After you file your Income Tax Return, the CPC (Central Processing Centre) at Bengaluru automatically processes it and sends an intimation under Section 143(1). This intimation compares your self-reported figures with the data CPC has from Form 26AS, AIS, and other sources. It is not a penalty notice. It is the tax department's way of telling you whether your filing matches their records.
Types of 143(1) Intimations
| Type | What It Means | Action Needed |
|---|---|---|
| No demand, no refund | Your ITR matches CPC's calculations. Tax paid equals tax owed. | No action needed. Keep for records. |
| Refund determined | CPC agrees you overpaid tax. A refund will be processed. | Verify the refund amount is correct. |
| Demand raised | CPC believes you owe additional tax. | You must either pay the demand or file a rectification/response. |
| Refund adjusted | A previous refund was reduced to offset a past demand or penalty. | Verify the adjustment. If incorrect, file a rectification. |
Step 1: Read the intimation carefully
- Log in to the Income Tax e-Filing portal.
- Go to e-File > Income Tax Returns > View Filed Returns.
- Find the relevant Assessment Year and click on the 143(1) intimation or download it from the portal.
- The intimation shows a side-by-side comparison of:
- Your figures (as filed in the ITR)
- CPC's figures (as computed by CPC)
- Difference (the adjustment made)
TIP
Download your Form 26AS and Annual Information Statement (AIS) from the portal and compare them with the intimation. This will help you understand exactly where CPC's figures differ from yours.
Step 2: Understand the adjustment
Common reasons CPC adjusts your tax calculation:
| CPC Adjustment | Likely Cause |
|---|---|
| TDS amount reduced | TDS in your ITR does not match Form 26AS. You may have claimed TDS that the deductor did not report. |
| Deduction disallowed | A deduction claim (e.g., 80C, 80D) may exceed the statutory limit or lack supporting evidence in the system. |
| Income increased | Additional income sources visible in AIS (FD interest, capital gains, dividend) were not declared. |
| Interest u/s 234A/B/C added | You filed late, underpaid advance tax, or underpaid total tax for the year. |
| Tax computed at higher rate | CPC may have applied a different tax regime than what you selected. |
Step 3A: If there is no demand or a refund
If the intimation shows:
- No demand, no refund: No action needed. File the intimation for your records.
- Refund due: The refund will be processed to your bank account linked on the e-Filing portal. Track it using our ITR refund status guide. If the refund amount is less than expected, compare the CPC figures to find the adjustment.
Step 3B: If there is a tax demand
If CPC has raised a demand (you owe additional tax):
Option 1: Agree and pay
If CPC's calculation is correct and you genuinely owe more tax:
- Go to Pending Actions > Response to Outstanding Demand on the portal.
- Click Pay Now and pay the demanded amount through challan (e-Pay Tax on the portal).
- After payment, submit a response confirming payment.
Option 2: Disagree - File a rectification
If CPC's calculation is wrong (e.g., they missed your TDS, disallowed a valid deduction):
- Go to Services > Rectification on the portal.
- Select Section 154 and the relevant Assessment Year.
- Choose the type: Reprocess the Return (if CPC just needs to re-check) or Submit Corrected Return (if you need to fix data in your ITR).
- Upload the corrected data or submit the rectification request.
- e-Verify with Aadhaar OTP or other method.
Documents to keep handy
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Option 3: Partially agree
If you agree with part of the demand but not all:
- Pay the amount you agree with.
- File a rectification for the portion you disagree with.
- Submit a response on the portal explaining your position.
WARNING
Do not ignore a demand notice. If you take no action within 30 days, the outstanding demand may be adjusted against future refunds, and interest under Section 220(2) at 1% per month may be charged on the unpaid amount.
Step 4: Track the outcome
After filing a rectification or paying the demand:
- Go to Services > Rectification > Rectification Status to track your request.
- CPC typically processes rectifications within 30 to 60 days.
- If the rectification is accepted, you will receive a revised intimation and any excess demand will be waived or refunded.
Interest Components in 143(1)
The intimation may include interest charges. Understanding them helps:
| Interest Section | When It Applies | Rate |
|---|---|---|
| 234A (late filing) | You filed ITR after the due date (July 31st) | 1% per month on outstanding tax |
| 234B (advance tax default) | You did not pay advance tax when required (tax liability > Rs 10,000) | 1% per month |
| 234C (advance tax deferment) | You paid advance tax but not in the required quarterly instalments | 1% per month |
Common Problems
| Problem | Solution |
|---|---|
| Demand raised for TDS mismatch | Check if your employer/bank actually deposited the TDS. If they did, ask them for the TDS certificate and verify it matches Form 26AS. If there is a mismatch, ask the deductor to file a correction. |
| 80C deduction disallowed | CPC may lack digital evidence. File a rectification with proof of investment. |
| Cannot find 143(1) on portal | Check e-File > Income Tax Returns > View Filed Returns and look for the download link. It may also be in your email. |
| Demand from several years ago | Old demands can still be raised. Respond regardless of the delay. If the demand is time-barred, consult a CA. |
Related Guides
- How to Fix an ITR Defective Return Notice
- e-File Your Income Tax Return
- How to Check ITR Refund Status Online
- Income Tax Refund Not Received?
Need more help?
For more information, check out our Tax & Finance guides or try our income tax calculator. See also the Tax Season hub for related guides.