There may be a few mistakes you have made after you file your income-tax return (ITR). You are allowed to revise your income tax return under the Income-Tax (I-T) Act, 1961. By December 31, applicants must file revised income tax returns for the particular assessment year.
It is possible to rectify past mistakes by filing a revised return, according to a tax expert.
Indicate Whether Your Income is Higher or Lower
Any additional income not disclosed in the original return can be disclosed in a revised return. Furthermore, he may deduct an additional amount on a tax-saving investment, claim a credit for donations that were not previously included in his tax return, or claim an additional tax deduction. It is also possible to correct mistakes made when entering personal information.
Income can be reported as either high or low. A person may update their return by filing a revised return to declare a higher or lower taxable income than that reported on their original return, according to a tax analyst. A taxpayer who declares higher income will have to pay additional taxes and interest on it. In this case, no penalty is imposed.
Who Can File a Revised Return U/S 139(5)
In accordance with Section 139(5) of the income tax Act, anyone who is required to file a tax return is entitled to file a revised return.
There are, however, certain circumstances when a revised return cannot be filed. A tax expert explains that taxpayers can revise their tax returns if they file their original income tax return (ITR) before the filing due date. Revisions are not available to people who filed their returns after the deadline.
According to an expert, if the assessment of an income tax return (ITR) has already been completed under Section 143-(3) of the income tax Act, 1961, a revised return may not be filed.
What is the Deadline for Revising?
Revisions of returns can't be filed after the deadline mentioned above. The deadline for filing a revised return has passed, but you can still file an updated return. The only way to increase income in such a scenario is to revise it upwards, according to a tax expert. We have no choice but to reduce our income.
The taxpayer can file an application requesting that the delay be condoned in the case of a genuine hardship that prevented him from filing the revised return on time.
There Are Consequences to Errors
Changing your bank account information, personal details, etc., does not have any consequences if you file a revised return. It is possible, however, for the tax department to pick up the change if undeclared income is included in the revised return or if other important rectifications are made. Consequently, the tax filed in the earlier return may be inspected.
Additionally, the I-T Department may issue you a notice if you fail to file a revised tax return if there are mistakes in your original tax return. According to an expert, if you file an inaccurate return, any refund you are entitled to cannot be processed until you rectify it.
The Number of Revisions is Not Limited
The number of revisions you can make to your return is not limited. As it is essential that you do not misuse this facility and that you take utmost care when filing your original tax return.
Whenever you file a revised return, provide details about your original income tax return (ITR).
Revisions to returns are not subject to penalties. Whenever you make a mistake, you shouldn't be afraid to file a revised return to correct it.
The Following Points Should Be Kept in Mind
The original income tax return (ITR) is replaced by a revised one. Your final return will be the one that is filed once the revised return is filed.
It is also necessary to verify a revised return. From August 1, 2022, the I-T Department will only accept ITRs that are submitted within 30 days of the date of filing.
Additionally, You Can File An Updated Tax Return
- New facilities for filing returns were introduced by the Finance Act, of 2022
- A previous ITR can also be corrected if errors or omissions were made
- A new ITR may also be filed if the previous one was not filed
- Using this facility, taxpayers can revise their returns for up to two years after the end of the relevant assessment year; FY 2021-22 income tax updated returns (ITR-U) form can be submitted by March 31, 2025.
- When filed within 12 months from the end of the relevant assessment year, a penalty of 25 per cent must be paid, and a penalty of 50 per cent if filed within 24 months.
- A tax liability can't be decreased using this provision if the updated return results in a loss or results in a loss.