After you’ve filed your ITR, the Income Tax Department checks your return for correctness. This checking generates a formal notice named Income Tax Notice 143(1) or Intimation under Section 143(1).
It is among the most common notices issued to taxpayers and it is vital to understand why it is being issued, what exactly it means, and what you have to do.
What is Income Tax Notice 143(1)?
Income Tax Notice 143(1) is a notice that you get on processing of your income tax return filing. It shows the comparison of the figures that you have entered in your return and the figures available with the department.
There can be three possibilities from the notice:
- No Demand, No Refund – Your computations are reconciling with the computation of the department.
- Refund – You are entitled to receive a refund of taxes.
- Tax Demand – There is a variance, and you owe extra tax, interest, or charges.
It’s not necessarily something to be alarmed about; it’s usually just a normal part of tax return procedure.
Why Income Tax Notice 143(1) Is Issued?
The notice is produced to:
- Make mathematical errors in your return.
- To change incorrect claims on income, deductions, or credits.
- Cross your reported income with data from Form 26AS, AIS, or other formal records.
- Identify any disparity of tax credit or income.
- It confirms taxed and self-assessed taxes as accurate and in alignment with government records.
Important Details Noted in the Notice
Income Tax Notice 143(1) usually has:
- Your information: PAN, name, Assessment Year, date of filing, ITR acknowledgment number.
- Income information: income declared and income assessed.
- Deductions claimed and whether accepted.
- Calculation of tax comparison: According to your return and according to the department.
- Outcome: Demand, refund or acceptance with no modifications.
- Processing code: To show the result of the evaluation.
Mode of Delivery
- You will receive a notice via email to your registered email ID, and you can also download it from the income tax e-filing site. The system may also send an SMS reminder to your registered mobile number.
- As the intimation is password-encrypted, you must enter a combination of your PAN (in lowercase) and your date of birth in the format DDMMYYYY to open the PDF.
Timeline for Issuance
- The department should issue the intimation within a year from the end of the financial year during which you submit your return.
- For instance, if you are submitting the return in July 2025 for AY 2025–26, you should receive the intimation by 31st March 2027.
- If no intimation is made by the department within this period, then it generally indicates that the department has accepted your return as submitted.
What Do You Do After Receiving It?
- If there are no alterations – No action needed.
- If refund due – Amount will be credited directly into your pre-validated bank account.
- If tax demand – Remit the demand within the time limit to escape interest or penalty. If there is a difference of opinion, you can raise a rectification request or respond online through the e-filing portal.
Steps to Reply if You Disagree
- Log in at the income tax e-filing portal.
- Visit the e-Proceedings option.
- Choose the notice applicable to you and annex your response along with evidence.
- If there is a mistake on your end, you can request rectification or resubmission of return (in the event the window is still available).
Consequences of Non-Compliance with the Notice
Non-compliance with a notice of demand made under Income Tax Notice 143(1) can result in:
- Accrual of interest on tax unpaid.
- Initiation of recovery proceedings.
- Possible punishment if there are considerable differences.
- It is always advisable to read the intimation thoroughly and reply when and if necessary.
FAQs
1. What is Income Tax Notice 143(1)?
It is an intimation that the Income Tax Department sends after processing your ITR Filing. It indicates whether or not your return is accepted, whether you are entitled to a refund or if you owe tax.
2. Do everyone who is a taxpayer will get this notice?
Yes, nearly all ITR filing taxpayers get Income Tax Notice 143(1). It is a return process mechanism.
3. How do I open the PDF notice?
The intimation PDF is password protected. Open it by using your PAN in lower case preceded by the date of birth in DDMMYYYY format.
4. What to do if the notice indicates a tax demand?
You may either credit the amount within the specified time or file a rectification if you believe the adjustment to be wrong. You may do this on the income tax e-filing portal.
5. What if I don’t get the notice?
If you do not get any notification within twelve months from the end of the financial year during which you made your return of income, the authorities usually accept your return as submitted.
Final Thoughts
The Income Tax Notice 143(1) is a very significant notice after ITR Filing, intended to provide transparency and accuracy. Rather than panicking, consider it as a sign of processing your return. In most situations, nothing needs to be done. But in case a demand is made, prompt action and timely response are highly needed to avoid further hassle.
If you need further assistance or have any doubts, our experts are here to help you. Call us: 8881-069-069.
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