Answer

1. F

   Facts

   Sec 143(1) (now Sec 270(1), Income-tax Act 2025) is an automated intimation, not a proper assessment. The CPC (Centralised Processing Centre) in Bengaluru processes your ITR and sends this when: (a) the numbers match and your return is accepted, refund issued, or (b) the system finds a mismatch, tax demand raised.

2. P

   Provisions and law

   • IT Act 1961, Sec 143(1) (now 270(1)) | Time limit: 9 months from end of AY
3. A

   Analysis

   Three outcomes in a Sec 143(1) (now Sec 270(1)): • Demand: System says you owe more tax, check if it's right. Common reasons: TDS mismatch (your Form 26AS (now Form 168) vs what you claimed), deduction not matching books, income missed. • Refund: System agrees you overpaid, refund will credit to bank account. • Neither: Accepted as filed. No action needed. Most Sec 143(1) (now Sec 270(1)) demands are wrong, AIS/26AS (now Form 168) data entry errors, employer TDS timing mismatch. Respond with rectification under Sec 154 (now Sec 287) before paying.

4. C

   Conclusion

   1. 1Login to IT e-filing portal → e-Proceedings → response to outstanding demand
   2. 2Download the intimation, identify the specific line causing the demand
   3. 3Cross-check with Form 26AS (now Form 168), AIS, and your ITR Schedule
   4. 4If system is right: pay the demand within 30 days (+ interest if delayed)
   5. 5If system is wrong: file rectification u/s 154 (now Sec 287), attach evidence (Form 16 (now Form 130), bank statements)
   6. 6Never ignore a Sec 143(1) (now Sec 270(1)) demand, even if wrong. Unresolved demands attract Sec 220 interest (1%/month)

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.