Intimation u/s 143(1) is the first stage where all Income-tax returns are processed to correct arithmetical mistakes, internal inconsistencies, tax calculation and verification of tax payment.
At this stage, no verification of income is undertaken. It is completed through computerised processing and there is no human interference.
Intimation under section 143(1) is sent to a taxpayer only in case any tax or interest is found payable or refundable or there is any increase / reduction in loss. In case , one has received such an intimation , he should first check the reason for receiving it. The intimation would contain the details of return filed by you and the computation as done by the income tax department.
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The return filer is required to read and analyse the intimation. The result varies case to case basis and broadly has three conclusions:
1. No demand No Refund ( but resulting in any increase / reduction in loss)
It is a case where the adjustments as referred to in section 143(1) have been made resulting in increase/ reduction in loss declared by the taxpayer and no interest or tax is payable/ refundable by/ to the assessee.
2. Demand Determined
It is a case where any interest or tax is found payable on the basis of the return after making adjustments as referred to in section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.
3. Refund Determined
It is a case where any amount is found refundable on the basis of the return after making adjustments as referred to in section 143(1) and after giving credit to the taxes and interest paid by the taxpayer.