ITR filing: Section 143(1) tax demand explained; steps to avoid penalties and disputes

Section 143(1) of the Income Tax Act, 1961 is an automated preliminary review of the filed ITR checking for math errors and matching tax credits.

A tax demand under Section 143(1) does not automatically mean the return was incorrect; it often arises due to mismatches in income reported or tax credits.

Taxpayers can view and respond to the intimation by logging into the Income Tax e-Filing Portal.

If the demand is correct, taxpayers should pay via the portal; if incorrect, they can submit an online response with supporting details.

Ignoring the notice can lead to penalties, so timely verification and response are crucial.