ITR-U RECTIFICATION RIGHTS TRANSFERRED TO AO:

1. Transfer of rectification rights to JAO:
   The Centralized Processing Centre (CPC) has transferred rectification rights for ITR-U returns to the Jurisdictional Assessing Officer (JAO).
2. Reason?
   This change has been made because the CPC lacks the authority to deal with factual or legal issues under Section 154 of the Income Tax Act for ITR-U filings.
3. Rectification authority with JAO
   From now on, any rectification involving issues such as mismatches in TDS credit, incorrect reporting of income, or other factual mistakes must be handled by the taxpayer’s assigned AO.
4. Background of ITR-U
   The ITR-U was introduced to allow taxpayers to voluntarily update their returns by declaring additional income or correcting errors and omissions. It can be filed within two years from the end of the relevant assessment year and includes payment of an additional tax (25% to 50% of the tax and interest due). However, it cannot be filed to claim a higher refund or reduce tax liability.
5. Mechanism:
   With the shift in rectification responsibility, affected taxpayers can approach their AO directly to address genuine mistakes, which may result in an opportunity that may result in a faster resolution.