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Rectify mistakes in your tax statements

Rectify mistakes in your tax statements

Computerisation of the IT department has lead to either erroneous tax credits or tax demands. The CBDT has now issued guidelines for rectification and resolution of these tax demands.

Has your long-pending income tax refund been wiped off by an income tax demand notice? Do you find yourself caught in a situation where taxes are being deducted but aren’t reflected as paid? Have you been asked to pay additional taxes with penalty and interest, despite paying them on time?

You now have some respite as the Central Board of Direct Taxes (CBDT) has set up a procedure to verify and correct the erroneous tax demands raised by income tax assessing officers.

A circular issued by the CBDT says: The taxpayers can get their outstanding tax demand reduced/deleted by applying for rectification along with the requisite documentary evidence of tax/demand already paid.

However, to rectify these tax demands you will have to find out the fault. The CBDT has often found that tax demands have been raised due to the following common mistakes:
– Quoting an invalid or wrong TAN
– Mentioning only one TAN, where tax credit is from more than one TAN
– Furnishing information in wrong TDS schedules in the return form
– Wrong challan details for advance tax, self-assessment tax payments

Though the statement of form 26 AS reflects the taxes cut or paid by a person, the taxes won’t be reflected in form 26 AS due to these mistakes. If you find the mistake in your return or want to rectify the demand, the requests have to be submitted to the jurisdictional assessing officer. If you have e-filed your returns and they have been processed by the Central Processing Centre at Bangalore, an online rectification request can be made through:

This is a step ahead in terms of tax dispute resolution as earlier, a person whose employer had made a mistake in their return had to request for rectification at the employer or client level. If the employer or the business partner turned a deaf ear, then he had no way to rectify the problem.
Assessing officers now have the power to handle grievances of tax demands up to Rs1 lakh. Unless you are specifically told to approach the jurisdiction officer, you can rectify the error online.

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