How to correct mistakes in online tax returns


Learn how to file an online request for rectification of errors as apparent in the income tax records, under section 154 of the Income Tax Act, as well as the provisions available for rectification under the Act.

Taxpayers who spot errors in their income tax records can file an application for rectification under section 154 of the Income Tax Act. The taxpayer can bring the mistake to the notice of an income tax authority by filing the application, and the authority can rectify the mistake on its own motion. If the order has been passed by the Appeals Commissioner, then they can rectify the error brought to notice by the taxpayer or by the Assessing Officer.

The provisions for rectification of mistake under section 154


Under the provision of subsection (1) of the Act as stated at the official website www.incometaxindia.gov.in under the information on Rectification of Mistake, an income tax authority

  • Has the power to amend any order that it passes under the provisions of the Income Tax Act.Amend any intimation or deemed intimation under the subsection (1) of section 143.
  • Amend any intimation under subsection (1) of Section 200A which deals with processing of TDS statements.

The tax authorities may also, subject to certain other provisions in the section,

  • Rectify orders under sub-section (1) of its own motion.
  • Make an amendment for rectifying errors brought to its notice by the deductor or assessee.

Any orders which are subject to revision or appeal cannot be amended by the authority. If after the rectification of mistakes it is found that the taxpayer has a higher tax liability, or if the refund sees a reduction, then the taxpayer is usually given a chance to be heard.

Also Read: How to check income tax refund status online in India

Websites like ClearTax, HamaraTax, H&R Block etc provides step by step instructions to file income tax returns in India and help you take advantage of all the options to get the maximum deductions possible. Learn more about how to e-file income tax returns using HamaraTax.

How to file online income tax rectification application


Taxpayers can follow the steps below to apply for rectification:

  1. Login to the e-Filing application and go to "Rectification Request" under "My Account".
  2. Choose the Assessment Year for which the rectification will be filed, refer to the CPC order and enter the latest communication reference number as well as the latest CPC order date. Submit the details.
  3. Next, select the "Rectification Request Type".

    • If you select option "Taxpayer Correcting Data for Tax Credit Mismatch Only", you can select from TDS, TCS and IT options to indicate which option you need the data corrected for. There is no need for uploading your Income Tax Returns, and you can add up to ten entries for each of the selections.
    • In the "Taxpayer is Correcting the Data in Rectification" section, select your reason for application of rectification and upload DSC (Digital Signature Certificate), XML, capital gains and donation details etc. wherever applicable. You have the option of selecting up to four reasons.
    • In the section "No Further Data Correction Required. Reprocess the Case", you can select from Gender Mismatch, Tax Credit Mismatch or Tax/Interest Mismatch, depending on the type of reprocessing required. Hit the submit button.

  4. When you have successfully submitted the application, the system will generate an Acknowledgement Number and send the case to CPC Bangalore for processing.

Things to note before filing a rectification application


Only online rectification applications are accepted for electronic returns that have been filed and processed at CPC Bangalore, the central processing center set up by the Income Tax Department for processing of e-filed returns for the entire country. In other words, if you file your taxes online, you only have the option of online rectification application. The taxpayer should also have an intimation under subsection (1) of section 143 or an order passed by the CPC Bangalore under section 154 for the Income Tax return.

Before filing a rectification application, it is important to make sure that the apparent error is not caused by miscalculation on the part of the taxpayer. In other words, there may have been mistakes made by the taxpayer when filing their returns, that the CPC may have corrected. The order should be studied carefully to avoid situations of unnecessary application for rectification. The error should also be apparent from the records, and should not need investigation, debate etc.

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If after careful study the taxpayer confirms that there is indeed a mistake in the records, they can go ahead and send an application to the authorities.

Only the latest CPC Order should be used to file for rectification, and you can file a second rectification application for the a particular assessment year only after the first request has been processed. If you have submitted the application by mistake or need to change the request, you have seven days within which to withdraw your application. You can do this by Logging in to your account and visiting the "Rectification Status" section to withdraw the request.


Article by Juana
Juana is a freelance writer publishing with Constant Content and sister sites of Techulator. She writes on a variety of subjects that interest her. She is a voracious reader and that helps her keep abreast with the latest in technology. She holds a Bachelor of Arts degree in Eng. Lit, is a mom, a wife, a homemaker and a qualified teacher.

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