Intimation Under Section 143(1) of Income Tax Act – ITR Intimation Password

Intimation under section 143(1) is sent by the income tax department after your income tax returns are processed. If there is a difference between calculation between ITR filed and as processed by the department, the intimation needs to be responded accordingly. 

The time limit for processing the return within 31st March 2024, and erroneously invalidated due to technical glitches will be processed within 31st March 2026.

What is Letter of Intimation u/s 143(1)?

The process of examining the return filed by the taxpayer by the income tax department is termed assessment. The IT department carries out a preliminary assessment of all the returns filed. If there are arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment discrepancies, the department sends an intimation under section 143(1). The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).

When Does One Receive an Intimation u/s 143(1)?

Every assessee shall receive the intimation under section 143(1) upon successful processing of the return, for the following reasons:

• If a taxpayer has paid excess tax, then it mentions tax refund. A refund will be issued only if the amount is more than Rs.100. 
• If the tax paid by the taxpayer has fallen short, it mentions the amount of demand and a challan to make the payment. 
• It’s a simple acknowledgement that the ITR filed by the taxpayer is consistent as per the Assessing Officer. 

What does the intimation under Section 143(1) contain?

Usually, a notice under section 143(1) contains the following information:

• Date of Notice
• PAN
• The relevant assessment year
• Acknowledgement number of the return filed
• Document Identification Number (of the notice)
• Income computation, deductions and exemptions, tax paid and payable, as per the assessee's computation and the department's computation.

Nature of Adjustments Under 143(1)

Total income or loss is computed under Section 143(1) after making the following adjustments:

• Arithmetical error in the return
• Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following:
  • The claim of an item in the return which is inconsistent with another entry of the same or some other item in such return – for example, income from other sources are deducted from business income but not declared under income from other sources.
  • Disallowance of set-off of loss in the financial year which is carried forward from previous years in which return was filed beyond the specified due date
  • Disallowance of expenditure is indicated in the audit report but not indicated in the return of income.

Time Limit for Issue of 143(1)

• Section 143(1) intimation has to be sent within nine months from the end of the financial year in which the return is being filed. 
• For eg: if the taxpayer has filed return pertaining to the financial year 2023-24 in July 2024, intimation can be sent any time till 31 December 2025. 
• If a taxpayer does not receive any intimation within such period, it simply means there are no adjustments carried out to the return filed by the taxpayer and no change in tax liability/refund, and the acknowledgement filed itself is deemed to be Section 143(1) intimation.
• Once the taxpayer receives an intimation under section 143(1), which involves a tax demand, the assessee needs to file an appropriate response within 30 days of issue of the notice. 

Sample of an Intimation Under 143(1)

What is the Password for Intimation u/s 143(1)?

The intimation received under Section 143(1) is password protected. The ITR intimation password will be your PAN (in lowercase) followed by your date of birth in DDMMYYYY format without giving any space.

For example: Assuming your PAN is ABCDE1234E and the date of birth is 01/01/2000, the password to open the intimation will be “abcde1234e01012000”.

Action to be Taken by the Taxpayer after Receiving a 143(1)

• As a first step, review certain things in Section 143(1) intimation to ensure the document pertains to your return itself and the data provided pertain to the same financial year as mentioned in Section 143(1) intimation. 
• Check the name, PAN, address, assessment year for which notice has been sent and e-filing acknowledgement number. 
• In case you are able to identify the mistakes you have made while filing your return from the 143(1) intimation, and they can be rectified by filing a revised return, please do so by logging into the income tax e-filing website. Please refer our article on how you can go about revising your return online.
• However, if no mistakes have been made and you do not agree with the adjustments made by CPC/computerised system, you can file an online rectification application under Section 154(1) intimating the correction of mistake appearing in the Section 143(1) intimation. Refer our article on filing rectification application. 
• Also, submit your response in the e-filing portal where there is a tax demand- whether you agree or disagree with the same.
• In case you are not satisfied with the processing of your rectification return by CPC, you can also file online grievances or contact your assessing officer. In case of no satisfactory action from CPC/assessing officer, you can file a complaint to the income tax ombudsman. 

However, if taxpayer agrees to the tax demand raised by income tax department after carrying out adjustments as above, taxpayer is required to pay such taxes. However, while paying tax on demand raised under this Section, please choose ‘Tax on regular assessment (400)’ under ‘Type of payment’ field in the challan. 
If you wish to pay challan physically, the pre-filled challan is attached with the intimation as below.