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 rectification can be filed by you or an Income Tax Authority can on its own rectify a mistake which is apparent.

Should Rectification be Filed Online?

If the Income Tax Return was filed online then an online rectification has to be filed.

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 ‘e-File’. In the drop-down select ‘Rectification’.

Step 3 – Select the ‘Order/Intimation to be rectified’ as ‘Income Tax’ and the relevant assessment year for which rectification is to be filed.

Click on ‘Continue’.

Step 4 – Select the ‘Request Type’ based on the reason for filing rectification.
Here is what you need to do after selecting the reason –

• Return data Correction (XML)

You can select a maximum of 4 reasons.

Select the reason for seeking rectification and the Schedules in the return being changed. Next, you need to upload XML.

• Only Reprocess the return − You may select this option if reprocessing is required. No uploading of an income tax return is required.

Step 5 – 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.

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