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Income Tax

Received Section 143(1) Intimation with Tax Demand? How to File Section 154 Rectification

Written by easyfile Editorial Team β€’ Published on 06 Sep 2026

Understanding Form 143(1) Intimation

After you submit your Income Tax Return, CPC Bangalore processes it and issues an intimation under Section 143(1). It displays a side-by-side comparison of "Income as provided by Taxpayer" versus "Income as computed under Section 143(1)".

Three Types of 143(1) Intimations

  • No Demand / No Refund (Blue): Return accepted as filed with zero discrepancy.
  • Refund Determined (Green): Refund amount computed with interest under Section 244A.
  • Tax Demand Notice (Red): CPC calculated additional tax liability along with mandatory interest under Sections 234A, 234B, and 234C.

Why Does CPC Raise a Demand?

  1. TDS Mismatch: Employer or deductor filed TDS return late or with wrong PAN.
  2. Disallowance of Chapter VI-A Deductions: Claimed in ITR but not declared in Form 16.
  3. Bank Interest Omission: Savings account interest and FD interest in AIS not declared.

How to File Section 154 Online Rectification

If the demand is due to an apparent clerical mistake or uncredited TDS:

  1. Navigate to Services > Rectification on the portal.
  2. Select "Reprocess the Return" or "Tax Credit Mismatch" or "Data Correction in Schedules".
  3. Submit the rectification request. CPC will re-evaluate and cancel the illegal demand within 30 days.
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