Common Errors in filing Rectification Return - Tax Finance Info.

Common Errors in filing Rectification Return - Tax Finance Info.

            Many a times assessee makes certain mistakes in filing the Income Tax Return, but fails to detect and file the revised return before assessment procedure. In such cases the assessee applies to the Income Tax Department for allowing him to file the rectification return where the assessee can rectify the mistakes. Assessee makes many common errors in filing the rectification return. Let us have a look at different mistakes made while filing rectification return and their precaution.

§  The assessee may make mistakes in filling the basic details such as:

ü  The mistake may be in selecting the assessment year. It happens the order may be received very late and by mistake the next assessment year is selected by the assessee.

ü  The most common mistake may be committed while entering the Communication Reference Number. Communication Reference Number is quoted on the order issued by the CPC under section 143(1) or 154. So the assessee has to insert the latest reference number in the case of re-rectification and not the old one as such Reference Number is communication specific and not assessee specific. So it changes in every communication.

ü  Select the proper ITR form applicable.

ü  Enter the correct date of order date of CPC.

ü  In case of re-rectification enter the proper date of the prior CPC order.

As a precaution to some of the above mistakes the assessee must use the option of “Import Previous Version” and you have to select the path where previous version is available. This facility is provided by the Income Tax Department in filling the Income Tax Return form. This will decrease the chances of mistakes in basic details.

§  The assessee many a times makes mistake of filing only a part of return or a schedule of return that requires to be changed. But it should not be the case the assessee has to file the whole return again and not only the part of return that requires change.

§  Many a times assessee files rectification return when he comes to know that the Bank Details entered by him / her was erroneous and so the refund has not been received. But that is not the correct way to change details of Bank because the Bank details of original return are only considered and not that of rectification return. So the proper way of intimating change in Bank Details can be by the following procedure:

ü  Login to the site www.incometaxindiaefiling.gov.in.

ü  Go to “My Accounts” option in Menu Bar.

ü  Select the option “Refund Re-issue Request”.

ü  Change the Bank Account and / or address details as required to be changed.

§  It may happen that assessee may find change in income as compared to that filed in the Income Tax Return. They are misguided and they file the Rectification Return. But the proper way to deal with the matter is that, a Revised Return is still an option to file changes in income.

§  The pre-requisite of a Rectification return is that, there should not be change or revision in income or any claims except the one where mistake is to be corrected. So be aware and try your best to file the Revised Return as per the provisions of Income Tax Act in case of change in income or claims.

§  Many a times assessee try to place the second rectification request if it takes some time to process the prior one. But always remember that you will never be able to place another application for Rectification Return before the prior rectification is processed.

§  An assessee is given a facility to withdraw the Rectification Request within one day, if anything needs to be amended. So don’t try to withdraw it after the day has passed.