If you’ve ever filed your Income Tax Return (ITR), chances are you’ve received an email or SMS from the Income Tax Department with the subject line: “Intimation under Section 143(1)”. For many taxpayers, this message sparks anxiety, “Have I done something wrong? Will I have to pay more tax?”
The truth is, an intimation under Section 143(1) is one of the most common and routine communications sent by the department. In most cases, it’s not a notice but simply a confirmation or summary of how your return has been processed. Sometimes, it may also highlight a mismatch in your filing.
In this article, we’ll break down what an intimation under Section 143(1) really means, the different types of outcomes it can have, and how you should respond if there’s a difference between your calculation and the department’s.
What is an Intimation under Section 143(1)?
An intimation under Section 143(1) of the Income Tax Act, 1961 is a communication sent by the Income Tax Department after processing your ITR. It’s an automated comparison between:
- The income, deductions, and tax payable/refundable declared by you, and
- The data available with the department (like TDS, advance tax, self-assessment tax, etc.).
Key Features of Section 143(1) Intimation:
- It is generated by the Centralised Processing Centre (CPC) in Bengaluru.
- It is usually received within a few months of filing your return.
- It is not always a demand notice, in many cases, it’s just a confirmation.
Outcomes of Intimation under Section 143(1):
- No Demand, No Refund – Your return matches the department’s calculation. Nothing further is required.
- Refund Determined – You paid more tax than required, and the department will issue a refund.
- Demand Raised – You paid less tax than required, and you will have to pay the balance.
Example
Suppose you declared ₹6,00,000 income and calculated tax of ₹15,600. The department processes your return and confirms the same figure, you’ll get an intimation saying “No demand, no refund.”
But if the system finds that you missed ₹10,000 FD interest income, it may raise a small demand for the tax difference.
Why is an Intimation under Section 143(1) issued?
An intimation under Section 143(1) is issued after your Income Tax Return (ITR) is processed at the Centralised Processing Centre (CPC). It is essentially a comparison between your calculations and the Income Tax Department’s system records.
Here are the most common reasons why you may receive this intimation:
1. Acknowledgement of Return Processing
- Even if there are no mismatches, the department sends an intimation to confirm that your ITR has been successfully processed.
- Example: You filed your return showing ₹7,00,000 income and paid the correct tax. The department agrees, your intimation will say “No demand, no refund.”
2. Refund Determination
- If you paid more tax than your actual liability, the intimation confirms that you are due for a refund.
- Example: You paid advance tax of ₹50,000, but your final liability is only ₹40,000. The intimation will show a ₹10,000 refund.
3. Tax Demand (Shortfall)
- If you underpaid tax or missed reporting some income, the intimation will show an additional demand.
- Example: Your employer deducted TDS of ₹40,000 but you forgot to include ₹20,000 FD interest. The department adds it and raises a demand for the extra tax.
4. Adjustment of Arithmetical Errors
- The system automatically corrects any calculation mistakes in your return and sends the updated figures.
- Example: You wrongly calculated your deduction under Section 80C as ₹1.7 lakh instead of the maximum ₹1.5 lakh. The CPC corrects it and recalculates tax.
5. Mismatch in TDS/TCS Claims
- If the TDS you claimed in your return is higher than what’s reflected in Form 26AS/AIS, the system adjusts it and informs you.
- Example: You claimed TDS of ₹60,000 based on Form 16, but your employer deposited only ₹55,000. The intimation will show a ₹5,000 difference as payable.
6. Adjustment of Fees or Penalty
- If late filing fees (under Section 234F) or interest (under Sections 234A/B/C) apply, they are included in the intimation.
- Example: You filed your return after the deadline. The intimation will show the late fee added to your tax liability.
✅ In short: An intimation under Section 143(1) is not always a demand notice. It may confirm your filing, issue a refund, or highlight mismatches that need attention.
How should you respond to an Intimation under Section 143(1)?
The way you respond to an intimation under Section 143(1) depends on the outcome shown in the document. Here’s a clear step-by-step guide:
1. Read the Intimation Carefully
- Download the intimation PDF from your email or from the Income Tax e-filing portal.
- Open it with your PAN (in lowercase) and date of birth (DDMMYYYY) as the password.
- Check whether the intimation shows:
- No demand, no refund
- Refund due
- Demand payable
- No demand, no refund
2. Verify the Details
- Compare the department’s calculations with yours.
- Check income, deductions, exemptions, TDS, and tax paid.
- Cross-check with Form 26AS and Annual Information Statement (AIS).
3. If the Intimation Says ‘No Demand, No Refund’
- You don’t need to take any action.
- Keep the intimation as proof that your return has been successfully processed.
4. If Refund is Due
- The intimation will confirm the refund amount.
- Refunds are usually credited directly to your bank account within a few weeks.
- Track it under “Services > Refund Status” on the e-filing portal.
5. If Additional Tax is Payable (Demand Notice)
Check whether the demand is correct.
- If correct: Pay the tax online using Challan 280 and update payment details under Pending Actions > Response to Outstanding Demand.
- If incorrect: Disagree with the demand by submitting a response online with reasons and supporting documents (like TDS certificates, bank statements, or Form 26AS proofs).
6. Rectify Errors if Needed
If the demand arises due to mistakes in your return (e.g., missed income or incorrect deduction), file a rectification request under Section 154 through the e-filing portal.
7. Act Within the Deadline
- You typically get 30 days to respond.
- Delaying can lead to interest and recovery action.
✅ Quick Recap: Action Based on Intimation Outcome
- No demand, no refund → No action required.
- Refund due → Wait for credit, track status online.
- Demand raised → Pay or dispute with evidence.
- Error in return → File rectification request.
What happens if you ignore an Intimation under Section 143(1)?
An intimation under Section 143(1) is not something you should casually ignore. While in many cases it’s only for information, sometimes it requires urgent action. Here’s what can happen if you don’t respond:
1. If the intimation says “No demand, no refund”
- You don’t need to do anything. Ignoring it is fine since it’s only an acknowledgement.
- Still, it’s a good idea to download and keep it as proof of return processing.
2. If a refund is due
- Ignoring won’t harm you, but you might miss out on tracking delays or errors in refund credit.
- If your bank details are wrong, the refund may fail, and you won’t realise without checking the intimation.
3. If additional tax demand is raised
This is where ignoring becomes risky:
- Interest on unpaid tax: If you don’t pay within the time limit, interest under Section 220(2) will be added at 1% per month.
- Adjustment of future refunds: Any refund due in later years may be adjusted against this outstanding demand.
- Recovery proceedings: In case of large unpaid amounts, the department can recover dues by attaching your bank account or salary.
4. Loss of Right to Rectification
- If the demand is wrong (e.g., due to mismatch in TDS), you must respond or file a rectification request.
- Ignoring it means you lose the chance to correct errors in time, which can increase liability later.
✅ Bottom Line
- If your intimation shows “no demand, no refund”, relax, no action needed.
- If refund is due, check your bank details and track status.
- If demand is raised, never ignore it. Pay or dispute it online before the deadline to avoid penalties and interest.
Conclusion
An intimation under Section 143(1) of the Income Tax Act is one of the most common communications sent by the Income Tax Department after processing your return. In most cases, it’s simply an acknowledgement that your ITR has been accepted, or a confirmation of refund. Sometimes, it may also show a demand if there’s a mismatch in income, deductions, or tax paid.
The important thing is not to panic. Read the intimation carefully, compare it with your records, and take the required action, whether that’s doing nothing, waiting for your refund, or paying additional tax. If you disagree with the demand, you can easily file a rectification or respond through the e-filing portal.
Remember: ignoring an intimation that raises a demand can lead to interest, penalties, and recovery actions. But handling it promptly ensures peace of mind and keeps your tax record clean.
Frequently Asked Questions (FAQs)
1. What is an intimation under Section 143(1)?
It is a communication from the Income Tax Department after processing your return. It shows whether you have no demand, a refund due, or a demand payable.
2. Is intimation under Section 143(1) a notice?
No. It’s not a notice in the strict sense but an intimation/acknowledgement of return processing. However, if it shows a demand, you must take action.
3. How is intimation under Section 143(1) received?
You usually get it by email (registered with PAN) and SMS alerts. You can also download it from the Income Tax e-filing portal.
4. What are the possible outcomes of intimation under Section 143(1)?
- No demand, no refund
- Refund determined
- Demand payable (shortfall in tax)
5. What should I do if the intimation shows a demand?
Check if the demand is correct.
- If correct → Pay the outstanding amount within 30 days using Challan 280.
- If incorrect → File a rectification request under Section 154 or disagree with demand on the portal with proof.
6. Do I need to respond if the intimation shows “no demand, no refund”?
No. That means your ITR has been accepted as filed. You don’t need to take any action.
7. How long does it take to receive an intimation after filing ITR?
Usually within a few weeks to a few months after filing, depending on processing speed at the Centralised Processing Centre (CPC).
