Got a Section 143(1)(a) prima facie adjustment notice? How do you agree or disagree online?

You e-filed your return in July 2025, expected a refund of Rs 22,000, and then an email from the Centralised Processing Centre (CPC), Bengaluru, landed in your inbox with the subject line "Communication of proposed adjustment u/s 143(1)(a)". The intimation lists a "prima facie adjustment" and gives you 30 days to respond. This is not a scrutiny notice under Section 143(2), and it is not a demand yet. It is an automated, arithmetic-level flag raised while your Income Tax Return (ITR) was being processed, and how you reply online over the next 30 days decides whether the proposed variance becomes a tax demand or quietly disappears.

The good news: the entire response happens inside the e-Filing portal under Pending Actions, no visit to an office is needed, and a Transaction ID is issued the moment you submit. The bad news: ignore it for 30 days and the adjustment is made automatically, refund adjusted or demand raised. This guide walks through the statute, a worked example on a Rs 14.5 lakh salary, and the exact click-path on the Income Tax e-Filing portal.

The Scenario

Take Ravi, a salaried employee in Pune with gross salary of Rs 14,50,000 for FY 2024-25 (Assessment Year 2025-26). He filed ITR-1 under the old regime in July 2025, claiming the Rs 50,000 standard deduction, Rs 1,50,000 under Section 80C and Rs 25,000 under Section 80D, and computed a refund of Rs 22,000. Six weeks later CPC issued a Section 143(1)(a) intimation proposing to add Rs 60,000 of fixed-deposit interest that appeared in his Form 26AS and Annual Information Statement (AIS) but was never reported in his return.

Ravi now faces a binary decision the portal forces on him for each proposed variance: Agree or Disagree. Agreeing means CPC recomputes his liability and his Rs 22,000 refund shrinks or turns into a small demand. Disagreeing means he must state, in up to 4,000 characters and with attachments, why the addition is wrong, for instance that the interest was already offered under "Income from Other Sources" or belongs to a joint holder. Choosing the wrong option, or missing the window entirely, is where taxpayers lose money they never owed, or invite avoidable litigation on money they did.

Statutory Answer

The power to make these adjustments sits in the first proviso to Section 143(1)(a) of the Income-tax Act, 1961, which permits CPC to make only six narrowly defined "prima facie" corrections while processing a return. It is a summary, computer-driven check, not an inquiry into the merits of a claim. The full text of Section 143 is available on indiacode.nic.in, and the six permitted adjustments are set out below.

Two procedural safeguards protect the taxpayer. The first proviso bars CPC from making any adjustment without first giving the assessee an intimation, in writing or electronic mode, of the proposed change. The second proviso requires that any response filed within 30 days of that intimation be considered before the adjustment is made; only if no response is received within 30 days is the adjustment made automatically. That 30-day clock, running from the date of issue of the intimation, is the single most important date on the notice. Separately, the proviso to Section 143(1) caps the entire processing exercise: the final intimation cannot be issued after nine months from the end of the financial year in which the return was furnished, so a return filed in FY 2025-26 must be processed by 31 December 2026.

Ravi's case falls squarely under clause (vi): income visible in Form 26AS that was not included in the computation of total income. Note that the statute names Form 26AS, Form 16 and Form 16A specifically; in practice CPC also cross-references the broader AIS, so reconciling your ITR with both statements before filing is the cheapest way to avoid a 143(1)(a) notice altogether. If Ravi genuinely earned and omitted the Rs 60,000, the correct answer is Agree and pay; if it was double-counted or misattributed, the answer is Disagree with evidence.

Worked Resolution

Assume the Rs 60,000 interest was real and previously unreported, so Ravi should Agree. His taxable income and tax move as follows under the FY 2024-25 old regime slabs (nil up to Rs 2.5 lakh, 5% to Rs 5 lakh, 20% to Rs 10 lakh, 30% above), plus 4% health and education cess.

The extra Rs 60,000 sits entirely in Ravi's 30% slab, so the additional tax is Rs 18,000 plus Rs 720 cess, or Rs 18,720. If the bank had already deducted TDS of Rs 6,000 under Section 194A on that interest, and it shows in Form 26AS, that credit reduces the net additional outgo to about Rs 12,720, before any interest under Sections 234B and 234C for short-payment of advance tax. You can reproduce this arithmetic on the Income Tax Calculator and pressure-test the regime choice on the Old vs New Regime calculator; the TDS calculator helps confirm whether the Rs 6,000 credit is available.

Practically, when the addition is correct, Ravi has two clean routes. He can select Agree against the variance and pay the shortfall as self-assessment tax under Section 140A using challan ITNS 280, after which CPC finalises the intimation with the revised figures. Alternatively, if the 30-day window still allows and other errors exist, he can file a revised return under Section 139(5) that includes the Rs 60,000, which supersedes the original. Where the addition is wrong, he selects Disagree, picks the reason code, types his explanation in the remarks box (up to 4,000 characters) and uploads proof, for example a bank statement showing the interest was already declared.

Responding on the e-Filing Portal

Per the Income Tax Department's e-Proceedings user manual, the response is filed in six steps and takes under 15 minutes once your reconciliation is ready:

1. Log in at incometax.gov.in and open Dashboard > Pending Actions > e-Proceedings, then select the Self tab.
2. Against the "Adjustment u/s 143(1)(a)" proceeding, click View Notice to read every proposed variance CPC has raised.
3. Click Submit Response. Each variance is listed separately with a Provide Response action.
4. For each variance choose Agree or Disagree. If you Disagree, select the reason, enter remarks up to 4,000 characters and attach supporting documents.
5. Click Save after every variance, then submit the consolidated response.
6. Note the Transaction ID and acknowledgement shown on screen; e-Proceedings also lets you seek an adjournment or request video conferencing where relevant.

The same e-Proceedings module handles a Defective Return notice under Section 139(9), a rectification under Section 154, and general Assessing Officer notices, so the muscle memory you build here is reusable. Remember that the 30-day window is measured from the date of issue printed on the intimation, not the date you happened to open the email, so respond well before day 30 of the FY 2025-26 cycle. If you agree the tax is due but need to correct the return itself, pay the self-assessment tax first so the challan reflects in Form 26AS before CPC finalises processing.

FAQ

What happens if I do not respond within 30 days to a Section 143(1)(a) notice?

Under the second proviso to Section 143(1)(a), if no response is received within 30 days of the issue of the intimation, CPC makes the proposed adjustment automatically. Your refund is recomputed or a demand is raised in the final Section 143(1) intimation, which must itself be issued within nine months of the end of the financial year of filing (by 31 December 2026 for a return filed in FY 2025-26).

Is a Section 143(1)(a) intimation the same as a scrutiny notice under Section 143(2)?

No. A 143(1)(a) communication is an automated, prima facie correction of six specific error types made during processing, with a 30-day response window. A Section 143(2) notice initiates detailed scrutiny by an Assessing Officer and is a far deeper inquiry. Receiving a 143(1)(a) intimation does not mean your case has been picked for scrutiny.

Can I still get my original refund if I disagree and win?

Yes. If you Disagree within 30 days with valid evidence and CPC accepts your explanation, the proposed addition is dropped and your originally computed tax refund is processed. If CPC rejects your explanation, the adjustment is made and you can then seek rectification under Section 154 or file an appeal.

Should I file a revised return or just respond to the notice?

If the addition is correct and the 30-day window and the Section 139(5) time limit both still allow, filing a revised return that incorporates the omitted income is often cleaner because it corrects the record. If you only want to contest one variance, respond directly through e-Proceedings with Agree or Disagree per variance; you do not have to revise the whole return.

What documents should I attach when I select Disagree?

Attach whatever proves your position: a bank interest certificate showing the amount was already offered, a Form 16A reconciling TDS, or a statement showing the income belongs to a joint or third-party holder. Remarks are capped at 4,000 characters, so keep the narrative tight and let the uploaded documents carry the evidence.

Does interest under Section 234B or 234C apply if I agree and pay?

Yes, where the addition increases your assessed tax and advance tax fell short, interest under Sections 234B and 234C can apply on the shortfall from the relevant due dates. Paying the self-assessment tax promptly under Section 140A limits further interest accrual.

Where do I see the proposed adjustment and file my reply?

Log in to incometax.gov.in and go to Dashboard > Pending Actions > e-Proceedings > Self, click View Notice against the Section 143(1)(a) proceeding, then Submit Response and provide Agree or Disagree for each variance. A Transaction ID confirms your submission.