✅ CBDT Introduces New Measures to Speed Up Tax Refunds and Simplify ITR Rectifications
The Central Board of Direct Taxes (CBDT) issued a notification on 27 October 2025, granting the Commissioner of Income Tax at the Centralised Processing Centre (CPC), Bengaluru, concurrent jurisdiction under Section 154 of the Income-tax Act, 1961.
This empowers the CPC to correct apparent errors in orders issued through the AO–CPC digital interface, significantly speeding up the resolution of mistakes related to tax credits, refunds, and interest calculations.
According to the notification, CPC can now rectify issues such as:
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Non-consideration of prepaid tax credits (TDS/TCS/advance tax)
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Errors in granting reliefs
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Wrong computation of interest under Section 244A
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Any tax/refund computation mistakes linked to AO-CPC processed cases
Where required, CPC may also issue demand notices under Section 156.
How This Change Benefits Taxpayers
Chartered Accountant (Dr.) Suresh Surana outlines the major advantages:
1. Much Faster Rectification of Errors
Previously, taxpayers had to wait for jurisdictional Assessing Officers to manually correct mismatches in TDS/TCS, advance tax, or refund computations—often causing long delays.
Now, CPC can directly fix such issues, resulting in quicker resolutions.
2. Reduced Administrative Delays
This move centralises Section 154 rectifications for AO-CPC cases, making the system more automated and less dependent on manual inter-departmental coordination.
This improves processing speed and reduces duplicated effort between AOs and CPC.
3. Timely and Accurate Refunds
Refund delays often stem from small computational errors or incorrect interest calculations.
With the CPC now authorised to correct these instantly, taxpayers can expect:
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Faster release of refunds
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Correct Section 244A interest
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Fewer follow-ups and representations
4. Greater Transparency & Improved Compliance
Since rectifications will now run through CPC’s system-driven interface, taxpayers benefit from:
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Better audit trails
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Accurate reflection of all prepaid tax credits
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Reduced scope for human error
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Clearer communication and automated updates
Expert Insight
“This notification bridges the functional gap between assessment and processing, ensuring that genuine computational errors are corrected swiftly without requiring taxpayers to approach multiple authorities. It strengthens the government’s push for faceless, technology-driven, and taxpayer-friendly tax administration.”
— CA (Dr.) Suresh Surana
What CBDT Stated in the Notification
CBDT has directed that the Commissioner of Income Tax, CPC Bengaluru, shall exercise concurrent powers to:
1. Rectify Mistakes (Section 154)
Including issues related to:
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Previously issued refunds
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Omitted prepaid tax credits
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Missed reliefs
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Wrong 244A interest
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Any computational errors affecting tax, refund, or demand
2. Issue Demand Notices (Section 156)
For cases where rectification results in tax payable.
3. Delegate Powers
The Commissioner may authorise:
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Additional / Joint Commissioners to execute rectification functions
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These officers may further authorise Assessing Officers for specific classes of cases or taxpayers
This ensures a structured, tiered flow of responsibility, enhancing accountability and efficiency.
Notification Reference
Notification No. 155/2025
F. No. CB/362/2025-O/o Addl. DIT 6 CPC Bengaluru-187/10/2024-ITA-I
(Effective immediately on publication in the Official Gazette)