Section 154 of income tax act provides for rectification of mistakes. Again, it is a rectification of a mistake apparent from the record.
Content
1.What is section 154 of income tax act?
2. What mistake can be corrected by filing a rectification u/s 154 of income tax act?
3.Who can point out the mistake to be rectified u/s 154(2) of income tax act?
4. When can file rectification u/s 154 of income tax act?
5.Which order can be rectified?
6.How to file rectification request online u/ 154?
7.Summary of section 154 of income tax act
8. Frequently asked question
1.What is section 154 of income tax act?
Section 154 of income tax provides for rectification of errors or mistakes. Further, it is a rectification of a mistake apparent from the record. Moreover rectification is made after receiving intimation u/s 143(1).
Further, orders issued under sections 143(1), 200A(1) and 206CB(1) can be rectified. However, only those mistakes which are evident from the record can be rectified.
2. What mistake can be corrected by filing a rectification u/s 154 of income tax act?
A mistake which can be rectified u/s 154 is one which is patent, which is obvious and whose discovery is not dependent on argument or elaboration.
Following are some of the examples of mistake which can be rectified under this section:
- An error of law or fact,
- A clerical or arithmetical mistake,
- And error in determining written down value,
- Overlooking the obligatory provisions of the legislature,
- Finally mistake arising as a result of subsequent retrospective amendment of law.
3.Who can point out the mistake to be rectified u/s 154(2) of income tax act?
Rectification u/s 154 of income tax act can be done only if ITR is processed at CPC.
Following person can point the mistake u/s 154(2) of income tax act :
- An income tax authority can rectify the mistake apparent from records on its own
- Or, an income tax authority can rectify mistake apparent from record if it has been brought to his notice by the assessee or deductor or collector.
- Further, if there is mistake apparent from record in an order passed by the Joint Commissioner (Appeals)/Commissioner ( Appeals), the Joint Commissioner (Appeals)/Commissioner ( Appeals) can rectify the mistake if it has been brought to his notice by the assessee or deductor or collector.
In brief, rectification request can be filed by a person
1.who is filing the return
2. And by income tax authority can also rectify the mistake on its own if it is apparent.
4.When can file rectification u/s 154 of income tax act?
Rectification u/s 154 of income tax act can be done only if ITR is processed at CPC.
Further, an order to rectify mistake can be made within the time limit given below:
- No amendment u/s 154 can be made after expiry of four years from the end of the financial year in which the order sought to be amended was passed.
- Where an application for amendment u/s 154 is made by the assessee on or after june 1, 2001 to an income tax authority. The authority shall pass an order within 6 months from the end of the month in which the application is received by it, either making the amendment or refusing to allow the claim.
5.Which order can be rectified under section 154 of income tax act?
To rectify any mistake apparent from record, the income tax authority may amend the following order:
- Order passed under any provision of the act ;
- An intimation or deemed intimation u/s 143(1);
- Finally, amend any intimation u/s 200A(1).
6.How to file rectification request online u/ 154?
1.Login into e-filing portal by entering PAN and password
2. Next, click on ‘services’ drop-down and click on rectification in it.
3. And then click on new request on rectification page
4. And on new request page select Income tax and relevant assessment year from drop down and ‘click’ on continue button.
5.Finally select the reason for which you wants to send rectification request.
7.Summary of section 154 of income tax act
1.When taxpayers raise rectification requests, the IT department has to respond within 6 months from the date of receipt of the such request.
2.The order of rectification should be in writing.
3. Further,where rectification is done on its own, such rectification can be done up to four years from the end of the financial year in which the rectification order is passed.
4.In case amendment leads to increase in exemption and reduction in tax liability then income tax department will provide refund to the assessee.
5.If the amount of refund has been paid but after rectification, the exempted amount is decreases , then the assessee will have to pay the additional amount.
6.When the Commissioner passes an order, he can rectify it either on the application of the taxpayer or by his own action.
6. Frequently asked question
1.What is the time limit for rectification u/s 154 of income tax act?
No amendment u/s 154 can be made after expiry of four years from the end of the financial year in which the order sought to be amended was passed. In brief assessee can file rectification within 4 years from end of financial year in which order was passed.
2. How do i withdraw rectification request?
An assessee can withdraw correction request within end of day of request.
3.How to file rectification request online u/ 154?
It can be done by login into e-filing portal and following above mentioned steps.
4.Who can file a rectification request?
Rectification request can be filed by a person :
1.who is filing the return
2. And by income tax authority can also rectify the mistake on its own if it is apparent.
