The Statutory Brief

IT Act 1961 → 2025 / Section 143

Returns & assessment

Section 143 → Section 270

Processing of returns (intimation) and scrutiny assessment

Section 143 of the old Income-tax Act, 1961 · new section 270 under the Income-tax Act, 2025

New reference Section 270 (143(1) → 270(1)(a)); best judgment 144 → 271

Income-tax Act, 1961Section 143

  • 143(1): processing of return and intimation for adjustments, refunds or demand
  • 143(2): scrutiny notice; 143(3): assessment order
  • 144: best judgment assessment
  • 144B: faceless assessment

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 270 (143(1) → 270(1)(a)); best judgment 144 → 271

  • Section 270 covers processing and assessment
  • Processing of returns is section 270(1)(a)
  • Best judgment assessment (old 144) is section 271
  • Faceless assessment provisions carried into the procedure chapter

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered. The processing → scrutiny → assessment sequence is unchanged.

Practice notes

  • An intimation for AY 2026-27 will still be issued under section 143(1).
  • Penalty provisions (section 439, old 270A) compare assessed income with income 'determined in the return processed under section 270(1)(a)'.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 143(1) called in the new Income Tax Act 2025?

Processing of returns is section 270(1)(a) of the Income-tax Act, 2025; best judgment assessment (old 144) is section 271.

What is section 143 called in the new Income-tax Act, 2025?

Section 143 of the Income-tax Act, 1961 corresponds to Section 270 (143(1) → 270(1)(a)); best judgment 144 → 271 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 143 under the new Income Tax Act?

Renumbered. The processing → scrutiny → assessment sequence is unchanged.

Is section 143 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 143 of the 1961 Act. Section 270 (143(1) → 270(1)(a)); best judgment 144 → 271 of the 2025 Act applies from tax year 2026-27.

Related sections

139→263Return of income: original, belated, revised, updated and defective returns147→279Income escaping assessment: power to assess or reassess270A→439Penalty for under-reporting and misreporting of income