Section 154 of the Income Tax Act basically deals with the correction of any error that may or may not have occurred in the income tax records of an individual. It also deals with the rectification of errors in the orders of the Assessing Officer.
Section 154 of the Income Tax Act, 1961, pertains to rectification of mistakes in the income tax records or an order passed by the Assessing Officer. Under Section 154, amendments can be made to orders issued under the Income Tax Act, sections 143(1), 200A(1) and 206CB(1). These cover notices issued as intimation before a case is taken up for scrutiny, and those issued for error in TDS and TCS statements.
The main points of interest in Section 154 are:
The process of filing an online rectification request for Sections 154 and 143(1) are the same as that in case of rectifying an Income Tax Return.
Before applying for rectification, you need to examine carefully the order against which you seek to file a rectification. You need to ensure that the calculations are correct and that all exemptions and deductions taken into consideration. It is possible that your calculations are wrong and the Centralized Processing Centre, Bengaluru, has made corrections to the tax statement. To cross-check this, compare your Income Tax Return with Form 26AS. Seek the help of a tax consultant if you are not sure.
If after checking, you still find a mistake in the tax details, you can apply for a rectification under Section 154. These mistakes cannot be additions or omissions in income or investment declaration. The Income Tax Act specifies that the mistakes for which rectification can be sought should be "one that is apparent from the records" and must not require any debate or investigation.
You can file a rectification application through the Income Tax e-filing website. Rectifications of intimation under Sections 200A(1) and 206CB will require an online correction statement to be filed.
The following are the errors that can be rectified in your income tax returns under Section 154: factual errors, mathematical errors, clerical errors, and involuntarily overlooking certain compulsory legal provisions.
No, you cannot use Section 154's rectification request provision to change your address or bank account details.
If the income tax return was filed online, then the rectification request under Section 154 should also be filed online.
You can choose a maximum of 4 reasons when filing a rectification request under Section 154.
No, if a change in income has been noticed when rectifying a mistake under Section 154 of the Income Tax Act, then a revised income tax return should be filed and not a rectification.
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