Rectification Application

Overview

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.

Our Process

Step 1

Select the type of rectification request

Step 2

Correction of data in ITR

Step 3

Re- Process the ITR

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Benifits

Application made by the taxpayer for rectification under Section 154 shall be disposed of within 6 months from the end of the month in which such application is received.

Where rectification is done on suo moto basis, that is on its own, then such rectification is possible up to four years from the end of the financial year in which order to be rectified is passed.

If any order is passed by Commissioner (Appeals), then he too has the authority to rectify the mistake, either on its motion or on an application made to him by the taxpayer.

Any order which is a subject matter of appeal or revision cannot be rectified. In simpler words, only those orders can be rectified which are not decided by appeal. Any point/matter of an order which is under appeal or revision cannot be rectified. Rectification can be done against other matters/ points of order.

Excess refund credited to the account of the taxpayer shall be demanded through Section 154.

Clear All Your Doubts !

Whether a mistake apparent from the record can be rectified?

Yes, mistake apparent from the record can be rectified.

Under which section can an error be rectified?

Errors can be rectified under section 154 of the Income Tax Act.

What is a rectification request?

As per the provisions of section 154(1) of the income tax act, a rectification is permissible by the Income Tax Department for amending any errors when there is an apparent error in the Income Tax Return filed by you.

Can an order be rectified if it is a part of the subject matter of appeal?

Any order which is a subject matter of appeal or revision cannot be rectified.

Can Income-tax authority rectify its order on its own?

Yes, the Income Tax authority has the power to rectify its order.

Who can apply for rectification of the order?

Any taxpayer in case of whom an order containing error has been passed shall apply for rectification apart from tax authorities on suo moto basis.

What is the time limit to rectify an order if the application is made by the taxpayer?

The time limit for rectification of order, if the application has been made by the taxpayer, shall be six months from the end of the month in which such application is received by the officer.

Whether appeal can be filed against an order rectified under section 154?

Yes, an appeal can be filed to higher authorities against an order rectified under section 154.

Whether rectification of an order passed u/s 154 is valid due to subsequent change of law on a retrospective basis?

If the assessment order is inconsistent with a specific provision as amended retrospectively, then undisputedly there is a mistake that is apparent on the record. In the light of the amended provision in retrospective effect, the assessment order as passed by the tax office will have to be revised. Therefore, given this, the assessing officer shall rectify the order of assessment as per the later amendment of the law with retrospective effect.

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