Intimation u/s 143(1)(a): How to Respond to CPC Prima Facie Adjustments via e-Proceedings

You filed your ITR for AY 2026-27 in July 2025, expecting a tidy refund. Three weeks later an email lands from intimations@cpc.incometax.gov.in headed "Communication u/s 143(1)(a) of the Income-tax Act, 1961" — the Centralised Processing Centre (CPC) in Bengaluru has spotted a variance and wants you to respond within 30 days. This is not a scrutiny notice and it is not a penalty. It is a prima facie adjustment, and the e-Proceedings module lets you agree or disagree with each line before CPC finalises your assessment. Here is exactly how to read it and respond.

The Scenario

Picture Rohan, a salaried software engineer in Pune. His Form 16 shows a gross salary of Rs 14,00,000 for FY 2025-26. He filed under the new tax regime on 28 July 2025, claimed the Rs 75,000 standard deduction, and computed his liability accordingly. What he forgot: Rs 80,000 of interest income — savings-bank interest plus a fixed-deposit payout — that his bank had already reported in his Annual Information Statement and Form 26AS. CPC's automated system cross-matched the return against that third-party data, found income reported to the department but absent from the return, and issued an intimation u/s 143(1)(a) proposing to add the Rs 80,000.

The communication arrived on 19 August 2025, exactly 22 days after filing. It lists one adjustment with a 30-day response window. If Rohan ignores it, CPC will simply finalise the adjustment after 30 days and raise a demand. If he responds — agreeing or disagreeing — CPC must consider his submission before passing the intimation. The mechanics of that response, line by line, are what most taxpayers get wrong.

Statutory Answer

Section 143(1)(a) of the Income-tax Act, 1961 governs the processing of every return filed. After computing total income, CPC may make six categories of prima facie adjustment: (i) any arithmetical error in the return; (ii) an incorrect claim apparent from information in the return; (iii) disallowance of a loss carried forward where the return was filed after the due date u/s 139(1); (iv) disallowance of an expenditure or deduction; (v) disallowance of a Chapter VI-A or Section 10AA deduction where the return is belated; and (vi) addition of income appearing in Form 26AS, Form 16 or Form 16A that was not included in the computed total income. Rohan's case falls squarely under category (vi).

The crucial safeguard sits in the first and second provisos to Section 143(1)(a). No adjustment can be made unless the assessee is first given an intimation — in writing or electronically — of the proposed change. The response received within 30 days of that intimation must be considered before any adjustment is finalised. Only where no response is received within 30 days does CPC proceed with the adjustment as proposed. This is why the intimation is a proposal, not a final demand.

The platform for responding is e-Proceedings, the electronic facility on incometax.gov.in for viewing and submitting responses to notices, intimations and letters issued by CPC or any income-tax authority. Per the e-Proceedings User Manual, for a Prima Facie Adjustment u/s 143(1)(a) the taxpayer views each adjustment CPC has flagged and responds to every variance individually by selecting Agree or Disagree. Responses can be filed as a Partial Response — across more than one submission — or as a Full Response in a single submission. An Authorised Representative may respond on the taxpayer's behalf. Separately, under Section 143(1) the intimation itself must be served within nine months from the end of the financial year in which the return is filed, so an AY 2026-27 return processed in 2025-26 must be intimated by 31 December 2026.

Worked Resolution

Take Rohan's numbers through the new-regime slabs for FY 2025-26 to see what the adjustment actually costs. His standard deduction is Rs 75,000, leaving the figures below.

Now apply the FY 2025-26 new-regime slabs — nil up to Rs 4,00,000, 5% to Rs 8,00,000, 10% to Rs 12,00,000, and 15% from Rs 12,00,000 to Rs 16,00,000.

Because Rohan's income exceeds Rs 12,00,000, the Section 87A rebate of Rs 60,000 — available in the new regime only when total income is up to Rs 12,00,000 — does not apply either way. The adjustment therefore raises his liability by Rs 12,480 (Rs 94,380 minus Rs 81,900), before any interest u/s 234B and 234C, which runs at 1% per month on the shortfall in advance tax. You can reproduce this entire computation in seconds with the Oquilia income tax calculator, and if you are still deciding between regimes, the old vs new regime comparison shows whether the same Rs 80,000 would have been cheaper under the old structure.

Rohan now has two honest routes. If the interest is genuinely his and was simply omitted, he selects Agree for that variance, lets CPC finalise the Rs 12,480, and pays the demand — or, better, files a revised return u/s 139(5) before processing closes so the figure flows in cleanly and his tax refund, if any survives, is recomputed correctly. If instead the Rs 80,000 was already offered elsewhere — say, clubbed in a spouse's return by error in the bank's reporting, or double-counted because the FD was a renewal of principal — he selects Disagree, picks the relevant reason code, and attaches the supporting bank certificate. A Disagree without a reason and proof is treated as no response, and the adjustment goes through anyway.

FAQ

What happens if I miss the 30-day window for an intimation u/s 143(1)(a)?

CPC proceeds with the adjustment exactly as proposed. The second proviso to Section 143(1)(a) only obliges the department to consider responses received within 30 days; silence is read as acceptance. You can still file a rectification u/s 154 or an appeal afterwards, but you lose the simplest, fastest fix. Respond inside the window.

Is an intimation u/s 143(1) the same as a scrutiny notice u/s 143(2)?

No. A 143(1) intimation is an automated, summary processing of your return by CPC — arithmetic, mismatches and apparent claims only. A Section 143(2) notice initiates detailed scrutiny by a jurisdictional assessing officer, who can question the substance of your claims. The 143(1)(a) prima facie adjustment is far narrower and is resolved entirely online through e-Proceedings.

Can my chartered accountant respond on my behalf?

Yes. The e-Proceedings User Manual confirms an Authorised Representative can view and submit the response for the taxpayer. The representative logs in under their own credentials, accesses your proceeding, and files the Agree or Disagree response — useful when reason codes and documentary evidence need careful drafting.

What is a Partial Response versus a Full Response?

If your intimation lists several adjustments, a Partial Response lets you submit your answer to some variances now and the rest later, across more than one submission. A Full Response answers every variance in one go. Both are valid; a Partial Response is helpful when you are still gathering proof for one item but can immediately agree to another.

Should I file a revised return or just respond on e-Proceedings?

If you agree the income was genuinely missed, a revised return u/s 139(5) is often cleaner because it corrects the entire computation and carries forward correctly. If you disagree, you respond on e-Proceedings with evidence rather than revising. The two are not mutually exclusive, but do not file a revised return that contradicts a Disagree response. Our guide on the defective return notice u/s 139(9) covers the related 15-day correction process.

Will I be charged interest on the additional tax?

Likely yes. Where the adjustment increases your liability and your advance tax fell short, interest u/s 234B and 234C applies at 1% per month on the shortfall. In Rohan's case the Rs 12,480 of extra tax could attract a few hundred rupees of interest depending on when it is paid. Paying promptly after agreeing minimises the interest accrual.

Where can I see the income CPC says I missed?

Cross-check your Form 26AS and your Annual Information Statement on the e-filing portal. Both consolidate third-party reporting — TDS, interest, dividends, securities transactions. The figure CPC added under 143(1)(a) category (vi) will trace back to one of these statements, so reconciling them before you respond tells you immediately whether to Agree or Disagree.