Rectification Request on Income tax under section 154(1) of The Income Tax Act, 1961


Rectification Request on Income tax under section 154(1) of The Income Tax Act, 1961   


On filing the income tax return the Income Tax Department processes the return and sends an intimation. If there is a mismatch between the amount which the assessee has computed and filed with the assessment by the department then a notice under section 154 of the Income-Tax Act, which is the rectification order issued by the department in case of mistake apparent from record. Then the assessee has 2 options:
1. Rectification Proposal Agreed
2. Rectification Proposal Not Agreed.
A rectification request under section 154(1) of the Income Tax Act,1961 is allowed by the Income Tax Department for correcting mistakes when there is a mistake in the Income Tax Return.
Which errors can be rectified :
Rectification can be filed if any
(i)            Mistake includes any arithmetical & clerical errors/mistakes
(ii)           Misreading a clear provision of the Income Tax Act
(iii)          Applying an inapplicable provision of the act
(iv)         Non-following a decision of Jurisdictional High court
(v)          Erroneous application of a provision of the act
(vi)         Overlooking a non-discretionary but mandatory provision
(vii)        error of fact
How to file a Rectification Request:
This Rectification can be filed under section 154(1) by using the following steps –
Ø  Log on to the website of Income Tax •
Ø  Go to 'e-File'.
Ø  From the drop-down, select 'Rectification'.
Ø  Select the 'Assessment Year' for which rectification is to be filed and 'Latest Communication Reference Number' (as mentioned in the CPC Order).
Ø  If by any chance you have received more than 2 orders, use the latest order number.
Ø  Click on 'Validate'.
Ø  Select the 'Rectification Request Type' based on the reason for filing rectification.
Ø  Select the reason for seeking rectification from the dropdown.
1.Taxpayer is Correcting Data for Tax Credit mismatch only−
On selecting this option three check boxes are displayed. Assessee can make a correction to :
Tax Collected at Source (TCS),
Tax Deducted at Source (TDS) and
Income Tax (IT) details entered in the Income Tax Return. Select the checkbox for which data needs to be corrected
2.Taxpayer is correcting the Data in Rectification –
Select the reason for seeking rectification and the Schedules in the return being changed. Next, upload XML. Maximum of 4 reasons can be selected.
3.No further Data Correction required. Reprocess the case−
Select this option if there is a
Tax Credit mismatch or
Tax/ Interest mismatch.
Ø Click the ‘Submit’ button. A pop up will appear to make sure that the TDS entries are as per Form 26AS. Click on 'OK'.
Ø On successful submission, a Reference number is generated and sent for processing to CPC, Bangalore.
After processing the Rectification Request, the rectification order under Section 154 will be issued.
When to file a rectification request:
A rectification return can be filed only for those cases whose returns have been processed in CPC, Bangalore. Ensure that on filing the rectification request there should not be any change in the Income as no additional deduction or exemption is allowed to be claimed in the rectification request. If that is the case, then file a revised return.

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