Rectification under Section 154 of Income Tax Act

What is Rectification Request u/s 154?

As part of the return filing process, the Income Tax Department processes an ITR and sends intimation u/s 143(1) to the taxpayer. Intimation u/s 143(1) matches the data as per ITR filed by the taxpayer with the calculations computed by the Income Tax Department. In the case of a mismatch, the taxpayer has an option to file rectification under section 154 of the Income Tax Act. Both the taxpayer and the assessing officer has the right to make correction in the Income Tax Return. They can file rectification for a time limit of up to 4 years from the end of the financial year.

Prerequisites

  • Registered user on the e-Filing portal with valid user ID and password
  • For registered taxpayers (or Authorized Signatory / Representative Assessee on behalf of the taxpayer):
    • Received an intimation u/s 143(1) of the Income Tax Act, 1961 or u/s 16(1) of the Wealth Tax Act from CPC, Bengaluru
    • Add ERI using the My ERI service (applicable only if the taxpayer wants to engage an ERI)
  • For registered ERI users:
    • Add the taxpayer as a client using the Add Client service
    • ERI status is Active
  • Both registered taxpayers and registered ERI users:
Rectification of Wealth Tax Return can be filed using this service for AY 2014-15 and AY 2015-16 only
Tip
Rectification of Wealth Tax Return can be filed using this service for AY 2014-15 and AY 2015-16 only

Classification of Rectification Requests under section 154 of Income Tax Act

Income Tax Rectification

Reprocess the return

If the taxpayer has furnished correct details in the ITR but CPC has not considered it during the processing

Tax credit mismatch correction

To make correction in details of TDS/TCS/IT Challans and resolve Tax Credit Mismatch

Additional information for 234C interest

To make correction in the calculation of interest under Section 234C for the correct processing of ITR

Status Correction

If the taxpayer has been charged with Maximum Marginal Tax Rates while processing of ITR without giving effect to the correct ‘Status’ and ‘Sub-Status’

Exemption section correction

To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC

Return data correction (Offline)

To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC in offline manner

Return data correction (Online)

To make correction in data reported in the ITR by selecting appropriate reasons for correct processing by CPC in online manner

Wealth Tax Rectification

Reprocess the Return

If the taxpayer has furnished correct details in the wealth tax return but it has not considered during the processing

Tax Credit Mismatch Correction

To make correction in details of Tax Challans and resolve Tax Credit Mismatch

Return Data Correction (XML)

To make correction in data reported in the tax return by selecting appropriate reasons and uploading XML for correct processing

Do not use rectification request for changing bank account or address details of your Income Tax Return
Tip
Do not use rectification request for changing bank account or address details of your Income Tax Return

How to file rectification online under section 154 of Income Tax Act?

  1. Login Income Tax Website

    Login to your e-filing account using your user ID and password.

  2. Rectification Option

    Click on e-File > Rectification option from the dashboard.

  3. New Request

    On the rectification page, click on the option to generate a new request.

  4. Enter Details

    On the New Request page, your PAN will be auto-filled. Select Income Tax or Wealth Tax. Enter the assessment year.

  5. Intimation Reference Number

    If you select the Wealth Tax option, you also need to enter the latest intimation reference number, and click Continue.

View Status of Rectification Report

  • Log in to the e-Filing portal using your user ID and password
  • Click on Services > Rectification Request > Rectification Status
  • On the Rectification Status page, click Rectification Reference Number to view the rectification details based on the Request Type (Income Tax Rectification or Wealth Tax Rectification) submitted by you
  • You can select Take Action or View Details against the Rectification Reference Number

FAQs

When do I need to submit a rectification request?

A request for rectification can be submitted on the e-Filing portal if there is any mistake apparent from record, in an Intimation issued u/s 143(1) or order u/s 154 by the CPC or by the Assessing Officer (where rectification rights are transferred by CPC) . A rectification request can be submitted only for returns that are already processed by CPC.

What are the different request types for wealth tax rectification?

Reprocess the Return, Tax Credit Mismatch Correction and Return Data Correction.

I want to file a rectification against an intimation u/s 143(1) from 5 years ago. Why is the system not allowing it?

You are not allowed to file rectification request after the expiry of 4 years from the end of the FY in which the intimation u/s 143(1) was passed. 

Can I rectify my previously filed ITR using the rectification request service?

If you notice a mistake in your submitted ITR, and it has not processed by CPC, you can submit a revised return. You can use the rectification request service on the e-Filing portal only against an order/notice from CPC.

Got Questions? Ask Away!

  1. Hi @emmy

    As part of the return filing process, the Income Tax Department processes an ITR and sends intimation u/s 143(1) to the taxpayer. Intimation u/s 143(1) matches the data as per ITR filed by the taxpayer with the calculations computed by the Income Tax Department. In the case of a mismatch, you have an option to file rectification under Section 154 of the Income Tax Act.

    If there is a change in income, you should file a Revised Return u/s 139(5) instead of rectification u/s 154.

    Hope this helps!

  2. Hi @Sikander_Javeed

    As per the instructions, the tax department should respond to the rectification application within 6 months from the date of filing the application.

    You will get an Order u/s 154 once the Rectification is processed. To view the status of your e-filed Rectification, log in and go to ‘My Account’ → ‘Rectification status’.

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