What is Income Tax Return Rectification?

There are a lot of instances when people tend to commit mistakes while filing an Income tax return. With the advancement in the technology, several triggers have been added to the system that immediately pop-up an automated message from the IT department, warning regarding the misrepresentation of information. The income tax return rectification comes under Section 143(1) of the Income Tax Act that allows you to make obvious changes in ITR.

How is ITR rectification helpful?

Income tax return rectification can be done online on the official Tax e-filing website and logging into your account.

An income taxpayer can raise a rectification request to the Income Tax Department under Section 154(1). This section allows you to make corrections and rectify the mistakes that are apparent in your income tax return.

Following are the types of errors that can be rectified under the rectification request:
  1. Factual error
  2. Arithmetic or mathematical mistake
  3. Clerical error (not too big)
  4. Mistakenly overlooking the necessary and required provisions of law
This can be better understood with examples. Here are some examples of each error type:
  1. Factual error: a tax credit mismatch
  2. Arithmetic error: an advance tax calculation mismatch
  3. Clerical error: Spelling mistake in the name
  4. Missing on mandatory law provisions: not submitting proofs of investments under section 80 for claiming the rebate.

What are the differences between Revised Income Tax Return & Income Tax Return Rectification?

As mentioned above, revised ITR and ITR rectification are two separate things. Following are the key difference points between them:

Revised income tax return < strong>Income tax return rectification
A revised return can be filed under section 139(5) of the income tax act, 1961. ITR can be done under sections 143(1) and 154(1) of the Income Tax Act, 1961.
A revised return form can be used to make major changes in the ITR form like a change of name, revision of income, etc. Rectification requests can only be raised for correcting the apparent errors in your ITR. Major changes like tax declaration, change of name cannot be done under this.
A revised income tax form can be filled anytime before the completion of the assessment year or before its expiry. You can request Income tax rectification only for the returns that have been processed by the CPC.
ITR revision can be done any number of times during the assessment year A new rectification request can be raised only after the previous one is processed by the CPC
There is no penalty on revising the information your ITR There is no penalty on rectifying the apparent errors in ITR


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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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