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.
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 handles your return at this stage.
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 December 31, 2027. If no intimation arrives by then, your return is effectively accepted as filed, though it can still be picked for scrutiny separately.
What Are the 6 Types of CPC Adjustments?
CPC doesn't make adjustments randomly. Section 143(1)(a) allows only prima facie adjustments: arithmetical errors, incorrect claims apparent from the return, loss and deduction disallowances for belated returns, expenditure disallowances indicated in the tax audit report, and income shown in Form 26AS, Form 16 or Form 16A but missing from the return. CPC also recomputes tax, interest and TDS credit under Section 143(1)(b) to (d). In practice, adjustments usually fall into these six buckets:
1. Arithmetic Errors
Mistakes in addition, subtraction, or tax computation. Say you calculated total income as Rs. 8,50,000 but the Schedule TI figures actually add up to Rs. 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 Rs. 2,00,000, but the maximum allowed is Rs. 1,50,000. CPC disallows Rs. 50,000 automatically.
3. TDS/TCS Mismatch
You claimed TDS credit of Rs. 45,000 in your return, but Form 26AS shows only Rs. 38,000. CPC allows only the amount reflected in 26AS. This is one of the most common adjustments.
4. Unreported Income
Interest income of Rs. 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
- No demand, no refund: your computation matches CPC's.
- Demand: CPC computes more tax or interest payable than you paid. The intimation works as a notice of demand under Section 156.
- Refund: CPC computes that you paid more than your liability, and the refund is issued to your validated bank account.
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.
Go to Pending Actions > e-Proceedings, open the communication, and for each proposed adjustment either agree or disagree with a short reason and supporting documents.
If you miss the 30-day window: CPC proceeds with the adjustment. After that, your options are a rectification request under Section 154 (Section 287 of ITA 2025 for later years) or an appeal to the Commissioner (Appeals).
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 280, payment type Self-Assessment/Outstanding Demand as applicable). 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 Rs. 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).
The portal offers separate request types, such as reprocessing the return and correcting a tax credit mismatch, plus a return data correction where figures in the return itself need fixing.
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
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
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Not verifying Form 26AS before filing. Your employer deducted Rs. 40,000 TDS but their TDS return shows Rs. 35,000. You claim Rs. 40,000 in your ITR. CPC allows only Rs. 35,000. Fix this before filing by asking your employer to correct their TDS return.
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Forgetting to report savings account interest. Even Rs. 2,000 of interest shows up in AIS. If you claimed a Section 80TTA deduction but didn't include the interest in Schedule OS, CPC adds the interest as income, and the deduction can never exceed the interest actually offered to tax.
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Claiming wrong deduction amounts. Section 80D allows Rs. 25,000 for self (Rs. 50,000 for senior citizens). Claiming Rs. 30,000 when you're under 60 triggers an automatic disallowance of Rs. 5,000.
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Filing late and claiming losses. You filed on August 15 instead of July 31. CPC disallows carry-forward of your Rs. 3 lakh capital loss. You can't set it off against future gains. There's no rectification for this; it's a statutory restriction.
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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.
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Claiming the Section 87A rebate against capital gains tax. From AY 2026-27, the new-regime rebate cannot reduce tax on STCG under Section 111A or LTCG under Section 112A. CPC recomputes the rebate on normal income and raises a demand. See 87A rebate denied on STCG.
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 handles 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 ITR filing plans.
