An intimation under section 143(1) is the computer-generated result of processing your income tax return. It is not an assessment order and a demand shown in it is not final, but it records how the department has read your return — and it often differs from what you filed because credits were matched against the deductor's records and adjustments were made. The intimation tells you exactly which figure was changed, and that is the starting point for putting it right.
When this matters
Every electronically filed return is processed under section 143(1), so practically every assessee receives an intimation, usually a few months after filing. It matters most in three situations: where the intimation shows a demand, where it shows a refund smaller than you expected, and where it shows "no demand no refund" while your Form 26AS clearly carried a credit. In all three the remedy is usually a rectification or a reply, and the time to act is while the records are fresh. Our tax practice and the tax formats library both carry worked examples of these replies.
Why the intimation differs from what you filed
- TDS or TCS mismatch. The system allows only the credit that the deductor has actually reported and that is reflected in your Form 26AS. If the deductor filed late, filed against the wrong PAN, or has not filed at all, the credit shown in your return is reduced and a demand appears.
- Interest mismatch. The interest you computed on a bank deposit or on a refund may not match the amount the bank reported, and the difference is adjusted.
- Deductions disallowed. A deduction claimed without the corresponding proof in the return data — for example a Chapter VI-A deduction the system cannot verify — may be disallowed on a prima facie basis under section 143(1)(a).
- Small arithmetic adjustments. Rounding, a wrong total, or a claim carried into the wrong column produces a small difference that is still a difference.
- Income reported by a third party. Interest, dividend or a sale reported by a bank or registrar may appear in the Annual Information Statement even though you did not offer it, and the system may or may not act on it.
Reconciling with Form 26AS and AIS
- Download Form 26AS and the Annual Information Statement (with the Taxpayer Information Summary) for the same assessment year from the e-filing portal.
- Compare each TDS entry: the deductor's TAN, the amount, the quarter and the section. A single wrong digit in your PAN splits a credit into a "mismatch" bucket that never reaches your 26AS.
- Compare the AIS interest, dividend and securities figures with your return. Where the AIS is wrong, you can submit feedback on the portal so the source is corrected.
- Once the 26AS and AIS agree with your computation, the intimation's adjustment can be shown to be wrong on the record and a rectification becomes straightforward.
Rectification under section 154
A rectification is meant for a mistake apparent from the record — the classic case is a TDS credit that was due but was not allowed because the deductor's statement arrived late. File it online, quoting the intimation's acknowledgement number and the assessment year, and attach the corrected 26AS and the deductor's certificate. If the deductor's statement is the problem, the deductor first has to file or correct the quarterly statement; only then will the credit flow through to your 26AS and be allowed on rectification.
Responding to a demand, and a refund that did not come
- A demand in the intimation is recoverable after the period stated in the notice of demand, and interest runs on an unpaid demand, so track the response window from the date on the intimation.
- Where the adjustment is wrong, file the rectification or the online reply before the demand becomes recoverable; do not wait for a recovery notice.
- Where a refund is stuck because a demand for an earlier year is outstanding, the department adjusts the refund against that demand and issues an intimation of the adjustment — check that the set-off is correct, and dispute it if it is not.
- Where a refund simply has not arrived and no adjustment is shown, raise a grievance on the portal with the intimation and the bank account details; if the account is not validated for the refund, re-validate it.
Documents to keep
- The intimation under section 143(1), the return acknowledgement and the computation.
- Form 26AS and the AIS/TIS downloads for the year.
- Form 16 or Form 16A from each deductor, and the deductor's correction statement if one was filed.
- Bank interest certificates and the deposit statements relied on in the return.
- The acknowledgement of every rectification, reply or grievance filed.
Common mistakes
- Paying a demand shown in a 143(1) intimation without first checking whether the adjustment was itself wrong — a refundable credit is often simply a late-filed TDS statement away.
- Filing a rectification for something that is not "apparent from the record", which invites a rejection; the correct route may instead be a revised or updated return.
- Ignoring the intimation because the amount is small, and losing the record before the credit is traced.
Common questions
Is an intimation under section 143(1) an assessment order?
No. It is the outcome of computerised processing. It can be corrected by rectification, and where a genuine dispute remains it can be appealed within the period the statute allows from the date of the intimation.
The deductor deducted tax but it is not in my 26AS. What can I do?
You cannot force the credit into the system yourself. Ask the deductor to file or correct the quarterly statement against your correct PAN, and if that does not happen, raise a grievance on the portal and keep the certificate and bank proof of the deduction.
Can I claim a TDS credit the department has not allowed?
Yes, if the deduction is genuine and provable. Claim it, and be ready to support it with the certificate and bank statement; the usual remedy when it is disallowed is a rectification once the deductor's statement reflects the credit.
How long do I have to fix a mismatch?
There is a prescribed window for filing a rectification, counted from the end of the financial year in which the intimation was issued, so act promptly rather than waiting. Where the window has closed, the record still supports a grievance and, in the right case, an appeal.
If a notice is sitting unanswered, the reply is best drafted before the date fixed in the notice runs out. FileX Advocates & Legal Consultants, Kolkata, handles tax notice replies and appeals and offers a free first consultation — call +91 7439811422 or WhatsApp us.