Return Revision - Rectification

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This query is : Resolved

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An assessee incorrectly declared their gratuity as £32 lakh instead of under £20 lakh, with the remainder being commuted pension. Despite a CPC-ITD notice about the £12 lakh discrepancy, the assessee missed the response deadline, leading to the additional amount being taxed. While rectification is the ideal solution, the portal isn't currently allowing it, and appeal options are limited due to the initial error. The assessee faces paying tax on tax-free retirement benefits due to the filing mistake.

sbali1976

sbali1976 (Querist)

15 January 2022 AY : 2020-21
An assessee had filed ITR with retirement benefits. The gratuity was wrongly shown as 32L in the ITR whereas the correct amount of gratuity was less than 20L and balance amount was commuted pension amount.

CPC- ITD had sent a communication regarding the proposed adjustment of taxing the extra amount of 12L but the assessee did not respond in due time. CPC-ITD has made the assessment with addition of 12L in total income and calculating the tax payable thereon.

How should assessee proceed in this case?
File a rectification return ? If yes then, how to file rectification return, as the rectification return filing facility is still not activated on tax portal.

If no, then please suggest how to move forward.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 January 2022 Rectification not possible in this case.
Any how try it when the portal allowes it.

Message likes : 1 times

sbali1976

sbali1976 (Querist)

15 January 2022 Respected sir, thanks for your reply. If not rectification, then what, file an appeal ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 January 2022 Appeal not possible as you committed mistake, any how try if 30 days time is available.

sbali1976

sbali1976 (Querist)

15 January 2022 so, what is the going to happen ultimately. Will the assessee have to pay the tax of around 3.5 L on wrong filing of ITR whereas all the retirement benefits are tax-free.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 January 2022 Yes, you are right in view of revised return filing time limit is over.

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