Rectification under Section 154(1)

Once you file an income tax return the Income Tax Department processes the return and sends an intimation. The intimation contains details of the return submitted by you and the numbers that the department has.

If there is a mismatch i.e. a demand or higher refund than what you had claimed in the return you can do the following –

• File a rectification request 
• Agree with the demand and pay the tax.

What Errors can be corrected by filing a Rectification?

A rectification request under section 154(1) is allowed by the Income Tax Department for correcting mistakes when there is an apparent mistake in your Income Tax Return.
The following errors can be taken care of by filing a rectification –

• an error of fact
• an arithmetic mistake
• a small clerical error
• an error due to overlooking compulsory provisions of law.

Here are some examples of these errors are –

• a mismatch in tax credit
• advance tax mismatch
• gender mentioned incorrectly
• additional details not submitted for capital gains at the time of filing return

Do not use rectification request for changing bank account or address details of your Income Tax Return.

When can rectification be filed?

A rectification request can be filed only for returns which are already processed in CPC, Bangalore. If on rectifying a ‘mistake’ there is a change in Income – a rectification should not be filed. In this case, a Revised Income Tax Return should be filed. No new deductions or exemptions are allowed to be claimed.

Who can file the Rectification?

A return can be rectified by-

• The person filing the return, or
• An Income Tax Authority can on its own rectify a mistake that appears on the face of the record

Should Rectification be Filed Online?

You must rectify the return online if you have e-filed the Income Tax Return.

How to file a Rectification online?

Here is a step-by-step guide on how to file a rectification request under section 154(1) –

Step 1 – Login to Income Tax Website

Step 2 – Go to ‘Services’ in the main menu and click on ‘Rectification’ in the dropdown.

Step 3- Click on the ‘New Request’ button.

Step 4 – Now select ‘Order passed under’ as ‘Income Tax’. Select the relevant assessment year from the dropdown for which rectification is to be filed and continue.

Rectification type 1- Reprocess the return

Step 5(1)- Select the request type as ‘Reprocess the Return’.

You just need to submit the request for reprocessing.

After submission of the same, you will be redirected to the e-verification page.

Rectification type 2- Tax credit mismatch

Step 5(2)- Select the ‘Request Type’ as ‘Tax Credit Mismatch Correction’.

It will auto-populate schedules that are available in the processed return. It allows you to edit or delete the schedule details.

You can edit the details of the below schedules:

• Tax Deducted at Source (TDS) on Salary Details,
• Tax Deducted at Source (TDS) on Other than Salary Details,
• Tax Deducted at Source (TDS) on Transfer of Immovable Property/Rent,
• Tax Collected at Source (TCS),
• Advance Tax or Self Assessment Tax Details.

Next click on the ‘Continue’ button and e-verify.

Rectification type 3- Return data correction(Offline)

You can rectify the return by uploading the rectification XML/JSON file by this option. Mention the reason for seeking rectification in return.
Re-enter all the entries in the schedules. All the modified entries and other entries mentioned in the ITR filed earlier are to be entered. Make the necessary corrections in the data. While doing corrections, make sure not to declare any new income source or additional deductions. Validate the XML/JSON and re-upload rectified XML/JSON.

The process to generate a rectification XML/JSON file is the same as that of the regular return XML/JSON file.

After uploading the XML/JSON file, click on the ‘Submit’ button.

On successful submission, you will be taken to the e-verification page.

After processing the Rectification Request, the rectification order under Section 154 will be issued.

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