How to File Section 154 Rectification Request Online
- Rajesh Kumar Kar
- Nov 4
- 9 min read
Updated: 4 days ago
Section 154 of the Income Tax Act, 1961, empowers taxpayers to correct apparent mistakes in their income tax assessments or intimation orders issued by the department. These errors are typically factual or computational and do not involve complex legal interpretations. The government’s e-filing portal now allows individuals to file rectification requests entirely online, making it simpler and faster to correct discrepancies such as mismatched TDS, wrong loss carry-forwards, or calculation errors.
Table of Contents
What is Section 154 Rectification?
Section 154 of the Income Tax Act, 1961, allows both taxpayers and income tax authorities to correct any apparent mistakes in an order, intimation, or any record related to income tax assessment. These mistakes are usually straightforward and easily identifiable from the records, such as calculation errors, data entry mistakes, or incorrect adjustment of TDS credits. However, issues that require deeper interpretation or legal analysis are not covered under this section.
For example, if a taxpayer’s refund has been reduced due to a wrongly calculated tax credit or a missed TDS entry, such errors can be rectified under Section 154. This provision ensures that small clerical or computational issues can be corrected quickly without filing an appeal or going through lengthy legal processes.
When Should a Section 154 Rectification Request Be Filed?
A rectification request under Section 154 should be filed when a taxpayer identifies an error that is evident from the records and does not require interpretation of law. Such situations may arise when:
The total income has been miscalculated during return processing.
A TDS or advance tax credit is not reflected correctly.
A refund amount is wrongly adjusted or missed.
There is an incorrect carry-forward of losses from previous years.
A deduction or exemption has been wrongly disallowed due to data mismatch.
Filing a rectification ensures that taxpayers do not lose their rightful credits or face unnecessary tax demands due to technical or clerical errors.
Step-by-Step Process to File Section 154 Rectification Request Online
Visit the official Income Tax e-Filing portal at incometax.gov.in.
Log in using your PAN, password, and captcha code.
Navigate to Services > Rectification from the main menu.
Click on + New Request to begin the process.
Select the relevant Assessment Year for which rectification is needed.
Under Order Passed Under, choose “Income Tax”.
Choose the Request Type based on your requirement:
Reprocess the Return – for rectification of processing errors or refund mismatches.
Tax Credit Mismatch Correction – for correcting tax credit or TDS data.
Upload the corrected XML/JSON file or edit details as required.
Submit the request and complete e-verification using Aadhaar OTP, digital signature, or net banking.
Upon successful submission, an acknowledgement number is generated, which can be used to track the status of your request.
Types of Rectification Requests under Section 154
The Income Tax Department allows taxpayers to choose the appropriate rectification type depending on the nature of the error:
Reprocess the Return: Used when the taxpayer believes the system has made a computational mistake during processing. Selecting this option triggers re-evaluation of the return.
Tax Credit Mismatch Correction: Used to fix mismatches in TDS, advance tax, or self-assessment tax entries. Corrected data or supporting documents can be uploaded here.
Updating Schedules via XML/JSON: For advanced users or tax professionals, the option to upload corrected XML/JSON files ensures accurate resubmission of revised schedules and computations.
Time Limit and Conditions for Filing a Rectification Request
As per Section 154(8), a rectification request must be filed within six months from the end of the month in which the order or intimation was received. Any request made beyond this period is not considered valid unless extended by the income tax authorities under exceptional circumstances.
A few key conditions apply:
The mistake should be apparent from the record.
Rectification cannot involve complex legal interpretation.
The taxpayer or assessing officer must clearly specify the error.
No changes can be made that adversely affect the taxpayer without providing an opportunity to respond.
Common Errors That Can Be Corrected Under Section 154
Some of the frequently corrected mistakes under Section 154 include:
Wrong computation of total income or tax liability.
Incorrect reflection of TDS, advance tax, or self-assessment tax.
Error in carry-forward or set-off of losses.
Omission of deductions or exemptions due to mismatched data.
Incorrect refund adjustment or mismatch between AIS/TIS and ITR data.
Such corrections help ensure that tax assessments accurately reflect the taxpayer’s true income and payments without requiring a fresh return filing.
What Happens After You File a Section 154 Rectification Request?
Once the rectification request is submitted and e-verified, it enters the processing queue at the Centralised Processing Centre (CPC). The department reviews the request, verifies the supporting data, and reprocesses the return or updates the records accordingly.
If the request is valid, the revised computation order or intimation is issued through the portal. The taxpayer is notified via email and SMS once the correction is processed. In most cases, rectification requests are resolved within two months from the date of filing, as per the Income Tax Department’s Citizen Charter.
Key Points to Remember While Filing Section 154 Rectification
Always verify the nature of the mistake before filing a rectification.
Attach supporting documents such as TDS certificates or corrected computation statements.
Ensure your bank account details are updated for faster refund processing.
Use the acknowledgement number to track your request status on the e-filing portal.
Avoid filing multiple rectification requests for the same issue before one is resolved.
In case the error is complex or interpretational, consider filing an appeal or revised return instead of rectification.
Importance of Using Reliable Tax Filing Platforms like TaxBuddy
Using a reliable tax filing platform like TaxBuddy can make the rectification process easier and error-free. TaxBuddy’s system automatically detects mismatches between your ITR and Form 26AS, AIS, or TIS data, helping you identify discrepancies before submission. It also assists in preparing rectification requests in the correct format and ensures all required details are accurately entered.
With expert-assisted plans and AI-driven checks, TaxBuddy minimises the chances of processing errors and simplifies post-filing compliance, including rectification requests, refund tracking, and notice responses.
Conclusion
Filing a rectification request under Section 154 is an important step to correct genuine mistakes in tax assessments or processed returns. By following the correct procedure and submitting accurate data, taxpayers can ensure their records are updated promptly without complications. For smoother management of ITR filings and rectification requests, it’s best to rely on expert-backed, automated tools.
For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both self-filing and expert-assisted options to meet the needs of all types of taxpayers. The self-filing plan is ideal for individuals who prefer to file their returns independently but want a guided, step-by-step interface with automated error checks. The expert-assisted plan, on the other hand, allows users to hand over their ITR filing to certified professionals who ensure accuracy, compliance, and timely submission. Both options include post-filing support, ensuring that any rectifications or notices can be handled easily through the same platform.
Q2. Which is the best site to file ITR?
The official Income Tax e-Filing portal is the primary government website for filing income tax returns in India. However, many taxpayers prefer private platforms like TaxBuddy for their ease of use, automated tools, and expert guidance. TaxBuddy uses AI-based validation to minimize human errors, ensure correct deductions, and optimize refund eligibility. It also provides users with real-time updates, refund tracking, and professional assistance, making it a reliable and convenient alternative to the government’s portal for smooth and accurate filing.
Q3. Where to file an income tax return?
An income tax return can be filed online through two main options: the government’s official Income Tax e-Filing portal or registered tax filing platforms like TaxBuddy. On the government portal, users manually input or upload their ITR data, verify their return, and track status. In contrast, TaxBuddy simplifies this process by automatically importing Form 16 data, pre-filling income details, and verifying deductions. It also provides error checks and expert validation to ensure that returns are accurate before submission.
Q4. What is Section 154 under the Income Tax Act?
Section 154 of the Income Tax Act, 1961, allows taxpayers or income tax authorities to rectify any mistakes apparent from the record in orders, assessments, or intimations. These errors may include wrong tax computation, missed TDS credit, or incorrect adjustments in return processing. Rectification under this section ensures that taxpayers can correct genuine, factual errors without filing an appeal or revised return. The process can be initiated online through the Income Tax e-Filing portal and must be done within six months from the end of the month in which the order was received.
Q5. Can I file a rectification request for an already processed ITR?
Yes, a rectification request can be filed for any ITR that has already been processed by the Centralized Processing Centre (CPC). If the taxpayer identifies an error or mismatch in the intimation received under Section 143(1), such as a wrong tax calculation or missed refund, they can submit a rectification request online under Section 154. The process allows reprocessing of the return or correction of tax credit mismatches, ensuring that the final assessment reflects the correct tax position.
Q6. How long does it take to process a Section 154 rectification request?
The processing time for a Section 154 rectification request typically ranges between one to two months, depending on the nature of the correction and the workload of the CPC. The Income Tax Department’s Citizen Charter specifies that simple rectifications are resolved within two months from the date of filing. Once processed, the taxpayer receives an intimation through email and SMS, detailing the outcome — whether the correction was accepted, adjusted, or rejected.
Q7. What happens if the rectification request is rejected by the department?
If a rectification request is rejected, the department provides reasons in the rejection intimation. Common causes include submission beyond the permissible time limit, lack of documentary evidence, or errors requiring interpretation rather than factual correction. Taxpayers should carefully review the reason and, if appropriate, consider alternative remedies such as filing an appeal before the Commissioner (Appeals) or submitting a revised return under Section 139(5). TaxBuddy experts can help review the rejection and suggest the right course of action.
Q8. Is there a fee for filing a rectification request under Section 154?
No, there is no fee for filing a rectification request under Section 154. The facility is completely free of charge and can be accessed by all registered taxpayers through the Income Tax e-Filing portal. However, if a taxpayer chooses to seek professional assistance through a platform like TaxBuddy, a nominal service charge may apply depending on the complexity of the case. This ensures expert review and accurate submission of rectification requests.
Q9. Can errors related to TDS mismatch be corrected using rectification?
Yes, TDS mismatches are among the most common issues corrected using a Section 154 rectification request. These occur when the TDS reported by the employer or deductor does not match the data reflected in the taxpayer’s Form 26AS or AIS. By choosing the “Tax Credit Mismatch Correction” option while filing the rectification, taxpayers can update or upload correct details and request reprocessing. Once verified, the revised TDS data is reflected in the updated intimation issued by the department.
Q10. What is the difference between filing a revised return and a rectification request?
A revised return and a rectification request serve different purposes. A revised return is filed under Section 139(5) when the taxpayer discovers an error or omission in their originally filed return. It allows them to correct income details, deductions, or disclosures before assessment. In contrast, a rectification request under Section 154 is filed after the return has been processed by the department, to correct mistakes made by the Income Tax Department or computational mismatches in processing. A revised return corrects taxpayer-side errors, while rectification corrects department-side errors.
Q11. How can TaxBuddy help with filing a rectification under Section 154?
TaxBuddy simplifies the rectification process by identifying mismatches between your filed return and departmental records such as AIS, TIS, and Form 26AS. Its AI-powered tools automatically detect errors and prepare a rectification draft, ensuring correct selection between options like “Reprocess Return” or “Tax Credit Mismatch Correction.” TaxBuddy’s experts then review the request for accuracy and handle the submission process end-to-end. This ensures faster approval, error-free reprocessing, and accurate computation of refunds or tax dues.
Q12. What precautions should be taken before submitting a rectification request online?
Before filing a rectification request, taxpayers should ensure that the error is factual and clearly identifiable from the records. Always cross-check details in Form 26AS, AIS, and TIS with your filed return to confirm mismatches. Keep relevant documents such as TDS certificates, bank statements, and computation sheets ready to support your claim. Do not file multiple rectification requests for the same issue before the first one is processed, and always complete e-verification after submission to validate your request. Platforms like TaxBuddy can help verify accuracy before final submission to prevent rejection.
