Key Takeaways
- Section 143(1) is an automated intimation from CPC Bengaluru after processing your ITR. It is not a scrutiny notice or a penalty order.
- Three possible outcomes: tax demand (you owe more), refund (you overpaid), or nil adjustment (your return is accepted as filed).
- CPC can make 6 types of adjustments: arithmetic errors, incorrect claims, TDS/TCS mismatches, unreported income, wrong tax rate, and belated filing disallowances.
- You get a 30-day window to respond before CPC finalises any proposed adjustment.
- If no intimation arrives within 9 months from the end of the FY in which you filed, your return is deemed accepted.
- From April 1, 2026, the Income Tax Act 2025 renumbers this provision as Section 270(1). The rules remain the same.
What is a Section 143(1) intimation? A Section 143(1) intimation is an automated communication from the Centralised Processing Centre (CPC) in Bengaluru after processing your filed income tax return. It compares your self-assessed tax computation against Form 26AS, AIS, and TDS records, then tells you whether you owe additional tax, are due a refund, or have no adjustment. (Source: Section 143(1), Income Tax Act, 1961; Section 270(1), Income Tax Act, 2025)
Every ITR filed in India goes through CPC processing. Whether you're salaried with a straightforward ITR-1 or a business owner filing ITR-3, you'll receive this intimation. Most taxpayers get it within 30 to 60 days of filing, and it arrives as a password-protected PDF to your registered email.
Here's what you need to know to read it, check it, and act on it if the numbers don't match.
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How CPC Processes Your Return Under Section 143(1)
CPC doesn't examine your books or ask for documents. It runs an automated check against four data sources:
- Form 26AS for TDS/TCS credits claimed by deductors
- Annual Information Statement (AIS) for reported transactions (bank interest, share sales, property purchases)
- Your filed return for arithmetic and internal consistency
- Previous year's return for carry-forward loss claims and consistency
The entire process is computerised. No Assessing Officer reviews your return at this stage.
Step-by-Step Guide
How CPC Processes Your ITR
Fully automated, no human review at this stage
Return Filed
You file your ITR on incometax.gov.in. It reaches CPC Bengaluru for processing.
Data Cross-Check
CPC matches your return against Form 26AS, AIS, TIS, and prior year data.
Proposed Adjustment
If mismatches are found, CPC sends a proposed adjustment communication (not the final intimation).
30-Day Response
You get 30 days to accept or object to the proposed adjustment online.
Final Intimation
CPC issues the Section 143(1) intimation with demand, refund, or nil result.
Refund or Demand
Refund is credited to your bank. Demand must be paid or disputed via rectification.
Source: Section 143(1), Income Tax Act, 1961; Section 270(1), Income Tax Act, 2025
Time limit: CPC must send the intimation within 9 months from the end of the financial year in which you filed. If you filed your AY 2026-27 return in July 2026 (FY 2026-27), the deadline is March 31, 2028. If no intimation arrives by then, your return is deemed accepted as filed.
What Are the 6 Types of CPC Adjustments?
CPC doesn't make adjustments randomly. Section 143(1)(a) specifies exactly what it can correct:
1. Arithmetic Errors
Mistakes in addition, subtraction, or tax computation. Say you calculated total income as ₹8,50,000 but the Schedule TI figures actually add up to ₹8,65,000. CPC catches it.
2. Incorrect Claims
Claims that contradict other entries in your own return. For example, you claimed a Section 80C deduction of ₹2,00,000, but the maximum allowed is ₹1,50,000. CPC disallows ₹50,000 automatically.
3. TDS/TCS Mismatch
You claimed TDS credit of ₹45,000 in your return, but Form 26AS shows only ₹38,000. CPC allows only the amount reflected in 26AS. This is one of the most common adjustments.
4. Unreported Income
Interest income of ₹25,000 from a fixed deposit appears in your AIS but you didn't report it in Schedule OS. CPC adds it to your total income.
5. Incorrect Tax Rate
You selected the new regime under Section 115BAC but CPC applied the old regime rates (or vice versa). This typically happens when the regime selection in Form 10-IE/10-IEA doesn't match what's declared in the return.
6. Belated Filing Disallowances
If you filed your return after the due date (July 31 for most taxpayers), CPC disallows:
- Carry-forward of losses (except house property loss)
- Certain deductions under Sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE
This catches many business owners off guard. Filing even one day late can mean losing the ability to carry forward business or capital losses.
Three Possible Outcomes of Section 143(1) Intimation
| Outcome | What It Means | Your Next Step |
|---|---|---|
| Demand | CPC says you owe more tax (plus interest under Section 234A/234B/234C) | Pay the demand, or file rectification if you disagree |
| Refund | CPC confirms you overpaid; refund will be credited to your bank | Verify the amount matches your computation |
| No Demand, No Refund | Your return is accepted as filed with no changes | No action needed |
If the intimation shows "No Demand No Refund" and no adjustments were made, the acknowledgement itself is deemed to be the intimation. You may not even receive a separate PDF.
How to Open Your 143(1) Intimation PDF
The intimation is sent as a password-protected PDF to your registered email. The password format:
PAN (lowercase) + Date of Birth (DDMMYYYY) with no spaces or special characters.
Example: If your PAN is ABCDE1234F and your date of birth is March 15, 1990:
abcde1234f15031990
For HUFs, companies, firms, and trusts: use the date of incorporation/formation instead of date of birth.
You can also download the intimation from the e-filing portal: Login > e-File > Income Tax Returns > View Filed Returns > Download Intimation Order.
How to Respond When CPC Proposes an Adjustment
Before finalising the intimation, CPC sends a proposed adjustment communication if it plans to change your figures. You have 30 days to respond.
Step-by-Step Guide
How to Respond to a Proposed CPC Adjustment
Check Your Email
CPC sends the proposed adjustment to your registered email and the e-filing portal.
Log In to Portal
Go to incometax.gov.in > Pending Actions > Worklist > For Your Action.
Review Adjustments
Compare each adjustment line against your return and Form 26AS/AIS.
Accept or Object
Accept valid adjustments. For incorrect ones, submit your objection with explanation.
Submit Within 30 Days
If you don't respond within 30 days, CPC treats silence as acceptance and finalises.
Source: Section 143(1)(a), proviso, Income Tax Act, 1961
If you miss the 30-day window: CPC proceeds with the adjustment. Your only recourse after that is a rectification request under Section 154 (now Section 287 of ITA 2025).
What to Do After Receiving the Final Intimation
If the Intimation Shows a Demand
- Don't ignore it. Outstanding demands attract interest under Section 220(2) at 1% per month.
- Verify the adjustment. Compare CPC's figures line by line against your return, Form 26AS, and AIS.
- If CPC is correct: Pay the demand through incometax.gov.in > e-Pay Tax > Challan No. ITNS 280 (now Challan under Section 240 of ITA 2025). Then go to Pending Actions > Response to Outstanding Demand and confirm payment.
- If CPC is wrong: File a rectification request (see below).
If the Intimation Shows a Refund
CPC credits the refund to the bank account linked in your ITR. Processing typically takes 20 to 45 days after the intimation is issued. If the refund doesn't arrive:
- Verify your bank account details in Pre-validated Bank Accounts on the portal
- Check if the refund failed (Refund Re-issue Request under Services)
- Ensure your PAN is linked to Aadhaar; unlinked PANs can block refund processing
Interest on refund: Under Section 244A, if the refund delay exceeds the prescribed period, you're entitled to interest at 0.5% per month on the refund amount.
When CPC Gets It Wrong: Filing a Rectification Request
CPC processes millions of returns. Errors happen. Common situations where you'd file rectification:
- TDS credit not reflecting because the deductor filed a revised TDS return after you filed your ITR
- Section 87A rebate not applied despite qualifying income under ₹12 lakh
- Wrong tax regime applied
- Interest income double-counted (once from AIS, once from your Schedule OS)
Rectification is governed by Section 154 of ITA 1961 (Section 287 of ITA 2025).
Three types of rectification on the portal:
| Rectification Type | When to Use |
|---|---|
| Reprocess the Return | CPC made an error in processing; your return data is correct |
| Tax Credit Mismatch | TDS/TCS/advance tax credit not matched; updated 26AS now shows correct figures |
| Return Data Correction | You made an error in your original return (schedule-level correction) |
Time limit: 4 years from the end of the FY in which the intimation was issued.
How to file: incometax.gov.in > Services > Rectification > New Request > Select Assessment Year > Choose rectification type > Upload supporting documents > Submit.
For a detailed walkthrough, see our Section 154/287 rectification guide.
Section 143(1) vs Section 143(2): Don't Confuse the Two
Comparison
Section 143(1) vs Section 143(2)
One is automated processing, the other is human scrutiny
| Parameter | Section 143(1) Intimation | Section 143(2) Scrutiny Notice |
|---|---|---|
| Nature | Automated CPC processing | Detailed scrutiny by Assessing Officer / NaFAC |
| Human Involvement | None. Fully computerised | Yes. AO reviews documents and evidence |
| Scope | Limited to arithmetic errors, data mismatches, incorrect claims | Full examination of income, deductions, and supporting documents |
| Time to Issue | 9 months from end of FY of filing | 3 months from end of FY of filing |
| Response Required? | Only if proposed adjustment is sent (30-day window) | Yes. Must respond within deadline in the notice |
| Outcome | Demand, refund, or nil adjustment | Assessment order under Section 143(3) with additions or acceptance |
| New Section (ITA 2025) | Section 270(1) | Section 271 |
Source: Income Tax Act, 1961 / Income Tax Act, 2025
Getting a 143(1) intimation is routine. Every filed return gets one. A 143(2) notice means your return has been selected for scrutiny, which is a different process entirely. If you've received a scrutiny notice, see our Section 143(2) response guide.
Common Mistakes That Trigger CPC Adjustments
-
Not verifying Form 26AS before filing. Your employer deducted ₹40,000 TDS but their TDS return shows ₹35,000. You claim ₹40,000 in your ITR. CPC allows only ₹35,000. Fix this before filing by asking your employer to correct their TDS return.
-
Forgetting to report savings account interest. Even ₹2,000 of interest shows up in AIS. If you claimed Section 80TTA deduction but didn't first include the interest in Schedule OS, CPC adds the income without applying the deduction.
-
Claiming wrong deduction amounts. Section 80D allows ₹25,000 for self (₹50,000 for senior citizens). Claiming ₹30,000 when you're under 60 triggers an automatic disallowance of ₹5,000.
-
Filing late and claiming losses. You filed on August 15 instead of July 31. CPC disallows carry-forward of your ₹3 lakh capital loss. You can't set it off against future gains. There's no rectification for this; it's a statutory restriction.
-
Mismatch between regime selection and Form 10-IEA. You opted out of the new regime by filing Form 10-IEA but selected "new regime" in your ITR form. CPC applies the new regime (which doesn't allow most deductions), leading to a large demand.
Frequently Asked Questions
Is a Section 143(1) intimation the same as an income tax notice?
No. A Section 143(1) intimation is an automated communication from CPC after processing your return. It is not a notice requiring you to appear or submit documents. It simply tells you whether you owe tax, are due a refund, or your return is accepted as filed.
What is the password to open the Section 143(1) intimation PDF?
The password is your PAN in lowercase followed by your date of birth in DDMMYYYY format, with no spaces. For example, if PAN is ABCDE1234F and DOB is March 15, 1990, the password is abcde1234f15031990. For companies and firms, use the date of incorporation.
I got a demand under Section 143(1) but I think CPC made an error. What should I do?
File a rectification request under Section 154 (Section 287 of the Income Tax Act 2025) on the e-filing portal. Go to Services > Rectification > New Request. Choose the appropriate correction type: Reprocess the Return, Tax Credit Mismatch, or Return Data Correction. You have 4 years from the end of the FY in which the intimation was passed.
How long does CPC take to process my return and send the intimation?
Most returns are processed within 30 to 60 days of filing. The statutory deadline is 9 months from the end of the financial year in which the return was filed. If CPC doesn't send an intimation by that deadline, your return is deemed accepted.
Does Section 143(1) apply from April 2026 under the new Income Tax Act 2025?
For returns filed from April 1, 2026 onwards, the equivalent provision is Section 270(1) of the Income Tax Act 2025. The rules, adjustments, timelines, and procedures remain substantially the same. Returns filed before April 1, 2026 continue to be processed under Section 143(1) of the 1961 Act.
Can CPC add income that I did not report in my ITR?
Yes. If income such as interest, dividends, or capital gains appears in your AIS or Form 26AS but is missing from your return, CPC can add it under Section 143(1)(a). This is one of the six types of adjustments CPC is authorised to make.
I missed the 30-day window to respond to a proposed adjustment. What now?
CPC will finalise the adjustment and issue the intimation with a demand. Your option is to file a rectification request under Section 154 if you believe the adjustment is wrong. Alternatively, you can file an appeal before the Commissioner of Income Tax (Appeals) if the issue is debatable.
Tax Garden Handles CPC Demands for You
Received a Section 143(1) demand that doesn't match your computation? Your TDS credit is missing, or the wrong regime was applied, or a deduction was disallowed incorrectly? Tax Garden's compliance team reviews your intimation, identifies the exact mismatch, files the rectification request on your behalf, and tracks it through to the corrected order or refund. Explore our tax compliance plans.
