Rectify Income Tax Return U/S 154 – A Comprehensive Understanding

Grounds necessary for requesting rectification to the Income Tax Department

As mentioned above, only on some specific grounds rectification is requested. These grounds are normally termed as “mistake apparent from records”. If we interpret the phrase in a layman language we can develop an understanding that those mistakes can be rectified which are traceable from documentary records. These records are normally the supportings based on which we filed our ITR such as form 16, income statements, deduction proofs, notifications or pronouncements made by IT department etc. Till date law has not prescribed any list. But professionals could conclude some pointers such as:

• Any provision of law becomes effective from retrospective date
• Mathematical and clerical mistakes
• Decision of jurisdictional high court not followed while considering this particular case
• Wrong application of any provisions of the Income Tax Act (by any means i.e. overlooking any provision, mis interpretation etc)
• Any factual errors

Orders which can be rectified u/s 154

The following orders can be rectified on request or on discretion of income tax officer as per section 154

• a) Any order passed under any provisions of the Income-tax Act
• b) Any intimation or deemed intimation under section 143(1)
• c) Any intimation sent under section 200A(1) in relation to processing of TDS return
• d) Any intimation under section 206CB

“Return processed at CPC can only be Rectified. Even if it is a belated return.”

The process of making the online rectification request under section 154 to IT Department

You can easily raise online request for rectification by following the simple series of steps as under.

• A. Login to www.incometaxindiaefiling.gov.in

  

• B. From the drop down “Efile” select “Rectification”

  

• C. Mention the credentials asked like

  Income Tax Return / Wealth Tax Return

  1. Assessment Year
  2. Latest communication reference number i.e. number mentioned in last CPC letter you received

  

• D. Select the rectification request type

  There are three subcategories you can choose from

  1. Taxpayer is correcting data for Tax Credit mismatch only

     By selecting this options you can make multiple corrections (Maximum of 10 sub categories at a time) in Income Tax amount, TDS (Tax Deduction at source) amount and TCS (Tax Collection at source) amount you specified in Income Tax Return.

     

  2. Taxpayer is correcting Data in Rectification

     Choose maximum upto 4 reasons and schedules for which you are requesting rectification. You need to upload xml for the changes desired.

     

  3. No further Data Correction Required. Reprocess the case

     Through choosing this option you can request to reconsider the areas of Tax credit mismatch or Tax/ Interest Computation. No xml to be uploaded in this case.

     

• E. Click on submit below the screen. Next select OK on pop up asking for confirmation that your TDS entries are in sync with 26AS

• F. A reference number is generated followed by successful submission of request.

  

Generation of reference number ensures successful submission of your rectification request with the IT Authorities. Order under section 154 will be received by you, after the request is successfully accepted.

In nutshell, Rectification of income tax return gives you and income tax officer the same right to make corrections in return. You can seek corrections even after 4 years from the end of financial year (from receiving of order / intimation sought to be rectified).