Rectification of mistakes

Any order made by the Assessing Officer occasionally may contain an error. In this case, an error that is clear from the record may be corrected in accordance with section 154. In this section, the rules for correcting errors under Section 154 are covered.

An income-tax authority may do any of the following to correct any error that is readily evident from the record:-

(i) modify any order made in accordance with the Income-tax Act's various sections.

(ii) modify any notification that was sent under section 143(1).

(iii) modify any notification provided in accordance with section 200A(1) (section 200A deals with processing TDS returns, or statements of tax deducted at source).

(iv) modify any notification made under section 206CB.

A TDS statement is handled in accordance with section 200A after any arithmetical errors have been fixed and any claims that are demonstrably false based on the statement's facts have been corrected.

The taxpayer must be given the chance to be heard if, as a result of an error being corrected, their tax liability increases or their refund decreases. If an order is the subject of an appeal or revision, the Assessing Officer cannot correct any issues that are addressed in those appeals or revisions. In other words, if an order is the subject of an appeal, the Assessing Officer can only correct the issues that the appeal did not resolve. You should visit the tax exemption url.

The income-tax authorities have the power to correct the error on its own initiative. By filing a request to correct the error, the taxpayer can inform the income-tax authorities of the error. If the Commissioner for Appeals issues the order, he or she has the authority to correct any errors that the Assessing Officer or the taxpayer have brought to their attention.

After four years have passed since the end of the fiscal year in which the order sought to be corrected was passed, no order of rectification may be granted. The four-year window begins on the date of the order that is being sought to be remedied, not four years after the initial order. As a result, if an order is changed, annulled, etc., the four-year term will start to run from the date of the new order rather than the date of the original order. If the taxpayer submits a request for rectification, the authority must respond within six months after the end of the month in which it receives the request and either modify the order or deny the claim.

The taxpayer must thoroughly review the order against which he intends to submit his claim for correction. In many cases, the taxpayer may think there is a mistake in the sequence that the Income-tax Department has passed, but in reality, the taxpayer's estimations may have been off, and the CPC may have fixed these errors. For instance, the taxpayer may have calculated the interest incorrectly in the return of income, but the interest may have been correctly calculated in the intimation.

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