You filed your ITR, claimed HRA exemption, and expected a refund. Instead, you got a demand notice under Section 143(1) saying your HRA doesn’t match. Ghabrao mat — this is fixable. Let me explain exactly what to do.
A Section 143(1) intimation for HRA mismatch means the CPC’s automated system found a difference between the HRA you claimed and the data in their records (Form 168/Form 130). If your HRA claim is genuine, file a rectification under Section 154 with supporting documents. If the claim was indeed wrong, pay the demand to avoid interest.
Let’s clear the basics first:
Think of it like this: a computer compared your numbers with the government’s numbers. They didn’t match. The computer sent you a “please explain” notice. That’s it.
| Reason | What Happened | Fix |
|---|---|---|
| HRA not in Form 130 | You claimed HRA in ITR but employer didn’t show it in Form 130 | Get employer to issue corrected Form 130 |
| Wrong landlord PAN | PAN in Form 124 doesn’t match actual landlord | File Section 154 rectification with correct PAN |
| HRA under New Regime | You claimed HRA but selected New Regime — HRA not allowed | File revised return switching to Old Regime, or remove HRA |
| No PAN for rent > &rupee;1L | Annual rent exceeded &rupee;1 lakh but no landlord PAN given | Submit landlord PAN/declaration via rectification |
| Amount mismatch | HRA exemption amount in ITR differs from Form 130 | Recalculate using HRA calculator and file rectification |
HRA exemption = minimum of three amounts. Our calculator computes it instantly. If you over-claimed, better to know now.
Calculate HRA Exemption →| Step | What to Do |
|---|---|
| 1 | Login to incometax.gov.in with your PAN |
| 2 | Go to Pending Actions → e-Proceedings |
| 3 | Open the 143(1) intimation — read the exact adjustment reason |
| 4 | Compare your ITR figures with Form 168 and Form 130 |
| 5a | If demand is correct: Pay via e-Pay Tax on the portal to stop interest |
| 5b | If demand is wrong: File rectification under Section 154 |
| 6 | In rectification, select “Taxpayer correcting data” and upload: rent receipts, bank transfer proof, rental agreement, landlord PAN copy |
| 7 | Wait 1–3 months for CPC to process. Check status under “Rectification Status” |
Interest accrues at 1% per month under Section 220(2) on unpaid demand. The department can also adjust the amount against your future refunds. Always respond within 30 days, even if you disagree.
The Section 154 rectification is fully online on the e-filing portal. Don’t visit the AO office or send physical letters. Everything is handled electronically. Keep digital copies of all rent receipts and bank statements.
Deepak earns &rupee;15 lakh. He claimed &rupee;96,000 HRA exemption under Old Regime. CPC sent 143(1) intimation disallowing &rupee;96,000 because landlord PAN was incorrect in Form 124.
| Item | Original ITR | CPC Adjustment |
|---|---|---|
| Gross Salary | &rupee;15,00,000 | &rupee;15,00,000 (no change) |
| HRA Exemption Claimed | &rupee;96,000 | &rupee;0 (disallowed) |
| Extra Taxable Income | — | &rupee;96,000 |
| Additional Tax Demand | — | &rupee;29,952 (30% + 4% cess) |
Deepak filed Section 154 rectification with the correct landlord PAN, rent receipts, and NEFT transfer proof. After 60 days, CPC reversed the demand. Use our tax calculator to see how much such an adjustment would cost you.