A 143(1) intimation is one of the most common IT communications. It could be a refund notice, nil demand, or a tax demand. Here is how to read it and what to do.
What is Section 143(1) Intimation?
Section 143(1) is an auto-generated notice sent after the Income Tax Department processes your ITR. It is not a scrutiny notice or investigation — it is the outcome of the computer-processing of your return. The intimation is sent within 9 months from the end of the Financial Year in which the return was filed.
3 Types of 143(1) Intimation
| Type | What It Means | Action Required |
| Refund due | Your return was processed correctly, refund credited to bank | Verify bank account in portal |
| Nil demand / nil refund | Return matches department computation — no tax due either way | No action needed (keep for records) |
| Tax demand | Department computed higher tax than you paid — difference payable | Pay demand OR file rectification |
Why Do Tax Demands Arise in 143(1)?
1. Claimed deductions not matching the pre-filled data. 2. TDS credits mismatch (employer filed wrong TAN or amount in Form 24Q). 3. Income from Form 26AS not included in return. 4. Mathematical errors in the return. 5. Wrong ITR form selected (e.g., using ITR-1 when ITR-2 was required).
How to Read a 143(1) Intimation
The intimation has two columns: "As per Return" (what you filed) and "As computed under section 143(1)" (what the department computed). Compare the two to find the discrepancy. Common differences: gross income, exempt income, deductions under 80C/80D, TDS credit. The difference determines if you have a demand or refund.
Agreed With the Demand — How to Pay
Login to incometax.gov.in → e-Pay Tax → Self-Assessment Tax (Challan 280) → Select Assessment Year → Pay the demand amount + interest. After payment, update return with challan details if required. Keep the challan receipt.
Disagree With the Demand — How to File Rectification
Login to incometax.gov.in → e-File → Rectification → Select your return and assessment year → Choose reason (tax credit mismatch, incorrect deduction, etc.) → Upload corrected data → Submit. Rectification under Section 154 is free and must be filed within 4 years of intimation. The rectification is auto-processed like the original return.
Time Limit to Respond to 143(1) Demand
The demand must be paid within 30 days of receiving the intimation to avoid interest accumulation. If you disagree, file rectification. If there is no response and no payment, the department may issue notice under Section 220(1) and eventually attach bank accounts or property under Section 281B.
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