Income Tax · Section 143
Sec 143 Of Income Tax Act (India, 2026)
Section 143 is the part of the income tax law that deals with what happens after you file your return. Almost every return is processed under it, and a smaller number are picked for closer examination. Because the same section number appears on very different communications, it helps to know whether you are looking at a routine intimation or the start of a scrutiny.
- 143(1): an automated intimation after processing; usually routine, and either agrees, shows a refund, or raises a demand.
- 143(2): a notice that your return is selected for scrutiny; it needs a careful, evidence-backed response.
- 143(3): the assessment order after scrutiny, which may accept the return or make additions and a demand.
- Time limits: 143(2) must be issued within a set window, and 143(3) completed within a limit; note every deadline.
- Faceless: most scrutiny is online, with no in-person meeting; respond through the portal.
- Section numbers may change: the Income-tax Act 2025 is replacing the 1961 Act; confirm current references.
01The three parts of section 143
Section 143 has three main limbs, and they mean very different things.
| Provision | What it is | How worried to be |
|---|---|---|
| 143(1) | An automated intimation after your return is processed | Usually routine |
| 143(2) | A notice that your return has been selected for scrutiny | Needs a careful response |
| 143(3) | The assessment order passed after scrutiny | The outcome of scrutiny |
So a 143(1) is received by almost everyone and is mostly nothing to worry about, while a 143(2) is less common and signals a detailed examination. Read which one you have before reacting.
02143(1): the intimation after processing
After you file, the return is processed, largely automatically, at the central processing centre. The result is an intimation under section 143(1). It compares the figures in your return with the department's records and arithmetic and can do one of three things:
- Agree: no change, your return is accepted as filed.
- Refund: you have paid more than due and a refund is shown.
- Demand: a difference is found, for example a mismatch in TDS credit or a disallowed claim, and tax is demanded.
Only certain adjustments are allowed at this stage, such as arithmetical errors and obvious inconsistencies. If you disagree with a 143(1) adjustment, you can respond on the portal or file a rectification. For the specific pre-adjustment communication, see section 143(1)(a) of the Income Tax Act.
03143(2): the scrutiny notice
A notice under section 143(2) means your return has been selected for scrutiny, a detailed examination. It does not mean you have done something wrong; returns are picked on risk parameters and sometimes at random. The notice asks you to support the claims in your return with evidence.
There is a time limit for issuing a 143(2) notice, tied to the end of the financial year in which the return was filed, so a notice outside that window can be challenged. Once issued, you must respond with the documents and explanations sought, usually through the faceless system.
Faceless assessment
Most scrutiny now happens through a faceless process, where communication is online and you do not meet an officer in person. Respond through the portal within the time given, and keep every submission saved.
04143(3): the assessment order
After the scrutiny under 143(2), the officer passes an assessment order under section 143(3). This is the formal decision. It may accept your return, or it may make additions and raise a demand if claims were not accepted.
There is a time limit for completing the 143(3) assessment, running from the end of the relevant assessment year. If the order makes additions you disagree with, you can file an appeal to the first appellate authority within the time allowed. The order should set out the reasons, which you need in order to appeal effectively.
05How to respond and by when
Whatever the limb, the response runs through the e-filing portal at incometax.gov.in.
- Read the communication carefully and identify whether it is a 143(1) intimation, a 143(2) notice or a 143(3) order.
- Note the deadline. Each carries a response or appeal window, and missing it narrows your options.
- Gather the supporting documents for the figures being questioned.
- Respond on the portal, agreeing, correcting, or contesting with evidence as the case needs.
- Save the acknowledgement of whatever you file.
For another common post-filing deduction query, see our note on section 80TTB.
06How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
A routine 143(1) that simply accepts your return needs no help at all, and a small mismatch is often fixable yourself on the portal. Help matters when a 143(1) demand is wrong, or when you receive a 143(2) scrutiny notice, where the quality and timing of your response shapes the outcome.
With Claw Tax and Accounts, a verified chartered accountant reads the notice, prepares the response with the right evidence, and represents your position in the faceless process, at a fixed published price, with a Claw reviewer checking the submission first. A free notice decoder also helps you understand what you have received.
This is not tax advice; a verified CA handles your specifics.
07Frequently asked questions
What does an intimation under section 143(1) mean?
It is the result of your return being processed, largely automatically. It compares your figures with the department records and either accepts the return, shows a refund, or raises a demand for a difference such as a TDS mismatch. For most people it is routine, but check it, because a demand may be based on an error you can correct.
Is a section 143(2) notice something to worry about?
It means your return has been selected for scrutiny, a detailed examination. It does not by itself mean you did anything wrong, as returns are picked on risk parameters or at random. It does need a careful, timely response with supporting documents, usually through the faceless system, so it is worth taking seriously.
What is the difference between 143(1), 143(2) and 143(3)?
143(1) is the automated intimation after processing. 143(2) is the notice selecting your return for scrutiny. 143(3) is the assessment order passed after that scrutiny. In short, 143(1) is routine, 143(2) starts a detailed review, and 143(3) is the decision that comes out of it.
How long does the department have to send a scrutiny notice?
A 143(2) notice must be issued within a set time window linked to the end of the financial year in which the return was filed. A notice issued outside that window can be challenged. Because the exact limit can change, confirm the current provision for your year before relying on a timing objection.
What should I do when I receive a section 143 communication?
First identify which limb it is, then note the deadline, gather the documents for the figures being questioned, and respond through the e-filing portal, agreeing, correcting or contesting as appropriate. Keep the acknowledgement. For a scrutiny notice or a wrong demand, professional help improves the response.