Intimation after processing your return: section 143(1) notice

Which law applies? The Income-tax Act, 2025 applies to the tax year 2026-27 onwards. Section 536(2)(c) of that Act says the repealed Income-tax Act, 1961 continues to apply to proceedings, including notices, assessment, reassessment, rectification, penalty and appeals, for any tax year beginning before 1 April 2026, that is the financial year 2025-26 (assessment year 2026-27) and earlier. Each notice page below gives both: the 2025 Act first, then the 1961 Act as printed by the Income Tax Department on 22 May 2026. For the oldest assessment years (up to 2021-22) the reassessment time limits in force before 1 September 2024 may apply, and that earlier text was not read.

The Income Tax Department has processed your return and tells you the tax, interest or fee payable or the refund due. If it changed any figure in your return, it must tell you first and wait for your response.

What it means under the Income-tax Act, 2025 (tax year 2026-27 onwards)

Section 270(1) lists the adjustments the processing may make: an arithmetical error, an incorrect claim that is apparent from the return, an inconsistency with an earlier year’s return as prescribed, disallowance of a loss claimed in a late return, an audit-report disallowance not taken in the return, and a deduction claimed in a late return under section 144 or Chapter VIII-C. Before making any adjustment a communication must be given to you and your response considered; if none arrives within thirty days the adjustment is made (section 270(2)). The intimation cannot be sent after nine months from the end of the financial year in which the return was made (section 270(4)). Where nothing is payable or refundable and nothing was adjusted, the acknowledgement of the return counts as the intimation (section 270(5)(b)).

Time limits under the 2025 Act

An intimation cannot be sent after nine months from the end of the financial year in which the return is made. You have thirty days to respond to a communication about an adjustment. A sum payable under the intimation is treated as a notice of demand (section 289(2)), payable within thirty days of service (section 411(1)).

Under the Income-tax Act, 1961 (tax years before 2026-27)

Section 143(1). Section 143(1) of the 1961 Act lists the adjustments: an arithmetical error; an incorrect claim apparent from the return; an inconsistency with the return of an earlier year as prescribed; disallowance of a loss claimed where the return of the year of the loss was late; disallowance of an expenditure or income increase shown in the audit report but not taken in the return; disallowance of a deduction (section 10AA or Chapter VI-A, heading C) claimed in a late return; and, for returns of assessment years before 2018-19 only, the addition of income appearing in Form 26AS, Form 16A or Form 16. No adjustment is made unless an intimation of it is given first, the response is considered, and where none comes within thirty days the adjustment is made.

Time limits. No intimation can be sent after nine months from the end of the financial year in which the return is made (second proviso to 143(1)). A sum payable under the intimation is deemed a notice of demand (proviso to section 156(1)), to be paid within thirty days of service (section 220(1)); an appeal against an assessment or penalty is presented within thirty days of the service of the notice of demand (section 249(2)).

What to do first

Compare the figures in the intimation with your return, line by line.
If it shows an adjustment, check which of the six grounds in section 270(1)(a) the Department relies on.
If you agree, pay any sum due within thirty days; if you disagree, respond before the thirty days end, or ask for rectification under section 287.
Keep the intimation and the proof of what you did.

An outline for a reply

State the return details (PAN, tax year, acknowledgement number), say which adjustment you disagree with, explain why with the figures and the page of the return or document that supports you, attach the documents, and ask that the adjustment not be made.

This is a general outline, not a reply to your own notice: facts and documents differ, and the deadline is short. Ask a chartered accountant.

Common questions

What section of the new Act replaces section 143(1)?

Section 270(1) to (5) of the Income-tax Act, 2025, for the tax year 2026-27 onwards. For earlier tax years the 1961 Act continues to apply to notices (section 536(2)(c)) and the notice quotes section 143(1) of that Act.

Source

The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: sections 252, 263, 268, 270, 279 to 282, 287, 289, 357, 358, 411, 412 and 536. The enacted text was read on 13 November 2026.
The Income-tax Act, 1961 (text with amendments, printed by the Income Tax Department on 22 May 2026): sections 133, 139(9), 142, 143, 148, 148A, 149, 150, 154, 156, 220 and 249(2). Downloaded from incometaxindia.gov.in and read on 13 November 2026.
Old-section to new-section mapping: the Income Tax Department’s section navigator, checked against the Act (see the Income-tax Sections section of this family).

Rules read on 13 November 2026 from the Income-tax Act, 2025. This site explains notices in general terms. It is not legal advice and does not replace a chartered accountant or tax lawyer. A notice has a deadline: do not rely on a web page for your own case, and ask a professional soon.