What is the Procedure for filing of Rectification return under section 154
What is intimation u/s 143(1)
Intimation u/s 143(1) is sent by income tax department in response to return filled by the Tax payer. As the name suggests intimation means communication to the tax payer about how your Income Tax return has been processed. It contains details regarding how income tax return filed by you and the computation done by income tax department. It is an auto-generated letter by computers of the income tax department without any human interface. Intimation under section 143(1) is sent only in the following cases
Where any tax or interest is found Payable on the basis of return after giving credit to the taxes and interest paid or
Where any tax on interest if found refundable on the basis of the return after credit to the taxes and interest paid or
After adjustments referred in section 143(1) results in increase or reduction of loss declared by the assessee and no tax is payable by the assessee and no tax is refundable to the assessee.
If assessee has not satisfied with the calculation done by the income tax department then he has authority to rectify the same through income tax log in. Assessee can rectify his return at any time within 4 years from the end of financial year in which order is passed.
Procedure for filing of Rectification return under section 154
Step 1: Log in to income tax website
Step 2: Go to my account - rectification request
Step 3: Select the assessment year for which rectification to be made and enter latest communication reference number by income tax department
Step 4: Click on validate
Step 5: Select rectification return type
Tax payer is correcting the data for tax credit mismatch only: Three options will be displayed select the appropriate option applicable and submit the details as mentioned in the options and click on submit to file rectification return
Tax payer is correcting the data in rectification: 22 options will be displayed containing rectification regarding capital gains, other sources, tax payments etc., covering all types of rectifications select the appropriate one and fill the details as required and click on submit to file rectification return
No further data correction required reprocess the case: These option is only when there is mismatch of gender, Tax credit and interest component.elect the appropriate option applicable and submit the details as mentioned in the options and click on submit to file rectification return
Step 6: On success full submission of rectification return a transaction ID would be generated
Step 7: You can check the rectification status online in income tax website and you can also withdraw the rectification request.
What is Defective return u/s 139(9)
On filling of income tax return the details provided by assessee will be cross verified by the department. If departments find any discrepancies or mistakes or any information is missing ITR then they will treat your income tax return as a defective return and sends you the notice under section 139(9). Department will give you opportunity to rectify the defects within a period of 15 days from the date of intimation. If assessee fails to rectify the defect within the period of 15 days or such further period allowed then the assessing officer will treat return as invalid return.
Common cases where defective return is sent
A return is treated as defective if any of the following documents is missing
1. A return in the prescribed form with all annexure, columns and statements duly filed in.
2. Proof of tax if any claimed to have been deducted and advance tax, self assessment tax details if any claimed to have been paid
3. A statement showing computation of the tax payable
4. Audit report under section 44AB or where such report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report
5. If accounts of the assessee have been audited then copies of such audited profit & Loss account, Balance sheet and auditor’s report
6. In case where cost audit is conducted then copy of such audit report
7. Where regular books are not maintained by the assessee, then statement showing amount of turnover, gross receipts, expenses and net profit of business or profession carried on by the assessee.
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