Things to Consider Before Filing Revised Income Tax Return

6 November 2024 5 min read

Introduction

With all the hubbub around filing income tax returns before the 31st of July, 2024, it is possible that you might have made a mistake while filling out the forms.

In case your original return assessment isn’t completed before the 31st of December, you can file a Revised ITR.

Can I Modify an Already Filed ITR?

Yes, you can. To modify an already filed ITR, you need to file a revised return under Section 139(5) of the Income Tax Act, 1961. However, this does not count as a fresh filing rather it is an extension to the Original Return filed. This is because, you can only file a revised return if there are errors, omissions or incorrect information in the original filing.

Understanding What is a Revised ITR

As you must be aware, you can file your IT Return only once per financial year. However, this is only partially correct. In the event that a taxpayer decides on any amendments or corrections to be made to their ITR, there is a provision to file a Revised Income Tax Return.

Section 139(5) of the Income Tax Act allows for a revised return following which the initial return is modified. The revised ITR will be considered for assessment in the current financial year.

Reasons Behind Filing a Revised ITR

Now, there can be multiple reasons why you might need to file a revised IT return. If any of them sound like what you are facing right now, then this is your cue to head over to the Income Tax Portal and file a revised Return.

Miscalculation of Assets and Income

While declaring the source of your earnings, you might have missed some information that can prove to be crucial when your Return goes for verification. In case, the Income Tax Department found concealing any of your income sources, such as rental income or income from your part-time commitments, you will face severe legal consequences. To avoid this ruckus, it is always advisable to double-check all your details before and after filing the ITR.

Unclaimed Deductions & Exemptions

While filing ITR, taxpayers are eligible for some deductions and exemptions. In case you are updating your ITR with a revised return, chances are that you might have missed a few deductions or exemptions which you can claim in the revised return. This can significantly lower the tax amount you’re set to pay.

Choosing the Wrong ITR Form

In case you have chosen the wrong IT return form, it is necessary that you go and file a revised Return. Choosing the wrong ITR form can result in your refund procedure getting delayed, stunted or worse, cancelled.

Wrong Personal Information

While filing ITR, you are required to fill in your personal and bank account information. If you have pre-validated wrong information, then your income tax return will not be processed. Therefore, it is imperative to apply for a revised IT Return if you find any anomalies in your registered information.

Eligibility to Apply for a Revised ITR

The eligibility to apply for a revised ITR is simple. Any taxpayer, who has submitted his/her original return, belated return or revised return and has made an error, can file a revised ITR.

How Many Times can I Revise my ITR?

There is no specified limit to the number of times you can revise your ITR.

Is There Any Penalty for Filing a Revised Return?

There is no penalty for filing revised returns.

Double Check These Things Before You Apply for a Revised ITR

Before applying for a revised ITR, you must double-check your details. This is to prevent any other errors from creeping in the second time around. Go through your return thoroughly and identify the errors or omissions that need correction.

Double-check important details such as:
your personal information (name, address, PAN number),
income details,
deductions claimed,
bank account numbers, and
tax paid or refund claimed.
Make sure that all sources of income, such as salary, rental income or even interest and capital gains are properly registered.
Also, make sure to check if the details match the figures in Form 26AS/TIS/AIS.

How to File a Revised ITR: A Brief Step-by-step Guide

Filing a revised ITR is a relatively simple process that just requires you to be doubly attentive while going through the minute details and corrections. To get started with the process online, visit the income tax e-filing portal.

Step 1: Log in to the income tax e-filing portal using your user ID and password.

Step 2: Once you’re in, head over to the ‘e-File’ section and select ‘Income Tax Return’ from the drop-down menu.

Step 3: Now, there will be a list of financial years presented to you. Choose the relevant/current assessment year and select ‘ITR Form’ from the menu that appears.

Step 4: In the ITR form that has just opened up, select ‘Revised Return’. It should be under the ‘Return Filing Section’.

Step 5: Now, you will be asked to enter the Acknowledgment Number and Date of the original return. Fill in these details thoroughly.

Step 6: Correct the errors or make the necessary changes to the return details.

Step 7: Up next, validate all the information, re-check for accuracy, and click on submit.

Step 8: Finally, e-verify the return to complete the process.

Time Limit for Applying for a Revised ITR

The Income Tax Act provides for a specific time limit to file a revised ITR. As per Section 139(5), a revised ITR must be filed 3 months before the end of the current assessment year or before the completion of the assessment, whichever comes earlier.

Looking to file a Revised Income Tax Return? Connect with 1 Finance for qualified guidance and ensure a hassle-free, accurate filing process!

Please note,

The views in the article /blog are personal and that of the author. The idea is to create awareness and not intended to provide any product recommendations.