Taxpayers Can Now Submit Rectification Requests For Errors In Their Tax Demand Notices Online. Here's How

The feature, launched in January 2025, allows individuals to file rectification applications directly with their respective Assessing Officers (AOs) via the e-filing Income Tax Return (ITR) portal.

If a taxpayer has correctly claimed deductions, TDS, TCS, self-assessment tax, or advance tax, but these were omitted in the final computation, they can file for rectification.

Source : ABPLIVE AI

The Income Tax Department has introduced an online rectification facility for taxpayers to address incorrect tax demand notices and intimations up to Assessment Year (AY) 2023-24 (Financial Year 2022-23). The feature, launched in January 2025, allows individuals to file rectification applications directly with their respective Assessing Officers (AOs) via the e-filing Income Tax Return (ITR) portal.

This is particularly beneficial for taxpayers whose ITRs could not be processed within the stipulated time by the Centralised Processing Centre (CPC) due to potential errors.

As per tax regulations, the CPC is mandated to process an ITR within nine months from the end of the financial year in which it was filed. However, certain discrepancies may arise during processing. For instance, if a taxpayer has correctly claimed deductions, TDS, TCS, self-assessment tax, or advance tax, but these were omitted in the final computation, they can file for rectification.

However, the rectification feature cannot be used if the issue involves legal interpretation or requires additional proof beyond evident mistakes, reported The Economic Times.

When and How to Use the Rectification Feature

Once the statutory time frame for processing an ITR has lapsed, access rights for the tax return are transferred from the CPC to the AO, except in cases where no issues have been flagged.

Citing Mihir Tanna, Associate Director at S.K Patodia LLP, the report explained, "An ITR once filed stays under CPC’s authority till the time any assessment is started by the income tax department or a rectification application filed before the CPC could not be processed by them."

Under Section 154 of the Income Tax Act, AOs are authorised to correct clear and obvious mistakes. Taxpayers must ensure that rectification requests are filed within four years from the end of the financial year in which the order or intimation was issued.

When Can You File A Rectification?

A rectification request can be submitted in case of errors in assessment orders, mismatches in income, credits, or deductions, or if there has been incorrect processing from the CPC or AO's end.

For instance, if the AO mistakenly doubles the computed income, resulting in an inflated tax demand, you can file a rectification request.

When Can You Not Submit Rectification Requests?

While rectification requests address computational and factual errors, they are not applicable in cases involving legal disputes or interpretation. In order to submit appeal for issues requiring legal arguments or interpretation, taxpayers need to approach the Commissioner of Income Tax (Appeal). Typically, rectification is limited to errors evident from the records.

Additionally, if a rectification request filed with the CPC does not yield results, taxpayers can request the transfer of rectification rights to the AO using the e-Nivaran feature on the Income Tax portal.

How to File a Rectification Request with the AO

To submit a rectification request, taxpayers should follow these steps:

• Visit the official e-filing portal: https://eportal.incometax.gov.in and log in with your PAN card or Aadhaar card.

• Navigate to the 'Services' tab and select 'Rectification.'

• Click on ‘Request to AO seeking rectification’ and then select ‘New Request’ to proceed.

This online rectification feature is expected to enhance efficiency in resolving tax discrepancies, providing a streamlined solution for taxpayers seeking corrections to their ITR assessments.