What is a 143(1) income-tax notice?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-08-18 · ~8 min read

⚡ Quick answer

A Section 143(1) intimation is an automated message the income-tax department sends after processing your ITR. The computer compares your return with its own calculation (and your Form 26AS/AIS) and tells you one of three things: you're due a refund, you owe a demand, or there's no change. It is NOT a scrutiny notice — it's routine, and almost every filed return gets one. You only need to act if it shows a demand or an adjustment you disagree with, generally within 30 days.

Decode your notice free →

Seeing 'Intimation under Section 143(1)' land in your inbox can be unnerving — but for the vast majority of taxpayers it's good news or no news at all. It simply means your return has been processed. The trick is knowing how to read it: is it confirming your refund, flagging a small adjustment, or raising a demand you should challenge? This guide explains exactly what a 143(1) is, how to read the three outcomes, and what to do if you disagree.

1What a 143(1) intimation is

After you file and e-verify your ITR, the Centralised Processing Centre runs an automated check. It recomputes your tax, matches your TDS against Form 26AS/AIS, checks your arithmetic, and looks for obviously incorrect claims. The result is sent to you as a Section 143(1) intimation.

It is purely a processing communication — not a scrutiny or investigation. A scrutiny notice is issued under a different section, 143(2), and is far less common.

2The three possible outcomes

A 143(1) shows two columns side by side — 'as provided by you' and 'as computed by the department'. The bottom line is one of three results:

Refund — the department agrees you paid more tax than due; the refund follows.
Demand — the department computes more tax payable than you declared (often a TDS mismatch or a disallowed claim).
No demand, no refund — your return is accepted exactly as filed; nothing to do.

⚠️ ImportantEven a refund or 'no change' intimation is worth opening — it confirms your return was processed and is your record that the assessment is complete for that year.

3What triggers an adjustment

If the two columns differ, it's usually because of one of these automated adjustments:

A mismatch between the TDS you claimed and what's in Form 26AS/AIS
An arithmetic error in the return
A deduction or exemption claimed that the system disallows (e.g. not supported by the schedule)
Income appearing in your AIS that you didn't report

4What to do if you disagree

If the intimation shows a demand or an adjustment you believe is wrong, don't ignore it — respond within 30 days:

Compare the intimation line by line with your ITR and Form 26AS/AIS to find the difference.
If the department made an error, file a rectification request under Section 154 on the portal.
If you made the error, agree to the demand and pay it to stop further interest.
Respond to the demand on the portal (Pending Actions → Response to Outstanding Demand) within the time given.

💡 ExampleKaran's 143(1) showed a ₹6,000 demand. Comparing it with Form 26AS, he saw the department hadn't counted TDS deducted by one bank that he had correctly claimed. He filed a Section 154 rectification pointing to the 26AS entry, and the demand was cancelled — no payment needed.

5There is a deadline for issuing it

An intimation under section 143(1) cannot arrive indefinitely. It must be issued within nine months from the end of the financial year in which the return was furnished.

File in July 2026, which falls in FY 2026-27, and the department has until 31 December 2027 to process and issue the intimation. If no intimation is issued in that window, the return is treated as accepted as filed.

⚠️ ImportantThis is why an old return that was never processed does not stay open forever — but it is also why chasing a refund is worth doing inside the window rather than after it.

6How to read the intimation before you react

The intimation is laid out as two columns: the figures as you reported them, and the figures as computed by the department. The only thing that matters initially is where those two columns differ.

Work down the rows and identify the specific line that moved. In most cases it is one of a small number of things — a deduction disallowed for want of a matching entry, TDS credit not matching Form 26AS or the AIS, an arithmetic inconsistency, or income reported in the wrong head.

Do not respond to the total. Respond to the line.

✅ TipDownload the intimation PDF and your Form 26AS and AIS for the same year, and compare them before drafting anything. Most disagreements resolve themselves at this step.

7Rectification, revised return, or appeal — choosing the right route

Three remedies exist and they are not interchangeable. Picking the wrong one wastes the time limit on the right one.

Rectification under section 154 — for a mistake apparent from the record, such as TDS credit that exists in 26AS but was not given. This is the usual route against a 143(1) adjustment
Revised return under section 139(5) — where the error was yours and the revision window is still open. This corrects the return itself rather than disputing the processing
Appeal to the Commissioner (Appeals) — where the adjustment is a genuine difference of view rather than an apparent error

⚠️ ImportantA 143(1) intimation showing a demand is an order for the purposes of appeal, so the appeal route is available — but for the great majority of cases, rectification is faster and sufficient.

8Do not confuse it with a scrutiny notice

A 143(1) intimation is automated processing. Nobody has examined your case, formed a view about it, or selected it for anything.

That distinction matters because the response is different. A 143(1) adjustment is answered with a rectification or a corrected figure. A notice under section 143(2) is the start of scrutiny assessment, where the officer is examining the return itself and the response requires documentation and, usually, professional help.

Key takeaways

A 143(1) is an automated processing intimation — not a scrutiny notice (that's 143(2)).
Almost every filed return gets one; it shows a refund, a demand, or no change.
Adjustments usually come from TDS mismatches, arithmetic errors or disallowed claims.
If you disagree, file a Section 154 rectification or respond to the demand within 30 days.
If the demand is correct, pay it promptly to stop further interest.

Frequently asked questions

Is a 143(1) notice something to worry about?

Usually not — it is a routine processing intimation, not a scrutiny notice under Section 143(2). You only need to act if it shows a tax demand or an adjustment you disagree with.

What is the difference between 143(1) and 143(2)?

143(1) is an automated intimation after processing your return — routine and computer-generated. 143(2) is a scrutiny notice, where an officer examines your return in detail; it's far less common and requires a substantive response.

How do I respond to a 143(1) demand?

Compare the intimation with your ITR and Form 26AS/AIS. If it's the department's error, file a rectification under Section 154. If it's yours, pay the demand. Respond on the portal under 'Response to Outstanding Demand' within 30 days.

I got a 143(1) showing a refund — do I need to do anything?

No action is needed for a refund or 'no demand, no refund' intimation. Just keep it as your record that the return was processed; the refund (if any) will be credited to your pre-validated bank account.

Is there a deadline for the department to send a 143(1)?

Yes — nine months from the end of the financial year in which the return was furnished. A return filed in July 2026 falls in FY 2026-27, so the intimation must be issued by 31 December 2027. If none is issued, the return is treated as accepted as filed.

Should I file a rectification or a revised return?

Rectification under section 154 is for a mistake apparent from the record — TDS credit that exists in Form 26AS but was not allowed, for example. A revised return under section 139(5) is for correcting an error of your own, and only while the revision window is open. Choosing the wrong one wastes the time limit on the right one.

Can I appeal against a 143(1) intimation?

Yes. An intimation raising a demand is an appealable order, so an appeal to the Commissioner (Appeals) is available. In practice, most 143(1) adjustments are arithmetic or credit mismatches, and rectification resolves them faster.

The intimation shows a demand I do not understand — where do I start?

Compare the two columns line by line rather than reacting to the total, and download Form 26AS and the AIS for the same year alongside it. The difference is almost always a single line — a disallowed deduction, TDS credit not matching, or income placed under the wrong head.

Is a 143(1) the same as being selected for scrutiny?

No. A 143(1) is automated processing — nobody has examined your case. Scrutiny begins with a notice under section 143(2), which is a different provision requiring documentation and usually professional help.