Section 12 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- (1)A tax authority may amend any order passed by it under this Act so as to rectify any mistake apparent from the record.
- (2)No amendment under this section shall be made after a period of four years from the end of the financial year in which the order sought to be amended was passed.
- (3)The tax authority shall not make any amendment, which has the effect of enhancing the undisclosed foreign income and asset or reducing a refund or otherwise increasing the liability of the assessee, unless the authority concerned has given to the assessee an opportunity of being heard.
- (4)The tax authority concerned may make an amendment under this section—
- (a)on its own motion; or
- (b)on an application made to it by the assessee or, as the case may be, by the Assessing Officer.
- (5)Any application received by the tax authority for amendment of an order shall be decided within a period of six months from the end of the month in which such application is received by it.
- (6)In a case where the order has been made in an appeal or revision, the power of the tax authority to amend the order shall be restricted to matters other than those decided in appeal or revision.
Summary
- Tax authorities can change any order they have passed to fix an obvious mistake that appears in the record.
- This correction must be done within four years from the end of the financial year in which the original order was passed.
- If the correction would result in a higher tax bill or a smaller refund, the person must be given a chance to be heard first.
- The tax office can start this process on its own, or a person can apply to have an error fixed.
- If a person applies for a fix, the tax office must decide on it within six months from the end of the month they received the application.
- Authorities cannot fix matters that have already been decided by a judge during an appeal or a revision.
Practical examples
FAQ
1. What is the time limit for fixing an error under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, mistakes must be fixed within four years from the end of the financial year in which the original order was passed.
2. Can a tax officer increase my tax bill without telling me under Section 12 of this Act?
No, Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, requires that the authority give you an opportunity to be heard before making any change that increases your liability.
3. How long does the tax office have to reply to my request for a correction under Section 12 of the tax law?
According to Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the authority must decide on your application within six months from the end of the month it was received.
4. Can I use Section 12 to change a decision that was already made by a court in an appeal?
No, Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, states that the power to rectify is restricted to matters other than those already decided in an appeal or revision.
Test yourself
Q1.Under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what is the maximum time allowed to rectify a mistake from the end of the financial year of the order?
Q2.When must a person be given an opportunity to be heard under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Q3.Under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, who can apply for a rectification of a mistake?
Q4.If you file an application under Section 12 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what is the deadline for a decision?