Intimation under Section 143(1) | Income Tax Act | Meaning, Process and Refund Guide

Income Tax is a crucial aspect of financial management in India. Every taxpayer must understand their rights and obligations under the Income Tax Act, 1961. One of the most common communications from the Income Tax Department is the “Intimation under Section 143(1)”. If you have recently received such an intimation, it is essential to understand what it means, why it is sent, and what actions you need to take.

In this blog, we will cover everything about Section 143(1) Intimation, including its purpose, how it is calculated, reasons for discrepancies, and steps to respond.

Introduction to Section 143(1)

Section 143(1) of the Income Tax Act, 1961, deals with the processing of income tax returns filed by taxpayers. After you submit your income tax return (ITR), the Income Tax Department processes it and checks whether:

• The declared income matches with their records

• Taxes have been correctly computed

• Any refund is due or additional tax is payable

The result of this processing is communicated to taxpayers in the form of an Intimation under Section 143(1).

What is Intimation under Section 143(1)?

An Intimation under Section 143(1) is a formal communication from the Income Tax Department confirming that your return has been processed. It is not a notice for scrutiny or demand (like under Section 142 or 143(2)) but a routine procedure.

It shows:

• Total income declared in the ITR

• Tax already paid

• TDS (Tax Deducted at Source) claimed

• Tax payable or refundable

It is sent after the preliminary verification of the tax return by the Income Tax Department.

Example:
If your ITR shows that you paid ₹50,000 as TDS and your total tax liability is ₹48,000, the intimation under Section 143(1) will confirm that ₹2,000 is refundable to you.

Legal Basis of Section 143(1)

Section 143(1) is part of the Income Tax Act, 1961, which allows the Income Tax Department to process returns automatically. The law permits the department to:

• Match the information declared in the return with data available from TDS, TCS, and other sources

• Correct arithmetic mistakes, if any

• Compute the final tax liability and issue intimation

It is important to note that this is automatic processing, and no detailed scrutiny is done at this stage.

The government introduced Section 143(1) to speed up refunds and reduce manual intervention.

Who Receives Intimation under Section 143(1)?

All taxpayers who file ITR, whether online or offline, receive intimation under Section 143(1). However, not everyone receives a refund. The intimation may show:

• Refund payable

• No demand or refund (tax paid matches tax liability)

• Additional tax payable

Even if you do not owe additional tax or are not receiving a refund, you will still receive the intimation.

Components of the Intimation

A typical intimation under Section 143(1) contains the following details:

1. Personal Details: Name, PAN, assessment year, and ITR acknowledgment number

2. Total Income: Income as per your return

3. Tax Computed: Tax payable on total income

4. TDS / Advance Tax / Self-Assessment Tax Paid

5. Tax Payable or Refundable: Difference between tax liability and tax already paid

6. Refund Amount (if any)

7. Bank Account Details for Refund

Example Table from Intimation:

Particulars	Amount (₹)
Total Income	8,00,000
Tax on Income	90,000
TDS / Advance Tax Paid	95,000
Tax Payable / Refund	Refund ₹5,000

Reasons for Differences in Tax Calculation

Sometimes, your intimation under Section 143(1) may not match your calculations. This can happen due to:

1. Arithmetic Errors: Mistakes in calculation of total income or deductions

2. TDS Mismatch: TDS reported by the employer or bank may differ from your claim

3. Incorrect ITR Information: Wrong PAN, deduction claims, or exemptions

4. Interest Calculation: Interest under Section 234A/234B/234C if taxes are paid late

5. Processing by Income Tax Department: Automatic corrections done by the system

How to Check Your Intimation

You can check your intimation in two ways:

a) Online via Income Tax Portal

1. Visit www.incometax.gov.in

2. Log in using your PAN and password

3. Go to e-File → e-Communication → Intimation

4. Download the PDF of your Section 143(1) intimation

b) Via Email / SMS

Sometimes, the IT Department sends intimation via registered email or SMS. The intimation is also linked to the e-filing portal for easy access.

Steps to Respond if Tax is Payable

If the intimation indicates that additional tax is payable, you need to:

1. Verify the calculations in the intimation

2. Log in to your Income Tax account

3. Pay the self-assessment tax online

4. Update the tax payment details on the portal

Note: Failure to pay the additional tax may attract interest and penalties.

Rectifying Errors or Discrepancies

Sometimes, the intimation may contain errors due to mismatch of TDS, exempt income, or deductions. In such cases, you can:

• File Rectification under Section 154

• Request correction online via the e-Filing portal

• Attach supporting documents if required

The department will verify and issue a corrected intimation.

You can file a rectification request online via the official Income Tax Rectification page

Common FAQs

Q1. Is Intimation under Section 143(1) the same as Notice under Section 143(2)?

No. Section 143(1) is routine processing, while Section 143(2) is for detailed scrutiny.

Q2. What if I don’t agree with the intimation?

You can file rectification under Section 154 within the stipulated time.

Q3. How long does it take to receive the intimation?

Usually, 30 to 45 days after filing your ITR, but it can vary based on the department's processing.

Q4. Do I need to respond to the intimation if no tax is due?

No response is required if tax paid matches tax liability.

Q5. What is Intimation under 143(1)?
It’s a notice from the Income Tax Department confirming your return has been processed and showing if tax is payable or a refund is due.

Q6. How to respond?
If tax is payable, pay it online. If a refund or no tax is due, no action is needed.

Q7. What if I ignore it?
Ignoring it when tax is payable can attract interest and penalties. If no tax is due, ignoring it has no effect.

Useful Government Resources

• Income Tax Act, 1961 – Section 143(1)

• Income Tax e-Filing Portal

• Refund Status Check – NSDL Portal

Conclusion

Intimation under Section 143(1) is an essential communication from the Income Tax Department confirming that your tax return has been processed. Understanding this intimation helps you:

• Know if any refund is due

• Verify if any additional tax is payable

• Correct errors or mismatches in TDS or deductions

It is important for every taxpayer to check their intimation carefully and ensure compliance with the Income Tax Act. Regular monitoring of such intimations helps avoid penalties, ensures timely refunds, and maintains a smooth relationship with the Income Tax Department. Section 143(1) is beneficial to taxpayers, not something to fear. By being vigilant, you can leverage it to confirm your tax compliance and even claim refunds efficiently.