Selvakumar Selvaraj
Getting notice from income-tax department becomes common today. Thanks to technological improvements and automated world of software coding. Often these software coding require modifications (rectification) that triggers mismatches and issues in the CPC Processing of income-tax returns. We could see that tax payers are saying that they are not getting the refund as claimed, or their tax payment were not considered by CPC or not tagged in their accounts on account of the system being followed in the tax mechanism.
Historically, whoever files his return on time (within due date), they gets priority for refunds in time. Even after filing the return online in time, tax payer may suffer due to TDS Credits mismatch, Advance tax and Self-assessment tax Credits mismatch. Many times the tax payer commits mistake by quoting TAN instead of PAN and vice versa and some time the bankers’ mistakes. Consequent to mismatch, an intimation u/s 143(1) will be send by CPC online within a year from the end of year in which return was filed, beyond which the intimation has no validity. This intimation meant for reconciling tax payers assessment of income and CPC assessment of income based on tax credits found in Form 26AS. Upon receipt of deviation the tax payer can file a rectification online.
Section 154 of the Income-tax Act, 1961 empowers Assessing Officer to rectify any order passed under this act on account mistake apparent on record either by own motion or based on application made by the tax payer. Tax professional may agree with me that it is tedious to deal with rectifying mistake through online rectification petition but possible. To make it clear the Income-tax Department has come out with detailed rectification mechanism which will provide considerable options to minimize the work of Assessee to get intimations u/s 143(1) rectified online.
It is pertinent to note that the time limit given at the bottom of the Intimation u/s 143(1) shall not be missed out at any cost. This is because files are being transferred from CPC to concerned Assessing Officers based on time deadline, beyond which your rectification petition will also be rejected and you will be directed to contact your assessing officer. If rectification petition filed online within 30 days from the date of intimation, there is a chances of getting it re-processed online without pain or else it is tedious to followed and get it rectified as this is manual process.
How to rectify online?
Once logged in you can find “My Account”. Under “My Account” there is a tab called “Rectification Request” which will allow you to file your rectification online on submission of CPC Communication reference number which is mentioned in the intimation u/s 143(1). You have to select the assessment year for which you wanted to file rectification. Remember only cases where you have received intimation u/s 143(1) can be considered for online rectification as it requires reference number of those intimation automatically sent by CPC. Cases where no intimation received u/s 143(1), you may go to “Request for Intimation u/s 143(1)/154” and request for copy of intimations already sent (but lost or unable to retrieve etc). Upon request the system (CPC) will forward the copy of intimation u/s 143(1) directly to the registered e-mail address. It may take few days to get it. Upon receipt of the same you can proceed to rectify using the procedure given above.
On providing valid Communication reference and date of order, you will be provided with a “Rectification Request Type”. There are three categories provided which will cover all the required corrections, they are namely:-
- Tax Payer is correcting data for tax credit mismatch only
- Tax Payer is correcting the data in rectification
- No further data correction required. Reprocess the case.
A. When you select the category 1-“ Tax Payer is correcting data for tax credit mismatch only” the following will be displayed for correction
- TDS on Salary details –
This is meant for providing information about your employer, TAN of employer, Income under the head salary and Tax deducted on it. You can enter details for more than on employer
- TDS on Other than Salary details
This is meant for providing information about name of the deductor, TAN of the deductor, Tax deducted and TDS claimed for the year. You can enter details for more than one party.
- IT Details
This is meant for providing correct information about your advance tax and self-assessment tax challan details. In many case Assessee used to enter wrong information or the banker would have updated with incorrect information. In these cases you can first visit your Form 26AS to find out exact details of tax credits and then try for rectification. Even a very small mistake will give big difference and you will get intimation to pay tax along with interest. The following details can be corrected under “IT Details”.
a. BSR Code
b. Date of Deposit
c. Serial number
d. Amount
In this tab you can provide correct information to process your return further.
B. When you select the category 2-“Tax Payer is correcting the data in rectification”, you have choose the options given for type of rectification required for you. The following are the list (for time being) for your reference:-
1) The tax payment had not matched as per the CPC Order
2) Income chargeable under the head business or profession has been wrongly considered
3) Requesting for cancellation of adjustment of earlier year(s) demand
4) Details of deductions (including sub-schedule 80G, 80IA, 80IB, 80IC etc.) under chapter VIA wrongly considered
5) Income chargeable under the head capital gain wrongly considered
6) Income chargeable under the income from house property wrongly considered
7) Salary income not matched
8) Income chargeable under the income from other sources wrongly considered
9) Brought forward losses have not been allowed OR partially allowed.
10) Current year losses have not been set off correctly
11) There is a variance in tax /Interest computation even though Total income remains the same
12) Profit before tax in Schedule BP has been wrongly considered
13) Requesting to tax to slab rates, as it is AOP as seen from schedule for partner’s information of the e-filed return of income
14) Gender of tax payer was wrongly considered. Gender updated in PAN database.
15) MAT/MATC have not been allowed OR partially allowed.
16) Requesting for reduction of tax rate as domestic company instead of non-domestic company.
17) Date of filing of the ORIGINAL RETURN taken as NOT WITHIN DUE DATE.
18) Requesting for reduced claim of income, as taxpayer is governed by Portguese civil code and that Sec 5A is applicable to them
19) Requesting for allowing the claim of deduction u/s 80P
20) Requesting for change of Residential status
21) Requesting that the income shown in the return is not taxable as the Assessee is a society registered u/s 12A OR Assessee is NON-RESIDENT.
22) Others.
On selecting the appropriate item it will direct you as to what to do in each case. In most of the cases you need to upload the rectified xml file and wait for the rectification order.
C. When you select the category 3-“No further data correction required. Reprocess the case.” you have to choose the options given for type of rectification required in this case. They are
- Tax Credit Mismatch
- Gender Mismatch
- Tax/Interest Computation
Conclusion & Tips to avoid rectifications:
The following measures will make tax payer’s and tax professional’s job easier. When you file income tax return just follow the under mentioned tips:
- Use correct ITR Form and fill it (duly) with correct data.
- Before filing return verify Form 26AS for TDS Credits, Advance Tax Credits and Self-Assessment Tax Credits so as to enter correct bank details or TDS details. In most of the cases tax credit mismatch is the issue.
- File the return in time. (Within due date)
- When you get intimation u/s 143(1), follow the instructions given under that and take remedial action in filing rectification request immediately when there is a mistake apparent on record or make payment within in 30 days of receipt of intimation if you agree to the demand raised.
- Very importantly remember “Haste makes waste”. Don’t do things in a hurry. Plan well advance minimize the data entry mistakes.
Reader’s views are welcome!
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The author is Chennai based chartered accountant he can be reached at gsvselvakumar@gmail.com
I am an IT employee. Past 4 years, I am paying 25,000/- housing loan EMI on behalf of my wife (she took a career break) and i am not getting any tax benefit.
As a common man I can not invest any further. My hard-earned money is getting drained by not gaining any tax benefit. Eventually it’s a big impact on my financial health.
I am sure, many middle-class salaried people experiencing the issue which i am facing.
Please support bringing this issue to PM and finance minister to do necessary changes in tax policy.
Ay2015-16 itr filled by me but i forget to fill form 10E and i got U/s143 relief not consider . I filled 10E form upload on itr and rectification also done but itr rectification rejected. Pls suggest
Hi,
I recently filled my ITR online; i goofed up on my AY which has lead to an IT demand of 99K; I got the rectification request evaluated by a CA and submitted a rectification request along with 20K which according to my CA is the payble amount. Now I see that my rectification request has been rejected stating “mentioned assessment year cannot be rectified at CPC and hence rejected for the reason/s as provided below.Your case has been transferred to the Jurisdictional Assessing Officer” what do I need to do next? do i need to go meet the AST?
sir,
my query is while paying tax for a.y.2014-15,i have wrongly selected a.y.2013-14 & also i have make payment of rs15000 as advance tax but wrong head selected as self assesssment tax..
please help me out to rectify this query.
i am a tax consultant. i have filed manual i.tax for my client. i.t.o jurisdiction no sent any outstanding demand but cpc shown at outstanding i.tax and intt. No order received u/s 245 but i have paid all demand tax. now what is process of submit challan on line and drop the demand
Dear Sir,
I have deposited my Self Assessment Tax of Rs.7000/- for Assessment Year 2015-16 in my bank on 13-12-2014.
2. I have checked up my Form 26AS recently and found that the same is not appearing against Assessment Year 2015-16 and but has been shown against AY 2014-16.
3. I contacted the concerned officer of the bank who accepted the form and he has informed me that I should have marked “Advance Tax for AY 2015-16” of Form 280, instead of Self Assessment Tax for AY 2015-16. After having a look on my Form 26AS, It has now become clear that the bank has deposited the amount against AY 2014-15 and not against AY 2015-16.
4. Sir, at this stage, what steps should I take to get the above amount of Rs.7000/- diverted from AY 2014-15 to AY 2015-16 so that mis-appearing of this amount deposited by me on 13-12-2014 for AY 2015-16, may not create problem while finalizing my ITR for AY 2015-16. How can it be rectified? Please help me and advice.
I had filed my income tax returns online in 2010-11 and also received the receipt for the same.
I have now received a notice from IT department that I have an outstanding demand in 2010-11 and have to pay that along with interest.
I am working in Bangalore since 2009. As per my online data my ITO ward is in Hyderabad.
What should I do ? When I contacted the toll free number, I was told to go and meet the jurisdiction officer and get it clarified.
Can I write a mail? how can I be sure that the officer receives the mail and takes action
I will be grateful for any advise
Sir,
I got a outstanding demand of 2400/- for AY 2011-12.
I found the issue is TDS credited in 26-AS but in filling ITR i filled amount 2460 in Advance Tax.
Kindly tell me the which way I have to correct this data.
While correcting it shall I have to fill the IT column or not.
I am quite confused since already I have filled but amount is not rectified.
Kindly guide which are the column I have to fill.
Dear Sir,
My father is govt. Employee. Till last year deptt itself file his ITR 1. But this year AY 14-15 I filed his ITR as per form 16. . I checked his form 26AS it shown only bank FD’s TDS We received noticed u/s143(1) demanding last 4 year tax because tax amount not shown in form 26AS earlier also. I discuss this problem with his deptt they said send the last 4 year form 16 photocopy to CPS Banglore. It may be possible that earlier also noticed was issued and they did not informed us. We have all the copies of form 16 and we already paid the entire amount also its deducted from salary. Kindly guide me what to do.
Sir
for assesment year 2013-14, I have by mistake shown TDS on salary as TDS on other than salary for which i got intimation u/s 143(1) dt 11-03-2014 on 22-04-2014. i submitted rectification on 26-04-2014.I have again recevied a rectification order u/s 154(1) dt 18-08-2014 on -09-2014. There is tax credit mismatch. i have filed another rectification for the same on 05-09-2014. i want to know whether i can file rectification online or i have to meet assessing officer invariably. further how many times it return can be rectified.
regards
Hi sir.i received an intimation of outstanding demand of rs 2380 u/s 143(1) for AY 2013 14.while I have already paid that amount through challan as self assessment tax when filed itr last year and this challan is shown in my itr,26 AS as well as in tin website
Hi sir.i received an intimation of outstanding demand of rs 2380 u/s 143(1) for AY 2013 14.while I have already paid that amount through challan as self assessment tax when filed itr last year and this challan is shown in my filed itr8itr,
Dear Sir,
I am in a weird situation. CPC sent intimation to pay extra tax and I promptly paid them as Tax on Regular Assessment. This was in Jan 2010 for AY2009-2010. Subsequently, I was intimated about other outstanding tax demands and those included the demand that I had already cleared in Jan 2010. Unfortunately, I too had lost track of that payment and ended up paying the demand once again in June 2013.
So now, the situation is – I have paid the requested dues (Tax on Assessment) twice and it shows up in my Form26 AS too. I even filed RTI to the AO to get back the extra paid amount. However, the AO responded that the returns are with CPC and I should approach them.
Accordingly, I filed rectification request by choosing Option 2 and “Others” category, mentioning the problem in brief. CPC also rejected the request. The question is how do I get back one of those payments. What’s the procedure?
Regards.
Dear Sir,
I filed rectification for Invalid TAN and got following reply. what I need to do now? and do I need to meet my Jurisdictional AO in person? I am currently not in India..pls need ur advice…
DUE TO TECHNICAL REASONS THE RECTIFICATION RIGHTS, IN YOUR CASE, ARE BEING TRANSFERRED TO YOUR ASSESSING OFFICER. KINDLY CONTACT YOUR
ASSESSING OFFICER FOR THE SAME.THE DETAILS OF THE JURISDICTIONAL ASSESSING OFFICER ARE AVAILABLE ON THE WEBSITE incometaxindiaefiling.gov.in
UNDER SERVICES – KNOW YOUR JURISDICTIONAL A.O.
Dear Sir,
I filed rectification and got following reply. what I need to do now? and do I need to meet my Jurisdictional AO in person?
DUE TO TECHNICAL REASONS THE RECTIFICATION RIGHTS, IN YOUR CASE, ARE BEING TRANSFERRED TO YOUR ASSESSING OFFICER. KINDLY CONTACT YOUR
ASSESSING OFFICER FOR THE SAME.THE DETAILS OF THE JURISDICTIONAL ASSESSING OFFICER ARE AVAILABLE ON THE WEBSITE incometaxindiaefiling.gov.in
UNDER SERVICES – KNOW YOUR JURISDICTIONAL A.O.
Sir, I am a salaried person. I filed my return within due date for AY 2012-13. I recieved an notice from CPC u/s 143(1). My TDS amount has not been adjusted as it is not credited in my 26AS .Hence I have been charged with my Tax liability plus interest thereof u/s 234B. What should i do now ?
I received an Intimation under section 143(1). in that while paying Self Assessment Tax there is a mistake in selection of Assessment Year. So now is it possible for claiming that amount for the Assessment Year which it pertaining to be? Please Guide Me
Dear Sir,
I have 2 questions:
1. When we are filing for rectification online do we have to fill-up all the points? (i.e. Tax Payer is correcting data for tax credit mismatch only”, “Tax Payer is correcting the data in rectification”, “No further data correction required. Reprocess the case.”)
2. When we are uploading the xml under point ‘B'(i.e. “Tax Payer is correcting the data in rectification”) under which section is it to be generated?
Dear Selvaraj,
I have commented only from the point of view of those who doesn’t understand filing rectification application online. There are chances, that, CPC will pass the rectification order ignoring the real facts of the case. Therefore, only jurisdictional A.O. who is right in his approach can do the needful to the assessee in first attempt only. Think twice before approaching the CPC for rectification of mistake.
Hi
I just received intimation. I realized the mistake i made while filing return.
I am a salaried person.
I mentioned tax paid details in advance tax and self assessment tax. Whereas it should be mentioned under TDS, right? This leads to change in schedule?
Now i have couple of questions:
1. Should i file under tax credit mismatch where i don’t need to upload revised XML or second case B
2. If i revise XML, do i need to revise date and revision in ITR?
Dear SHABBIR
Good to see your reply. It is a nice way. But not feasible because first you have write an application, then approach AO. He must have mindset to seek request in the CPC system, then he has to make request then to get the file. and process do the needfull, by the time around 15 days would have gone, your traveling expenses would have much, then your valuable time will be spent at the Office of AO. Totally time waste. But online petition just 15 mins work with proper knowledge and approach. Things will be rectified. Worst case it will fall in to AO bucket.
Nice Articles and replies. However most of the time, it happens that the Gross Total Income (Row 10) always crries a higher figure than Gross Total Income after intra head adjustments (Row 7) even though there are no set off or carry forward losses (Rows 8 & 9). The CPC doesn’t rectify this mistake, however I try. I am at a loss what to do!!
YOur article is good, But practical difficulty is even if the data are filled correctly and the entry for epayment under self assessment no due credit has been given and the application are rejected and the original order itself is sent as rectified order. When no rectification is carried out. Further in some of the cases depreciation has been debited to profit and loss account and no add dpreciation and less depreciation has been made in the return of Income in such cases depreciation has not been allowed. When this fact has been corrected in the rectification application the same are rejected without any reason and in such cases also original order has been sent as rectified order. Kindly clarify what should be done in such cases. The ficticious demands are pending and reminder over reminders are getting for payments. Pl clarify on the above points.
But, there is another way by which an assessee can get his rectification application processed by the local jurisdictional A.O. within a short span of time. The procedure is as under :-
1. Write rectification application to local jurisdictional A.O. alongwith a request to process the same locally instead of getting it processed by the CPC.
2. The local jurisdictional A.O. then review your case in the system and if found feasible, he can apply his mind for processing your rectification application locally.
3. There is a return transfer request by which A.O. can request the CPC to transfer rectification right to the A.O. in the system itself.
4. The CPC will review the case and if found that no rectification application is filed with CPC by the assessee, then, it will transfer the rectification right to the A.O.
5. The return will be transferred to the A.O. from CPC within 5 working days from the date the request is raised in the system.
6. The A.O. then could be able to process the rectification application of the assessee in the system and grant due credit for prepaid taxes or other clerical errors provided the rules and laws are complied with.
Hope you now realize that this is the most convenient way to get the rectification application processed by the local jurisdictional A.O., instead of filing rectification application online.
It is very good information for e_filling assessee.