Income Tax Intimation Under Section 143(1): Refund, Demand or No Demand — How to Read and Respond

Introduction

After filing your Income Tax Return, the work is not fully over.

The Income Tax Department processes your return through CPC Bengaluru and sends an intimation under Section 143(1).

Many taxpayers receive an SMS or email saying:

“Your ITR for AY 2026-27 has been processed at CPC.”

This message can mean one of three things:

• refund is issued;
• demand is raised;
• no demand and no refund.

This article explains how to read Section 143(1) intimation, what each status means, and what action you should take.

For ITR filing, demand response and rectification support, visit TaxClear.in.

What Is Section 143(1) Intimation?

Section 143(1) intimation is a processing communication issued by the Income Tax Department after your ITR is processed.

It compares:

• income reported by you;
• deductions claimed by you;
• tax liability calculated by you;
• TDS/TCS/advance tax/self-assessment tax claimed by you;
• data available with CPC.

It is not always a scrutiny notice. In most cases, it is simply a processing summary.

Who Sends This Intimation?

The intimation is generally issued by:

CPC — Centralized Processing Centre, Bengaluru

You may receive it through:

• SMS;
• email on registered email ID;
• e-filing portal;
• downloadable PDF intimation.

Official Income Tax guidance confirms that notices, intimations and letters issued by the Department and CPC are available under e-Proceedings / e-filing services where taxpayers can view and respond electronically where required.

AY 2026-27 Means Which Financial Year?

For returns filed for FY 2025-26, the Assessment Year is AY 2026-27.

Financial Year	Assessment Year
1 April 2025 to 31 March 2026	AY 2026-27

Therefore, if your message says AY 2026-27, it refers to income earned during FY 2025-26.

Why Does the SMS Mention PAN Partially?

The SMS or email may show only partial PAN details, such as first few and last few characters.

This helps taxpayers identify whether the message belongs to them.

If the PAN does not belong to you or your family/client, do not click suspicious links. Log in directly to the official Income Tax portal and verify.

How to Download Section 143(1) Intimation

You can download the intimation from the Income Tax e-filing portal.

Steps

1. Login to the Income Tax portal.
2. Go to e-File.
3. Select Income Tax Returns.
4. Click View Filed Returns.
5. Select the relevant Assessment Year.
6. Click Download Intimation Order.
7. Open the PDF using the required password.

Password for 143(1) Intimation PDF

The PDF password is generally:

PAN in lowercase + date of birth in DDMMYYYY format

Example

Detail	Example
PAN	ABCDE1234F
DOB	01 January 1990
Password	abcde1234f01011990

Check the exact password instructions in the email/intimation if the PDF does not open.

Three Possible Results in 143(1) Intimation

The transcript explains three practical categories. Some emails or PDFs may show colour-coded summaries, but the legal meaning is based on the computation, not the colour.

Practical Category	Meaning	Action
Refund	Department accepts/refines refund payable	Check refund credit
Demand	Department says tax is payable	Verify reason and respond
No demand / no refund	Return processed with no payable/refund	Keep record

Case 1: No Demand and No Refund

This is the simplest case.

It means:

• your return is processed;
• no extra tax is payable;
• no refund is due;
• CPC has broadly accepted the computation.

What to Do

Step	Action
1	Download intimation
2	Check income and tax comparison
3	Save PDF for records
4	No payment needed
5	No response needed unless data is wrong

Do not delete the intimation. Keep it with your ITR acknowledgement and computation.

Case 2: Refund Intimation

If the intimation says refund is payable, it means CPC has processed your return and determined refund.

The refund may include:

• refund claimed in ITR;
• additional refund allowed;
• refund interest under Section 244A, where applicable.

Example

Particulars	Amount
Refund claimed in ITR	₹14,830
Refund determined by CPC	₹15,050
Extra amount	₹220
Possible reason	Refund interest

Interest on income tax refund is taxable in the year of receipt and should be reported under “Income from Other Sources” in the next applicable ITR.

How to Check Refund Status

You can check refund status from the e-filing portal.

Steps

1. Login to Income Tax portal.
2. Go to View Filed Returns.
3. Select the relevant ITR.
4. Click View Details.
5. Check refund status.
6. Check bank account and UTR details.

Make sure your bank account is pre-validated and linked with PAN.

Case 3: Demand Intimation

A demand intimation means CPC has processed your return and found tax payable.

This does not always mean the demand is correct.

It may arise due to:

• wrong tax regime selection;
• missed TDS/TCS credit;
• wrong challan details;
• Form 10-IEA mistake;
• deduction disallowed;
• rebate under Section 87A denied;
• interest under Sections 234A/234B/234C;
• mismatch between ITR and Form 26AS/AIS;
• wrong ITR form;
• wrong schedule data;
• return filed under old regime instead of new regime or vice versa.

Do Not Pay Demand Blindly

Before paying demand, compare:

• ITR computation;
• 143(1) intimation;
• Form 26AS;
• AIS/TIS;
• Form 16;
• tax challan details;
• tax regime selected;
• deductions and rebate claimed.

If the demand is correct, pay it.
If the demand is wrong, respond properly or file rectification/revised return as applicable.

Official guidance states that the “Response to Outstanding Demand” service allows taxpayers to view and submit response to outstanding demand and pay the demand wherever applicable.

Common Reason: Wrong Tax Regime

For AY 2026-27, many demand cases may arise due to wrong regime selection.

For example, a taxpayer expected new regime benefit but the return was processed under old regime due to incorrect selection or Form 10-IEA-related issue.

Example

Particulars	Taxpayer’s Understanding	CPC Processing
Total income	₹7,35,000	₹7,35,000
Expected regime	New regime	Old regime processed
Expected tax	Nil / lower	Demand raised
Possible issue	Wrong regime/Form 10-IEA selection	Needs review

In such cases, check whether the return can be revised or whether rectification is the correct route.

Revised Return vs Rectification

This is a very important difference.

Situation	Correct Route
You made a mistake in original ITR and time to revise is available	File revised return
CPC made a mistake apparent from record after processing	File rectification
Demand is correct	Pay demand
Demand is incorrect but cannot be fixed by revised return	Respond to demand / rectification
Tax credit mismatch	Rectification may be used after processing

Official guidance confirms that a rectification request can be submitted if there is a mistake apparent from record in an intimation issued under Section 143(1), and that if CPC has processed the return raising a demand or allowing less refund, online rectification can be filed with CPC.

When to File Revised Return

File a revised return if:

• original return had wrong income;
• wrong deduction was claimed;
• wrong tax regime was selected and revision is permitted;
• missed income needs to be added;
• TDS/TCS/challan credit was not claimed;
• bank details were wrong;
• return has not yet become final and revision window is open.

When to File Rectification

Rectification is suitable after processing where the mistake is apparent from record, such as:

• TDS credit not allowed despite Form 26AS;
• challan credit not given;
• arithmetical mistake;
• mismatch in tax credit;
• CPC processing error;
• wrong adjustment visible from record.

Official Income Tax guidance says rectification can be used only against a notice/order/intimation from CPC for a specific e-filed return, and a taxpayer cannot file CPC rectification after 4 years from the end of the financial year in which the 143(1) intimation was passed.

How to Respond to Outstanding Demand

Steps

1. Login to Income Tax portal.
2. Go to Pending Actions.
3. Click Response to Outstanding Demand.
4. Select the relevant demand.
5. Choose the correct response:
   • demand is correct;
   • demand is partially correct;
   • disagree with demand.
6. Attach supporting details, where required.
7. Submit response.

Official FAQ guidance states that outstanding demand can be checked through Pending Actions → Response to Outstanding Demand.

What to Check in 143(1) Intimation

The intimation usually compares two columns:

Column	Meaning
As provided by taxpayer	Data filed in your ITR
As computed under Section 143(1)	Data processed by CPC

You should check differences head-wise.

Important Items to Review

Item	Check
Salary income	Matches Form 16
House property	Rent/interest/loss correctly considered
Business income	Correct figures processed
Capital gains	STCG/LTCG correctly taken
Other sources	Interest/dividend reported
Deductions	80C, 80D, NPS etc. allowed if applicable
Rebate	Section 87A correctly allowed/denied
Tax regime	Old/new regime correctly applied
TDS/TCS	Fully credited
Advance tax/SAT	Correct challan credit
Interest	234A/234B/234C correctly applied
Refund	Correct amount
Demand	Correct reason

Why 143(1) Demand May Come

Reason	Explanation
TDS not claimed properly	Tax credit not adjusted
Challan not entered	Self-assessment tax not considered
Wrong BSR/challan number	Payment not matched
AIS/Form 26AS mismatch	Income/tax credit difference
Wrong regime	Tax calculated differently
87A rebate issue	Rebate denied due to income/regime
Deduction not allowed	Claim not eligible under selected regime
Late filing	234F fee / interest
Advance tax shortfall	234B/234C interest
Return data error	Wrong schedule entry

Example: Challan Credit Not Given

A taxpayer paid self-assessment tax but forgot to enter challan details in Schedule IT.

CPC processes return and raises demand.

In this case, if tax was actually paid, the taxpayer may need to file rectification and provide correct challan details.

Official CPC communication examples show that where tax payment challan details were not entered in Schedule IT, demand may be raised, and the taxpayer may submit rectification to claim tax payment credit.

Example: Refund Processed

A taxpayer claimed refund of ₹20,000.

CPC processes the return and allows refund of ₹20,000 plus interest.

Action required:

• check bank credit;
• save intimation;
• report refund interest in next year’s ITR;
• no further response needed unless amount differs.

Example: No Demand No Refund

A taxpayer’s tax liability and tax paid match exactly.

CPC processes return and says no payment due.

Action required:

• save intimation;
• no further action.

Example: Demand Due to Wrong Regime

A taxpayer expected new regime but return processed under old regime due to incorrect filing.

Action required:

1. check ITR acknowledgement;
2. check Form 10-IEA status, if applicable;
3. check whether revised return is possible;
4. compare old vs new regime;
5. file revised return/rectification as applicable;
6. respond to demand if shown under pending actions.

Should You Ignore 143(1) Intimation?

Do not ignore it.

Even if it says no demand, download and preserve it.

If it says demand, act within time.

If it says refund, verify credit.

Difference Between 143(1) Intimation and Scrutiny Notice

Point	143(1) Intimation	Scrutiny Notice
Nature	Processing summary	Detailed assessment inquiry
Issued by	CPC	Assessing Officer / system
Common result	Refund, demand or no demand	Detailed verification
Response required	Only if demand/mismatch/action	Yes
Documents required	Usually limited	Detailed documents
Risk level	Lower	Higher

A 143(1) intimation is not automatically scrutiny.

What If You Do Not Verify ITR?

ITR processing generally happens after a validly filed and verified return.

Official guidance confirms that ITR must be e-verified or ITR-V must be submitted within 30 days from filing; without verification within the time limit, the ITR may be treated as invalid.

Therefore, after filing ITR, always verify it immediately.

Checklist After Receiving 143(1) Intimation

Step	Action
1	Confirm PAN and AY
2	Download intimation PDF
3	Open using correct password
4	Check refund/demand/no demand
5	Compare taxpayer data vs CPC data
6	Check tax regime
7	Check TDS/TCS credit
8	Check challan credit
9	Check rebate/deductions
10	Save PDF
11	Respond/pay/rectify/revise if required

Documents to Keep Ready

Document	Purpose
ITR acknowledgement	Filing proof
ITR computation	Tax calculation
143(1) intimation	CPC processing result
Form 16	Salary/TDS
Form 26AS	TDS/TCS/tax paid
AIS/TIS	Income and transaction data
Challan receipts	SAT/advance tax proof
Bank statement	Refund/tax payment verification
Form 10-IEA	Regime issue, if applicable
Deduction proofs	If deduction mismatch
Capital gains report	If CG mismatch

Common Mistakes to Avoid

Mistake	Risk
Not downloading intimation	Missing demand/refund difference
Paying demand blindly	Unnecessary payment
Ignoring demand	Interest/recovery risk
Filing rectification when revised return is needed	Wrong remedy
Filing revised return when rectification is needed	Delay
Not checking tax regime	Demand may remain unresolved
Not checking challan credit	Demand despite payment
Not checking TDS/TCS	Refund loss
Ignoring refund interest	Next year income omission
Not preserving PDF	Future compliance issue

TaxClear View

A Section 143(1) intimation should be read carefully, not feared.

The key is to compare:

• what you filed;
• what CPC computed;
• what tax credit was allowed;
• whether refund/demand is correct.

If everything matches, keep the intimation for records.

If demand is raised, do not panic and do not pay blindly. First identify the reason. Then decide whether to pay, revise, rectify or respond to demand.

For demand response, rectification, revised return and ITR review, visit TaxClear.in.

Key Takeaways

• Section 143(1) intimation is sent after ITR processing.
• It may show refund, demand or no demand/no refund.
• It is generally issued by CPC Bengaluru.
• Download it from View Filed Returns on the Income Tax portal.
• PDF password is usually lowercase PAN plus date of birth in DDMMYYYY format.
• Check taxpayer data vs CPC computation carefully.
• Demand may arise due to wrong regime, missed TDS, wrong challan details or rebate/deduction issues.
• Do not pay demand without checking the reason.
• File revised return if your ITR had a mistake and revision is available.
• File rectification if CPC processing has a mistake apparent from record.
• Respond to outstanding demand through the portal where required.
• Refund interest is taxable in the year of receipt.
• Keep 143(1) intimation safely with ITR records.

Conclusion

Receiving an SMS or email from ITD-CPC that your ITR has been processed is normal.

But the real work is to read the Section 143(1) intimation properly.

If it shows no demand and no refund, save it.
If it shows refund, verify bank credit.
If it shows demand, identify the reason and take correct action.

For professional help in reading 143(1) intimation, responding to income tax demand, filing rectification or revising ITR, visit TaxClear.in.