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After this change made by CBDT, taxpayers will not have to run around much to correct small mistakes. The system will now be faster and more interconnected, which will speed up resolution of complaints.
New Delhi. A problem often encountered in the Income Tax Department is that even after filing the return, taxpayers get wrong tax demand notices or the refund gets stuck due to wrong calculations. It takes a lot of time to correct this mistake. The reason for this is the long exchange of files between the Assessing Officer (AO) and the Centralized Processing Center i.e. CPC for resolution of the problem. But now the Central Board of Direct Taxes (CBDT) has made this entire process very easy and fast.
On October 27, 2025, CBDT issued an important notification giving special powers to the Income Tax Commissioner (CPC) based in Bengaluru. Now CPC will be able to directly correct all the small and big calculation and accounting errors which earlier had to go through a long process through AO.
How will it be beneficial?
Earlier, if TDS was not added properly, advance tax was mismatched, or interest under Section 244A was calculated incorrectly, the taxpayer had to follow up repeatedly at the AO office. The AO would send the file to the CPC, the CPC would ask for clarification from the AO and this entire process took a lot of time. Now the new rule says the CPC itself can directly correct mistakes relating to TDS or TCS mismatch, ignoring advance tax or self-assessment tax, mistake in refund issued earlier, wrong interest calculation of section 244A or wrong calculation of tax or refund and issue demand notice under section 156, if needed.
According to an Economic Times report, this change means that taxpayers will not need to run around to correct small mistakes, because the system is now faster and interconnected. Chartered Accountant Dr. Suresh Surana says that this change is a great relief for the common people. Earlier, it used to take 2 to 6 months to resolve refund errors or tax demand errors. Now CPC will directly make corrections to the order, so corrections can be made in days.
