File ITR Rectification online u/s 154 to rectify errors

File ITR Rectification online u/s 154 to rectify errors

Individuals are of the sight that their liability ends after filing the return within the due date but it is equally important to take necessary actions on receipt of communication from the department after processing of the return.

After filing the return, the same is processed by the department for verification purpose, where processing is completed by the department considering the information given by the assessee in the return of income. Further, Intimation u/s 143(1) is issued by the department if any demand is raised or refund is determined. The assessee is required to comply with the notice, either he has to make payment of the demand raised or submit rectification for the same.

One should know that department may issue an intimation u/s 143(1) within a year from the end of year in which return was filed and any intimation issued beyond such period has no validity. If the return is filed online by the assessee then the intimation is generally forwarded to the assessee through email or even at times to the address mentioned by them in the return.

On receipt of Intimation u/s 143(1)

On Intimation u/s 143(1), if any demand is raised by the department then the assessee is required to comply with the notice, either he has to make payment of the demand raised within 30 days of receipt of notice or submit rectification u/s 154 for the same.

When rectification request can be filed

ITR Rectification u/s 154 can be filed if the return is not properly assessed by the department and there is an apparent mistake on record, which the assessee wants to get it rectified post filing of tax return.

Demand due to Tax credit mismatch

There are many cases wherein return filed by the assessee do not matches with the intimation u/s 143(1). In case of salaried individual, major issue is that TDS, advance tax or self assessment tax credit is not given by the department while processing the ITR due to which department issues a notice raising demand or reducing the refund amount.

Main reason of not giving the credit is that the said TDS or advance tax or self assessment tax is not reflecting on the Tax credit statement (Form 26AS) which happens generally due to following reasons:

  • Not crediting the TDS amount to the government
  • Mistake made while quoting the PAN instead of TAN or vice versa.
  • Selection of wrong AY 11-12 instead of AY 12-13.
  • Selection of major head advance tax instead of self assessment tax or vice versa and etc.
  • Wrong calculation of tax and interest.

There is other reason as well where the notice is issued to the tax payer due to mismatch of income details like any salaried individual having two form 16, file the return considering only one form 16 income.

Type of Online rectification request:

ITR Rectification request can be filed online under either of the following three categories:

  • Tax Payer is correcting data for tax credit mismatch only: Under this category the request can be filed if there is tax credit mismatch with respect to reasons mentioned above.
  • Tax Payer is correcting the data in rectification: Under this category the request can be filed if there is any apparent mistake on records in respect to heads of income or donation amount is not considered by the department although it is reflecting in the ITR already filed etc.
  • No further data correction required. Reprocess the case: Under this category request can be filed if there is any mistake while selecting male instead of female or vice versa, tax credit  mismatch or interest amount not matching as per the CPC order.

Steps to File Rectification

  • LOGIN to income tax department website and GO TO –> My Account –> Rectification Request
  • Select the Assessment Year for which Rectification is to be e-Filed, enter Latest Communication Reference Number (as mentioned in the CPC Order).
  • Click ‘Validate’
  • Select the ‘Rectification Request type’ and enter details.
  • Click the ‘Submit’ button.
  • On successful submission, an Acknowledgment number is generated and sent for processing to CPC, Bangalore.

Once the filed ITR rectification is processed, either the rectification order under Section 154 will be issued or the request would be rejected by the department.

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