November 8, 2012

Error in E-filing of Income Tax? Now rectify under Sec.154 application.

It is common to make clerical mistakes when you are e-filing your IT returns. Reasons may be you are totally new to the process or you dont know the way of creating XML file which need to be uploaded to the IT website. Recent ruling clarify that you can rectify such type of errors under Sec.154.

In this case, the assessee filed e-return which was revised by filing another e-return on 5.1.2009. The assessee received intimation u/s. 143(1) of the Act and found that the income assessed and the rate of tax is different from the income returned and the taxes paid by him. The assessee immediately moved an application u/s. 154 of the Act before the AO.  It was again pointed out that the tax has been calculated at normal rate on entire income ignoring the fact that the assessee has shown Short term Capital gain which should have been taxed at special rate as applicable on Short Term Capital gain.

The AO rejected the application u/s. 154 of the Act holding that the assessee has not shown Short Term Capital Gain u/s. 111A at S. No. A7 of Schedule CG appearing on page 19 of the e-return. The AO further observed that the same mistake has been occurred in the original as well as in the revised return of income filed by the assessee. According to the AO, the proper remedy was by filing a revised return of income instead of moving an application u/s. 154 of the Act. The AO accordingly rejected the application u/s. 154 of the Act. But it actually happened such that, during revised filing STCG was shown but due to clerical error it was missed in amount column.

For the above reason during the judgement tribunal found these points and ordered as can be rectified u/s 154.

1) In the present system of e-filing of return which is totally depended upon the usage of software, It is possible that some clerical errors may occur at the time of entering the data in the electronic form.

2) The return is prepared electronically which is converted into an XML file either through the free down loaded software provided by the CBDT or by the softwares available in the market. In either of the case, there is every possibility of entering incorrect data without having the expert knowledge of preparing an XML file.

3) XML file so created is uploaded to the official website. Once the return is uploaded ITR-V , which is the acknowledgement of the return so filed , is generated by the system itself and if , the return is not signed digitally, then ITR-V so generated has to be signed and sent to CentralProcessing Centre, Bangluru within 120 days.

4) Keeping in mind this system of e-filing of the returns, it is clear that assessee had claimed STCG and had shown it in e-return but the same figure did not appear under the item where the STCG is to be taxed at special rate under Section 111A of the Act.

5) However, under ‘Schedule SI-income chargeable to income tax at special rates’, the assessee had shown 10% tax on STCG, which clearly establishes that the assessee had shown STCG liable to be taxed at special rate of 10%.

6) Accordingly, reversing the finding of the Ld. CIT(A), we direct the AO to allow credit of the Short Term Capital gains subject to special rate of tax as per provisions of Sec. 111A of the Act and rectify the intimation u/s. 143(1) accordingly.

Hope this may give some relief to a lot.

67 Comments

  1. Corporate Assessee filed return for AY 2014-15 in within due date.
    Committed the following errors:
    TDS in 26AS is 10 lakh. TDS shown in return 15 lakh.
    Self Assessment Tax paid in April 2014, 12 lakh reflected in 26AS but erroneously mentioned in the return as 6 lakh.
    Taken up as limited scrutiny.
    Assessment order passed in August 2016.
    Directed to pay interest u/s 234 and tax shortfall.
    Paid 234 interest and again paid 6 lakh towards self assessment tax.
    Realised the error of double payment of self assessment tax in Jan 2017.
    Any scope for rectification and refund.

    Reply
    • Dev-Without knowing complete details I can’t comment anything. Better you be in touch with any expert of your area.

      Reply
  2. Please State the case laws for aforesaid article

    Reply
      • Sir for correction of transmission of data in IT Return in respect of Filling of Asset & Liabilities detail there is mistake in transmission of Data in IT Return said mistake not in knowledge as the IT Return data was not checked and on that basis addition was made, so to rectify the aforesaid data rectification petition moved but rejected by IT Department, So my query is Deceision of Income Tax Appellate Tribunal or High Court deceision if any which directed that Wrong or inaccurate data transmitted can be rectified u/s.154 of IT Act, In your article you state that Tribunal directs to rectify, So I wll be grateful if you can forward me said judgement copy or Give the Citation of Said IT AT Order.

        Reply
          • Sir in Portal I did not get the case Laws if readily available with you please let me know i will be grateful to you

            Reply
  3. IHAVE FILED IT RETURN FOR THE A.Y 2015-16 ON 09.11.2016 A BELATED RETURN (MAYBE) AFTER E VERIFYING I FOUND THAT I ENTERED WRONG AMOUNT AND ALSO IN WRONG HEAD AND AFTER 7 DAYS MY RETURN WAS PROCESSED AT CPC AND IGOT INTIMATION U/S 143 NOW DUE TO IT IS A BELATED RETURN I CAN NOT FILE A REVISED RETURN ?
    SO HOW CAN I RECTIFY MY WHOLE RETUN WHICH IS A BELATED RETUN
    I ENTERED INCONE IN HEAD EXEMPT INCOME WHICH IS SALARY INCOME

    Reply
    • Prashant-If it is belated return, then you can’t revise it.

      Reply
  4. Dear sir,
    Very good article. please mentioned case laws for benefit of all

    With Regards

    Reply
  5. While submitting it return I entered tax details in advance tax instead of TDs.my income from salary only. How to submit revised return

    Reply
    • Jibin-Contact your nearest tax expert. They may guide you. I can’t explain all procedure in comment section.

      Reply
  6. Dear Basavaraj Sir,

    Yesterday I have received INTIMATION U/S 143(1) OF THE INCOME TAX ACT, for the ITR-1 I had filled for the Assessment year 2013-14. The net amount payable is RS 7,390/-. However, when I checked in detail, I found that I had chosen a wrong assessment year while filing the ITR.

    Instead of choosing the 2014-15 as a assessment year, mistakenly I chose 2013-14 and filed the ITR, because of which there is a difference in the TDS calculted.

    So I request you to guide me to rectify this problem at the earliest.

    Thanks in advance.

    Lingaraj

    Reply
    • Same Problem me got.. Did you got rectified and cleared your demand? when i applied for rectification, after 3 months i got mail saying demand is not cleared.. now i have applied for rectification again.. can you tell me whether you got cleared with your demand? is that possible to get cleared with demand or not?

      Reply
  7. Hi Sir,

    I have not entered the CIN (Self assessment tax paid ) details in the e-tax filing. and submitted the same. Is there any way of rectifying the same.

    Reply
  8. Hi,

    For FY 2012-13, I have declared Capital Gains Tax exempt, but I had mentioned wrong value as I had forgot to subtract the cost of acquisition from the sale consideration. Further the Capital Gains Account I opened to put the capital gains money, I have put the full sale consideration amount. This is from selling of shares and not house property.

    Is it possible for me to rectify it to the correct amount in my IT returns. What complications can arise when I try to close my Capital Gains Account, as it required accessing officers signature of approval.

    Reply
  9. Sir,
    i have entered mistake in my mail and in a/c no. what can i do?

    Reply
  10. There should be only the name of the department but I filled DDO name with the dapertment name. Is it wrong if yes plz tell what should I do.

    Reply
  11. I entered the DDO name followed by the department name such as Mr. ABC (DDO) XYZ DEPARTMENT in the column of name of the tax deductor of itr form. What should I do.

    Reply
  12. I have filed a belated return for AY 2012-13. By mistake i have selected survey return section instead of belated return. CPC has forwarded the same to local jurisdictional AO. i have refund pending. Now how i can claim the same ??

    Reply
    • Kailash-Please follow the above process or contact any tax expert of your area.

      Reply
      • But how can we file application for rectification of mistake since no order has been passed as yet. Only the file has been forwarded to jurisdictional AO.

        Reply
  13. I filed late return. due to which revision is not possible. but still as i committed mistake of taking Long term capital gain as Income from house property, i revised it.

    But as usual my revised return was not accepted as original return was filed late.

    Long term capital gain was exempt and due to taking capital gain amount as house property we have paid extra tax. is there any solution available to this situation

    Reply
  14. i had filled ereturn in july 2014 for whic i received notice under section 143 later i resubmitted rectification and i have again received notice under 154 claiming mismatch in tds details in 26as what to do?

    Reply
  15. Hi Sir,

    My father had wrongly reported the Gross Income for the AY. 2011-12 for which he has received an increased tax liabilty on him. He received a notice demanding him additional income tax due to wrongly reporting the income from salary. He has shown and replied as well to IT authorities stating that it was a clerical error. Can you please advice what can be the ideal course of action for this?

    Reply
    • Rajhansh-If it is clerical error and you are eligible under above section. Then you can rectify it.

      Reply
  16. Sir,

    I filled up the Income Tax online and filled it up for Assessment Year 07 – 08 while I should have filled it up as 08 – 09. Now, I have got the demand notice for the Assessment Year 07 – 08. What should I do now? Kindly suggest a solution for my problem.

    Reply
    • beenaben-Better to contact them and ask for solution. Because it seems to clerical error but not intentional.

      Reply
  17. Dear Sir,
    My father is govt. Employee. Till last year deptt itself file his ITR 1. But this year AY 14-15 I filed his ITR as per form 16. . I checked his form 26AS it shown only bank FD’s TDS We received noticed u/s143(1) demanding last 4 year tax because tax amount not shown in form 26AS earlier also. I discuss this problem with his deptt they said send the last 4 year form 16 photocopy to CPS Banglore. It may be possible that earlier also noticed was issued and they did not informed us. We have all the copies of form 16 and we already paid the entire amount also its deducted from salary. Kindly guide me what to do.

    Reply
    • Manju-I am not aware what went wrong. But better to consult any tax consultant with all documents in your hand.

      Reply
  18. i wrongly entered the name of employer but the tan no. of employer is correct. also inspite of filling the name and pan of donee, i wrongly entered my name and detail threre. please help me what to do now

    Reply
  19. Hi, Can we revised our 2013-14 itr 4 filed at 31/03/2014. if some mistake found in the said return

    Reply
  20. Hi, I have filed two Income tax returns on line as dated 31/03/2014. in the said returns i made a mistake while upload the returns. which are given as under.

    1. while upload the return for the assessment year 2012-13, i did not mention opening stock and closing stock, which are same( Opening Stock 1225500/- and closing stock 1225500/-)can i rectify the return or there is no need to rectify the return, because it was a clerical mistake and my net profit is same as it should have been with opening stock and closing stock?

    2. while upload the return for the assessment year 2013-14, i did not mention opening stock and closing stock, which are as( Opening Stock 478486.00 and closing stock 379445/-)can i rectify the return, revised the original return or submit the same return in manual in income tax department or should i not send the original return to the cpc, Bengaluru?

    Reply
    • Mangal Singh-Only clerical errors occurred as above may be rectified. But if amount involves is at higher then request you consult your CA on the same matter.

      Reply
  21. Dear Sir, one of my assistant made a typing error (of the turnover as well as the expenses) in filing a belated return. As I have no option to revise the return, I have to rectify it. But I heard that income shall not be changed by way of rectification. In this case, the disclosed income is less and the tax payable was zero. But actual income is more and there is tax payable and he paid the self assessment tax. Is it possible to rectify offering the actual higher income ? Please share your views. Thanks in advance. [email protected]

    Reply
      • Sir,

        I am facing the similar issue as vinod. I cannot revise belated return. Please tell me how to rectify it to increase my income and pay higher tax?

        Reply
  22. i did was one of my sisters. hw cud i rectify it?

    Reply
  23. sir,
    while e-filing i did it on 26.7.2013 but at the declaration side i put the date 27.07.2013 unknowingly. is there any problem regarding that pls do reply. i am little confused about that.

    Reply
  24. Dear sir,
    When I filing my return I do a mistake. when I put shelf assessment tax which is Rs.1632. but wrongly I put Rs.1636. I uploaded the return which is after due date.
    from CPC intimation come that your return processed by cpc and it is sent to your jurisdiction assessing officer for process. Now what I do, can I rectify this mistake.
    please answer me sir in my mail id.
    [email protected].

    Reply
  25. i have paid Income tax against wrong assessment year….instead of paying income tax against year 2012-13 i have paid it against 2011-12…and now Income tax department has sent me notice for paying tax for 2012-13. what can i do? can i raise rectification request..? if yes what should be the type of request?

    Reply
    • Hi Vikas,

      I am facing the same issue now.. Just wanted to check with you what steps did you take to get it fixed

      Thanks,
      Ramya

      Reply
  26. Hello Sir,
    I have a serious problem with my income tax return for assessment year 2009-2010.
    I was going abroad and I had entrusted a tax consultant to do my returns.
    He did my returns and somehow the acknowledgement was lost from a friend of mine. Recently he found the acknowledgement and i found out that the return was filed totally wrong. All the entries (income, TDS, tax payable etc) were wrong. He must have referred someone else’s form 16 I guess. He had declared an additional tax payable of some Rs66000. I checked on the income tax website and there is a tax demand issued for Rs79000 now (maybe with fine). It should have been zero or a refund.The initial tax return was not e-filed. Its a written document.

    It will be very helpful if you can advise me on how to proceed. Is there a way to fix this mess?
    Can I go for a rectification or is it too late?
    Thanks in advance

    Reply
  27. I had generated the XML with incorrect data. I uploaded the xml. i got the ITRV. Now, can i just upload the new XML with the correct data and get the ITRV or it has to be done in Sec 154 application?

    Reply
  28. Can I file the rectified return again? I have already sent the rectified return, but that was not correct.

    Reply
  29. Sir,
    My wife has received money through bank transfer from her father and father-in-law as gift. Though it is not taxable, but is she required to show it in her IT return. If so, under which head? She is a housewife and has no other source of income

    Reply
    • Prabhu-You need to show under “Income from Other Sources”.

      Reply
  30. Dear Sir,
    The articles on your website are highly informative.

    Reply
    • Prabhu-Thanks 🙂

      Reply
  31. thanks for reply . I do little bit study about my problem so I want to tell some detail so you can tell me according to it ,
    the AY is 2012-13 and i file return after due date and i still not sent the ITR V. So considering filed after due date , what option should i use from following
    1. file return again as original
    2. file return as revised under section revised-135(5)
    or
    3. I should sent the ITR V form and after receiving intimation from income tax depatrment and then send the rectification request

    will they accept rectification in total income and what step i should take ? if something else other than those option,please tell

    Reply
    • Mani-File return as revised.

      Reply
      • as i filed return after due date ,so can i file revised return because on some website i read that some one can file revised return if return filed before due date?

        Reply
        • Mani-Yes, you can’t file the revised return if you filed the return after due dates. Sorry for mis-understanding.

          Reply
          • if i send the irt v and then i go for rectification , then can i change my income during rectification if not what should i do for removing error in total income?
            Please tell any solution or your views about error in total income, what step should i take for this error( i still not sent the ITR V by post)?

            Reply
            • Mani-Your questions actually promoted me to write a post on this whole issue. Please wait today. Go through my latest post on the same issue. If not satisfied then raise the issue. Hope you wait for few hours 🙂

              Reply
  32. during filing return i enter the wrong income,can i rectify the income? Is income tax department can make some objection if we increase the gross income in rectification ?please tell solution

    Reply
    • Mani-You can do so. Obviously if your taxable income raised then you need to pay more tax.

      Reply

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