A Section 143(1) intimation is not a scrutiny notice and it is not an accusation. It is the automated summary the Centralised Processing Centre (CPC) sends after it processes your return — a side-by-side of the figures you filed against the figures the system recomputed. Most of the time it confirms your return or hands you a refund. But when a line does not match, that same intimation can carry a tax demand, and if you ignore it the demand becomes final and starts attracting interest and recovery action.
The good news is that a 143(1) mismatch is almost always fixable, and often the department is simply working off data you did not report or a TDS entry that did not tag to your PAN. This article decodes the intimation line by line, explains the most common mismatches, and lays out exactly which response route to take — because choosing the wrong one (a rectification when you needed a revised return, say) just wastes your 30-day window.
What a 143(1) intimation actually is
After you file and e-verify, the CPC runs your return through an automated check and issues an intimation under Section 143(1). It arrives by email (and on the e-filing portal under e-File → Income Tax Returns → View Filed Returns) as a password-protected PDF. The password is your PAN in lower case followed by your date of birth in DDMMYYYY format — for example, aagrk5803p02111982.
The intimation can be issued up to nine months from the end of the financial year in which you filed the return. If none is issued in that window, the acknowledgement of your return is itself treated as the intimation and no further action is needed.
The two things people confuse: the 143(1)(a) proposal vs the final 143(1)
These are different communications and they demand different responses.
A proposed adjustment under Section 143(1)(a) is issued before processing is finalised. The CPC has spotted an apparent mismatch and is giving you 30 days to agree or disagree before it makes the adjustment. This is your best chance to head off a demand, and it is answered through the e-Proceedings tab, not by paying anything.
The final intimation under Section 143(1) is the processing result itself. It shows one of three outcomes: no demand and no refund (return accepted), a refund due, or a demand payable. If a demand appears here because you missed the earlier 30-day window or because of a genuine error, your route is a rectification, a revised return, or a demand response — covered below.
Reading the intimation line by line
The core of the intimation is a two-column table: “As provided by taxpayer in the return” against “As computed under Section 143(1)”. Go down it row by row and find the line where the two columns diverge — that single row explains the entire demand or reduced refund. A typical decode looks like this:
| Line item | As filed by you (Rs.) | As computed u/s 143(1) (Rs.) | Why it differs |
|---|---|---|---|
| Gross total income | 9,80,000 | 10,22,000 | FD interest of Rs. 42,000 in AIS not declared |
| Deduction under Chapter VI-A | 1,50,000 | 1,50,000 | — |
| Total income | 8,30,000 | 8,72,000 | Follows the income difference |
| Tax and cess | 78,000 | 86,700 | Higher income → higher tax |
| TDS / TCS credit | 80,000 | 73,000 | One Form 26AS entry did not match |
| Net payable (+) / refund (−) | (2,000) | +13,700 | Refund flips to a demand |
In this example the filer expected a Rs. 2,000 refund but received a Rs. 13,700 demand — driven by two independent issues: undeclared bank interest and a TDS credit that came up short. Both are common, and each has its own fix.
The mismatches that cause most demands
Nearly every 143(1) demand traces back to one of these: income appearing in your AIS or Form 26AS that you did not report (interest, dividends, capital gains); a TDS/TCS credit claimed that does not match the department’s records, usually because the deductor filed a wrong PAN or a late TDS return; a deduction disallowed for exceeding the statutory ceiling or missing a schedule; an arithmetical error or internally inconsistent entry; the wrong tax regime being applied because Form 10-IEA was not filed correctly; or automatic addition of Section 234F late-filing fee and interest under Sections 234A/B/C. The first step is always to reconcile your return against both Form 26AS and the AIS before you decide the department is wrong.
How to respond: pick the right route
Once you know which line moved and why, the correct response follows directly:
1. If you agree with the adjustment
Pay the demand through the portal (e-File → e-Pay Tax) within 30 days to stop further interest, or simply accept the reduced refund. Nothing else is required.
2. If it is a pre-adjustment 143(1)(a) proposal and you disagree
Go to Pending Actions → e-Proceedings, open the “Adjustment u/s 143(1)(a)” item, select “Disagree” against the specific mismatch, and upload your supporting proof — the TDS certificate, the interest working, or the deduction evidence. Do this within 30 days; if you let the window lapse, the adjustment is finalised automatically.
3. If the final intimation contains a clear, apparent error
File a rectification under Section 154 (Services → Rectification) — for a mistake apparent from the record such as a TDS credit not given, a wrong interest computation, or an arithmetical slip on the department’s side. A rectification can be filed within four years from the end of the financial year in which the intimation was passed, and the CPC is required to dispose of it. Use rectification only for obvious errors, not for adding new income or fresh claims.
4. If the mistake was in your own return
File a revised return under Section 139(5) — for example, if you genuinely forgot to declare the FD interest. A revised return can be filed up to 31 December of the relevant assessment year (or before assessment is completed, whichever is earlier). This is the right tool when you need to change the substance of what you reported, which a rectification cannot do.
5. If you fundamentally dispute the department’s stand
Where rectification does not resolve a genuine disagreement, an appeal under Section 246A is available. This is rare for a straightforward 143(1) and worth a professional review first. If you would like a template to structure your reply, see our guide on how to reply to a 143(1) income-tax intimation, and recompute your corrected liability with our Income Tax Calculator before you respond.
Key takeaways
- A 143(1) is an automated processing summary, not a scrutiny notice — but a mismatch line can create a real, recoverable demand.
- Open the PDF with your PAN (lower case) + date of birth (DDMMYYYY); it can be issued up to nine months from the end of the FY of filing.
- A 143(1)(a) proposed adjustment gives you 30 days to disagree via e-Proceedings — use it, because silence makes the adjustment final.
- Match the route to the cause: agree → pay; department error → rectification u/s 154; your own error → revised return u/s 139(5); genuine dispute → appeal u/s 246A.
- Always reconcile against Form 26AS and the AIS first — most demands come from undeclared AIS income or a TDS credit that did not tag to your PAN.
Frequently Asked Questions
Is a 143(1) intimation something to worry about?
Usually not. It most often confirms your return or grants a refund. Only act urgently if it shows a demand or a proposed adjustment — and even then it is typically a data-matching issue you can resolve with the right response.
What is the password to open the intimation PDF?
Your PAN in lower case followed by your date of birth in DDMMYYYY format, with no space — for example, aagrk5803p02111982.
Should I file a rectification or a revised return?
Use a rectification under Section 154 when the department made an apparent error (such as not granting valid TDS credit). Use a revised return under Section 139(5) when the mistake was in your own return, such as income you forgot to declare. A rectification cannot add new income; a revised return can.
How long do I have to respond?
For a proposed adjustment under 143(1)(a), you have 30 days from the date of the notice. For a demand in the final intimation, pay or contest it promptly to avoid interest; a rectification can be filed within four years from the end of the financial year in which the intimation was passed.
What happens if I ignore a demand in the intimation?
The demand becomes an outstanding liability, attracts interest under Section 220(2), can be adjusted against future refunds, and may lead to recovery proceedings. Always respond — even if only to record your disagreement.