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The Central Board of Direct Taxes (CBDT), issued a notification on October 27, 2025, empowering the Commissioner of Income Tax (CPC), Bengaluru, to exercise concurrent jurisdiction under Section 154 of the Income-tax Act, 1961. This is for fixing obvious mistakes in cases where orders were made through the interface between the Assessing Officer (AO) and the Centralized Processing Centre (CPC).Income Tax GuideIncome Tax Slabs FY 2025-26Income Tax Calculator 2025New Income Tax Bill 2025According to the notification, the CPC can correct computational or accounting errors such as non-consideration of prepaid tax credits, reliefs, or incorrect interest computation under Section 244A, and issue corresponding notices of tax demand under Section 156 where necessary.Also read: Wife gets tax notice for purchasing Rs 51 lakh property but not filing ITR, she fights back and wins in ITAT AhmedabadRead below to know how this helps taxpayers.How does this help taxpayers?According to Chartered Accountant (Dr.) Suresh Surana, here’s how taxpayers can benefit:Faster Correction of accounting errors: Earlier, rectification of AO orders for mismatches in TDS/TCS, advance tax, or refund computation required manual intervention by jurisdictional AOs, often resulting in delays. With CPC now authorized to directly rectify such orders, taxpayers can expect quicker resolution of accounting and tax credit mismatches.Reduced Administrative Bottlenecks: By allowing CPC to handle Section 154 rectifications for AO-CPC interface cases, the process becomes centrally managed and system-driven, minimizing inter-office correspondence and duplication of efforts between field officers and CPC.Timely Refunds and Correct Interest Computation: Errors in refund determination or Section 244A interest computation can now be rectified swiftly, facilitating timely release or correction of refunds without taxpayers having to pursue multiple representations.Improved Transparency and Ease of Compliance: The centralized rectification mechanism enhances data accuracy and audit trail, ensuring that taxpayers’ prepaid tax credits and eligible reliefs are correctly reflected in their records and processed transparently through the CPC’s automated system.Also read: Aishwarya Rai Bachchan wins Rs 4 crore income tax battle in ITAT Mumbai; Know how disallowance of income worksSurana says: “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 reinforces the Government’s broader objective of faceless, technology-driven tax administration that is efficient, responsive, and taxpayer-friendly.”Also read: Wife hid her Rs 1 lakh monthly salary; Madras High Court cuts her maintenance payment from Rs 15,000 to Rs 10,000CBDT said this in the notificationIn exercise of the powers conferred by sub-Sections (1) and (2) of Section 120 of the Income Tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby: - (a) directs that the Commissioner of Income-tax specified in column (2) of the Schedule hereto annexed, having his headquarters at the place specified in the corresponding entry in column (3) of the said schedule, shall exercise the concurrent powers: - i. to rectify u/s 154 of the IT Act 1961, the mistakes which are apparent from records including any refund issued earlier under the provisions of the Act and/or non-consideration of any pre-paid tax credit and/or non-consideration of any relief eligible and/or calculation of interest u/s 244A of the IT Act 1961, in passing any order under the Income-tax Act resulting in error in computation of the Tax and/or refund determined and/or demand;ii. to issue notice of demand under section 156 of the Income-tax Act, 1961 in such cases covered under (a) above. In respect of such territorial area or cases or classes of cases or such persons or classes of persons specified in the corresponding entry in column (4) of the said Schedule and in respect of all income or classes of income thereof;(b) authorizes the Commissioner of Income-tax referred to in this notification to issue orders in writing for the exercise of the powers and performance of the functions by the Additional Commissioners or Joint Commissioners of Income-tax, who are subordinate to him, in respect of such territorial area or such persons or classes of persons or of such income or classes of income or of such cases or classes of cases specified in the corresponding entry in column (4) of the said Schedule; (c) authorizes the Additional Commissioners or Joint Commissioners of Income-tax referred to in clause (b) of this notification, to issue orders in writing for the exercise of the powers and performance of the functions by the Assessing Officers, who are subordinate to them, in respect of such territorial area or such persons or classes of persons or income or classes of income, or cases or classes of cases specified in the corresponding entry in column (4) of the said Schedule, in respect of which such Additional Commissioners or Joint Commissioners of Income-tax are authorized by the Commissioner of Income-tax under clause (b) of this notification.Notification details: [Notification No. 155/2025/F. No. CB/362/2025-O/o Addl. DIT 6 CPC Bengaluru-187/10/2024-ITA-I]
