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CBDT Empowers CPC Bengaluru To Expedite Tax Rectifications And Refunds
CBDT Empowers CPC Bengaluru To Expedite Tax Rectifications And Refunds
With the new directive, CBDT has authorised the CPC in Bengaluru to exercise concurrent powers under Sections 120(1) and 120(2) of the Income-Tax Act, 1961, ensuring quicker resolution of taxpayer grievances arising from computation errors or refund mismatches.
Bengaluru: In a move that can improve the speed and accuracy of income-tax processing, the Central Board of Direct Taxes (CBDT) has authorised the Commissioner of Income-Tax at the Centralised Processing Centre (CPC), Bengaluru, to rectify errors and issue demand notices under the Income-Tax Act.
With the new directive, CBDT has authorised the CPC in Bengaluru to exercise concurrent powers under Sections 120(1) and 120(2) of the Income-Tax Act, 1961, ensuring quicker resolution of taxpayer grievances arising from computation errors or refund mismatches.
According to a recent notification issued by the Ministry of Finance, the Commissioner of Income-Tax, CPC, Bengaluru, now has the authority to issue demand notices under Section 156 of the Act and correct errors found in records under Section 154.
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These include correcting inaccurate refund computations, excluding prepaid tax credits such as TDS, TCS, or advance tax, and failing to consider refunds under double taxation agreements or Section 244A interest calculations.
The directive also gives the authorised Commissioner the ability to give Additional or Joint Commissioners of Income-Tax written authority to assign specific rectification or follow-up tasks to Assessing Officers. The purpose of this tiered delegation mechanism is to improve accountability and expedite the resolution process.
This framework empowers CPC-Bengaluru to address rectification issues directly, previously handled by the CPC and field assessing officers, through a digital interface. The action reaffirms the government's dedication to providing effective taxpayer services by decentralising administrative authority and digitising it.
The notification becomes effective immediately upon its publication in the Official Gazette.
Earlier last month, the CBDT had previously decided last month to extend the deadline for submitting the Return of Income for assessees covered by sub-Section (1) of Section 139 of the Income Tax Act, 1961, from October 31 to December 10.
Additionally, for assessees listed in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, the "specified date" of furnishing the audit report under the provisions of the Income Tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26) was extended from September 30, 2025, to October 31, 2025.
The aforementioned "specified date" has now been further extended by the CBDT from October 31 to November 10. The statement also stated that a formal notification to this effect is being issued separately.
Source: ZeeNews
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