Now fix ITR errors faster — here’s how CBDT’s latest move speeds up your tax refund
Taxpayers struggling with refund delays or errors in their income tax returns may soon find the process far less cumbersome. The government has rolled out a major procedural reform empowering the Centralised Processing Centre (CPC) in Bengaluru to handle corrections directly — a move expected to cut red tape and speed up resolutions.
- Nov 8, 2025,
- Updated Nov 8, 2025 10:56 AM IST
In a move aimed at speeding up tax refunds and simplifying the process of correcting income tax return (ITR) errors, the Central Board of Direct Taxes (CBDT) has announced new powers for the Commissioner of Income Tax (Centralised Processing Centre, Bengaluru). The change, formalised through Notification No. 155/2025 issued on 27 October 2025, allows the Commissioner and authorised officers to directly rectify mistakes in taxpayers’ records — a reform expected to make the system faster, more efficient, and less dependent on multiple layers of approval.
The notification marks a significant shift in how income tax rectifications will be handled. Until now, taxpayers often had to approach different officials for issues such as incorrect tax credit, delayed refunds, or mismatched details between the return and assessment order. With the new framework, the CPC in Bengaluru — which already manages large-scale return processing — can now address computational errors and omissions directly, without waiting for jurisdictional assessing officers to intervene.
Under the revised mechanism, the Commissioner of Income Tax (CPC) will have concurrent powers with assessing officers to fix mistakes that are apparent from records, particularly those emerging from the interface between the CPC and field officers. The notification also extends rectification powers to additional, joint, and subordinate assessing officers, ensuring that errors across various regions can be handled promptly and without procedural bottlenecks.
The CBDT has clarified that authorised officials will now be able to correct a wide range of issues, including non-consideration of prepaid tax credits, inaccurate computation of reliefs, or errors in the calculation of interest under Section 244A of the Income-tax Act, 1961. They are also empowered to issue tax demand notices under Section 156 where applicable. The centralisation of these functions is intended to improve accuracy, ensure that all eligible credits are properly applied, and reduce the kind of discrepancies that often delay tax refunds.
Officials familiar with the development said the measure effectively bridges the gap between assessment and processing, making it possible to resolve genuine computational errors quickly and electronically. The goal, they noted, is to reduce administrative friction and cut down the number of cases where taxpayers must approach multiple authorities for simple rectifications.
The new system is also expected to strengthen the government’s broader push toward a faceless and technology-driven tax administration. By moving rectifications to an automated, centralised platform, the process becomes more transparent and traceable. Every correction and adjustment will be logged within the CPC’s system, reducing the risk of manual errors and ensuring greater accountability.
Taxpayers are likely to see the most direct benefits in the form of quicker refunds and accurate interest calculations. Common mismatches — such as those related to tax deducted at source (TDS), advance tax, or incorrect refund computation — can now be addressed without lengthy correspondence or manual follow-ups. The outcome is expected to be a more predictable and user-friendly experience for those seeking to correct their ITRs.
The notification also allows senior officers to delegate authority to subordinates for specific areas or categories of cases, ensuring operational flexibility across regions.
Overall, the CBDT’s latest step signals a continued shift toward a digital-first, taxpayer-centric approach. By empowering the CPC to handle rectifications independently, the government aims to make income tax administration faster, cleaner, and more transparent — ultimately reducing the burden on both taxpayers and the system.
In a move aimed at speeding up tax refunds and simplifying the process of correcting income tax return (ITR) errors, the Central Board of Direct Taxes (CBDT) has announced new powers for the Commissioner of Income Tax (Centralised Processing Centre, Bengaluru). The change, formalised through Notification No. 155/2025 issued on 27 October 2025, allows the Commissioner and authorised officers to directly rectify mistakes in taxpayers’ records — a reform expected to make the system faster, more efficient, and less dependent on multiple layers of approval.
The notification marks a significant shift in how income tax rectifications will be handled. Until now, taxpayers often had to approach different officials for issues such as incorrect tax credit, delayed refunds, or mismatched details between the return and assessment order. With the new framework, the CPC in Bengaluru — which already manages large-scale return processing — can now address computational errors and omissions directly, without waiting for jurisdictional assessing officers to intervene.
Under the revised mechanism, the Commissioner of Income Tax (CPC) will have concurrent powers with assessing officers to fix mistakes that are apparent from records, particularly those emerging from the interface between the CPC and field officers. The notification also extends rectification powers to additional, joint, and subordinate assessing officers, ensuring that errors across various regions can be handled promptly and without procedural bottlenecks.
The CBDT has clarified that authorised officials will now be able to correct a wide range of issues, including non-consideration of prepaid tax credits, inaccurate computation of reliefs, or errors in the calculation of interest under Section 244A of the Income-tax Act, 1961. They are also empowered to issue tax demand notices under Section 156 where applicable. The centralisation of these functions is intended to improve accuracy, ensure that all eligible credits are properly applied, and reduce the kind of discrepancies that often delay tax refunds.
Officials familiar with the development said the measure effectively bridges the gap between assessment and processing, making it possible to resolve genuine computational errors quickly and electronically. The goal, they noted, is to reduce administrative friction and cut down the number of cases where taxpayers must approach multiple authorities for simple rectifications.
The new system is also expected to strengthen the government’s broader push toward a faceless and technology-driven tax administration. By moving rectifications to an automated, centralised platform, the process becomes more transparent and traceable. Every correction and adjustment will be logged within the CPC’s system, reducing the risk of manual errors and ensuring greater accountability.
Taxpayers are likely to see the most direct benefits in the form of quicker refunds and accurate interest calculations. Common mismatches — such as those related to tax deducted at source (TDS), advance tax, or incorrect refund computation — can now be addressed without lengthy correspondence or manual follow-ups. The outcome is expected to be a more predictable and user-friendly experience for those seeking to correct their ITRs.
The notification also allows senior officers to delegate authority to subordinates for specific areas or categories of cases, ensuring operational flexibility across regions.
Overall, the CBDT’s latest step signals a continued shift toward a digital-first, taxpayer-centric approach. By empowering the CPC to handle rectifications independently, the government aims to make income tax administration faster, cleaner, and more transparent — ultimately reducing the burden on both taxpayers and the system.