Individuals, Hindu Undivided Families (HUFs), companies, etc., file Income Tax Returns (ITRs) according to the provisions of the Income Tax Act, 1961, to report their income, deductions, and tax paid to the India Income Tax Department.
You need to file an ITR if the total income of the person is above the basic exemption limit or if the person meets certain conditions, i.e., they are in possession of foreign assets or TDS deductions.
The Act prescribes different ITR forms according to the nature of income and the type of taxpayers.
It also makes provisions for time limits, penalties for non-filing, and the method of revised, belated, or amended returns.
Filing returns enables due tax compliance and enables taxpayers to claim a refund, carry forward losses, and maintain books of accounts.
Online filing of ITR can be done through the official income tax website.
Correct and timely filing prevents penalties and further examination by tax authorities.
What is a Revised Return?
A Revised Return is a changed version of an original taxpayer’s Income Tax Return (ITR) that has errors, omissions, or incorrect information.
Pursuant to Section 139(5) of the Income Tax Act, 1961, taxpayers can amend their returns if they find errors after filing.
The amended return has to be filed by December 31 of the assessment year for which the return is to be revised or by the end of the assessment period, whichever is earlier.
Typical grounds for filing an amended return are errors in income reporting, improper deductions, or filing the wrong ITR form.
Filing a corrected return helps to report taxes accurately and avoid penalties or enhanced scrutiny.
A Revised Return is filed with the sole intention of rectifying errors, defaults, or erroneous details in the original income tax return (ITR). It is one of the major provisions under Section 139(5) of the Income Tax Act of 1961, intended to assist taxpayers in maintaining accurate tax records and avoid legal or financial expenses.
When Can Revised Returns Be Filed?
Submission for revised return is allowed only if the first return was submitted before the deadline set under section 139(1). Submissions of late returns are also allowed to be resubmitted.
The fresh return should be filed within the close of the concerned assessment year or on 31st December of the next consecutive financial year, whichever is earlier. For example, for Financial Year 2023-24 (AY 2024-25), fresh returns can be filed up to 31st December 2024.
Resubmission of corrected return is a taxpayer-friendly policy under which the taxpayer can rectify genuine errors. It provides protection to taxpayers from possible confrontation, ensures refund claims are processed in an efficient manner, and induces voluntary tax compliance.
Why is a Revised Return Filed?
Filing a revised return does not constitute an admission of guilt; instead, it is a voluntary filing to ensure accurate and clear compliance with tax laws. It is an act of a taxpayer’s respect for the law, correcting errors, and avoiding future hassles. The sooner an error is corrected using a revised return, the less chance there is of facing penalties, interest, or investigation from the Income Tax Department.
1. Correction of Filing or Computation Errors
Sometimes, calculation errors by software or manual input may result in wrong tax liabilities, wrong carry forward of losses, or other errors. All such errors are easily rectified by filing the return.
2. Errors in Personal Details
Even minor errors in personal details like:
- PAN or Aadhaar number
- Bank account number (which can result in a delay in refunds)
- Email ID or contact number (for future use)
can be rectified by submitting an amended return and, in this manner, avoiding communication gaps.
3. Exclusion of Income
Among the most frequent grounds on which a revised return needs to be filed is the failure to include all sources of income. For instance:
- Interest received on savings, fixed deposits, or recurring deposits.
- Rental income from residential property.
- Freelance or side income is not yet included.
- Gains or dividend income from mutual funds or the stock market.
If any income is left out, it may lead to under-reporting, and there may be a penalty or re-assessment. An amended return will allow the taxpayer to bring in all income honestly and avoid future scrutiny.
4. Inaccurate Claim of Deductions
Most taxpayers either lose out on eligible deductions or claim the wrong ones. These include:
- Excluding investments under Section 80C, such as PPF, ELSS, insurance, etc.
- Failure in health insurance premium deductions under Section 80D.
- Omitting home loan interest under Section 24(b) or tuition fees under 80C.
- Double claiming allowances or entering incorrect amounts.
An updated return rectifies such errors and makes the taxpayer eligible for the correct benefits.
5. Filing the wrong ITR Form
Filing an invalid ITR form can label the original return defective. Those in receipt of a salary and having capital gains must file ITR-2 rather than ITR-1. Freelancers or self-employed persons must use ITR-3 or ITR-4. Using the right form in the revised return makes it legitimate and not a defective filing.
6. Discrepancy with Form 26AS, AIS, or TIS
The Income Tax Department checks returns against Form 26AS (Statement of tax credit), the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS) data.
In the event of a discrepancy, say, an unreported TDS, it can be picked up by the system. Filing a substitute return enables you to reconcile your reported income with the information available to the government, thereby sidestepping notices or questions.
7. Unintentional Disclosure or Overlooked Declaration
If you failed to report:
- Foreign income or assets, especially in the case of NRIs or international income.
- Farming or exempt income.
- Spouse’s or minor’s clubbed income.
These can be incorporated into the amended return to make it more transparent.
Process of Filing a Revised Return Online
Filing a Revised Return as per the Indian Income Tax Act, 1961, is a means for tax filers to rectify errors or discrepancies present in their earlier filed Income Tax Return (ITR). A revised return assures that correct facts are received by the Income Tax Department, whether it’s about wrong income data, omitted deductions, or incorrect bank account details.
Submitting an amended return allows taxpayers to correct actual errors and remain in good standing. With easy online processes and no penalty for honest error, the new return system ensures that your tax history accurately represents the facts — just make sure to file it on time and check it over carefully.
1. Log in to the Income Tax Portal
Go to https://www.incometax.gov.in and log in with your PAN/Aadhaar number and password.
2. Choose “File Income Tax Return”
Navigate to e-File > Income Tax Return > File Income Tax Return. Select the relevant Assessment Year. Select Online Mode.
3. Select the Right ITR Form
Choose the same ITR form as before (except if a mistake was made). Select “Revised Return under section 139(5)” in the “Return Filing Section”. Input the Acknowledgement Number and the Date of the Original Return submitted.
4. Make the Corrections
Update or amend the necessary fields – income, deductions, bank details, etc. Carefully cross-check all information. Recalculate your tax liability or refund, if applicable.
5. Verify and Submit
Choose verification method: Aadhaar OTP, EVC (bank/Demat), or DSC. Submit the return. You’ll receive a new ITR-V acknowledgement for the revised return
6. e-Verify (if not already completed)
You are required to e-verify the amended return within 30 days of filing — or it will be invalid.
Consider the following points:
- In case any mistakes remain, you can file a number of revised returns, each overwriting the previous one.
- When a corrected return is filed and accepted, the previous return becomes null and void.
- Make sure to revise the return for precision and to prevent any deliberate misrepresentation, as this could lead to penalties.
Consequences of Non-Compliance
Non-compliance with income tax return (ITR) filing rules, particularly the failure to file a revised return after the detection of errors, invites numerous penalties. First, faulty ITRs can result in incorrect assessment of taxes, causing increased tax liabilities, charges of interest under Sections 234A/B/C, and a penalty. If income is underreported or deductions are falsely claimed, the taxpayer may be penalised up to 200% of the payable tax as provided in Section 270A. Repeat non-filing or submission of wrong returns may draw notices, inspections, or audits by the Income Tax Department. In some instances, especially where it amounts to intentional evasion, it may result in criminal prosecution or a jail term. Also, unrebated or incorrect ITRs can lead to refund delays, impact loan or visa applications, and harm the financial reputation of the taxpayer. Hence, it is critical to furnish a proper and punctual revised return to prevent legal and financial consequences and maintain a clean compliance track record.
Conclusion
Filing a corrected return is a safe option, enabling taxpayers to correct actual errors or suppression of facts in their initial income tax return.
It promotes transparency, correctness, and compliance with tax legislation under Section 139(5) of the Income Tax Act, 1961.
By timely submission of your return, you can avoid potential penalties, interest, and attention from the Income Tax Department.
Updated returns help to keep your financial history clean by fixing income information, making deductions current, and fixing personal information.
Taxpayers are encouraged to check and correct their returns as needed ahead of time so that returns will be processed cleanly and they will feel secure.
