Section 143(1) Intimation AY 2026-27: What It Means, 30-Day Response and Rectification
An intimation under section 143(1) is the computer-generated result of the Centralised Processing Centre checking your return against Form 26AS, AIS and arithmetic. It shows one of three outcomes: refund, demand, or no change. A proposed adjustment under 143(1)(a) must be answered on the e-filing portal within 30 days or it is applied automatically. A demand must be paid or disputed within 30 days; mistakes are fixed through rectification under section 154.
Key facts, FY 2025-26
- What it is
- Automated processing result, not a scrutiny notice
- Time limit for issue
- Within 9 months from the end of the FY in which the return is filed
- Response to 143(1)(a) proposed adjustment
- 30 days on the e-filing portal, else applied as proposed
- Demand
- Pay within 30 days to avoid interest under section 220(2) at 1% a month
- Fix a mistake
- Rectification under section 154 within 4 years, on the portal
- PDF password
- PAN in lower case followed by date of birth as DDMMYYYY
How it works
After you e-verify your return, the Centralised Processing Centre in Bengaluru runs it through automated checks under section 143(1) of the Income-tax Act 1961. It recomputes the tax from the figures you entered, corrects arithmetic errors, matches TDS and advance tax claims against Form 26AS, compares income with the AIS, and disallows claims that are plainly inconsistent with the return itself, such as a deduction above the statutory limit or a loss carried forward from a belated return.
If the system wants to adjust something, it first sends a communication under section 143(1)(a) listing the proposed adjustment. You have 30 days to agree or disagree on the e-filing portal under e-Proceedings, with a reason and supporting documents. If you do not respond, the adjustment is made as proposed and the intimation follows. If you respond and the reason is accepted, the adjustment is dropped.
The intimation itself is a password-protected PDF sent by email and available under View Filed Returns on the portal. It has two columns: as provided by the taxpayer and as computed under section 143(1). Where the columns match, the result is no demand and no refund, or a refund that is released to your pre-validated bank account. Where they differ, the last line shows a demand or a reduced refund with the reason coded in the annexure.
An intimation with a demand is a determination of tax due. It becomes enforceable if you do nothing for 30 days: interest under section 220(2) runs at 1% a month, and future refunds are adjusted against it under section 245. If the demand is wrong, do not pay and forget it. File a rectification under section 154 if the error is apparent from the record, or respond to the outstanding demand on the portal as disagree with reasons, or file an appeal to CIT(A) within 30 days if the issue is one of interpretation.
| What the intimation says | Usual cause | Fix |
|---|---|---|
| TDS credit reduced | Deductor filed the TDS return late or with a wrong PAN, so 26AS does not show it | Get the deductor to correct their statement, then file rectification under 154 for tax credit mismatch |
| Income added | Interest, dividend or sale reported in AIS but omitted in the return | If correct, pay the demand. If duplicate or wrong, submit AIS feedback and respond disagree with proof |
| Deduction disallowed | 80C or 80D claimed above the limit, or 80TTA claimed on FD interest | Accept if the limit was exceeded; otherwise rectify with the schedule corrected |
| Loss not carried forward | Return filed after the due date | No remedy except house property loss; file on time next year |
| Late fee added | Return filed after 31 July without paying 234F | Pay the demand |
| Regime changed | Form 10-IEA not filed with a belated return, or old regime chosen in ITR-3 or 4 without 10-IEA | File 10-IEA where allowed; otherwise the new regime applies |
| Refund adjusted | Old demand from an earlier year set off under section 245 | Check the outstanding demand tab; respond if the old demand is wrong |
Worked example: Salaried taxpayer receives an intimation with a demand of ₹5,320
- Tax as per return (after TDS of ₹1,10,000)
- Refund ₹4,000
- Adjustment 1: FD interest of ₹32,000 in AIS not reported
- +₹32,000 income
- Adjustment 2: 80TTA of ₹10,000 claimed on FD interest, disallowed
- +₹10,000 income
- Additional tax at 20% plus cess on ₹42,000
- ₹8,736
- Interest under 234B and 234C
- ₹584
- Net result after cancelling the ₹4,000 refund
- Demand ₹5,320
- Action
- Both adjustments are correct: pay within 30 days via Challan 280, minor head 400
Common mistake: treating a 143(1) intimation as a scrutiny notice, or ignoring it
An intimation is not a notice under section 143(2) and does not mean your case is under scrutiny. Ignoring it is the opposite error. A 143(1)(a) proposal that goes unanswered for 30 days becomes a demand, and a demand that sits for 30 days starts accruing interest and blocks future refunds. Read the annexure, match it against your AIS and 26AS, and act within the window.
What to do next
Open the intimation with your PAN in lower case plus date of birth as the password and go straight to the comparison table. If the computed column matches yours, nothing is needed; the refund will follow. If there is a proposed adjustment, log in to the portal, open e-Proceedings, and respond within 30 days with the reason and documents. If there is a demand you agree with, pay it through Challan 280 under minor head 400 and mark it paid under Response to Outstanding Demand. If you disagree, file a rectification under section 154 with the right reason code. A 143(1) reply service handles the response and the rectification in one go.
Section 143(1): questions
What is an intimation under section 143(1)?
It is the automated result of the Centralised Processing Centre processing your income tax return. It compares your figures with its own computation and shows a refund, a demand, or no change. It is not a scrutiny notice.
How many days do I have to respond to a 143(1)(a) communication?
30 days from the date of the communication. If you do not respond on the e-filing portal, the proposed adjustment is applied and the intimation is issued with the revised figures.
What should I do if the 143(1) intimation shows a demand?
Check the annexure for the reason. If it is correct, pay within 30 days through Challan 280 (minor head 400) and update the outstanding demand response. If it is wrong, file a rectification under section 154 or respond disagree with reasons on the portal.
What is the password for the 143(1) intimation PDF?
Your PAN in lower case followed by your date of birth in DDMMYYYY format, without spaces. For example abcde1234f15081990.
What is the time limit for issuing a 143(1) intimation?
Nine months from the end of the financial year in which the return is filed. For a return filed in FY 2026-27, the intimation must be issued by 31 December 2027. If no intimation arrives, the acknowledgement is treated as the intimation.
What is rectification under section 154?
A request to correct a mistake apparent from the record in the intimation, such as a TDS credit not given, a wrong tax computation or a missed schedule. It is filed on the e-filing portal under Services, Rectification, within four years from the end of the FY in which the order was passed.
Why does the intimation show a lower TDS credit than my Form 16?
Because the credit is given only for TDS that appears in Form 26AS. If your employer or bank filed the TDS return late or with an error, ask them to file a correction statement, then file a rectification for tax credit mismatch once 26AS is updated.
Can I file a revised return after receiving a 143(1) intimation?
Yes, up to 31 December 2026 for AY 2026-27, because processing does not end the revision window. Use a revised return if you left out income or need to change a claim, and rectification if the department made a mistake.
Related sections and forms
- AIS and TISThe Annual Information Statement (AIS) is the department's record of your financial transactions for a year, reported by banks, employers, registrars, depositories and the GST network. The Taxpayer Information Summary (TIS) condenses it into category totals that prefill your ITR. For AY 2026-27, every income line in AIS should either appear in your return or carry your feedback explaining why not.
- Form 26ASForm 26AS is your annual tax statement: every rupee of TDS and TCS credited to your PAN, the advance tax and self-assessment tax you paid, and the refunds issued, for one financial year. You open it from the e-filing portal, which hands you over to TRACES. Before filing ITR for AY 2026-27, the TDS you claim must match what 26AS shows, or the credit is cut in the 143(1) intimation.
- Section 234FSection 234F charges a late fee of ₹5,000 if you file your income tax return after the due date, reduced to ₹1,000 if your total income does not exceed ₹5,00,000. It applies to every belated return filed up to 31 December 2026 for AY 2026-27, even if no tax is due, but not if your gross total income is below the basic exemption limit and you were not otherwise required to file. Interest under section 234A at 1% a month on unpaid tax is charged in addition.
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General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer