Section 143(1)(a) Adjustments Explained: How to Respond Effectively
- PRITI SIRDESHMUKH
- Nov 3
- 9 min read
Section 143(1)(a) of the Income Tax Act empowers the Income Tax Department to make initial adjustments to a filed return when mismatches, omissions, or calculation errors are detected. These adjustments are based on data from Form 16, Form 16A, or Form 26AS and aim to correct discrepancies before final processing. Taxpayers may receive an intimation highlighting income differences, disallowed deductions, or unreported income. Responding accurately and on time is critical to prevent additional tax demands or interest.
Table of Contents
Common Reasons for Receiving a Notice Under Section 143(1)(a)
Step-by-Step Process to File Your Response on the e-Filing Portal
Documents Required While Responding to a Section 143(1)(a) Notice
Addition of Unreported Income Reflected in Form 26AS or Form 16
What Happens If You Don’t Respond to a Section 143(1)(a) Intimation
How TaxBuddy Helps You Handle Section 143(1)(a) Notices Effectively
What Is Section 143(1)(a) of the Income Tax Act
Section 143(1)(a) of the Income Tax Act, 1961 allows the Income Tax Department to make initial or “prima facie” adjustments to a taxpayer’s filed Income Tax Return (ITR) before it is processed. These adjustments are made based on discrepancies found between the details furnished in the return and data available from other sources like Form 16, Form 26AS, or AIS (Annual Information Statement). The purpose of this section is not to conduct a detailed scrutiny but to ensure that the return is mathematically correct and consistent with reported income and deductions. If any difference is detected, an intimation is sent to the taxpayer for confirmation or correction.
When and Why Are Adjustments Made Under Section 143(1)(a)
Adjustments under Section 143(1)(a) are made when the system identifies mismatches or inconsistencies between the data in your ITR and the information provided by employers, banks, or other institutions. These may include differences in reported income, incorrect deduction claims, or computational errors. The main objective is to identify and correct obvious mistakes without conducting a detailed inquiry. It ensures transparency and accuracy in tax computation, allowing taxpayers to rectify genuine errors before final assessment.
Common Reasons for Receiving a Notice Under Section 143(1)(a)
Notices under this section are usually triggered due to minor discrepancies or data mismatches. Common reasons include:
Mismatch between income declared in ITR and Form 16, Form 16A, or Form 26AS
Claiming deductions or exemptions not supported by official records
Non-reporting of income from bank interest, rent, or capital gains
Filing the return after the due date and claiming deductions that are not permitted for late filers
Clerical or arithmetical errors in tax computation
Such notices are system-generated and do not indicate serious scrutiny but should be responded to carefully within the prescribed time.
How to Respond to a Section 143(1)(a) Notice Online
Responding to a Section 143(1)(a) notice is a straightforward process that must be completed online through the Income Tax e-filing portal. The taxpayer needs to review the proposed adjustments, verify them against their filed return, and either agree or disagree with the changes. The response should be submitted within 30 days from the date of issue of the notice to avoid automatic adjustments or penalties.
Step-by-Step Process to File Your Response on the e-Filing Portal
Visit the official Income Tax e-filing portal and log in using your PAN and password.
Navigate to ‘e-Proceedings’ and select ‘e-Assessment/Proceedings’.
Under this section, locate the notice related to ‘Prima Facie Adjustment u/s 143(1)(a)’.
Review the details of the proposed adjustment carefully.
Choose to either accept or disagree with the proposed changes.
If you disagree, provide justification along with supporting documents such as Form 16, Form 26AS, or bank statements.
Submit your response electronically and ensure you receive the acknowledgment.
Documents Required While Responding to a Section 143(1)(a) Notice
To support your response effectively, gather and upload relevant documents such as:
Form 16 issued by your employer
Form 26AS or AIS statement showing income and TDS details
Salary slips or proof of income
Receipts for deductions claimed under various sections (like 80C, 80D, or 80U)
Investment proofs or bank interest certificates
Any other document substantiating your claim or correcting the mismatch
Key Adjustments Made Under Section 143(1)(a)
The Income Tax Department makes certain automatic corrections under this section to ensure data accuracy. These adjustments are not assessments but corrections that ensure the return matches official data. Common adjustments include the disallowance of deductions for late returns, the addition of missed income, and rectification of calculation errors.
Disallowance of Late Deductions or Loss Claims
If a taxpayer files their return after the due date, certain deductions and loss claims become ineligible under the Act. The system automatically disallows such claims while processing the return. This often applies to deductions under Chapter VI-A (such as 80C, 80D) and to business or capital loss carry-forwards filed after the due date.
Correction of Arithmetical or Clerical Errors
Errors in computation, such as incorrect tax totals or miscalculations in exemptions, are rectified automatically under Section 143(1)(a). These corrections help ensure that the return reflects the accurate tax payable or refundable amount.
Addition of Unreported Income Reflected in Form 26AS or Form 16
If the income reported by third parties (like employers or banks) differs from what the taxpayer has declared, the department adjusts the return to include the missing amount. This commonly occurs with interest income, dividends, or professional receipts reflected in Form 26AS but not disclosed in the ITR.
What Happens If You Don’t Respond to a Section 143(1)(a) Intimation
If a taxpayer fails to respond within 30 days of receiving the intimation, the return is processed with the proposed adjustments made automatically. This may result in higher taxable income, additional tax liability, and even the levy of interest or penalties. Ignoring such notices can also affect refund eligibility or trigger further scrutiny. Hence, timely response is essential to prevent complications.
How TaxBuddy Helps You Handle Section 143(1)(a) Notices Effectively
TaxBuddy provides a comprehensive solution for handling tax notices through its AI-driven platform. It automatically detects mismatches between your filed return and Form 26AS, highlights discrepancies, and assists in drafting accurate responses. With expert-assisted support and real-time tracking, TaxBuddy ensures that your notice is handled correctly and within deadlines. The platform simplifies the process for both salaried and self-employed taxpayers, ensuring compliance without stress.
Conclusion
Section 143(1)(a) notices are common and usually relate to preliminary data checks, not detailed scrutiny. Responding on time, with proper verification and documentation, ensures smooth resolution and avoids unnecessary tax demands. Using platforms like TaxBuddy makes the process seamless by combining AI automation with expert review.
For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers complete flexibility to taxpayers by providing both self-filing and expert-assisted plans. Individuals comfortable with filing their own returns can use the AI-driven self-filing interface that guides them through each step of the process, ensuring error-free calculations and compliance with the latest tax laws. For those who prefer professional assistance, TaxBuddy’s expert-assisted plan connects users with qualified tax professionals who handle the entire filing process—from document review to submission—ensuring maximum accuracy and peace of mind.
Q2. Which is the best site to file ITR?
The official Income Tax Department portal remains the primary platform for filing returns in India. However, many taxpayers prefer using third-party services for a smoother experience. TaxBuddy is widely recognized as one of the best online tax filing platforms in India because it combines AI technology with expert support. The platform ensures accurate tax computation, identifies missed deductions, checks for mismatches with Form 26AS and AIS, and provides post-filing support in case of notices or clarifications, making it ideal for both new and experienced filers.
Q3. Where to file an income tax return?
Income tax returns can be filed on two types of platforms:
Official e-filing portal – The Income Tax Department’s official website allows taxpayers to file their returns directly without intermediaries.
Authorized online filing platforms – Websites like TaxBuddy provide guided, automated, and error-proof filing experiences. These platforms simplify data entry, automatically match Form 16 and Form 26AS details, and ensure accurate computation of tax liabilities and refunds. Using platforms like TaxBuddy also saves time and minimizes the risk of technical errors or omissions during submission.
Q4. What triggers a Section 143(1)(a) notice?
A Section 143(1)(a) notice is triggered when the Income Tax Department’s automated system detects a mismatch between the income, deductions, or taxes declared in your ITR and the data available in Form 16, Form 26AS, or AIS. It can also occur due to incorrect deduction claims, missed income disclosures, arithmetic errors, or filing returns after the due date while claiming ineligible deductions. The notice is not a sign of scrutiny but a preliminary communication to correct or confirm these differences before final processing of your return.
Q5. How much time is given to respond to a Section 143(1)(a) notice?
Taxpayers are given 30 days from the date of receiving the notice to submit a response online. During this period, you must log into the e-filing portal, review the proposed adjustments, and either accept or reject them with valid reasoning and documentation. If no response is provided within the deadline, the return is automatically processed with the proposed changes, which may lead to higher tax liability or demand. Hence, timely response is crucial to prevent further complications.
Q6. Can an incorrect adjustment be challenged?
Yes, an incorrect or unjustified adjustment under Section 143(1)(a) can be challenged. If you believe that the proposed change is not valid, you can submit a detailed clarification along with supporting documents directly through the e-filing portal. If the error persists even after your response, you can file a rectification request under Section 154 of the Income Tax Act. In cases where the rectification is rejected without proper cause, the taxpayer also has the right to appeal through higher authorities.
Q7. What happens after submitting a response?
Once your response is submitted on the e-filing portal, the Income Tax Department reviews the details and decides whether to accept or reject the proposed adjustments. If your explanations and documents are valid, the department may drop the adjustments and issue an updated intimation confirming the corrected status of your return. If the department disagrees, the adjustments are finalized, and the revised computation of tax or refund is reflected in the final intimation under Section 143(1). You can track the status of your response on the e-filing portal.
Q8. Can a revised return be filed after receiving a Section 143(1)(a) notice?
Yes, taxpayers can file a revised return under Section 139(5) if they agree with the discrepancies mentioned in the notice or discover genuine mistakes in their original filing. The revised return should include all corrected details of income, deductions, and taxes. Filing a revised return helps avoid penalties and ensures that your records are updated accurately. However, if you disagree with the notice, you should respond through the portal instead of revising the return.
Q9. Is Section 143(1)(a) applicable to all taxpayers?
Yes, Section 143(1)(a) applies to all categories of taxpayers, including salaried employees, self-employed professionals, freelancers, and businesses. The provision ensures that all filed returns are cross-verified with third-party data sources before final acceptance. Whether you have multiple income sources or a simple salary structure, the system automatically checks your return for inconsistencies and issues a notice if any mismatch or error is found.
Q10. Does a Section 143(1)(a) notice mean scrutiny assessment?
No, a Section 143(1)(a) notice does not mean a detailed scrutiny or reassessment. It is a summary assessment that identifies and rectifies apparent discrepancies at the processing stage. Scrutiny assessment under Section 143(2) is a separate and more detailed process where the department seeks in-depth explanations or supporting documents for specific transactions. In contrast, Section 143(1)(a) simply ensures that your return matches third-party data before it is finalized.
Q11. What are the common mistakes that lead to 143(1)(a) notices?
Common mistakes that often lead to such notices include:
Reporting income incorrectly or omitting certain income like interest or dividends
Claiming deductions not supported by valid proofs
Mismatch between income in Form 16, Form 26AS, and the ITR
Filing returns after the due date while claiming disallowed deductions or losses
Mathematical or typographical errors in the computation of taxable income
Avoiding these mistakes and using platforms like TaxBuddy for pre-validation can prevent such notices.
Q12. How can TaxBuddy assist in responding to a 143(1)(a) notice?
TaxBuddy simplifies the entire notice response process through its AI-powered tools and professional support. It automatically identifies the reason for the notice by comparing your ITR with Form 26AS and other data sources. The platform helps prepare accurate explanations, organizes supporting documents, and ensures timely submission through the e-filing portal. For users who opt for expert-assisted plans, TaxBuddy’s professionals handle the entire response, verify deductions, and ensure that your case is resolved efficiently without errors or missed deadlines. This ensures peace of mind.
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