Monday, 21 April 2014

Steps for filing Rectification request on receipt of demand notice due to mis-match of Income Tax



The CBDT has noted that many taxpayers are committing mistakes while furnishing their tax credit claims in the return of income.

Such mistakes include:

  • quoting of invalid/incorrect TAN;
  • quoting of only one TAN against more than one TAN tax credit;
  • furnishing information in wrong TDS Schedules in the Return Form; furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax payments etc.

As a result of these mistakes, the tax credit cannot be allowed to the taxpayers while processing returns despite the tax credit being there in 26AS statement. The CBDT, therefore, desires the taxpayers to verify if 
the demand in their case is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands.

The procedure for filing online rectification request has been given below:

Rectification Request

Rectification request can be filed u/s 154 of the Income Tax Act by the taxpayer in case of any mistake apparent from the record.

Prerequisite to file Rectification request

1. The Income Tax Return for the Assessment Year should have been processed in CPC, Bangalore.

2. An Intimation under Section 143(1) OR an order under Section 154 passed by CPC, Bangalore for the e-Filed Income Tax return should be available with the taxpayer.

3. For Electronic returns filed and processed at CPC, only online rectifications will be considered.

4. If the refund arising out of return processed at CPC is adjusted against the demand of other Assessment Years and then the assessee is challenging the demand itself, in that case

Rectification application has to be filed for the demand year, if the demand was raised by CPC then online application has to be filed
for the demand raised by the Field Assessing Officer, the application has to be filed before him.
5. No rectification has to be filed for giving credit to taxes paid after raising the demand. To file your Rectification, you should be a registered user in e-Filing application.

Step By Step guide on how to file rectification at Income Tax efiling Site:

To file your Rectification, you should be a registered user in e-Filing application.

Step 1 – LOGIN to e-Filing application and GO TO –> My Account –> Rectification request.

Step 2 – Select the Assessment Year for which Rectification is to be e-Filed, enter Latest Communication Reference Number (as mentioned in the CPC Order).

Step 3 – Click ‘Submit’.


Step 4 – Select the ‘Rectification Request type’.


Step 5 − On selecting the option ‘Taxpayer Correcting Data for Tax Credit mismatch only’, three check boxes, TCS, TDS, IT, are displayed. You may select the check-box for which data needs to be corrected. User can add a maximum of 10 entries for each of the selections. No upload of any ITR is required.



Step 6- On selecting the option ‘Taxpayer is correcting the Data in Rectification’ − select the reason for seeking rectification, Schedules being changed, Donation and Capital gain details (if applicable), upload XML and Digital Signature Certificate (DSC), if available and applicable. You can select a maximum of 4 reasons.



Step 7 – On selecting the option, ‘No further Data Correction required. Reprocess the case’ − check-boxes to select- Tax Credit mismatch, Gender mismatch (Only for Individuals), Tax/ Interest mismatch are displayed. User can select the check-box for which re-processing is required. No upload of an ITR is required.

Step 8 – Click the ‘Submit’ button.

Step 9 – On successful submission, following message is displayed.
Step 10 – You can check status of rectification request online through your account login. Further you can withdraw rectification request, if you have filed it incorrectly or if it is no more required.


Source: http://blog.tdsman.com/

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