Demand letter intimation u/s 143(1)

Don't worry,  once tax paid as per demand raised as per intimation order u/s. 143(1); no other question be raised. The intimation order is as good as the ITR being processed.

Received a demand letter u/s 143(1)? First check whether it is an actual demand or just an intimation confirming zero difference, they arrive in the same format.

If there IS a tax demand:

STEP 1: Compare your ITR data with what the department processed. Most common causes are: TDS credit not matching Form 26AS or AIS, income the system auto-detected that you did not declare, or deductions that were not accepted.

STEP 2: Log into the IT portal > Pending Actions > Response to Outstanding Tax Demand. Two options:
- Agree to the demand: pay the tax immediately to stop interest accruing under Section 234B/234C
- Disagree with the demand: submit a detailed response with supporting documents (Form 26AS, Form 16, TDS certificates)

STEP 3: If the mismatch is a TDS credit issue, use Services > Rectification > TDS Credit Mismatch correction. No XML upload required for this type.

WINDOW: Respond within 30 days of the intimation date. Non-response leads to refund adjustment or recovery proceedings.

If the demand arose from AIS data that is incorrect (bank interest, dividends reported higher than actual), raise an AIS feedback dispute on the portal first, this creates a formal record before you respond to the demand.

This [income from other sources guide](https://taxgarden.in/blog/income-from-other-sources-section-56-92-complete-guide-ay-2026-27) covers Section 56 income that commonly gets auto-added during 143(1) processing and how to deal with it.

Paying the demand generally does not, by itself, complete every closure step. First compare the 143(1) intimation with the filed return to confirm the adjustment and demand are correct. If you accept it, pay using the correct assessment year and demand details, then check the e-filing portal’s Pending Actions / Response to Outstanding Demand and submit the response as paid, if that option is available. Keep the challan and acknowledgement, and verify that the demand status updates; processing is not necessarily immediate. If the demand is incorrect, respond with the appropriate disagreement and grounds rather than paying solely to close it.

Demand resolution fits naturally into return-review and tax-payment workflows. Manual follow-up across intimations, challans and portal statuses is difficult; automation can reduce repetitive work while professional judgment remains in control. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. Message us on WhatsApp to explore the workflow: https://wa.me/message/3HVOZ7HIY4ESC1