Income Tax Department
Income Tax Department has started a new feature for taxpayers. Under this, now applications for rectification in certain income tax orders can be made directly online. Earlier this process was long and cumbersome, requiring manual application or forwarding the file through the Assessing Officer (AO).
The Income Tax Department has said that now rectification applications against Transfer Pricing (TP), Dispute Resolution Panel (DRP) and Revision Orders can be submitted directly to the concerned authority through the e-filing portal. For this, click on the Services tab in the e-filing portal, then Rectification, then click on the Request to AO seeking rectification option.
What does it mean?
According to Chartered Accountant Dr. Suresh Surana, after this change, taxpayers can now go to the e-filing website of the Income Tax Department and send the application for rectification of the mistake electronically directly to the correct tax authority. This is especially helpful in cases where there is a clear error in the assessment order. If the taxpayer finds any obvious mistake in the orders given below.
- Transfer Pricing (TP) Order
- DRP instructions
- Revision order (such as orders made under section 263 or 264)
- So he can send the rectification request directly to the same authority which has the power to implement the original order.
What are revision orders?
Revision orders are orders issued by senior income tax officers to review or modify the decision of an assessing officer. Under Section 263, if an order is wrong or not in the interest of the department, it can be changed or cancelled. Under Section 264, the order can be amended to provide relief to the taxpayer.
What was the problem before?
Earlier there was no uniform online system for rectification in these cases. Taxpayers had to submit applications manually or send them through AO, which led to delays and frequent follow-ups.
What will be the benefit of the new feature?
With this new feature the entire process has become digital, easy and transparent. Now tracking of applications will be easier, paper work will be less and time will be saved. Taxpayers will get great relief especially in complex matters like transfer pricing and revision.