Rectification of Income Tax Return Filling

Posted by Corpbiz adviser on November 22nd, 2019

Step by Step Process to Rectify Income Tax Return Online

In case of any amends that you need to make on your Income-tax Return, there are special provisions under Section 154(1) that allows you to go through the rectification process by abiding with the provisions mentioned under the section. In this article, we will discuss the various requirements and the steps to carry out this Rectification process.

Filing rectification under Section 154(1)

As soon as you file a rectification return to the Income-tax Department, they will process it and then send you an intimation which indicates all the details that you specified in your return file and also those numbers which are present with the department.

In case of any discrepancies, basically related to a higher refund or a demand then, what you had claimed for return initially, the two options you possess is either to file a rectification or to agree with the demand put forward and pay the tax.

Errors during Income Tax Return Filling

In case of any apparent mistake in your Income-tax return, there is a special provision provided under section 154(1), which is called a Rectification request that is entirely allowed by the Income-tax Department to make corrections to all the mistakes that present in your Income Tax Return Filing.

Filling of rectification, request takes care of the following set of errors that could occur in your Income-tax Return:

• Error due to neglecting of any of the provisions of the law
• Any arithmetic error
• Failure of facts
• Clerical errors

Given below are some of the common examples of such types of errors:

• Mismatch in Advance tax
• Tax credit mismatch
• Error due to incorrect mentioning of the gender
• Errors caused due failure in submitting additional details for a capital gain during the process of filing return.

An important point to note is that it is strictly prohibited to use rectification request to change details such as bank accounts or the address which is mentioned in the Income Tax Return.

When to file a rectification request?

• Only for those returns that already processed by the CPC, Bangalore, a rectification request can be filed.
• If there happens to be a change of income, once a mistake is rectified, then, in that case, a rectification request should not be filed.
• New exemptions or deductions are strictly prohibited from being claimed.
• It should be noted that if the Income-tax Return was filed using the online mode, then the Rectification request must also be submitted online.

Steps to file a rectification request online

The following is a guide on how to go about the rectification request filing through online mode under Section 154(1).

1. The first step is to log in to the official Income tax website.
2. Step 2 is to go to the e-file option. Once you click on it, a drop-down menu will be displayed. Click on ‘rectification.' option.
3. A rectification window will be displayed wherein you need to fill in the following details:

• Firstly, select the Assessment year for which you wish to file a rectification.
• Also, type in the ‘Latest Communication Reference Number' that is mentioned in your CPC order.
• If you have received multiple orders, make sure to feed in the latest order number. Finally, click on the ‘Validate ‘option.

4. Based on your reasons for filing the rectification request, select the appropriate ‘Rectification Request Type.'

Once you select your reason for filing a rectification request, you need to carry out the following steps:

• Select the option ‘Taxpayer Correcting Data for Tax Credit Mismatch Only’. Once this option is selected, three window boxes will be displayed on your screen. These checkboxes are available through which you can make corrections to ‘Tax Collected at Source ‘(TCS), ‘Tax Deducted At Source' (TDS) and the Income Tax (IT) that are specified in the Income-tax Return. Based on your requirement, you need to select the appropriate checkbox for which you need to correct. For each selection, a maximum of 10 entities is allowed to be added.
• Select the option ‘Taxpayer is correcting the data in Rectification.' The next step is to select the reason for which you need to take up the rectification process and also the schedules in the return that are being changed. Subsequently, you are required to upload XML. In this option, the user is allowed to select a maximum of up-to four reasons.
• The next step requires selecting the option ‘No Further data correction required. Reprocess the case'. Note that this option is to be selected specifically if either there is a mismatch in case of the Tax credit or a mismatch in case of a tax interest. Further, two checkboxes will appear representing the same, and you need to select the one wherein you require the corrections to be made. In case of this option, you are not required to upload your Income Tax Return.

5. Once you have successfully performed all the sub-steps of step 4, you need to click on to the ‘submit' option. A pop-up box will appear asking you whether all the details entered by you are as per Form 26 AS. Select the ‘OK' button.
6. Once the submission of rectification request takes place successfully, a Unique Reference Number will be generated that will be sent directly to the CPC, Bangalore, for further processing.
7. Once all these steps are carried out successfully without any error, your Rectification Request will undergo a series of checking and processing. Finally, a Rectification Order will be issued under Section 154(1).

The steps, as mentioned above, need to be followed correctly to ensure that you get your Rectification order without any delay, and the amendments are made efficiently.