Answer

1. F

   Facts

   A rectification reprocesses the return in full. If CPC finds another apparent mistake, the new order can raise a demand. A rectification that increases your liability needs notice to you.

2. P

   Provisions and law

   • Sec 154, Income-tax Act 1961 (now Sec 287)Mistakes apparent from the record can be rectified on request within four years from the end of the financial year of the order.
   • Sec 246A, Income-tax Act 1961 (now Sec 357)Orders that raise a demand, such as assessments, intimations with adjustments and penalty orders, can be appealed before the Commissioner (Appeals).
3. A

   Analysis

   For example, while correcting a TDS credit, CPC may also apply interest you had missed, changing the result from refund to demand of ₹2,300. Compare the new order with the previous one line by line. If the new demand is right, pay it. If CPC made a fresh mistake, file another rectification, or appeal against the rectification order within 30 days.

4. C

   Conclusion

   1. 1Compare the new order with the earlier intimation.
   2. 2Find the line that created the demand.
   3. 3Pay if it is correct.
   4. 4File a fresh rectification for a new apparent mistake.
   5. 5Appeal if it is a dispute.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.