The Central Board of Direct Taxes (CBDT) has introduced a new rule that gives more authority to the Commissioner of Income Tax (Centralized Processing Centre – CPC), Bengaluru.
Under this rule, CPC Bengaluru can correct certain mistakes in tax processing without needing approval from other offices.
This makes it faster to issue new demand notices or refunds.
The rule became effective from October 27, 2025.
Mistakes That CPC Bengaluru Can Fix
The types of errors that can now be corrected include:
Wrong tax or refund calculations
Missed prepaid tax credits or advance tax
Missed tax relief under any section
Incorrect interest calculation under Section 244A (Interest on Refunds)
If corrections affect the tax payable or refundable, CPC Bengaluru has the authority to issue new demand or refund notices directly.
According to the Ministry of Finance notification:
“The Commissioner of Income-tax shall exercise powers to rectify mistakes apparent from records and issue demand notices in such cases.”
Delegation of Powers
The Commissioner can delegate these powers in writing to Additional or Joint Commissioners of Income Tax.
They, in turn, can allow Assessing Officers to use these powers for specific cases.
This change is aimed at speeding up tax processing and making refunds and corrections more efficient for taxpayers.
