Filing of Rectification request under section 154 of Income Tax Act
Income Tax Return filed by the taxpayer is processed by Centralised Processing Centre (CPC) and intimation under section 143(1) is sent to the assessee based on the details disclosed by the taxpayer in his/her ITR and system based rules for processing of ITR deployed at the CPC of Income Tax Department. In case, if the taxpayer wants to seek rectification of a mistake in an order or intimation, which is apparent from the record, then the taxpayer can seek ‘Rectification under Section 154’. With the use of technology, filing of rectification request is now online, paperless and faceless. There are multiple reasons for filing rectification request (sometimes called as Rectified ITR). In this article, we will be discussing about Section 154, how to file rectification request, reasons & types of rectification, Revised Return, Defective Return, various timelines and other aspects relating to rectification.
1. Options available to rectify mistakes in Income Tax Return filing /Order/Intimation
First of all, let’s see the multiple options to rectify the mistake/correction in ITR already filed. But each option is independent & has its own timeline, applicability norms & limitation. Let’s discuss as follow-
1.1 Revised Return u/s.139 (5)
If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
1.2 Response to Defective Return Notice u/s. 139(9)
Where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return.
Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.
Hence any defect in ITR filing, as communicated by CPC, can be rectified by filing ITR under this section.
1.3 Rectification Request u/s. 154(1)
As per provisions of section 154, With a view to rectifying any “mistake apparent from the record” an income- tax authority referred to in section 116 may,—
(a) amend any order passed by it under the provisions of this Act ;
(b) amend any intimation or deemed intimation under sub-section (1) of section 143;
(c) amend any intimation under sub-section (1) of section 200A;
(d) amend any intimation under sub-section (1) of section 206CB.
Important Point to Note:-
2. Sue-Moto Rectification V/s. Rectification Request
As per provisions of section 154, Income Tax authority concerned—
(a) may make an amendment under sub-section (1) of its own motion, (Sue-Moto Rectification by AO)
(b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee or by the deductor or by the collector, and where the authority concerned is the Commissioner (Appeals), by the Assessing Officer also (Rectification Request by Assessee/Deductor).
3. Timelines for Rectification Request
Amendment under section 154 can’t be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed.
4. Timelines for Processing of Rectification Request
When an application for amendment under section 154 is made by the assessee or by the deductor or by the collector, the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it,—
(a) making the amendment; or
(b) refusing to allow the claim.
5. Important aspects relating to rectification request
6. Steps for online filing of request for rectification u/s.154
Following steps need to be followed for e-filing of Rectification Request u/s.154
1. Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
2. Go to the ‘e-File’ menu located at upper-left side of the page > Click ‘Rectification’
3. Choose the options of ‘Order/Intimation to be rectified’ and ‘Assessment Year’ from the drop down list > Click ‘Continue’
4. Select any one of the following options of ‘Request Type’ from drop down list.
Detailed discussion on rectification request types is given in point no.7 of the article.
5. Click Submit to complete the rectification request. A Success message will be displayed and a mail confirming the submission of rectification request will be sent to the user’s registered mail id.
7. Types of Rectification Requests
In the Income Tax E-filing Portal, rectification request is categorized into 3 types as follows-
7.1 Tax Credit Mismatch
Taxpayer can view Tax Credit Mismatch by following steps:-
Above highlighted Item is Menu used for checking Tax Credit Mismatch
After reconciling mismatch in Tax Credit, Kindly file rectification request as given in Point No.6 above. After selecting rectification request type as ‘Tax credit mismatch correction only’ – following check boxes will be displayed.
7.2 Reprocess the return
7.3 Return Data Correction / Upload XML Option
Taxpayer need to select one of reasons for Return Data Correction option of rectification u/s.154.
The complete Income Tax Return should be e-Filed and NOT just the schedules/ fields that need change/correction. Taxpayer need to prepare XML File of Rectified ITR and upload in this menu for rectification, after selecting the appropriate ‘Rectification Reason’ as above-
Select ‘Schedules being changed’ by using ‘Control + Click’ to select the multiple schedules & Click on Submit.
8. Update regarding online enabling of Rectification request for A.Y.2020-2021
9. Probable Reasons of Mistakes in ITR & there resolution
Before filing rectification request, kindly carefully review the Common Error Guide and the typical causes of error to prepare an accurate rectification request and thereby ensure that you get a proper resolution from CPC in the form of rectification order. For every variation between what you have computed as your tax liability and your refund and what was finally the outcome of processing at CPC there is a logical explanation and therefore, a possible resolution. Refer article published by Taxguru Team as per following link-
10. View Status of Rectification Request
To View the submitted Rectification Request:
11. Withdrawal of Rectification Request
You can withdraw a rectification request within same day of filing, by following steps:-
Article Contributed by: CA. Sagar Gambhir | FCA, DISA (ICAI), DIRM (ICAI) | [email protected]
Author can be reached at [email protected] for any queries, issues & recommendations relating to article.
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