Taxpayers can file a revised income tax return (ITR) if they have filed an erroneous return or omitted some detail while initially filing their tax return. Revised returns have to be filed in case the original return filed is incomplete in any respect or has some error by way of incomplete income data or deduction.
The last date to file ITR for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024 and a revised return is December 31 of the relevant assessment year.
An essential provision of the Income-tax Act, 1961 is Section 139(5) that allows taxpayers to file a revised ITR in case of some mistakes or omissions in the original return.
Also read: ITR Filing: 6 Ways to Get Exemption on Income Tax
Many taxpayers could mistakenly end up filing an incorrect return either by using the wrong ITR form or by omitting some information or by filling in inaccurate information while initially filing their return.
Filing a correct return is essential for multiple reasons. These include:
Getting refund in case excess tax has been paid or deducted at source (TDS).
Accurate ITR verification of your financial status. This is particularly important if you are applying for loans, government contracts, visas, and other matters that demand financial stability.
Filing a correct ITR also reduces the possibility of a scrutiny of your ITR by the income tax department, thereby saving you both time and trouble, and expediting your refund process.
Says Ashish Niraj, partner, ASN & Company, Chartered Accountants: “These days, the income tax department keeps a 360-degree view on assesses and they get information from various reporting entities, such as brokers, mutual funds, registrar of properties, banks, credit card companies, Goods and Services Tax (GST) department, and so on. If someone has reported income in ITR which is inconsistent with the data available to the department, then the department may send notices to assesee.”
“Therefore everyone should be careful at the time of filing their return and try to enter correct information. If they realise there is a mistake in their return, they can file a revised return within the time limit,” he adds.
Incidentally, there is a huge penalty for under-reporting misreporting income in one’s ITR.
Adds Niraj, “If any income is under reported or misreported, the department can impose a 50-200 per cent penalty on the assesee under Section 270A of the Income-tax Act, 1961.”
Therefore, it is advisable to file a revised return voluntarily as soon one realises any discrepancy in the original return.
Under the provisions of the Income-tax Act, 1961, once a revised return is filed under Section 139(5) within time, returns filed under Section 139(1) or Section 139(4) shall be deemed to be withdrawn and the revised return will be considered for evaluation. The department can still initiate proceedings, but they will have to consider the revised return for assessment.
“Even the recent Supreme Court Judgement in the Principal Commissioner of Income Tax Vs. Kuntala Mohapatra confirmed that the assessee’s right to correct mistakes in their return as per legal provisions if filed within the time limit,” says Niraj.
Incidentally, one can file a revised return as many times within the deadline, December 31 of the relevant assessment year. Also, filing an amended ITR carries no fine, unlike late ITRs that can be subject to penalties.
