Section 143(1) of income tax act is a communication that the income tax department send to the taxpayer after processing the income tax return and informing them about result.
Content
- What is section 143(1) of income tax act?
- When notice under section 143(1) of income tax is receive?
- How to download an intimation u/s 143(1)?
- What is the time limit for issuing notice/intimation u/s 143(1) ?
- What action can be taken against intimation u/s 143(1)?
- Frequently Asked Question
1.What is section 143(1) of income tax act?
section 143(1) requires processing of return of income filed u/s 139(1) or in response to a notice u/s 142(1).
It is like preliminary checking of the ROI. At this stage, no detailed scrutiny of the ROI is carried out.
In brief, it means a checking of return filed, by an income tax department. IT department conducts preliminary assessment of all return filed and inform the result of assessment to the taxpayers.
Further, Preliminary assessment includes following:
=>checking arithmetical error,
=>an incorrect claim apparent from any information in the return,
=>disallowance of loss claimed
=>and disallowance of expenditure disclose in audit report but not considered in computing total income in ROI ,
=> internal inconsistency, tax calculations and verification of tax payments etc.
Again, it is a communication that the income tax department send to the taxpayer after processing the income tax. All income tax return furnished is first processed electronically through CPC (Centralise Processing Centre). After processing, system will generates intimation u/s 143(1) and will be send to an assessee.
In addition, this intimation includes calculation as per the return filed by assessee and calculation as per the income tax department. Thereafter, following situation may occur
| Situations | Intimations u/s 143(1) |
| If tax computed by assessee is less than tax computed by IT department | Intimation shall be send specifying the amount payable which will be deem to be notice of demand u/s 156. |
| Intimation shall be sendt specifying the amount payable which will be deemed to be notice of demand u/s 156 | Intimation specifies your return has been successfully processed at CPC and Nil amount is payable |
| If tax computed by assessee is more than tax computed by IT department | If tax computed by assessee is more than tax computed by IT department |
2.When is the notice under section 143(1) of income tax is received?
In the following situations it is received u/s 143(1):
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- If an assessee has paid excess amount of tax and refund is due.
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- Or assessee paid less tax than what is require to be paid as per IT department
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- .If ROI is successfully processed at CPC and nil amount is payable.
3.How to download an intimation u/s 143(1)?
Following are the steps to download the intimation:
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- Login into e-filing portal by entering PAN and password
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- Go to efile and tap on income tax return and click on view e-filed return.
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- select relevant assessment year and if your return is processed than there is option to download an intimation and than click on download.
What is the password open the intimation u/s 143(1)?
As intimation is password protected therefore the password to open intimation is PAN in lower case and date of birth (DDMMYEAR) without space. For instance PAN is AAAPA3451A and DOB is 12.05.2001 than password would be aaapa3451a12052001.
As intimation is password protected therefore the password to open intimation is PAN in lower case and date of birth (DDMMYEAR) without space. For instance PAN is AAAPA3451A and DOB is 12.05.2001 than password would be aaapa3451a12052001.
4.What is the time limit for issuing intimation u/s 143(1)?
The income tax department shall issue an intimation within the period of 9 month from end of financial year in which the assessee has filed the return of income.
For example taxpayer file ROI on 30 July 2022 for the year 2021-22. Than intimation shall be send for on or before December 2022.
5. What action can be taken against intimation u/s 143(1)?
As we received intimation first we will verify the basic details like Name,PAN ,address and assessment year whether it is correct or not.
In case any mistake made while filing ROI and which is apparent in intimation under section 143(1) than such error can be rectified by filing revised return under section 139(5).
Further, if you observe no mistake or error in ROI filed by you and you do not agree with the adjustment made by CPC than you can submit online rectification request u/s 154 specifying the reason for correction of mistake appearing in intimation .
Let us discuss this in simple table form
| Intimation u/s 143(1) | Actions to be taken |
| If both the calculations matches i.e. intimation determined with no demand or no refund | No action is require |
| Intimation specifies the amount of refund due and information about refund is sent to the assessee | No action is require |
| Any mistake made and which is apparent in intimation u/s 143(1) | File revised return u/s 139(5) |
| If intimation specifies outstanding demand i.e. tax calculated and paid by you is less than tax computed by IT department and if you agree | Pay demand raised and file response within 30 days of receipt of an intimation |
| If intimation specifies outstanding demand i.e. tax calculated and paid by you is less than tax computed by IT department and if you disagree | Submit online rectification request u/s 154 |
Refer:https://taxandfinanceguide.com/section-1391-of-income-tax-act/ and https://taxandfinanceguide.com/revised-return-u-s-1395-of-income-tax-act/ , https://taxandfinanceguide.com/section-154-of-income-tax-act/
Frequently Asked Question
1. What is notice under section 143(1) of income tax act?
You can submit online rectification request u/s 154 by specifying reason .
2. What if i have not received intimation u/s 143(1) even after end of specified period?
It means, if assessee does not receive any intimation within specified period it means there is no changes to the ITR filed. There is no change in tax liability or refund. Therefore Acknowledgement receipt is itself an intimation.
3. How do i submit rectification request for intimation u/s 143(1)?
First you have to login to you e-filing portal and then go to service tab click on rectification and choose relevant A.Y. and specify the reason for rectification and than click on submit button.
4. What do i do if notice/intimation received with no demand and no refund?
It means you return has been successfully processed at CPC .
5. What if i do not agree to the demand raised under section 143(1) of income tax act?
You can submit online rectification request u/s 154 by specifying reason.
