Before making a prima facie adjustment while processing your return, CPC sends a communication under Section 143(1)(a)2025 Act: s. 270 proposing the change. You can agree or disagree online with reasons.
Income Tax, across India (faceless)
Income-tax Act, 1961
This page is for notices and orders under the Income-tax Act, 1961. If yours names the Income-tax Act, 2025, see Intimation u/s 270(1) (2025 Act). Not sure which Act applies? The heading of the notice names it, or call us.
What this notice means
Common adjustments include disallowance of expenses reported in the audit report, mismatch with Form 26AS, or deductions claimed without the required forms. The proposal is not itself a demand. If no response is received within 30 days, the adjustment can be made when the return is processed, and the intimation under Section 143(1)2025 Act: s. 270 may then show a demand. Under the 2025 Act, processing of returns falls under Section 270.
Common reasons it is issued
- Expense disallowance reported in the tax audit report (e.g. late PF/ESI deposit)
- Income in Form 26AS / 16A not matching the return
- Deductions claimed beyond limits or without filing the required form on time
- Arithmetical errors or incorrect claims
Time limit to respond
Documents to keep ready
- The CPC communication
- Return, audit report and computation
- Supporting documents for the claim
How we handle it
- Examine each proposed adjustment against the return and audit report
- Agree where the proposal is correct; disagree with reasons and evidence where it is not
- Track the 143(1) intimation and file rectification u/s 1542025 Act: s. 287 or appeal if needed
Points to note
- Errors in the audit report can trigger wrong adjustments. A revised audit report may be needed
- Keep screenshots of the response submission
What usually comes next
- Rectification u/s 154Rectifying a wrong adjustment
- Demand Notice u/s 156 / Refund AdjustmentHandling the resulting demand
- Appeal before Commissioner of Income Tax (Appeals)Appealing against the intimation
Frequently asked questions
Can I appeal if the adjustment is made anyway?
Yes. You can seek rectification u/s 1542025 Act: s. 287 or file an appeal before the Commissioner (Appeals) against the intimation.
Official sources
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.