Taxpayer's Guide to Addressing Mismatched Tax Demand or Reduced Refund Intimation Notices

Filing an income tax return can often prove to be a challenging endeavor. Mistakes are not uncommon, and this is where the process of rectification becomes vital. In this article, we will delve into the concept of rectification, outline the types of errors you can rectify, elucidate who is eligible to file for rectification, and provide a step-by-step guide for online rectification.

What is Rectification? Rectification is the process of correcting errors or discrepancies in your income tax return. When the Income Tax Department detects a mistake in your filing, they will notify you through an automated message under Section 143(1) or Section 154 of the Income Tax Act. This serves as a signal that you need to make necessary adjustments to your return.

Errors You Can Correct Rectification requests are allowed for the following types of errors:

· Errors of Fact: This involves correcting inaccuracies in your reported financial information.

· Arithmetic Mistakes: Rectification is appropriate when mathematical errors are found in your return.

· Small Clerical Errors: Simple typos or minor mistakes fall into this category.

· Errors Due to Overlooking : If you missed important legal requirements while filing, you can rectify those.

 

Here are some common examples of these errors:

· Mismatch in tax credits. · Discrepancies in advance tax payments.

· Gender stated incorrectly.

· Failure to provide additional details for capital gains during the initial filing. It's essential to note that rectification is not meant for altering bank account or address details in your income tax return.

 

When Can You File a Rectification? You can only file a rectification request for returns that have already been processed at the Central Processing Center (CPC) in Bangalore. If rectifying an error results in a change in your income, it's not a job for rectification; you should file a revised income tax return. Keep in mind that you can't claim new deductions or exemptions via the rectification process.

Who Can File for Rectification? The rectification can be filed by:

The individual who initially filed the return.

An income tax authority can also rectify a mistake that's evident in the records.

 

Online Filing of Rectification If you've e-filed your income tax return, you must also rectify it online. Here's a step-by-step guide to filing a rectification request under Section 154(1):

Step 1 - Login to Income Tax Website: Access the official Income Tax website.

Step 2 - Navigate to 'Services': Find the 'Services' option in the main menu and select 'Rectification' from the dropdown.

Step 3 - Initiate a New Request: Click on the 'New Request' button to start the rectification process.

Step 4 - Select 'Income Tax': Under 'Order passed under,' choose 'Income Tax.' Then, pick the relevant assessment year from the dropdown for which you want to file a rectification.

Step 5 - Choose 'Request Type': You’ll get 3 options in your screen.

1) Reprocess the return.

2) Return Data Correction (Offline)

3) Tax credit Mismatch correction

Here I have Opt for 'Tax Credit Mismatch Correction' as your request type. This selection will automatically load the schedules present in your processed return, allowing you to edit or delete the schedule details. You can edit the details of the following schedules:

· Tax Deducted at Source (TDS) on Salary Details.

· Tax Deducted at Source (TDS) on Other than Salary.

· Tax Deducted at Source (TDS) on Transfer of Immovable Property/Rent.

· Tax Collected at Source (TCS). · Advance Tax or Self-Assessment Tax Details.

After selecting, click on Submit.

Step 6- Your request will be successfully submitted.

 

Conclusion Correcting errors in your income tax return is a crucial aspect of maintaining precise financial records and upholding adherence to tax regulations. By adhering to the aforementioned steps, you can promptly rectify any mistakes and prevent potential complications in your tax return. It's important to note that rectification is a distinct process from filing a revised return, so it's imperative to follow the appropriate procedure.