Worried as you have filed erroneous tax returns, got wrong demand notice, erroneous tax order by Income Tax Department ??
The Income Tax Department issues an intimation to tax payers if there is some discrepancy in the information provided during the process of filing returns asking assessee to pay further taxes or for refunds. The assessee, will have to pay the amount demanded through the intimation or submit the rectifications for the matter, which the assessee wants to get rectified. The process of rectification begins with a careful study of the error. Before you file the form of rectification, make sure that are prepared with an accurate form this time around!
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FAQ on ‘ITR Rectification’
When can an application be made for rectification?
After filling of return, the department processes the same for verification by considering the information provided by the assessee in the return of income. If any discrepancies appear apparent from the record,notice of demand may be issued by the department. The assessee is required to comply with the notice either by making payment as per the demand raised or submit rectification for the same.
Why ITR Rectification becomes necessary ?
There are some basic reasons why an assessee may be intimated about filing for rectification under Section 154. It could be that the salary income that you have entered is higher because you have entered the amount of income that is exempted from gross salary. It may also be that you have not mentioned the interest that you have paid for house property. Some other errors include incorrect entries of the BSR code, the TAN number or the challan number along with their dates of deposit. You have to keep in mind at this point that the issues mentioned in your rectification form must not be debatable. If there is any ground for debate, that information will not be accepted.
What kind of mistakes can be rectified by an income-tax authority?
To rectify any mistake apparent from record, an income-tax authority can amend either those orders which are passed by it under the Income-tax Act or any intimation made under section 143(1). Examples of mistakes which can be rectified includes any arithmetical or clerical mistake, error in determining the written down values etc.
Can an assessing officer amend any order for which appeal has been filed or assessee has asked for its revision?
An assessing officer cannot pass an order of rectification and amend an order if an appeal has been made or a revision has been done against such an order.
By whom rectification can be made under section 154?
Rectification can be made either by an Income-tax authority or by Commissioner of Income-tax (Appeals), on their own motion or if an application has been made by the assessee to them.
Whether notice to an assessee is necessary before enhancing or reducing the liability?
Any increase or decrease in the liability of the assessee cannot be made without issuing a notice of demand to him. Moreover the assessee should be given a reasonable opportunity of being heard before passing of any such order. The rectification order should be in writing.
Is it compulsory for IT Authorities to consider the petition of assessee and pass the order?
All Income-tax authorities are bound to accept the rectification petition filed by an assessee, pass the necessary judgement and rectify the mistake accordingly.
What is the time limit of passing an order after the assessee has made an application for rectification?
Typically the order for rectification should be passed within 6 months from the end of the month in which application has been made, however the time limit can be extended in accordance with law.
An order once rectified can be rectified again or subsequent rectification possible?
Yes, if the original assessment is subsequently rectified, a second application for rectification of the same is permitted and valid. There is no restriction on the number of times the rectification has been made.
Whether interest u/s 234A,234B and 234C can be charged by a rectification order?
If interest u/s 234A,234B and 234C has been omitted to be levied in the original order, then it can be charged by a rectification order under this section. These interest are mandatory to be levied so overlooking of the same is mistake apparent from record.
If an assessee is aggrieved by the rectification order, then what steps can he take?
In such a case, the assessee can either make an application for revision of the order u/s 264 or can make an appeal before Commissioner of Income-tax(Appeals). In extreme cases, one may appeal to High Court by filing writ petition.
Whether the Assessing Officer can allow relief u/s 154 which was unclaimed by the assessee?
While processing the information if it is apparent from the record that the assessee is eligible for any relief, then it will be granted to him u/s 154 by rectifying the assessment even if the same was not claimed by the aseessee in the original order.
Can an application for rectification can be made electronically / online?
The facility to make online application for rectification is available only if the return of income has been filed electronically. If there is any mistake in the return originally filed by the assessee, then first rectify the return submitted. Rectification required will be processed at CPC (Centralised Processing Centre), Bangalore and if found acceptable then a rectification order will be issued.
Make sure that while filling up the form, you have entered all the required fields with the correct information. You have to fill up all the schedules, like tax payment and TDS. Even in the rectification form, you have to mention all the information and not just the ones that need to be corrected. The reason is that your entire tax return will be reviewed in totality.
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