What is an Intimation Letter from Income Tax?

The Intimation Letter, under Section 143(1), is issued by the Income Tax Department (ITD). It is received by taxpayers after their Income Tax Return (ITR) has been successfully processed by the Department. In this blog post, we shall explain the key details about this letter.

Intimation Letter Meaning

In Indian taxation law, intimation letter means a formal automated communication letter from the Income Tax Department, under Section 143(1) of the Income Tax Act 1961. The taxpayer receives this after their return is processed by the department’s Centralized Processing Centre (CPC), which compares the information submitted with its own records. In case of any discrepancies or errors, the same are highlighted in the letter. 

Intimation letter income tax 143 1 is simply the Department’s initial computation of your tax liability. It shows whether the details you filed align with the tax calculation carried out by the Department.

When Does One Receive an Intimation Letter u/s 143(1)?

Intimation letter u/s 143(1) is received by the taxpayer after their return has been processed successfully. It is generated by the system, not manually. All it does is that it simply checks whether the taxpayer’s return’s numbers add up correctly, cross verifies the details with the information the department already has and applies the provisions of income tax law. 

On the basis of this, it prepares a comparison report. In case the taxpayer has paid more tax than required, the intimation will reflect that they are eligible for a refund (as long as it is more than Rs. 100). 

If they have paid less, it will mention the tax they still owe and a challan for making the payment. The letter of intimation can be thought of as a straightforward communication regarding confirmation from the department that the ITR you filed matches their calculations.

Similar Post: How to Check Income Tax Refunds Status AY 2025–26

How to Respond to Income Tax Intimation?

If you have received an intimation, you must typically respond within a period of 30 days. In cases where the intimation arises due to a discrepancy or mismatch resulting in a tax liability, you have two options. If you agree with the discrepancy, you should pay the outstanding tax liability and then, accordingly, you must revise your return. 

However, if you disagree with the findings, you must submit your response on the Income Tax Portal providing reasons and supporting documentation for the discrepancy. Below, we have explained how you can respond to the letter of intimation. :-

Step 1:- Visit the official e-filing portal @ https://www.incometax.gov.in/iec/foportal/.

Step 2:- Once you are on the homepage, click on the ‘Login’ button.

Step 3:- Now, you must enter your User ID, Password and Captcha to log in.

Step 4:- Once you have logged in, click on the ‘pending actions’ tab and then on the ‘e-proceeding’ option.

Step 5:- Thereafter, you need to view the relevant notice by clicking on ‘Prima Facie Adjustment u/s 143(1)(a)’ .  

Step 6:- Now, compare the computation by the department with your original ITR. Then, you must submit your response through the portal. A summary will be provided regarding discrepancies due to which the notice has been issued. With each proposed adjustment, you will have the option to “Agree” or “Disagree”. You can provide a justification if you disagree with the notice issued by the department.

Step 7:- Before submitting your response, you can attach supporting documents regarding discrepancy. 

Step 8:- Finally, click on the ‘Submit’ button, and then an acknowledgement will be provided to you.

Intimation Letter Download Process

To download intimation order/letter via e-filing portal of the tax department, follow the steps stated below. :-

Step 1:- Visit the official e-filing portal @ https://www.incometax.gov.in/iec/foportal/.

Step 2:- Now, click on ‘Login’ and then enter your login details.

Step 3:- Then, go to e-file > Income Tax Returns and then click on ‘View Filed Returns’.

Step 4:-  Finally, click on hyperlink ‘Download Intimation Order’ for downloading the intimation successfully.

Conclusion

The letter of intimation is an automated notification issued, under Section 143(1), by the ITD. The taxpayer receives it after filing their ITR. To respond to this letter, you must visit the official e-filing portal of the ITD and fulfill all the necessary steps. Make sure to submit your response in a timely manner to avoid fines or penalties. 

Need assistance in ITR filing or in responding to the letter of intimation? Connect with our experienced tax consultants at Registrationkraft!

Frequently Asked Questions (FAQs)

Q1. Which authority issues intimation letter income tax 143 1?

The Income Tax Department issues this letter.

Q2. Why does the Tax Department issue the letter of intimation?

The letter of intimation is issued to inform the taxpayer about the results of processing their tax return. The letter mentions adjustments, tax demand, refund or discrepancies.