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Intimation under 143 (1) of Income Tax Act

INTIMATION u/s 143(1) OF INCOME TAX ACT


Understanding 143 (1) Intimation

Intimation under section 143(1) is sent to a taxpayer only in case any tax or interest is found payable or refundable or there is any increase / reduction in loss declared as per Self Assessment of Income tax. The Intimation would contain the details of return filed by the assessee and the computation as done by the Income Tax Department.

The ITR processing can be understood from the below representation:-


Further explanation for the above:

  1. Initial processing of returns by CPC is completely automated. Therefore the Intimation U/S 143(1) is a computer generated.
  2. CPC validates data provided in each tax return(by tax payer) with details available with income tax department’s own record i.e. Data from Form 26AS which contains the data collected from banks, form 16, TDS returns etc.
  3. Comparison is generally made in the major topics like Gross Total Income, Chapter VI-A deductions and TDS/TCS etc.
  4. Appropriate adjustments (are made after giving proper intimations to the assessee) to income as computed under Section 143(1) and final tax liability or refund is arrived. Following are the possible adjustments:
  5. a) Arithmetical Error
    b) Incorrect Claims
    c) Disallowances of Set off Loss
    d) Disallowance of expenditure indicated in the audit report but not indicated in the ROI.

  6. After the above process was completed an intimation will be provided and the below are the three different possibilities:- 

a) Intimation with no demand or no refund
b) Intimation determining the demand
c) Intimation determining the refund

What if I don’t get Intimation?

Time limit to receive intimation is one year from the end of financial year in which date of filing of the return was made. If no intimation is received within one year then it can be assumed that there is no demand and no refund. In this case acknowledgement filed (ITR-V) will be treated as intimation u/s 143(1).