Important Keyword: Income Tax, Rectification Section 154, Refund & Notices.
Table of Contents
What is Rectification Request u/s 154?
As part of the Income Tax return filing process, the Income Tax Department conducts a thorough examination of the filed Income Tax Return (ITR) and issues an intimation under section 143(1) to the taxpayer. This intimation compares the data provided by the taxpayer in the filed ITR with the calculations computed by the Income Tax Department. If any disparities or mismatches are detected, the taxpayer is given the option to rectify the errors under section 154 of the Income Tax Act.
Both the taxpayer and the Assessing Officer have the authority to make corrections in the Income Tax Return. They can initiate the rectification process within a time frame of up to four years from the end of the relevant financial year. This window allows for any necessary adjustments to be made, ensuring that the ITR accurately reflects the taxpayer’s financial information and obligations.
Prerequisites for Rectification Process
Before proceeding with the rectification process for your Income Tax Return (ITR), ensure that you meet the following prerequisites:
For Registered Taxpayers (or Authorized Signatory / Representative Assessee):
- Registration on the e-Filing Portal:
- You must be a registered user on the e-Filing portal with a valid user ID and password.
- Receipt of Intimation:
- You should have received an intimation under section 143(1) of the Income Tax Act, 1961, or under section 16(1) of the Wealth Tax Act from the Centralized Processing Centre (CPC) in Bengaluru.
- Optional: Engagement of ERI:
- If you wish to engage the services of an ERI (E-Return Intermediary), you can do so by adding them using the My ERI service.
For Registered ERI Users:
- Client Registration:
- If you are an ERI user, add the taxpayer as your client using the Add Client service.
- Active ERI Status:
- Ensure that your ERI status is active to facilitate the rectification process.
For Both Registered Taxpayers and ERI Users:
- Valid Digital Signature Certificate (DSC):
- Register a valid Digital Signature Certificate (DSC) in the e-Filing portal. The DSC should not be expired.
- This option is required if you intend to exercise the Using Digital Signature Certificate (DSC) option for rectification.
- OR
- Electronic Verification Code (EVC):
- Generate an Electronic Verification Code (EVC) to authenticate the rectification process.
Classification of Rectification Requests under section 154 of Income Tax Act
| Income Tax Rectification | Reprocess the return | If the taxpayer has furnished correct details in the ITR but CPC has not considered it during the processing |
| Tax credit mismatch correction | To make correction in details of TDS/TCS/IT Challans and resolve Tax Credit Mismatch | |
| Additional information for 234C interest | To make correction in the calculation of interest under Section 234C for the correct processing of ITR | |
| Status Correction | If the taxpayer has been charged with Maximum Marginal Tax Rates while processing of ITR without giving effect to the correct ‘Status’ and ‘Sub-Status’ | |
| Exemption section correction | To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC | |
| Return data correction (Offline) | To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC in offline manner | |
| Return data correction (Online) | To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC in online manner | |
| Wealth Tax Rectification | Reprocess the Return | If the taxpayer has furnished correct details in the wealth tax return but it has not considered during the processing |
| Tax Credit Mismatch Correction | To make correction in details of Tax Challans and resolve Tax Credit Mismatch | |
| Return Data Correction (XML) | To make correction in data reported in the tax return by selecting appropriate reasons and uploading XML for correct processing |
How to file rectification online under section 154 of Income Tax Act?
- Login Income Tax Website
Login to your e-filing account using your user ID and password.
- Rectification Option
Click on e-File > Rectification option from the dashboard.
- New Request
On the rectification page, click on the option to generate a new request.
- Enter Details
On the New Request page, your PAN will be auto-filled. Select Income Tax or Wealth Tax. Enter the assessment year.
- Intimation Reference Number
If you select the Wealth Tax option, you also need to enter the latest intimation reference number, and click Continue.
View Status of Rectification Report
- Log in to the e-Filing portal using your user ID and password
- Click on Services > Rectification Request > Rectification Status
- On the Rectification Status page, click Rectification Reference Number to view the rectification details based on the Request Type (Income Tax Rectification or Wealth Tax Rectification) submitted by you
- You can select Take Action or View Details against the Rectification Reference Number
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Official Income Tax Return filing website: https://incometaxindia.gov.in/
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