When an order or intimation is wrong, there are two routes. Rectification fixes obvious errors. An appeal challenges the substance of a decision. They are not alternatives you pick by preference — the nature of the error decides, and choosing wrongly can consume the time you needed for the other.
Which route
| Route | Use it when | Clock |
|---|---|---|
| Rectification — s.154 | There is a mistake apparent from the record: arithmetic, a TDS credit not given, a figure carried wrongly | Broadly four years from the end of the year in which the order was passed |
| Appeal | You disagree with a conclusion — an addition, a disallowance, a finding on facts or law | 30 days from receipt of the order |
That thirty-day appeal window is the number to protect. Rectification has years; an appeal does not. Where it is genuinely unclear which applies, take advice inside the thirty days rather than filing a rectification and discovering in month three that you needed to appeal.
What counts as apparent from the record
A mistake apparent from the record is one you can see without argument — a total that does not add up, a TDS credit visible in 26AS but not allowed, a carried-forward loss ignored, the wrong assessment year. If demonstrating the error requires a submission on interpretation, it is not apparent, and rectification is the wrong door.
The most common genuine rectification is a mismatch between what was claimed and what the system credited — which is exactly why the 26AS and AIS reconciliation before filing is worth the hour.
The demand does not pause by itself
Filing an appeal does not automatically suspend recovery. A stay is normally sought, and in practice paying a portion of the disputed demand is what usually secures it while the appeal is heard. Budget for that when you decide to contest — an appeal you cannot fund is not a strategy.
Respond to the notice that preceded the order too. Most bad orders follow an unanswered or thinly answered notice, and the reply is far cheaper than the appeal. Our notice handling service exists for that stage, and the ASMT-10 and DRC-01 guides cover the GST equivalents.
Where we come in
Most bad orders trace back to a notice that was answered thinly or not at all. We take the reply at that stage, and the rectification or appeal where an order has already issued — see notice handling.
This article is general information, not professional advice. Limits, rates and dates change by notification — confirm the position for your own year before acting on it.