Rectification of mistake under Section 154

What this section is

Section 154 allows either the assessee or the AO to apply for rectification of a 'mistake apparent from the record' in any order, including 143(1) intimations and assessment orders. It is not a substitute for an appeal — only mistakes that are obvious and patent on the record qualify.

When it is issued

Either suo motu by the AO/CPC, or on an application by the assessee. Notice of proposed rectification adverse to the assessee must be issued first.

What you should do

1. 1Decide whether the mistake is apparent on record (an arithmetical error, a TDS not given credit) or arguable (then 154 is the wrong remedy — file an appeal).
2. 2File the rectification request on the e-filing portal under Services → Rectification.
3. 3Attach the supporting evidence — TDS certificate, AIS extract, computation.
4. 4Track the request — CPC processes most 154 applications within a few months.

Documents typically needed

• Order to be rectified
• Computation showing the error
• Supporting third-party documents (Form 16, 26AS, AIS)

Common mistakes

• Filing 154 for debatable issues — it will be rejected and the appeal window may close.
• Filing 154 after appeal — once the matter is in appeal, only the appellate authority can deal with it.