Which Income Tax Orders Can Be Rectified? Under Section 154 of the Income Tax Act, the Income Tax Department allows rectification of mistakes in certain orders. This provision helps correct apparent errors without requiring a lengthy appeal process. 1. Orders Eligible for Rectification The followingRead more
Which Income Tax Orders Can Be Rectified?
Under Section 154 of the Income Tax Act, the Income Tax Department allows rectification of mistakes in certain orders. This provision helps correct apparent errors without requiring a lengthy appeal process.
1. Orders Eligible for Rectification
The following Income Tax orders can be rectified under Section 154:
✅ Intimation under Section 143(1) – Errors in automatic processing of returns.
✅ Assessment Orders under Section 143(3), 144, 147, 153A, 153C – Incorrect tax calculations or deductions.
✅ TDS/TCS Orders under Section 200A(1) and 206CB – Mismatch in TDS/TCS credit.
✅ Appeal Orders by CIT(A) – If there is an apparent mistake in the appellate decision.
✅ Rectification Orders under Section 154 – If a previous rectification order contained an error.
2. Types of Mistakes That Can Be Rectified
🔹 Clerical/Typographical Errors – Mistake in PAN, name, or assessment year.
🔹 Incorrect Tax Computation – Errors in tax demand or refund calculations.
🔹 TDS Mismatch – TDS credit not given as per Form 26AS.
🔹 Omission of Deductions/Exemptions – Missed deductions under 80C, 80D, 80G, etc.
🔹 Double Taxation of Income – Income considered twice for taxation.
🔹 Incorrect Late Fee or Penalty – Wrong application of fees under 234F, 271B, etc.
3. How to Apply for Rectification?
✅ Step 1: Login to the Income Tax e-Filing Portal.
✅ Step 2: Go to ‘Rectification Request’ under ‘Services’.
✅ Step 3: Select the relevant order and mention the mistake.
✅ Step 4: Upload necessary supporting documents.
✅ Step 5: Submit the request and track the status online.
4. Time Limit for Rectification
🕒 Rectification can be filed within 4 years from the date of the original order. However, this does not apply to revisions under Section 263 or 264.
Final Thoughts
If your Income Tax order contains apparent mistakes, you can request rectification under Section 154. This process is quicker than an appeal and helps correct errors without legal proceedings.
Read: How to point out mistake in an income tax notice which can rectified?
CA Vishnu Ram
How to Identify and Rectify Mistakes in an Income Tax Notice? Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act. 1. Common MistakeRead more
How to Identify and Rectify Mistakes in an Income Tax Notice?
Receiving an Income Tax Notice can be stressful, but errors in the notice can be rectified if pointed out correctly. Here’s how you can identify mistakes and request rectification under Section 154 of the Income Tax Act.
1. Common Mistakes in an Income Tax Notice
🔹 Mismatch in Income Details – The income mentioned in the notice may not match your ITR filing.
🔹 Incorrect Tax Calculation – Errors in tax liability computation, deductions, or rebates.
🔹 TDS Mismatch – TDS credit not given as per Form 26AS.
🔹 Incorrect Demand Raised – Wrong tax demand due to an automated system error.
🔹 Penalty or Late Fee Error – Unjustified penalties applied.
🔹 Arithmetical or Clerical Mistakes – Typing errors in PAN, name, or assessment year.
2. How to Verify the Mistake?
✔ Check Your ITR Acknowledgment – Compare details with the notice.
✔ Download Form 26AS & AIS – Cross-check TDS/TCS details and reported income.
✔ Refer to Intimation u/s 143(1) – Verify whether the calculations are correct.
✔ Match Deductions & Exemptions – Ensure all eligible deductions (e.g., 80C, 80D, 80G) are considered.
3. How to Rectify the Mistake?
✅ Step 1: Login to the Income Tax e-Filing Portal (https://www.incometax.gov.in)
✅ Step 2: Go to ‘Rectification Request’ under ‘Services’ section.
✅ Step 3: Select ‘Section 154 – Rectification’ and enter the details.
✅ Step 4: Upload Supporting Documents (ITR acknowledgment, Form 26AS, Tax Challans, etc.).
✅ Step 5: Submit the Request and Track Status
📌 If the mistake is on the department’s end, the rectified order will be issued within a few weeks.
4. What If the Error is Not Rectified?
🔴 If the mistake is not rectified, you can:
- File a Grievance through the e-filing portal.
- Submit a written application to the Jurisdictional Assessing Officer (AO).
- File an Appeal before the CIT(A) under Section 246A (if demand is incorrect).
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