How to Respond to a Section 143(1)(a) Prima Facie Adjustment Notice on the e-Filing Portal
A CPC Section 143(1)(a) notice proposes to add omitted income and gives you just 30 days to reply. Here is the statutory basis, the exact e-Proceedings steps, and the worked tax arithmetic of agreeing versus disagreeing.
The Scenario
You e-verified your income-tax return for Assessment Year 2025-26 on 15 July 2025, expecting a refund of Rs 18,400. Six weeks later, on 28 August 2025, an email from the Centralised Processing Centre (CPC), Bengaluru arrives with the subject line "Communication of proposed adjustment u/s 143(1)(a)". The attached PDF states that Rs 52,000 of interest income reflected in your Annual Information Statement was not offered to tax, and proposes to add it to your total income. A single line at the foot of the notice sets the clock ticking: you have 30 days to respond on the e-Filing portal before the adjustment is finalised.
This is not a scrutiny notice and it is not a demand — yet. A Section 143(1)(a) communication is a proposed prima facie adjustment, and the 30-day window exists precisely so you can agree, disagree, or correct the record before any tax is crystallised. Ignoring it is the single most expensive mistake: silence past 30 days is treated as consent, and the addition is processed into a demand automatically. Below, a salaried taxpayer earning Rs 14,00,000 gross works through both response paths and the exact arithmetic each triggers.
Statutory Answer
Section 143(1)(a) of the Income-tax Act, 1961 permits the CPC to make only six narrowly defined "prima facie" adjustments while processing a return — nothing more. The statute, verifiable at indiacode.nic.in, lists them at clauses (i) to (vi):
| Clause | Adjustment the CPC may propose |
|---|---|
| 143(1)(a)(i) | Any arithmetical error in the return |
| 143(1)(a)(ii) | An incorrect claim apparent from information in the return itself |
| 143(1)(a)(iii) | Disallowance of a loss claimed where the loss return was filed after the Section 139(1) due date |
| 143(1)(a)(iv) | Disallowance of expenditure or deduction indicated in the audit report but not taken in the return |
| 143(1)(a)(v) | Disallowance of a Chapter VI-A or 10AA deduction where the return was filed after the 139(1) due date |
| 143(1)(a)(vi) | Addition of income appearing in Form 26AS, Form 16 or Form 16A that was not included in computing total income |
The scenario above falls under clause (vi). Crucially, the first proviso to Section 143(1)(a) forbids any such adjustment unless an intimation is first given to the assessee in writing or electronically. The second proviso then requires that any response received within 30 days of that intimation "shall be considered before making any adjustment", and that where no response is received within 30 days, the adjustment is made. This 30-day right of reply is statutory, not discretionary — the CPC cannot shorten it.
There is also an outer limit on the department. Under the proviso to Section 143(1), the final intimation completing processing cannot be issued after the expiry of 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. The Rs 52,000 addition, if confirmed, feeds into that final Section 143(1) intimation.
The mechanics of replying are set out in the Income-tax Department's e-Proceedings guidance at incometax.gov.in. You log in, open Pending Actions > e-Proceedings, view the Notice/Letter PDF, and click Submit Response. For each variance the portal shows, you select Agree or Disagree; disagreement opens a remarks box capped at 4,000 characters, with a single attachment of up to 5 MB and a maximum of 10 attachments in support. A declaration checkbox is mandatory. On submission the portal issues a Transaction ID and an email confirmation — and the response cannot be withdrawn once submitted, so accuracy on the first attempt matters. The same e-Proceedings module also handles a Defective Return notice under Section 139(9) and a suo-moto rectification request under Section 154.
Worked Resolution
Take our salaried taxpayer, filing under the new regime for FY 2025-26. Gross salary is Rs 14,00,000; after the Rs 75,000 standard deduction available in the new regime, declared taxable income is Rs 13,25,000. The CPC's clause (vi) proposal adds Rs 52,000 of bank and fixed-deposit interest visible in the AIS but omitted from the return, lifting taxable income to Rs 13,77,000. Because income exceeds Rs 12,00,000, the Section 87A rebate (Rs 60,000 in the new regime for income up to Rs 12,00,000) does not apply in either column.
Applying the FY 2025-26 new-regime slabs — nil up to Rs 4,00,000; 5% on Rs 4,00,000-8,00,000; 10% on Rs 8,00,000-12,00,000; 15% on Rs 12,00,000-16,00,000 — the two outcomes compare as follows:
| Line item | As filed | After 143(1)(a) addition |
|---|---|---|
| Taxable income | Rs 13,25,000 | Rs 13,77,000 |
| Tax up to Rs 12,00,000 | Rs 60,000 | Rs 60,000 |
| Tax on slab above Rs 12,00,000 (15%) | Rs 18,750 | Rs 26,550 |
| Base tax | Rs 78,750 | Rs 86,550 |
| Health & education cess (4%) | Rs 3,150 | Rs 3,462 |
| Total tax | Rs 81,900 | Rs 90,012 |
The addition therefore costs Rs 8,112 in extra tax before interest. You now have two honest choices, and the portal forces you to pick per variance.
Path 1 — Agree. If the Rs 52,000 interest was genuinely earned and simply forgotten, select Agree, revise or let the adjustment stand, and pay the Rs 8,112 shortfall as self-assessment tax. Interest under Section 234B accrues at 1% per month on the unpaid advance-tax component, so settling promptly in September 2025 rather than December 2025 saves three months of that 1% charge. Model the full liability first on the income-tax calculator.
Path 2 — Disagree. If the Rs 52,000 was in fact reported — for example, clubbed under "Income from other sources" but not tagged to the exact AIS line, or already covered by TDS the CPC did not net off — select Disagree, enter the schedule and line number where it appears within the 4,000-character remarks box, and attach the bank interest certificate (under the 5 MB limit). Cross-check the figure against your Form 26AS and the TDS calculator before you submit, because the response cannot be withdrawn.
A partial position is legitimate too: agree to Rs 40,000 that you did miss and disagree on Rs 12,000 already offered. The portal accepts a mixed response, and only the agreed Rs 40,000 flows into the demand — recomputing to roughly Rs 6,240 of extra tax rather than Rs 8,112.
Whichever path you choose, confirm the outcome only after the final Section 143(1) intimation lands. If it still shows a refund, track it against your tax refund status on the portal; if it shows a demand, it becomes payable under Section 156 within 30 days of service.
FAQ
What happens if I miss the 30-day deadline to respond?
Under the second proviso to Section 143(1)(a), if no response is received within 30 days of the intimation, the CPC makes the proposed adjustment and processes it into the final Section 143(1) intimation. In our example the Rs 52,000 would be added in full and the Rs 8,112 tax, plus Section 234B interest at 1% per month, would appear as a demand under Section 156. You can still contest it afterwards through a rectification under Section 154 or an appeal, but that is slower than the free 30-day reply.
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 adjustment limited to the six clauses listed at indiacode.nic.in, and it involves no examination of books. A Section 143(2) scrutiny notice, by contrast, opens a detailed assessment and must be served within three months from the end of the financial year in which the return was filed. The two are independent processes.
Can the CPC add income under 143(1)(a) that is not in Form 26AS, the AIS or Form 16?
No. Clause (vi) permits an addition only where the income appears in Form 26AS, Form 16 or Form 16A and was not included in the return. If the CPC proposes to add something outside those documents, that exceeds the Section 143(1)(a) mandate, and you should record the objection in the 4,000-character remarks box and attach supporting evidence within the 5 MB limit.
I filed under the new regime — does the 87A rebate still protect me?
The Section 87A rebate in the new regime is Rs 60,000 for total income up to Rs 12,00,000 in FY 2025-26. In the worked example, declared income of Rs 13,25,000 already exceeds that ceiling, so the rebate does not apply and the Rs 52,000 addition is taxed at the 15% marginal slab. A taxpayer whose income stays at or below Rs 12,00,000 even after the addition would owe nil tax on it because of the rebate.
Will I get an email, or must I keep checking the portal?
The e-Proceedings system at incometax.gov.in sends an email to your registered address when the proposed adjustment is issued, and again with the Transaction ID once you submit your response. Even so, check Pending Actions > e-Proceedings directly, because the 30-day clock runs from the date on the intimation, not from when you read the email.
Can I withdraw or edit my response after submitting?
No. The portal states that once a response is submitted and the declaration checkbox confirmed, it cannot be withdrawn. That is why you should reconcile the disputed figure against Form 26AS and the AIS, and keep the single supporting attachment under 5 MB, before clicking Submit.
Does the same module handle a defective-return notice?
Yes. The same e-Proceedings screen that handles a 143(1)(a) adjustment also processes a Defective Return notice under Section 139(9) and a suo-moto rectification request under Section 154. Each appears as a separate item under Pending Actions with its own response deadline, so confirm which one you are answering before you submit.
Sources & Citations
- Respond to e-Proceedings — User Manual — Income Tax Department
- Section 143, Income-tax Act 1961 — India Code