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Nov 10, 2025
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CBDT issues new rules for income tax refund corrections: What it means for you
The Central Board of Direct Taxes (CBDT) has notified a new framework to streamline the rectification of tax return errors and issuance of refunds under the Income Tax Act, 1961. The move is expected to simplify the correction of mistakes related to tax computation, prepaid tax credit, or refund processing for individual taxpayers.
As per the notification, the Commissioner of Income Tax (Centralised Processing Centre - CPC), Bengaluru, will now have concurrent powers to handle cases involving mistakes apparent from records, including refund-related discrepancies.
What the new rules mean for taxpayers
Under the revised framework, the Income Tax Department can now rectify issues under Section 154 of the Act that result in:
Errors in tax computation or refund determination,
Non-consideration of prepaid tax credits (like advance tax, TDS, or self-assessment tax),
Non-consideration of eligible reliefs, or
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