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The Central Board of Direct Taxes (CBDT) has issued a major notification that will significantly simplify and speed up the tax refund and correction process for Indian taxpayers. Under the new rules, the Commissioner of Income Tax (CPC), Bengaluru, has been granted powers under Section 154 of the Income Tax Act to rectify “apparent mistakes” in tax records directly.

This move will reduce administrative delays, make ITR corrections easier, and ensure faster tax refunds—all while strengthening the government’s faceless tax system.

🧾 What the New Rule Says

According to the CBDT notification dated October 27, 2025, the Commissioner at the Centralized Processing Centre (CPC) can now correct errors in cases where orders have been passed through the Assessing Officer (AO)–CPC interface.

These include:

• Cases where advance tax or TDS credits were not properly considered.

• Exemptions or deductions overlooked during assessment.

• Errors in interest calculations under Section 244A.

In short, the CPC can directly handle clear computational or procedural errors without sending files back to the AO, speeding up the overall process.

💡 How Taxpayers Will Benefit

✅ Faster Error Correction

Earlier, taxpayers had to manually apply to their Assessing Officer to fix errors in orders — a time-consuming process. Now, the CPC will be able to correct such issues directly, ensuring quicker resolution and faster refunds.

✅ Reduced Administrative Hurdles

The earlier coordination gap between AO and CPC often led to file movement delays. With this rule, corrections will be system-based and centralized, reducing human intervention and improving efficiency.

✅ Timely Refunds

In cases where wrong tax or interest calculations occurred, refunds can now be issued promptly. Taxpayers won’t have to make repeated follow-ups or reapply for corrections.

✅ Greater Transparency and Compliance

The new mechanism strengthens data accuracy and ensures better audit trails. This will make tax records more reliable and ensure that advance tax, TDS, and relief claims are properly recorded.

🗣️ CBDT’s Official Statement

The CBDT clarified that under the new framework, the CIT (CPC) has the authority to:

• Rectify mistakes apparent from the record under Section 154, and

• Issue tax demand notices under Section 156.

The Commissioner may also delegate these powers to subordinate officers through written instructions.

The board said this decision is aimed at ensuring faster refunds, reducing taxpayer grievances, and making the overall tax administration more transparent and responsive.

🔍 Key Highlights at a Glance

• CPC Commissioner empowered under Section 154 for direct rectifications.

• Errors in TDS, advance tax, and interest calculation can be corrected faster.

• Faster refund processing and simplified ITR correction for taxpayers.

• Reduced dependency on Assessing Officers, minimizing procedural delays.

• Boost to the Faceless Taxation System and overall transparency.

🏁 What This Means for You

With the new CBDT notification, taxpayers can now expect a more efficient and hassle-free experience in case of refund delays or ITR mismatches. By decentralizing powers and making the system tech-driven, the government has taken another big step towards digital and transparent tax governance.