As a portion of the return filing process, the Income Tax Department processes an ITR and transfers hint u/s 143(1) to the taxpayer. Intimation u/s 143(1) resembles the information as per ITR filed by the taxpayer with the calculations estimated by the Income Tax Department. In the case of a mismatch, the taxpayer has an opportunity to file rectification under Section 154 of the Income Tax Act. Both the taxpayer and the assessing officer have the right to correct the Income Tax Return. They can file rectification for a time limit of up to 4 years from the end of the financial year.
Rectification requests shall be approved by the tax authorities only if the mistake is made apparent from the record. The errors that can be rectified are:
- an error of fact;
- an arithmetical mistake;
- a clerical error;
- the error that has occurred due to overlooking compulsory provisions of law.
The examples of the above mistakes or errors are:
- Mismatch in taxes
- Mismatch in tax credits etc.
Rectification request shall not be issued for change in details regarding bank account or address in the income tax account of the taxpayer.