Taxpayers to Benefit as CBDT Enables CPC Bengaluru to Accelerate Rectification & Refund Processing

Bengaluru — In a significant move aimed at improving the efficiency and accuracy of income-tax processing, the Central Board of Direct Taxes (CBDT) has empowered the Commissioner of Income Tax at the Centralised Processing Centre (CPC), Bengaluru, with enhanced authority to handle rectifications and issue demand notices under the Income-Tax Act.

Under this new directive, the CPC Bengaluru has been granted concurrent jurisdiction under Sections 120(1) and 120(2) of the Income-Tax Act, 1961. This will enable faster resolution of taxpayer issues such as incorrect tax computations, refund mismatches, or other technical errors.

According to a notification released by the Ministry of Finance, the Commissioner of Income-Tax at CPC Bengaluru can now:

• Issue demand notices under Section 156

• Rectify errors apparent on record under Section 154

These powers include correcting issues such as:

• Wrongly computed refunds

• Omission of prepaid taxes like TDS, TCS, or advance tax

• Errors in considering relief under tax treaties

• Mistakes in calculating interest under Section 244A

Delegation for Faster Processing

The notification also allows the Commissioner to authorise Additional or Joint Commissioners in writing, who may then assign specific rectification or follow-up functions to Assessing Officers.
This layered delegation is designed to:

• Improve accountability

• Speed up the workflow

• Ensure timely resolution of taxpayer requests

By empowering CPC-Bengaluru to take up rectification tasks directly—earlier handled jointly by CPC and field officers—the government aims to strengthen its digital tax-administration framework and enhance taxpayer convenience.

The notification takes effect immediately upon publication in the Official Gazette.

Recent Extensions in Tax Deadlines

Earlier, CBDT had extended several key deadlines:

• Return filing under Section 139(1) for applicable taxpayers moved from 31 October to 10 December 2025.

• For assessees requiring an audit under clause (a) of Explanation 2 to Section 139(1):

  • Audit report due date was first extended from 30 September 2025 to 31 October 2025.

  • This “specified date” has now been further extended to 10 November 2025.

A formal notification for the latest extension will be issued separately.