The Central Board of Direct Taxes (CBDT) recently issued a notification amending the powers of the Commissioner of Income Tax, a move that can greatly speed up ITR filing corrections and the refunds process for hundreds of taxpayers in AY 2025-26.
In a notification issued on October 27, the CBDT had said that the Commissioner and other authorised officers now had the power to correct certain types of mistakes in ITR filings.
CBDT Empowers Commissioner, CPC Bengaluru to Rectify and Issue Demands for Certain Income Tax Cases pic.twitter.com/RM9YZlEH8p
— CAclubindia (@CAclubindia) October 28, 2025
As per the CBDT notification modifying Section 154 of the Income Tax Act 1961, the Centralized Processing Centre (CPC) in Bengaluru is now empowered to handle mistakes that are "apparent from records".
This is expected to speed up the ITR filing process, as issues like incorrect tax credit, delayed refunds, errors in the calculation of interest under Section 244A of the Income Tax Act 1961 can now be handled by CPC Bengaluru, as well as other authorised officers themselves.
The CPC also has the power to issue tax demand notices under Section 156, wherever necessary.
Before this rule change came to fruition, errors in ITR filings meant an absolute hassle: jurisdictional assessing officers coming into the equation, and a lot of back and forth involved between the taxpayer and the officers until the issue was rectified.
However, correcting complicated errors will still involve the assessing officers, and it is only the simpler errors, such as the ones mentioned in the notification, that the CPC will correct themselves.
The CBDT has also clarified that this new change was applicable to "cases where the orders have been passed through the interface between Assessing Officer and the Centralized Processing Centre".
Apart from expediting the process on many levels, the change is also expected to increase accuracy and transparency in what is a major push towards a tech-driven tax administration.
