The 30-Day Proposed Adjustment Notice Under 143(1)(a)

An email from CPC (the Centralized Processing Centre) says it proposes an adjustment to your return under section 143(1)(a). This happens before your return is processed. CPC has found a difference between your return and the information it holds, and it is telling you what it intends to change. You have 30 days from the date the notice was issued to reply under Pending Actions > e-Proceedings.

If you reply, CPC must consider your reply before it processes the return. If you do not, the adjustment goes through, and you find out from the 143(1) intimation, usually as a smaller refund or a demand (how to read a 143(1) intimation explains that document). Answering now is much easier than undoing the adjustment later.

What CPC is allowed to propose

Under section 143(1)(a) of the Income-tax Act, 1961, which governs returns for AY 2026-27 and earlier, CPC can adjust a return only for these reasons:

1. An arithmetical error in the return.
2. An incorrect claim apparent from information in the return, for example a deduction above its legal limit, or a claim inconsistent with another entry in the same return.
3. A brought-forward loss set off when the return for the loss year was filed after its due date.
4. Expenditure disallowed in the tax audit report but not added back in the return.
5. Certain deductions (such as those under sections 10AA and 80-IA to 80-IE) claimed in a return filed after the due date.
6. Income appearing in Form 26AS, Form 16 or Form 16A that the return does not include.

The law also says no adjustment can be made unless you are told about it first, and that your response, if received, must be considered. If no response arrives within 30 days, the adjustment is made. Under the Income-tax Act, 2025, processing moves to section 270(1) for returns from Tax Year 2026-27 onwards, and this advance notice with its 30 days to respond moves to section 270(2). A notice for AY 2026-27 still cites section 143(1)(a).

The notice is not a scrutiny notice and does not mean your return was picked for examination. For how it fits alongside 143(2) and 148, see 143(1) vs 143(2) vs 148.

Reading the variances

The notice lists each difference as a separate variance: the item, the value in your return, the value CPC holds, and the clause it relies on. Read each one and ask a single question: is CPC's figure correct?

A worked example of what agreeing costs: under the old regime at the 30% slab, CPC disallows ₹25,000 of an 80D claim of ₹50,000. The extra tax is ₹7,500 plus 4% cess of ₹300, so ₹7,800 comes off your refund or is added as a demand. If you know the claim was wrong, agreeing now is simpler than disagreeing and facing the same result in the intimation.

How to respond on the portal

1. Log in at incometax.gov.in and go to Pending Actions > e-Proceedings.
2. Find the notice for Adjustment u/s 143(1)(a) and click View Notice.
3. Click Notice/Letter Pdf to read and download the notice itself.
4. Click Submit Response. The portal lists each variance CPC found.
5. Click a variance, then Provide Response. Select Agree or Disagree, add your reason where asked, and click Save. Click Next to move to the next variance.
6. When every variance has a response, click Back, tick the Declaration checkbox and click Submit.
7. Note the Transaction ID on the success screen. A confirmation also goes to your registered email. View Response shows what you submitted.

You can agree with some variances and disagree with others. Each one is answered separately.

Writing a disagreement that works

CPC's processing is automated, so a short reason that points to where the figure already sits in your return works better than a long letter. Name the schedule and amount:

The interest of ₹48,000 shown in Form 26AS from XYZ Bank is included in Schedule BP as business income (row reference and amount). It has not been omitted.

or:

The TDS entry of ₹12,000 from TAN ABCD12345E does not relate to me. I have asked the deductor to file a correction statement.

What happens after you respond

• You agreed. CPC processes the return with the adjustment. The 143(1) intimation shows the changed figures, and any demand appears under Response to Outstanding Demand; see responding to an outstanding demand. The e-Proceedings page also notes that you can file a revised return under section 139(5) instead. That makes sense when the return has other mistakes you want to fix at the same time.
• You disagreed. CPC considers your reply before processing. If it accepts your explanation, the return is processed as filed. If it still makes the adjustment, the intimation shows it, and your options are a rectification request if the error is apparent from the record, or an appeal to the Commissioner (Appeals). See rectification or revised return for that choice.
• You did not respond in 30 days. The adjustment is made when the return is processed. You can still correct it afterwards through rectification, a revised return while the window is open, or appeal, but it takes longer and any refund waits.

Should you file a revised return instead

A revised return replaces the original. If CPC's proposal is right and you also left out something it did not spot (another bank's interest, a capital gain), a revised return lets you correct everything at once. For AY 2026-27, section 139(5), as amended by the Finance Act, 2026, allows a revised return until 31 March 2027, or until the assessment is completed if earlier. A revised return filed after 31 December 2026 attracts a fee under the new section 234-I: ₹1,000 where total income does not exceed ₹5 lakh, and ₹5,000 otherwise.

If CPC's proposal is the only issue, answering the notice is enough. You do not need to revise the return just to agree.

If you file for several people in the family, myutils.me shows each PAN's ITR status and any outstanding demand after you add the PAN or press Sync, so you can spot a return that is still awaiting processing. Notices themselves are answered under e-Proceedings on the portal.

FAQ

Is a 143(1)(a) proposed adjustment a scrutiny notice?

No. It is part of routine processing at CPC. Scrutiny starts only with a notice under section 143(2).

From when do the 30 days run?

From the date the notice was issued, as shown on the notice. Count from that date, not from when you opened the email.

Do I need to attach documents?

The response screen asks for agree or disagree and your reasons for each variance. Keep supporting papers (Form 16, interest certificates, the deductor's correction) ready in case the issue goes to rectification or appeal later.

I agreed by mistake. Can I change my response?

Once submitted, the response stands. If the adjustment is wrong, you can file a revised return while the window is open, or seek rectification or appeal after the intimation is issued.

Will responding delay my refund?

The adjustment can be made only after your response is considered or the 30 days end. A prompt reply means CPC is not waiting out the full period before it can process the return.

Sources

• Income Tax Department: e-Proceedings user manual, Prima Facie Adjustment u/s 143(1)(a)
• Income Tax Department: Income tax returns FAQs (revised return time limits)
• Income Tax Department: Raise rectification request FAQs
• Income Tax Department: Section 270 of the Income-tax Act, 2025
• Finance Bill, 2026 (clauses 5 and 12: section 139(5) and new section 234-I)