Rectification of Income Tax Return (2023 Process)

We take great care to avoid mistakes when filing our Income Tax Return (ITR). However, many of us file income tax returns at the last minute, which can lead to unwanted errors. These include providing the wrong bank account number, forgetting to declare interest income, claiming wrong deductions, etc. 

Don’t worry if you make a mistake. Current income tax law allows you to correct mistakes. If you find an error after submitting your income tax return, you can rectify the error based on applicable tax laws. Section 139(5) of the Income Tax Act 1961 allows the taxpayer to correct the error by filing an amended income tax return.

If you are required to rectify your obvious errors then this article will help you to know how to rectification of income tax return. So, Let’s dive into it.

What Is the Difference between Rectification and Revised Return

Difference between rectification and a revised return is:

A revised return offer may correct any errors or omissions made when the original ITR was submitted. Filing an amended return simply means resubmitting the return, but this time with the correct information. When submitting an amended statement, you must provide details of the original statement.

Rectification is an option offered by the Income Tax Department to correct obvious errors in your income tax return records. If your tax return records reveal an error notified in a u/s 143(1) notice issued by the CPC or a u/s 154 order issued by the AO, you must file a request for correction. Rectification requests can only be submitted for returns that have already been processed by CPC.

What Is the Time Limit for Rectification under Section 154

There may be a mistake in any order passed by AO (Assessing Officer). In such a situation, a mistake that is apparent from the record can be rectified under section 154. The provisions relating to the rectification of mistakes under section 154 are explained here.

No order of rectification may be passed after the expiry of 4 years from the end of the financial year in which the order sought to be rectified was passed. The 4-year period applies from the date of the order sought to be rectified and not 4 years from the original order. Therefore, if an order is revised, set aside, etc., then the period of 4 years will be counted from the date of such fresh order and not from the date of the original order.

If a taxpayer submits a request for rectification, the authority shall have six months from the end of the month in which the authority receives the request to change the order or reject the request.

How Do I File Rectification on a New Income Tax Portal

This service is only available after logging into the e-Filing portal. This will allow you to rectify any errors that appear from the processed return request or order record submitted by your CPC.

1. Log in to the Filing e- Portal with a valid user ID and password.
2. Click on the Services and tap on Fix.
3. On the rectification page, click New Request.
4. On the new request page, the PAN will be automatically filed. Select income tax or wealth tax.
5. Select the evaluation year from the dropdown list. 
6. Click Continue.

What Is Rectification Procedure

The taxpayer should keep the following in mind, Before making any rectification application. Here is the step:

1. Taxpayers should carefully consider any decision its request to apply for correction.
2. In many cases, taxpayers may feel that there is a mistake in the order passed by the Income-tax Department. In fact, the taxpayer’s calculations could be incorrect and the CPC might have corrected these mistakes, e.g., the taxpayer may have computed incorrect interest in the return of income.
3. Therefore, to avoid application of rectification in the above-discussed cases the taxpayer should study the order and should confirm the existence of mistake in the intimation if any.
4. If he finds an error in the order, only he must request correction under Section 154.
5. We also need to ensure that the errors are obvious from the record and do not justify discussion, elaboration, investigation, etc. Taxpayers can apply online to correct errors. Before submitting an online application for amendment, taxpayers should refer to the amendment procedure set out at https://incometaxindiaefiling.gov.in/. 
6. To rectify a notice under Section 200A(1)/206CB, please submit an online Correction Statement. Relevant instructions can be found at http://contents.tdscpc.gov.in/en/filing-correction-etutorial.html
7. Any rectification or modification which has the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the taxpayer (or deducted) shall not be unless the relevant authority has notified the taxpayer or deductible of its intention to do so and has given the taxpayer (or deductible) a reasonable opportunity to be heard.

How Do I Check My Rectification Status

The Amendment Status Service is available to all registered users of the e-Filing portal and allows you to view the status and details of your submitted rectification requests. Registered users can view modification details depending on the type of request submitted.

1. First, log in to the e-Filing portal with your user ID & password.
2. From the Dashboard, click Services ->Rectification Request -> Rectification Status.
3. On the page of Rectification Status, click Rectification Reference Number to view the rectification details based on the request type (Income Tax Rectification or Wealth Tax Rectification) submitted by you.
4. Now, you can click on Take Action or View Details against the Rectification Reference Number.

Frequently Asked Questions (FAQs):-

How Quickly Must You Respond to a Request for Rectification

You must respond to your request without any delay and within one calendar month from the first date you received the request.

Is there any penalty for revised return?

There is no penalties or fees will be charged by the income tax authorities for filing an amended income tax return. So, if you make a mistake when filing your income tax return for the related paperwork.

Can defective return be rectified?

If the return is found to be defective, you must correct the defect in the submitted return within fifteen (15) days from the date of receipt of the notice or the period specified in the notice.

Who can apply for rectification of mistake?

Only those users who have received u/s 143(1) Order/Notice of the CPC may submit requests for amendments on the e-Filing Portal.

How many times a return can be rectified?

No, you can not file another Rectification. Only once the previous one is processed by CPC. You will receive order u/s 154 once the rectification is processed. then view the status of your e-filed Rectification, log in, and go to My Account → Rectification status.

Conclusion

Now as you know rectification of income tax return. If you find an error after submitting your income tax return or have some unwanted errors, then the Income tax department provides a facility to rectify the error based on applicable tax laws.

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