Direct and Indirect Taxation · Self-Assessment and Intimation

Summary Assessment and Intimation of Return Processing under Section 270

Updated 10 October 2026 · Fact-checked

Intimation is the communication the tax department sends after processing your filed return under section 270. The return is processed by correcting arithmetical errors and apparent incorrect claims, computing tax, adjusting credits like TDS and advance tax, and stating the sum payable or refund due. It must be sent within nine months from the end of the financial year of filing.

Understand Summary Assessment and Intimation of Return Processing

When you file a return, the department does not accept it blindly. It first runs a quick, mostly automated check called processing. Section 270(1) lays down how. The aim is to compute the tax payable or refund due fast, without a full enquiry.

Processing makes limited adjustments to the total income or loss. These cover an arithmetical error, an incorrect claim apparent from the return, an inconsistency with the information in a preceding tax year's return (as may be prescribed), disallowance of a loss where the return for the loss year was late, disallowance of expenditure or increase in income indicated in the audit report but not taken into account, and disallowance of a Chapter VIII-C deduction where the return was filed after the due date under section 263(1).

An incorrect claim apparent from the return has a narrow meaning in section 270(5)(a). It is a claim that is inconsistent with another entry in the return, or one where the information required to substantiate it has not been furnished, or a deduction that exceeds a specified statutory limit (a monetary amount, percentage, ratio or fraction). Anything beyond this needs scrutiny, not processing.

After adjusting, tax, interest and fee are computed on the adjusted total income. Then credits are set off: TDS, TCS, advance tax, rebate or relief under Chapter IX, self-assessment tax and any other amount paid. The result is the sum payable or the refund due. An intimation is sent stating it, and any refund is granted.

Processing is not the same as assessment in the scrutiny sense. Scrutiny starts with a notice under section 270(8) and ends with a written order under section 270(10). Intimation is the quick route; scrutiny is the detailed route. If a regular assessment is later made, tax or interest paid under intimation is treated as paid towards it.

Key rules to remember

Adjusted total income: Total income or loss as filed ± adjustments under section 270(1)(a); Only the listed adjustments are allowed: arithmetical error, apparent incorrect claim, prescribed inconsistency, loss disallowance, audit-report items, late-return Chapter VIII-C deduction.
Sum payable or refund due: (Tax + interest + fee on adjusted income) − (TDS + TCS + advance tax + Chapter IX rebate or relief + self-assessment tax + other amounts paid); Positive result is payable; negative result is refund. Section 270(1)(c).
Prior communication: Communication of proposed adjustment first; if no response within 30 days, adjust and send intimation; Section 270(2). Any response received must be considered.
Time limit for intimation: Not after 9 months from the end of the financial year in which the return is made; Section 270(4). Count from the end of the financial year of filing, not the date of filing.
Deemed intimation: Acknowledgement of return = intimation, if nothing payable or refundable and no adjustment made; Section 270(5)(b).
TDS/TCS statement processing time limit: Intimation within 1 year from the end of the tax year in which the statement is filed; Section 399(2). This is a different limit, for deductors and collectors.
Scrutiny notice time limit: Notice under section 270(8) not after 3 months from the end of the financial year in which the return is furnished; Section 270(9). Do not mix with the 9-month intimation limit.

How to solve Summary Assessment and Intimation of Return Processing questions

Use this order for any question on processing and intimation.

1Identify the stage: processing under section 270(1) (intimation) or scrutiny under section 270(8) to (10). Check if the question mentions a notice to attend or produce evidence.
2List each item the department changed and test it against the permitted adjustments in section 270(1)(a). Check the meaning of incorrect claim in section 270(5)(a).
3If an adjustment is permitted, note that section 270(2) requires a prior communication and consideration of the response; adjustment follows if there is no response within 30 days.
4Compute the adjusted total income, then tax, interest and fee on it.
5Deduct the credits: TDS, TCS, advance tax, Chapter IX rebate or relief, self-assessment tax and other payments.
6State the result clearly as sum payable or refund due, and mention that an intimation is sent.
7Check the time limit: 9 months from the end of the financial year in which the return is made. Conclude whether the intimation is valid.
8For TDS or TCS statements, apply section 399 instead, with its one-year limit.

Quickest way: Four-line check for intimation questions

When to use it: Use for short written answers and MCQs where you must decide whether an adjustment or intimation is valid.

Ask: is it apparent from the return itself? If it needs outside evidence or a debatable view, it is not a processing adjustment.
Ask: was a communication sent and 30 days allowed? If not, the adjustment is not properly made.
Compute: adjusted tax less all prepaid credits gives payable or refund.
Check the date: end of the financial year of filing plus 9 months.

Common mistakes in Summary Assessment and Intimation of Return Processing

Counting the 9 months from the date of filing the return.
The word 'return is made' suggests a date-based count.
Fix: Section 270(4) counts from the end of the financial year in which the return is made. Go to 31 March first, then add 9 months.
Treating every disallowance as a valid processing adjustment.
Students think the department can change anything at processing.
Fix: Only the heads in section 270(1)(a) are allowed. A debatable disallowance needs scrutiny.
Skipping the prior communication before adjusting.
Students focus on the computation and forget the procedure.
Fix: State that section 270(2) requires a communication, consideration of the response, and a 30-day wait if there is no response.
Confusing the 9-month intimation limit with the 3-month scrutiny notice limit and the 1-year limit for TDS statements.
Three similar limits sit close together.
Fix: Memorise: 270(4) is 9 months, 270(9) is 3 months, 399(2) is 1 year from the end of the tax year.
Forgetting to deduct Chapter IX rebate or relief and self-assessment tax while finding the refund.
Students remember only TDS and advance tax.
Fix: Use the full list of credits in section 270(1)(c) every time.
Saying no intimation is sent when the return is accepted as filed.
Students think intimation always means a separate document.
Fix: Under section 270(5)(b), the acknowledgement is deemed to be the intimation when nothing is payable or refundable and no adjustment is made.

Worked examples

Example 1

Mr. Arjun Mehta filed his return on 20 July 2026 (financial year 2026-27). The department proposes to disallow a deduction he claimed at ₹2,10,000 when the statutory limit is ₹1,50,000. (a) Can this be adjusted at processing? (b) By when must the intimation be sent?

Show the solution

Test the item: a deduction exceeding a specified statutory limit is an incorrect claim apparent from the return under section 270(5)(a)(iii).
So it can be adjusted under section 270(1)(a)(ii). The excess is ₹2,10,000 − ₹1,50,000 = ₹60,000.
Before adjusting, a communication must be given under section 270(2). If there is no response within 30 days, the adjustment is made and the intimation sent.
Time limit: the return was made in the financial year 2026-27, which ends on 31 March 2027. Nine months from that date is 31 December 2027.

Answer: (a) Yes. The excess of ₹60,000 is an incorrect claim apparent from the return, adjusted after prior communication. (b) The intimation must be sent not after 31 December 2027.

Example 2

After adjustments, tax, interest and fee computed on Ms. Kavita Rao's total income come to ₹1,86,000. She has TDS of ₹1,20,000, advance tax of ₹50,000 and self-assessment tax of ₹10,000. Determine the amount payable or refundable.

Show the solution

Total credits = ₹1,20,000 + ₹50,000 + ₹10,000 = ₹1,80,000.
Compare with the computed amount: ₹1,86,000 − ₹1,80,000 = ₹6,000.
The computed amount exceeds the credits, so a sum is payable.
An intimation is prepared under section 270(1)(d) specifying ₹6,000 as payable.

Answer: ₹6,000 is payable by Ms. Kavita Rao, as stated in the intimation.

Exam tips

In theory answers, quote the sub-section: adjustments in 270(1)(a), prior communication in 270(2), time limit in 270(4), meaning of incorrect claim in 270(5).
In MCQs, watch the numbers: 30 days, 9 months, 3 months and 1 year each belong to a different rule.
For numerical questions, show a small table of tax, credits and net payable or refund. Step marks sit in the credits list.
If asked to differentiate processing from scrutiny, contrast the trigger (automatic versus notice under 270(8)), scope (limited adjustments versus full assessment) and output (intimation versus written order).
Write that tax paid under intimation is deemed paid towards a later regular assessment under section 270(15).

Practice questions from Self-Assessment and Intimation

Summary Assessment and Intimation of Return Processing in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Summary Assessment and Intimation of Return Processing: frequently asked questions

What is an intimation under the Income-tax Act, 2025?

It is the communication sent after a return is processed under section 270(1). It states the sum payable by the assessee or the refund due. If nothing is payable or refundable and no adjustment is made, the acknowledgement itself is deemed to be the intimation.

What is the time limit for issuing an intimation after filing a return?

Under section 270(4), no intimation can be sent after nine months from the end of the financial year in which the return is made. For example, a return made in July 2026 gives time until 31 December 2027.

What adjustments can be made while processing a return?

Section 270(1)(a) allows correction of arithmetical errors, incorrect claims apparent from the return, prescribed inconsistencies with a preceding tax year's return, disallowance of loss or Chapter VIII-C deduction for late filing, and audit-report items not taken into account. Prior communication is needed under section 270(2).

What is the difference between processing and scrutiny assessment?

Processing is a quick check with limited adjustments, ending in an intimation. Scrutiny starts with a notice under section 270(8) asking the assessee to attend or produce evidence, and ends with a written assessment order under section 270(10).

Is processing of TDS statements covered by the same section?

No. Statements of tax deducted or collected at source are processed under section 399. The intimation to the deductor or collector must be sent within one year from the end of the tax year in which the statement is filed.