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Filing Rectification Request Under Section 154(1) when Your Tax Refund is Less Than Expected

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If you’ve received an intimation under Section 143(1) but believe the refund amount is incorrect, you can file a rectification request under Section 154(1)

Raising Rectification Request u/s.154(1): When you successfully file your Income Tax Return (ITR), the next phase is waiting for its processing by the tax department—a moment eagerly anticipated by most taxpayers. Once your ITR is processed, tax refunds are usually issued within four to five weeks. The tax department sends an intimation under Section 143(1) to your registered email, notifying you of this process. You can also monitor the status of your ITR on the e-filing portal dashboard.

What is Section 143(1) Intimation?

The intimation under Section 143(1) includes details about the computation of your tax liability and the refund due. If your ITR is in order, the tax department will proceed with processing the return and determining the refund amount. Once the ITR is processed, the department will issue an intimation about the processing.

What to Do if the Refund Amount is Incorrect?

If you’ve received an intimation under Section 143(1) but believe the refund amount is incorrect, you can file a rectification request under Section 154(1). This rectification can address any apparent mistakes in the tax department’s calculations.

How to File a Rectification Request?

The income tax department allows you to submit a rectification request online through the e-filing portal if there is any “mistake apparent from the record” in the intimation issued under Section 143(1) or in an order under Section 154 passed by the Centralized Processing Centre (CPC). You can only submit a rectification request for returns that have already been processed by the CPC.

It’s important to note that rectification requests should only be used for errors that are apparent from the record. If the mistake is on your part, such as incorrect information in your ITR, you should instead file a revised return. Additionally, rectification requests must be filed within four years from the end of the financial year in which the intimation was passed. There is no need to e-verify rectification requests.

The rectification request can be filed only by the person who has filed the income tax return or his authorized representative. Rectification requests in paper form is not accepted at CPC. Every communication to CPC has to be made only in electronic form in the manner provided by the CPC.

Steps of filing Rectification Request

Step 1 – Login to Income Tax Website “https://www.incometax.gov.in/iec/foportal/”.

Step 2 – Go to ‘Services’ in the main menu and click on ‘Rectification’ in the dropdown menu.

Step 3- Click on the ‘New Request’ button.

Step 4 – Now select ‘Order passed under’ as ‘Income Tax’. Select the relevant assessment year from the dropdown for which rectification is to be filed and continue.

Step 5- Select the request type and submit.

Types of Rectification Requests

According to the tax department’s website, you can file the following types of rectification requests on the e-filing portal:

Rectification can be done by the CPC or the income tax office either based on the taxpayer’s request or suo moto. For instance, if a lesser TDS amount has been considered by the CPC in the intimation than what appears in your Form 26AS, you can apply for rectification to correct this discrepancy. This could result in a reduction in tax demand or an increase in the refund.

The intimation under Section 143(1) will show the total tax refund payable to you, including any interest. However, if there’s a mismatch between the information you provided in your ITR and the department’s records, you may receive a notice.

What Happens in Case of a Mismatch?

In cases of tax credit mismatch, the department typically proceeds with its data without notifying the taxpayer. However, the intimation under Section 143(1) will display the tax credit claimed by you and the tax credit allowed by the department. If you have a grievance regarding this, you can file a rectification request under Section 154(1) to resolve it.

Common reasons of a notice u/s.143(1)(a)

By understanding these processes and potential errors, you can ensure that you receive the correct tax refund amount and take appropriate steps if any discrepancies arise.

To Access the FAQs on Rectification Request u/s.154(1) from the official I-T site CLICK HERE

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