The Income Tax Department of India has added a new feature to its website that will allow taxpayers to file rectification requests for incorrect processing of their Income Tax Returns (ITRs) directly through the e-filing portal.
What happened earlier
The income tax department can make errors while processing an ITR. These mistakes are often noticeable in records such as the Annual Information Statement (AIS) or TDS certificates. To correct these evident discrepancies, taxpayers must submit a rectification application to either the Centralised Processing Center (CPC) or the Assessing Officer (AO), depending on who holds access rights to the ITR.
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If the access rights to the ITR remained with the CPC, taxpayers could file an online rectification application to correct such errors. However, if the access rights were transferred to the AO, the rectification request could not be filed online and had to be submitted on paper.
Taxpayers can now submit rectification requests online even if their ITRs are currently with the AO. This new feature streamlines the rectification process, which previously required manual submissions and was often fraught with delays and complications.
How to file a Rectification Application with AO
Visit the Income Tax Return (ITR) e-filing portal.
Log in using your credentials (User ID, password, and Captcha code).
Once logged in, go to the ‘services’ tab.
From the drop-down menu, select ‘rectification’.
Under the rectification section, choose ‘Request to AO Seeking Rectification’.
On the new webpage that opens, click ‘New Request’ to initiate your rectification application.
Who will benefit from the new feature introduced on the ITR portal?
This feature is handy for addressing discrepancies, such as mismatches in income, tax credits, or deductions that are evident from the records. Previously, rectification requests and supporting documentary evidence had to be submitted manually. However, with the introduction of the online application facility, a searchable database can now be maintained, streamlining the process significantly.
Benefits of online rectification requests
The online rectification system is particularly beneficial for correcting straightforward errors that do not require extensive justification. Common issues that can be rectified include:
Mismatches in reported income: Situations where the income reported by taxpayers does not align with what is reflected in tax records.
Incorrect tax credits: Instances where taxpayers may not have received due credits for tax deducted at source (TDS).
Omissions of exemptions: Errors where eligible exemptions were inadvertently excluded from the return.