Procedure for assessmentCentral
Section 287 of Income Tax Act 2025 in hindi
- (1)An income-tax authority referred to in section 236, for rectifying any mistake apparent from the record, may amend any—
- (2)Irrespective of anything contained in any law in force, the authority concerned may, amend any order or intimation under sub-section (1) in relation to any matter, other than the matter considered and decided in any proceeding by way of appeal or revision, relating to such order or intimation.
- (3)Subject to the other provisions of this section, the authority concerned,—
- (a)may make an amendment under sub-section (1) of its own motion; and
- (b)shall make such amendment for rectifying any such mistake which has been brought to its notice by—
- (i)the assessee or the deductor or the collector; or
- (ii)the Assessing Officer, if the authority concerned is the Joint Commissioner (Appeals) or the Commissioner (Appeals).
- (4)No amendment that enhances an assessment, reduces a refund or otherwise increases the liability of the assessee or the deductor or the collector, shall be made under this section by the authority concerned without giving to such assessee or deductor or collector, as the case may be,—
- (a)a notice of its intention of making such amendment; and
- (b)a reasonable opportunity of being heard.
- (5)The income-tax authority concerned shall pass an order in writing, if an amendment is made under this section.
- (6)The Assessing Officer shall make refund which may be due to the assessee or the deductor or the collector, where an amendment reduces the assessment or otherwise reduces the liability of such assessee or the deductor or the collector.
- (7)The Assessing Officer shall serve on the assessee or the deductor or the collector, a notice of demand in such form as may be prescribed specifying the sum payable,—
- (a)where an amendment enhances the assessment or reduces a refund already made or otherwise increases the liability of such assessee or the deductor or the collector; and
- (b)such notice shall be deemed to be issued under section 289 and the provisions of this Act shall apply accordingly.
- (8)No amendment under this section, except as provided in section 288, shall be made after four years from the end of the financial year in which the order or intimation sought to be amended was passed.
- (9)Subject to sub-section (8), an income-tax authority referred to in sub-section (1), shall pass an order for making the amendment or refusing to allow the claim within six months from the end of the month in which the application for amendment under this section is received by it from the assessee or the deductor or the collector.
Summary
- This section allows any income-tax authority named in Section 236 to correct ("rectify") any clear error ("mistake apparent from the record").
- It applies to orders passed under the Act, processing statements ("intimations") under Section 270(1), and tax-deduction statements ("intimations") under Section 399.
- Errors can be corrected by the tax authority on its own, or because the taxpayer (assessee), deductor, or collector officially points them out in an application.
- If an amendment increases a taxpayer's tax bill, reduces their refund, or increases their liability, the authority must first send a notice of intention and give them a fair hearing.
- Any rectification must be done in writing, and any resulting tax refund must be paid out, or a tax demand notice specifying the sum payable must be served.
- When an application for rectification is received, the authority must pass an order (either making the amendment or refusing the claim) within six months from the end of the month in which the request was received.
Practical examples
1Rohan Sen, a salaried worker, receives an automatic tax statement ("intimation") under Section 270(1) on July 10, 2027, stating he owes an extra Rs. 25,000 due to an arithmetical error in his deduction calculation. Rohan realizes the system made a mistake and ignored his Rs. 50,000 provident fund deduction. He files a rectification application under Section 287 on July 15, 2027. The tax officer reviews the record, sees the obvious mistake, and passes a written order under Section 287 on November 12, 2027 (well within the six-month deadline), correcting the error and wiping out the Rs. 25,000 demand.
2Meera Nair, a small exporter, has a clerical error in her assessment order that under-calculated her taxable business profits by Rs. 1,00,000, which means she owes more tax. Under Section 287, the officer wants to correct this error on his own motion. Because this correction will increase Meera's tax liability, the officer serves Meera with a notice of intention on October 5, 2027, giving her 15 days to be heard. After she submits her response, the officer passes a written rectification order on October 25, 2027, along with a demand notice.
FAQ
1. What kinds of errors can be corrected under Section 287?
Any "mistake apparent from the record" can be corrected. This means clear, obvious mistakes like math errors or clerical slips that do not require debate.
2. What tax documents can be corrected under Section 287?
The authority can correct any order passed under the Act, any tax processing statement ("intimation") under Section 270(1), or tax-deduction statements under Section 399.
3. Can the tax department increase my tax liability or reduce my refund during a rectification?
Yes, but only after sending you an official notice of their intention and giving you a reasonable opportunity to explain your side.
Test yourself
Q1.Under Section 287, which of the following cannot be rectified if it has already been considered and decided?
Q2.What is the statutory time limit for an income-tax authority to pass an order on a taxpayer's rectification application?
Q3.Under Section 287(4), what must the tax authority do before passing an order that increases a taxpayer's liability?