How To Revise Your Income Tax Return?

Taxpayers, facing time constraints, may initially file inaccurate or incomplete income tax returns. To address this, the Income Tax Act's section 139(5) permits the filing of revised returns, enabling corrections and the inclusion of omitted information for accuracy.

What is a Revised Return?

The Income Tax Act, 1961, Section 139(5) permits taxpayers to present a revised return. This provision empowers them in rectifying errors or omissions from their initial filing. It is applicable for both timely and belated returns. However, the deadline for submitting these revised returns remains crucial. It falls either on December 31 of the relevant assessment year or earlier if assessment completion precedes it.

Filing a Revised Return serves several purposes. It allows for the correction of errors, addresses any missed reporting of income or deductions, and adjusts to changes in tax laws that impact tax liability. This process, ensuring accurate and comprehensive information, is crucial for an effective tax assessment. It is worth noting that this section even accommodates belated returns since FY 2016-17.

Possible Reasons for Filing Revised Return

Common reasons for revision include correcting inaccurate income reporting, deduction claims, tax credit errors, and personal information mistakes. Additionally, individuals may file revised returns to address unintentional omissions of income sources, overlooked deductions or exemptions, changes in tax liability due to post-filing income, alterations in residential status, corrections prompted by the tax department's assessment, and claiming refunds if eligible. The provision facilitates accuracy and completeness in tax filings.

Here’s a quick glance at the same -

When is the Deadline for Submitting a Revised Return as Per the Income Tax Act?

Under Section 139(5), taxpayers retain the ability to file a revised return until December 31 of the assessment year or prior to income tax authorities completing their assessment, whichever occurs first. The processing of an original return does not eliminate this revision privilege. Furthermore, there are no constraints on how many times one can make revisions.

As for the financial year 2023-24 (assessment year 2024-25), unless authorities have assessed the original return before that date, December 31, 2024 remains as its deadline. The flexibility in revision extends to maintaining accuracy post the initial filing.

Important Points to Note While Filing a Revised Return

Filing a revised income tax return replaces the original and culminates as the final submission. You can file a revised return within the specified due date, even after receiving a refund. Modifying the ITR form is permissible, and there exists no limit to permitted revisions in number. After the assessing officer completes the assessment under Section 143(3), revisions are indeed prohibited.

No penalties, however, exist for revising returns. This offers a chance to correct errors without consequences. Crucially, filing a revised return is necessary as it allows the address of mistakes potentially leading to the issue of notices by the income tax department and ensures the processing of eligible tax refunds only occurs after revisions have been made.

Here’s a summarised tabular chart for better understanding -

Steps to File the Return

Wondering, ‘How to revise your income tax return?’ To revise their return, taxpayers can follow these steps:

• Access the e-filing portal.
• Navigate to 'e-file > Income Tax Return > File Income Tax Return’.
• Or, directly select 'file revised return' from the dashboard.
• Select the pertinent details: assessment year, mode of filing, whether it's a revised return or not, audit option, and ITR type.
• Attach the JSON file for return upload and proceed to verification.
• E-verification must be completed within 30 days of submitting the return.
• Upon your successful e-verification and submission of the return, you will observe a display of a confirmation message. This will include the transaction ID.

Consequences of Filing a Revised Return

Filing a revised return generally carries minimal consequences for minor changes, such as updating bank accounts or personal details. In such cases, there are typically no adverse outcomes. However, if the revised return involves substantial modifications, such as declaring previously undisclosed income or rectifying significant errors, it may attract scrutiny from the tax department.

Tax authorities may conduct a thorough examination of the revised return in instances where material changes occur, meticulously comparing it to the original filing. This scrutiny ensures compliance with tax laws and regulations.

However, any discrepancies or inconsistencies that surface during this review could trigger additional investigations—potentially leading even further into audits or penalties, based on both nature and extent of alterations made. While exercising caution and transparency to mitigate unintended consequences, one must indeed consider revising a return for genuine reasons.

In Conclusion

Taxpayers find a crucial opportunity to rectify errors and ensure accuracy in their financial disclosures by filing a revised income tax return. Adhering to deadlines and guidelines is essential during this straightforward process, as it avoids potential consequences that might emerge from significant modifications.