How To · Income Tax · Section 143(1)

How to Respond to an Income Tax Notice Under Section 143(1)

Updated for 2026 · Claw Editorial

A Section 143(1) intimation is the automated result of your income tax return being processed by the Centralised Processing Centre. It compares what you filed with the department's computation and tells you one of three things: your return is accepted as filed, you have a refund, or you have a demand. It can also propose adjustments, for example disallowing a deduction the system could not match or correcting an arithmetic error, and you are given a window to agree or disagree before the adjustment is finalised. This page explains how to read a 143(1) intimation, how to respond to a proposed adjustment on the e-filing portal within the deadline, how to use rectification under Section 154 when the intimation itself is wrong, and what the appeal route is if a wrong demand is confirmed. This is general guidance, not tax advice on your return. Last verified October 2026.

01What a 143(1) intimation is

Section 143(1) is not a scrutiny and not an accusation. It is a computer-generated intimation issued after your return is processed, and in most cases it simply confirms the return or a refund. It becomes something to act on when it shows a demand or a proposed adjustment.

Adjustments allowed at this stage are limited: arithmetical errors, an incorrect claim apparent from the return, disallowance of a loss or deduction that does not match, or a mismatch with Form 26AS, the Annual Information Statement (AIS) or TDS data. It is not a deep investigation into your affairs. A full examination comes later under a Section 143(2) scrutiny notice.

02Read it correctly first

Before you respond, line up three documents and reconcile them:

• The intimation itself, which shows "as provided by you" against "as computed under 143(1)" column by column.
• Your filed return, to see what you actually claimed.
• Form 26AS and AIS, to see the TDS, advance tax and reported income the department has.

The difference between the two columns is the whole dispute. Common causes are a TDS credit not picked up, an advance or self-assessment tax challan not matched, or a deduction (such as 80C or 80D) not allowed because of a mismatch. Identify the exact line before you decide to agree or disagree.

03Respond to a proposed adjustment

Where the intimation proposes an adjustment, you are given a window (typically 30 days) to respond on the portal before it is made final:

• Step 1. Log in at incometax.gov.in and open Pending Actions, then e-Proceedings, and find the 143(1)(a) proposed adjustment.
• Step 2. For each adjustment, select Agree or Disagree.
• Step 3. If you disagree, pick the reason and attach proof (the TDS certificate, challan, deduction proof or a reconciliation).
• Step 4. Submit before the deadline. If you do not respond, the adjustment is usually made and the demand raised.

04Pay, claim a refund, or rectify

If a refund is delayed, check that the bank account is pre-validated and the return is e-verified, because an unverified return is not processed.

05When the intimation itself is wrong

If the 143(1) intimation has an error apparent from the record, such as a TDS credit the system missed or a challan not matched, the first remedy is rectification under Section 154, filed on the same portal against that intimation:

• Open Services, then Rectification, and select the relevant assessment year and the 143(1) order.
• Choose the rectification type (for example, tax credit mismatch or reprocess the return) and submit with the correct data.
• The CPC reprocesses and issues a fresh intimation.

Rectification is for a plain mistake apparent from the record. Where the dispute is about a question of law or facts that need argument, the route is an appeal, not rectification.

06If a wrong demand is confirmed: appeal

If the demand under 143(1) is wrong and rectification does not fix it, you can appeal. An intimation under Section 143(1) is appealable:

• First appeal: to the Commissioner of Income Tax (Appeals), the CIT(A), filed in Form 35 on the e-filing portal, generally within 30 days of the intimation, with the appeal fee and grounds.
• Second appeal: to the Income Tax Appellate Tribunal (ITAT) in Form 36 if the CIT(A) order still goes against you.
• Beyond ITAT, a substantial question of law can go to the High Court and then the Supreme Court.

The section numbers and limitation can change, so confirm the current appeal form, fee and time limit against the Income Tax Act before you file. Once filed, the appeal is a live proceeding with hearing dates and orders.

07Track an appeal with Claw

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

If a wrong demand becomes an appeal, you can create a FREE Claw account and track the matter across the forum that hears it, right up to the Income Tax Appellate Tribunal. Claw covers 9,102 courts, benches and forums including ITAT benches and the High Courts, so there is a real tracking home for a tax appeal. Claw returns results in under 5 seconds, its judgment search spans 30 crore+ judgments (Supreme Court from 1950 and High Courts from 1990) so your chartered accountant or counsel can see how ITAT and courts decided similar 143(1) and processing disputes, and Claw does not train its AI models on your documents. A clean search result only means nothing was found on the forums and date searched, and this is general information, not tax or legal advice.

To see how similar matters were decided, run a case search across Indian courts. If you extend credit to counterparties, a litigation check before giving credit terms uses the same engine.

08Sources and further reading

• Income Tax e-filing portal: incometax.gov.in
• e-filing login: eportal.incometax.gov.in
• Income Tax Appellate Tribunal: itat.gov.in
• eCourts (High Court case status): ecourts.gov.in
• Claw: clawlaw.in

This page is general information for an Indian audience, not tax or legal advice. Confirm current forms, fees and time limits on the official portal and take professional advice on your return.

09Frequently asked questions