Rectification u/s 154 income tax act


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When filing ITR-3, remuneration from a firm was incorrectly classified as 'other income' and also noted under 'income not credited in P&L'. Although it was accounted for, the tax portal failed to include it in Gross Total Income. Consequently, CPC added this income and raised a demand for AY 2022-23. The advice is to file a rectification under Section 154, citing the reason as the income being accounted for under multiple heads, which is an apparent mistake.

07 January 2023 while filing ITR -3, we had taken remuneration of a parnter as other income -mentioend as Remuneration from Firm
but wrongly, it was also mentioned in BP under head -income not credtited in Profit & loss a/c
under head salary
it was mentioned only inner coloum, but portal failed to extent to outer coloum, hence not included in Gross Total Income
now CPC has added this income and has raised demand for AY 2022-23
shall we file rectification u/s 154, what reasons to mention
double time the same income is accounted for AY 2022-23
kindly give your opinion sirs

07 January 2023 Yes, file rectification request, correcting the apperent mistake in classifying the income already taxed in firm's account.

07 January 2023 For reason, mention that you had included single income in multiple income heads. Then write a detailed reply in the second para.

09 January 2023 thanks sir, thanks for the reply


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