Knowing how to file revised returns in India is crucial for correcting errors under the Income Tax Act. Revised returns prevent penalties and ensure accurate reporting. How can you file a revised ITR to correct past mistakes, and what are the compliance steps? Let’s break it down.
What Are Revised Returns:
Revised return is the corrected version of a tax return you originally filed. At the start: the primary keyword — revised returns — refers in India to an amended filing under Income‑tax Act, 1961, Section 139(5). The taxpayer uses a revised return when they discover errors or omissions in their original return. It allows amendments such as wrong income figures, deduction claims or tax
regime choices. This is more precise than a belated return (late filing) and differs from an updated return (under Section 139(8A)). For example, if you discover you missed declaring interest income, you can file a revised return and correct the mistake.
Who Can File Revised Returns?
Anyone who has filed an original income tax return (ITR) can file revised returns. This includes salaried individuals, freelancers, business owners, and companies. The Income Tax Act allows revision under Section 139(5), provided the taxpayer discovers mistakes before the assessment is completed.
In addition, revised returns are particularly relevant for taxpayers who receive additional income sources, like dividends, rental income, or freelance earnings, after submitting the original ITR. For example, if a freelancer realizes that they underreported income from multiple clients, revising the return ensures correct tax calculation. This flexibility helps maintain compliance and avoids penalties.
When to File Revised Returns: Time-Limits and Conditions
The time-limit to file revised returns in India is crucial. Under Section 139(5) you can file a revised return:
- any time on or before 31st December of the relevant assessment year (AY); OR
- before the completion of assessment by the tax department, whichever is earlier.
For example, for FY 2023-24 (AY 2024-25), the last date for a revised return would be 31 December 2024, provided no assessment order has been passed. You can revise more than once within the deadline. Also important: your original return must have been filed under the permitted sections (139(1) or 139(4)). If you’re under assessment already, you can’t file a revised return.
How to File and What to Watch Out For:
Filing a revised return in India follows a similar process to original ITR filing, with a few additional details:
- Log in to the e-filing portal of Income Tax Department and select “Revised Return u/s 139(5)”.
- Provide original ITR acknowledgement number and the date of filing the original return.
- E-verify the revised return within 30 days of filing, otherwise it’s invalid.
What to watch out for:
- A revised return becomes the final return; your original gets replaced.
- If you increase your tax liability in the revised return, you may have to pay additional tax plus interest under Sections 234B/234C.
- If the department has already completed the assessment for that AY, you lose the revision option.
- While there’s no penalty simply for filing a revised return (assuming you’re within time), errors or false statements might invite scrutiny.
Conclusion:
In summary, revised returns are a vital tool for correcting errors in income tax filings in India. Understanding who can file, deadlines, and the online process ensures compliance and financial accuracy. The key points: you must have filed an original or belated return, you must file within the time-limit, and you must e-verify it. Ready to invest wisely? Explore more financial insights now!
– Ketaki Dandekar (Team Arthology)
Read more about How to File Revised Returns here – https://cleartax.in/s/revise-return