Wrongly quoted total income in belated return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Dear Sir,
Can a rectification request is possible under Sec154 for belated return. I had submitted belated manual return for AY 2008-09 and paid self assessed tax my STCG though my income from salary was NIL since I am a salaried. During preparation of ITR I wrongly placed LTCG out of sale of mutual fund/ Securities where STT was paid in my total income which are exempt income side by side i placed the same amount in exempt income also. But after few months I got notice for additional tax under sec 143 and found that this is due to inclusion of LTCG in total income. However within 3 days I submitted an application in plain paper under 154 stating my error but no reply was given till date. However, now i find the demand still exists in my name. Whether it is possible to to rectify the error in total income for my belated manual return of 2008-09 under section 154 so that i may not tax for my wrong total income?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 December 2013 No, since the time limit to file rectification application u/s 154 is 4 years from end of rel ay..so 31.3.2013 is the last date in your case.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Sir, I had applied in plain paper for rectification under section 154 in januray 2010 within 3 days of receipt of claim of tax under 143 for AY 2008-09, but no reply given by ITO till date and now i find in efiling website that the said demand is uploaded in CPC and refund is being adjusted.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Here’s a summary of your situation and what you can do:
You filed a belated return for AY 2008-09 and mistakenly included LTCG (which was exempt due to STT paid) in your total income, causing extra tax demand under section 143.
You submitted a plain paper application under Section 154 for rectification within 3 days of notice but never got a reply.
The demand still shows on the portal.
You’re worried if rectification under Section 154 is still possible now.
Key points:
Time limit for rectification under Section 154 is 4 years from the end of the relevant assessment year. For AY 2008-09, the last date was 31.03.2013, so the window has closed.
Since you applied in January 2010 (within time), but no response was given, your application was likely pending.
You mentioned the demand now shows as adjusted on the e-filing portal, indicating the refund has been adjusted against the demand.
What can you do now?
Check if the demand has truly been adjusted against your refund (the portal will show this).
If the adjustment is correct and you do not owe any extra tax, you can consider the matter settled.
If you still believe there is an issue, you can approach the jurisdictional Assessing Officer (AO) for a review or re-assessment request explaining your case.
Keep all correspondence and proof of your initial rectification request handy.
Summary
Since the rectification window has expired, you cannot file a fresh Section 154 rectification now, but since you applied earlier and the refund is adjusted, this may have resolved the issue. If not, your best route is to approach the AO for a review or seek legal remedy.

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