You are a taxpayer, it doesn’t mean you only make mistakes, sometimes the Income-tax department also makes mistakes.
In this article, we will learn about mistake rectification under section 154 of income tax act.
Before moving ahead:
What is Section 154 of Income Tax Act?
Income tax rectification has executed both ways from the individual (taxpayer) or by the department itself.
The process of rectification under section 154 of the income tax act.
Two ways can be used to rectify the return
- The Income Tax Department itself send a rectification notice if it finds any discrepancies in the process.
- The taxpayer should apply and inform the department about the mistake.
Type of Errors under section 154 of Income Tax Act
The kind of errors falls u/s 154 during filling income tax return.
- Error in facts (real true)
- Arthimatic (calculation mistakes)
- Advance tax amount difference
- The difference in amount tax credit
- Some additional information discloser error
- Gender error
Step by Step guide of filling rectification form
Step 1: – Log in to Income Tax Website using your login ID.
Step 2: – Move your cursor to ‘efile’ drop down and click rectification mentioned in the red block.
Sep 3: – Select return to being rectified. (Income tax return or Wealth tax return).
Step 4: – Select an assessment year (dropdown option).
Step 5: – You will get 4 options
- Tax credit mismatch correction only.
- Return data correction (XML)
- Only reprocess the return
- Additional information for 234C
Step 6: – You must comply the instruction by selecting the options, your rectification falls under.
Step 7: – Click submit.
If the taxpayer applies for the rectification, the assessing officer should either accept or refuse the rectification form within six months from the end of the month in which the rectification is filed.