Rectification of a mistake apparent from the record: section 154 notice

Which law applies? The Income-tax Act, 2025 applies to the tax year 2026-27 onwards. Section 536(2)(c) of that Act says the repealed Income-tax Act, 1961 continues to apply to proceedings, including notices, assessment, reassessment, rectification, penalty and appeals, for any tax year beginning before 1 April 2026, that is the financial year 2025-26 (assessment year 2026-27) and earlier. Each notice page below gives both: the 2025 Act first, then the 1961 Act as printed by the Income Tax Department on 22 May 2026. For the oldest assessment years (up to 2021-22) the reassessment time limits in force before 1 September 2024 may apply, and that earlier text was not read.

A mistake in an order or intimation can be corrected, either by the authority itself or on your application, and you should be heard before the correction raises your tax.

What it means under the Income-tax Act, 2025 (tax year 2026-27 onwards)

Section 287 lets the authority amend an order or an intimation (including one under section 270(1)) to correct a mistake apparent from the record. It may do so on its own or must do so when the assessee points the mistake out. An amendment that increases your liability needs a notice of intention and a reasonable opportunity of being heard (section 287(4)). A resulting increase is served as a notice of demand (section 287(7)).

Time limits under the 2025 Act

No amendment can be made after four years from the end of the financial year in which the order was passed, subject to section 288 (section 287(8)).

Under the Income-tax Act, 1961 (tax years before 2026-27)

Section 154. Section 154: an income-tax authority may amend an order, an intimation or deemed intimation under section 143(1), or one under sections 200A(1) and 206CB(1), to rectify a mistake apparent from the record, on its own or when the assessee points it out. An amendment that raises the assessment or reduces a refund needs a notice of intention and a reasonable opportunity of being heard (154(3)). A resulting demand is deemed issued under section 156.

Time limits. No amendment after four years from the end of the financial year in which the order was passed (section 154(7)). On an application by the assessee the authority must pass an order within six months from the end of the month of the application, either amending or refusing the claim (section 154(8)).

What to do first

Identify the exact mistake and where it appears in the order or intimation.
Apply on the portal for rectification with proof.
If you receive a notice of intention to enhance, reply within the date given.
Pay or appeal as usual if a demand follows.

An outline for a reply

Quote the order or intimation, point to the mistake and the record that shows it, attach the proof and request the correction and any refund that follows.

This is a general outline, not a reply to your own notice: facts and documents differ, and the deadline is short. Ask a chartered accountant.

Common questions

What section of the new Act replaces section 154?

Section 287 of the Income-tax Act, 2025, for the tax year 2026-27 onwards. For earlier tax years the 1961 Act continues to apply to notices (section 536(2)(c)) and the notice quotes section 154 of that Act.

Source

The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: sections 252, 263, 268, 270, 279 to 282, 287, 289, 357, 358, 411, 412 and 536. The enacted text was read on 13 November 2026.
The Income-tax Act, 1961 (text with amendments, printed by the Income Tax Department on 22 May 2026): sections 133, 139(9), 142, 143, 148, 148A, 149, 150, 154, 156, 220 and 249(2). Downloaded from incometaxindia.gov.in and read on 13 November 2026.
Old-section to new-section mapping: the Income Tax Department’s section navigator, checked against the Act (see the Income-tax Sections section of this family).

Rules read on 13 November 2026 from the Income-tax Act, 2025. This site explains notices in general terms. It is not legal advice and does not replace a chartered accountant or tax lawyer. A notice has a deadline: do not rely on a web page for your own case, and ask a professional soon.