Taxpayers in India are required to file their income tax returns accurately and within the prescribed time limit. However, errors in tax returns may occur due to various reasons, such as typographical errors, incorrect computation of income, or failure to claim deductions or exemptions. In such cases, taxpayers can rectify their mistakes by filing a rectification request under section 154 of the Income Tax Act, 1961.
Section 154 of the Income Tax Act empowers taxpayers to rectify errors in their tax returns by filing a rectification request with the tax authorities. The rectification can be made in case there is a mistake apparent from the record. The rectification request can be filed either online through the Income Tax Department’s e-filing portal or offline by submitting Form 26AS to the concerned Assessing Officer.
However, it is important to note that the rectification request must be filed within the prescribed time limit. The time limit for filing a rectification request under section 154 of the Income Tax Act is four years from the end of the relevant assessment year. For instance, if a taxpayer has filed his tax return for the financial year 2020-21, the relevant assessment year would be 2021-22, and the taxpayer can file a rectification request until the end of the assessment year 2024-25.
It is essential to file the rectification request within the prescribed time limit as the tax authorities may reject the request if it is filed after the expiry of the time limit. Moreover, if the rectification request is not filed within the time limit, taxpayers may have to approach the Commissioner of Income Tax (Appeals) or the Income Tax Appellate Tribunal to rectify the errors in their tax returns, which may result in additional costs and time.
The time limit for filing a rectification request can be extended by the tax authorities if they are satisfied that the delay was due to a reasonable cause. However, the taxpayer must provide a valid reason for the delay and submit the rectification request as soon as possible.
In conclusion
the time limit for filing a rectification request under section 154 of the Income Tax Act is four years from the end of the relevant assessment year. Taxpayers should ensure that they file the rectification request within the prescribed time limit to avoid any complications or additional costs. If there is a delay in filing the rectification request, the taxpayer should provide a valid reason and submit the request as soon as possible.
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Frequently Asked Questions (FAQs)
Q: What is the time limit for filing a rectification request under section 154 of the Income Tax Act?
A: The time limit for filing a rectification request under section 154 of the Income Tax Act is four years from the end of the relevant assessment year.
Q: Can I file a rectification request after the expiry of the time limit?
A: No, if the rectification request is filed after the expiry of the time limit, the tax authorities may reject the request. In such cases, taxpayers may have to approach the Commissioner of Income Tax (Appeals) or the Income Tax Appellate Tribunal to rectify the errors in their tax returns.
Q: Can the time limit for filing a rectification request be extended?
A: Yes, the tax authorities may extend the time limit if they are satisfied that the delay was due to a reasonable cause. However, the taxpayer must provide a valid reason for the delay and submit the rectification request as soon as possible.
Q: How can I file a rectification request under section 154 of the Income Tax Act?
A: Taxpayers can file a rectification request either online through the Income Tax Department’s e-filing portal or offline by submitting Form 26AS to the concerned Assessing Officer.
Q: What are the common mistakes that can be rectified under section 154 of the Income Tax Act?
A: Some common mistakes that can be rectified under section 154 of the Income Tax Act include typographical errors, incorrect computation of income, or failure to claim deductions or exemptions.
Q: Is there any fee for filing a rectification request under section 154 of the Income Tax Act?
A: No, there is no fee for filing a rectification request under section 154 of the Income Tax Act.
