Filing Revised Income Tax Returns

Filing Revised Income Tax Returns

One of the most important acts performed in regard to tax compliance is the filing of ITR. However, mistakes can occur, and sometimes one needs to correct errors on the original tax return. That's where the concept of a revised tax return comes into play. This guide shall explain what the revised return is, why it is necessary, and how you should go about filing an effective one.Let's break it down step by step for "Filing Revised Income Tax Returns"  and keep it nice and simple so that one can understand.

What is a Revised Tax Return?

A revised tax return allows a taxpayer to rectify correct mistakes, miscalculation, left to disclose any information or omissions in their original income tax return. If you know or realize that your the ITR as you filed with some errors, if they are with regard to compute income, wrongly availed or unveiled deductions, or personal details as required, you can file a revised return to fix these errors.

The revised return can be filed under Section 139(5) of the Income Tax Act, 1961:

Why File a Revised Return?

Followed by filing a revised return are these:

1.    Mistakes in income declaration: If you forgot to declare some incomes like bank interest, renting, or freelance money.

2.    Incorrect deductions or exemptions: You claimed wrong deductions under sections like 80C, 80D, or HRA.

3. Mistakes in tax paid details: If an error occurred due to reporting TDS or advance tax payments.

4. Filing Under the Wrong ITR Form: In case you filed with the wrong form of ITR for your type of income

5. Mistakes Regarding Personal Details: PAN, bank account details, or incorrect address.

Who Can File a Revised Tax Return?

Any other taxpayer, who has submitted his/her original tax return, can lodge a revised return. These include:

• Individuals
• Hindu Undivided Families (HUFs)
• Firms
• Companies

When Can You File a Revised Return?

As per the provisions of section 139(5), you can revise your return anytime before:

1. Three months prior to the end of the relevant Assessment Year (AY).
• For example, if you have filed for AY 2024-25, you can revise the return up to 31st Dec. 2024.
2. Before the completion of the assessment by the Income Tax Department.

Key Points to Keep in Mind Before Filing a Revised Return

1. Unlimited Revisions: There is no limit on how many times you can revise your return within the permitted time frame. However, frequent revisions may raise questions during scrutiny.
2. Correcting Errors vs. Fraudulent Practices: Ensure your revisions are genuine corrections and not an attempt to evade taxes, as this could attract penalties.
3. Acknowledgment Number: Keep the acknowledgment number of your original return handy; it’s needed for filing the revised return.

How to File a Revised/Amended Tax Return

Go through these easy steps to file a revised/amended return online through the Income Tax e-Filing portal:

Step 1: Log in to the Income Tax Portal

• Go to https://www.incometax.gov.in.
• Log in using your PAN/Aadhaar and password.

Step 2: Select to ‘File Revised Return’

• On the dashboard, click on ‘e-File’ > ‘Income Tax Return’ > ‘File Revised Return.’

Step 3: Choose Assessment Year and Filing Type

• Select the relevant assessment year of which the original return has been filed.
• Choose ‘Revised Return’ under the filing type.

Step 4: Enter Details of the Original Return

• Provide the acknowledgment number and date of filing of the original return.

Step 5: Correct the Errors

• Make necessary corrections to the relevant fields, such as income, deductions, or tax payments.
• Double-check all details to avoid repeated revisions.

Step 6: Validate and Submit

• Validate the revised return by verifying it through one of the following methods:
• Aadhaar OTP
• Net Banking
• Digital Signature Certificate (DSC)
• EVC via Bank Account/Demat Account

Once validated, submit the return.

Step 7: Save the Acknowledgment

• After submission, download and save the ITR-V (acknowledgment).

Common Mistakes to Avoid While Filing a Revised Return

1. Wrong Acknowledgment Number: Always double-check the original return details before filing.
2. Filing in a Hurry: Carefully review all data before submitting the revised return.
3. Missing Supporting Documents: Keep proof for any deductions or claims added in the revised return.
4. Not Verifying the Return: Ensure you verify the revised return, or it won’t be processed.

Consequences of Not Filing a Revised Return

Failing to correct errors in your tax return can lead to:

• Penalties and Fines: For discrepancies discovered during assessment.
• Loss of Refunds: Mistakes in deductions or TDS credits may result in lower refunds or higher liabilities.
• Scrutiny: The Income Tax Department may scrutinize your return if inaccuracies are found.

What Happens After Filing a Revised Return?

After filing, the revised return undergoes the same process as the original return:

• The system processes it, and you receive an intimation under Section 143(1) regarding acceptance or discrepancies.
• If the revised return is found accurate, any refunds or additional liabilities are adjusted accordingly.

FAQs About Filing Revised Returns

1. Can I file a revised return if I left the original filing deadline?

No, you are unable to file a revised return unless the original return was filed within the due date.

2. Do I need to pay a penalty for filing a revised return?

There is no penalty specifically for filing a revised return. However, if it proves that the taxpayer has additional tax liability, then he has to pay the due taxes with interest..

3. Can I claim a refund in a revised return?

Yes, if you have found some over-payment in tax in the initial return, you may claim it back in this revised return itself.

4. Will filing multiple revised returns trigger scrutiny?

Filing multiple revised returns may make a duplicate account, so it's best to file only one revised return that is accurate.

Conclusion

In fact, "filing a revised return" offers an excellent chance to correct errors and be in compliance with tax laws. Although the process is relatively simple, one should always be careful, precise, and punctual about the due date. Carefully review your original return and gather all the necessary documents before filing your revised return.

By following the steps outlined in this guide, you can file your revised return with confidence and avoid potential issfues with the Income Tax Department. Remember, timely corrections not only save you from penalties but also ensure peace of mind in managing your tax affairs.