correct. Before you pay anything, read the intimation carefully and identify why the demand exists. Common reasons include a TDS mismatch (more on this shortly), an income amount that was adjusted upward based on AIS data, or a deduction that CPC disallowed. Sometimes the demand is completely legitimate. Sometimes it's the result of a data error that you can challenge. If you agree with the demand, you pay it. If you don't, you file a rectification. Both processes are explained below. Case 3: Your Refund Was Adjusted or Reduced You were expecting a refund but instead received a 143(1) intimation showing your refund was reduced or set off against an outstanding demand from a prior year. This is a Section 245 type of adjustment and is entirely legal. The department is entitled to apply your current year refund against past dues. The intimation will specify which prior year demand was used and how much was adjusted. How to Check Your 143(1) Notice on the Income Tax Portal The intimation is available in two places: your registered email inbox and the e-filing portal. To access it on the portal, log in at incometax.gov.in, then navigate to e-File → Income Tax Returns → View Filed Returns. Select the relevant Assessment Year and look for the intimation order. You can also go to Pending Actions → e-Proceedings if a response is required. Download the PDF. Open it with the password formula described above. Read every line, specifically the adjustments column. The intimation will tell you exactly which entry caused the mismatch. How to Reply to a Section 143(1) Notice, If You Agree With the Demand If after reviewing the intimation you agree that the demand is correct, here's how to pay it online. Go to the income tax portal and click on e-Pay Tax from the Quick Links section. Enter your PAN and the OTP sent to your registered mobile number. Once inside, select Income Tax under the tax category, choose AY 2025-26 (or the relevant year), and under Type of Payment, select Tax on Regular Assessment (400). This is important: not self-assessment tax (300), not advance tax (100). For demands raised through 143(1), the correct minor head is 400. Enter the amount, choose your payment mode (net banking, debit card, or NEFT/RTGS), and complete the transaction. Download the challan with the BSR code and challan serial number. You'll need these when updating your response on the portal. After paying, go back to the portal's e-Proceedings section, open the relevant intimation, and submit a response confirming payment with the challan details. How to Reply if You Disagree With the Demand This is arguably the more important scenario. A significant number of Section 143(1) demands are the result of data mismatches, not actual errors on your part. If you believe the demand is incorrect, you can file a rectification request under Section 154. Log in to the portal, go to e-File → Rectification, and select New Request. For most mismatches, you'll want to choose "Reprocess the Return" if the data in Form 26AS and AIS matches your return. For actual data errors in your filing, choose "Return Data Correction (Online)" and correct the specific entry. After you submit the rectification, CPC processes it, typically within a few weeks, and either withdraws the demand or issues a fresh intimation. If the demand stands even after rectification and you still disagree, the next step is an appeal under Section 246A before the Commissioner of Income Tax (Appeals). Keep one thing in mind: filing a rectification doesn't stop the 30-day deadline. If you're close to the deadline and also filing a rectification, it's advisable to note the situation on the portal response for the demand and retain documentation of your rectification submission. Deadline to Respond: 30 Days, and What Happens if You Miss It Once a demand is raised under Section 143(1), you have 30 days from the date of the intimation to respond. That response could be a payment, a rectification request, or an objection on the portal. Ignoring it has consequences. Under Section 220(2) of the Income Tax Act, interest is charged at 1% per month on unpaid tax demand after the due date. Additionally, CPC may automatically adjust any future refunds you're entitled to against this outstanding demand. In more serious cases, the Assessing Officer can initiate recovery proceedings. None of this is inevitable if you act. Thirty days is enough time to understand the notice, verify the numbers, and take appropriate action. Common Reasons for a 143(1) Notice in AY 2024-25 and AY 2025-26 Understanding why these notices are being issued more frequently helps you avoid them in future years. AIS/TDS mismatches are the single biggest trigger. TDS not matching Form 26AS or AIS: If the TDS your employer deducted shows up in 26AS under Q1 to Q3 but Q4 TDS wasn't filed in time by your employer when you filed your return, CPC will compute TDS at a lower number than what you claimed. The fix is usually a rectification once the employer updates their TDS return. FD interest not declared: Banks report fixed deposit interest to the AIS. If you earned FD interest from a second bank account you didn't report, even ₹5,000, CPC can add it back to your income and raise a demand. Deductions exceeding limits: Claiming ₹1,80,000 under 80C when the limit is ₹1,50,000, or claiming 80D for parents without the required premium payment evidence. CPC will disallow the excess. Income from two employers not aggregated: Switching jobs mid-year and filing ITR based only on one employer's Form 16 is one of the most common reasons salaried taxpayers receive 143(1) demands. AIS data not reconciled before filing: The AIS now captures dividends, capital gains from brokers, savings account interest, and mutual fund redemptions. If any of these appear in your AIS but weren't included in your ITR, CPC will flag the discrepancy. Frequently Asked Questions About Section 143(1) Is a 143(1) intimation the same as an income tax notice? No. Technically it's an intimation, not a scrutiny or assessment notice. It's computer-generated and doesn't mean your case has been picked up for detailed examination. I received a 143(1) notice but the demand amount is zero. Do I need to do anything? Nothing. A nil demand intimation simply confirms your return was processed without any changes. Save it for your records. What is the password to open the 143(1) intimation PDF? Your PAN in uppercase followed by your date of birth in DDMMYYYY format. Example: if your PAN is ABCDE1234F and DOB is 1 January 1985, the password is ABCDE1234F01011985. Can the 143(1) demand lead to a Section 143(2) scrutiny notice? An unresolved 143(1) demand by itself doesn't automatically trigger scrutiny, but it can be one of the factors that flags your return for selection. Responding promptly reduces that risk. I disagree with the 143(1) demand. Do I still have to pay while I file rectification? There's no hard requirement to pay before rectification is resolved. However, to avoid interest under 220(2), some taxpayers pay under protest and then claim a refund if the rectification is decided in their favour. What type of payment should I select in Challan 280 for a 143(1) demand? Under Type of Payment, select 400 - Tax on Regular Assessment. Not 300 (self-assessment) or 100 (advance tax). The deadline is over and I haven't responded. What now? Respond as soon as possible. The portal will typically still allow a response. If a recovery notice has already been issued, consult a CA before making any further moves. How long does CPC take to process a rectification after I file it? Processing times vary, but most rectification requests under Section 154 are processed within 30 to 60 days. You can track the status under e-File → Rectification on the portal. If you're unsure which type of 143(1) outcome you've received, or need help drafting a rectification request, upload your intimation to our AI-powered notice reply tool. It reads the document, identifies the exact mismatch, and tells you exactly what to do next.