Request clarification on IT filing

This query is : Resolved

professional (Querist)
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21 January 2024 This pertains to my IT return for AY 21-22. I had filed the ITR return within due date (i.e. before 31st Dec 2021). The Due Tax payment (self-assessment Tax) of about INR 2 Lacs was paid within 4 days of the filing of Tax. I also paid interest of around 7000/-, as was showing in the Income Tax system, though no interest should have been applicable

Please let know whether I can file:

1) Rectification to update my challan for payment of INR 2 Lacs: -
I was told that last date of filing rectification was 31st Dec 2023, for AY21-22. Can you please confirm whether I can file rectification. In this case I am getting Tax due of around 35,000/-, as system is not capturing date of my challan payment of INR 2 Lacs and calculating interest for delay. Actually, no interest should be applicable.

2) Updated return under 139 (8A):-

In this case, I am getting marginal refund of around 6500/- (nearly same as the interest amount I had paid), but since refund is not allowed under 139 (8A), I have to manually make it zero, before system allows the filing.

Please confirm whether 1) or 2) is the right way to proceed.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 Based on your situation, here are the options you can consider:

1. **Rectification under Section 154:**
- You can file a rectification request under Section 154 of the Income Tax Act, 1961. This is applicable if there is an error apparent on the record. Since your self-assessment tax payment of INR 2 lakhs was made within 4 days of filing the return, but it is not reflected correctly in the Income Tax Department's records, you can rectify this.
- Rectification can correct errors related to data entry mistakes, incorrect processing of tax payments, or other details in the tax return.
- The due date for filing rectification u/s 154 is generally within one year from the end of the financial year in which the order sought to be amended was passed. For AY 2021-22, the due date would typically be by 31st March 2023. However, sometimes the system allows for filing beyond this period, but it's important to check the current status on the Income Tax e-filing portal.

2. **Revised Return under Section 139(5):**
- If you want to make changes other than rectification, such as correcting your total income, claiming deductions, or changing the tax calculation, you can file a revised return under Section 139(5).
- However, a revised return cannot be filed to claim a refund under Section 139(8A). It's used when you discover an omission or incorrect statement in the original return filed.
- Since you mentioned a marginal refund of around INR 6500/-, which is close to the interest paid, filing a revised return might not be suitable unless there are other significant changes needed.

**Recommendation:**
- Given your scenario where you primarily need to correct the tax payment details (challan payment not reflected correctly), filing a rectification under Section 154 seems to be the appropriate step.
- Rectification can be done online through the Income Tax e-filing portal. Ensure all necessary documents and details related to the correct tax payment are uploaded correctly.
- If you are unable to file rectification due to any technical reasons, you may seek assistance from a tax professional or visit an Income Tax office for guidance.

Always double-check the latest updates on the Income Tax Department's website or portal for any changes in filing deadlines or procedures related to rectification requests.