Section 154 → Section 174
Rectification of mistake
Quick Answer
Section 154 of the Income Tax Act, 1961 (Rectification of mistake) corresponds to Section 174 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 154
The starting point is Section 154 of the Income Tax Act, 1961 — rectification of mistake. Correction of 'Mistakes Apparent from Record' in any order passed by the AO.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 154 is retained and renumbered as Section 174 of the Income-tax Act, 2025. Retained. Can be initiated by the AO or on application by the taxpayer within 4 years.
The transition impact on Section 154 is assessed as Medium. Useful for correcting minor data entry or processing errors.
Sec 154
Provision Summary
Correction of 'Mistakes Apparent from Record' in any order passed by the AO.
Sec 174
Provision Summary
Retained. Can be initiated by the AO or on application by the taxpayer within 4 years.
Key Changes & Highlights
- Online rectification (e-Rectification) for CPC orders is now the primary method.
Frequently Asked Questions
Which subject does Section 154 of the 1961 Act cover?
Section 154 of the Income Tax Act, 1961 covers rectification of mistake. Correction of 'Mistakes Apparent from Record' in any order passed by the AO.
What is the new section number for Section 154 under the Income-tax Act, 2025?
Section 154 of the Income Tax Act, 1961 maps to Section 174 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Can be initiated by the AO or on application by the taxpayer within 4 years.
How does the Income-tax Act, 2025 affect Section 154 in practice?
The transition impact for Section 154 is rated Medium. Useful for correcting minor data entry or processing errors.
What is new about Section 154 under the Income-tax Act, 2025?
Online rectification (e-Rectification) for CPC orders is now the primary method. These points are specific to Section 154 (Rectification of mistake).
Disclaimer: This mapping of Section 154 (Rectification of mistake) to Section 174 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 154 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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