It has been noticed on many occasions that an order or intimation passed by the Assessing officer might contain some error or mistake that is apparent from the record and the same can be rectified by the taxpayers by filing the rectification u/s 154 of the Income Tax Act.
Income Tax Authority may amend the below-mentioned order or intimation in order to rectify the mistake apparent from the record:
- Order passed under any provisions of the Income Tax Act.
- Intimation u/s 143(1)
- Intimation u/s 200A(1) – Processing of TDS Return
- Intimation u/s 206CB – Processing of TCS Return
1: If after considering the request of rectification of mistake u/s 154, the tax liability of the taxpayer gets enhanced or the refund gets reduced, in that scenario the taxpayer shall be given an opportunity of being heard.
2: If an order is a subject matter of any appeal or revision, any matter which is decided in such an appeal or revision cannot be rectified by the Assessing Officer.
3: Income Tax authority can rectify the mistake on its own motion.
If the order is passed by the CIT(A), then the CIT(A) can rectify such a mistake that can be brought to notice by the Assessing Officer or by the taxpayer.
The time limit for filing the request for rectification u/s 154 is the 4 years from the end of the financial year in which the order sought to be rectified was passed by the respective authority.
It is to be noted that the period of 4 years is to be ascertained from the date of the order sought to be rectified i.e. if an order is revised, set aside, etc in that case the period of 4 years is not to be considered from the date of original order rather the period of the 4 years is to be determined from the date of the revised order.
Where the application for rectification u/s 154 is made by the taxpayer, the Income Tax Authority shall amend or refuse the same within 6 months from the end of the month in which such application is received by the said authority.
Steps for requesting the Rectification u/s 154 of the Income Tax Act are as follows:
Login to your Income Tax Return Dashboard.
Navigate to e-file option tab from the menu and select “Rectification”.
Under Rectification you will get the option to choose from “Income Tax” or “Wealth Tax”
Income Tax Department has issued Instructions for filing rectification are as follows:
- A Rectification should not be filed for a change in Gross total Income and Chapter VIA deductions.
2. Only one Rectification for an Assessment year can be filed as per CPC order unless the “Rectification Return” is withdrawn/processed.
3. You can withdraw a “Rectification” within the same day of filing. The applicant has to go to My Accounts then select View e-filed Returns/Forms then Rectification status to withdraw.
4. If audited u/s 44AB, it is mandatory to digitally sign your IT Return
5. In case “Request Type” is “Return data correction (XML)” for AY 2018-19, download the latest utility under Downloads for AY 2018-19 and generate XML with “Filing type” as “Rectification”.
Taxpayers will get the auto-populated details like PAN, ITR Form, FY, AY, Latest Intimation Reference Number Issued u/s 143(1), e-filing acknowledgement Number.
Under the “Request Type” you can select either “Return data correction (XML) or only reprocess the return”.
Select the appropriate reason for filing the rectification from the reason displayed on the screen as shown in the image.
If in any case you are not able to corelate your reason with the above mentioned available otpions then you can select the “Others” and press “Ok”.
Now you can elaborate on your reason for rectification which can be of a maximum of 250 characters. Then after you can select and upload the rectification XML file.
Click on Submit to complete the request for rectification.
A Success message will be displayed and a mail confirming the submission of the rectification request will be sent to the user’s registered mail id.
In case your “Request type” is “Return Data Correction (XML) for AY 2018-19 download the latest utility from downloads for AY 2018-19 and generate XML with “Filing type” as “Rectification”.
How to Check the Status of your filed Rectification for the respective Assessment Year.
Login to your Income Tax portal, from the main menu navigate to “My Account” and select “View e-filed Returns/ Forms”
In “View e-filed Return/Forms” you will have to select option as “Rectification Status” and click on Submit.
CA Devesh Thakur