After a tax-payer files an income tax return (ITR), the department sends intimation under section 143(1) based on the information provided by the taxpayer.
When taxpayer seeks rectification in this notice sent, s/he can do so under section 154 of Income Tax (I-T) Act.
It is important to note that rectification request can be made by all the taxpayers who are registered on the e-filing portal.
And one should remember that in order to seek rectification, tax payer should be a registered user, and one should have already received intimation under section 143(1) of I-T Act.
There are three categories for rectification of mistakes:
1. First is for the rectification for reprocessing the return.
2. Second is the rectification for tax credit mismatch.
3. And finally one can apply for correction of tax return data.
Steps to carry out correction in the tax return data:
1. At the outset, you should log in to the e-filing portal by entering your username and password.
2. Now, you need to go to the services section. Click on ‘rectification’ and file a ‘new request’
3. Choose ‘Income Tax’ option and opt for the relevant assessment year to move further.
4. Now, you can continue and choose return data correction (offline) mode.
5. At this stage, you need to attach the rectified correct data in the ITR filed in the XML or JSON file.
6. Tax payers also need to give the valid reason for rectification. There is a box on the webpage wherein taxpayer should write a few sentences highlighting the reasons for carrying out this rectification.
7. It is vital to mention that during the process of rectification, one is not permitted to add any new source of income or to declare an additional deduction.
8. After all these steps are taken, it is the time to ‘submit’ the application of rectification.
9. Once it is submitted, one will see the success message that will also carry the ‘rectification reference number’, which you need to keep for future reference.