Revised return: File to rectify errors, omissions in original ITR
Multiple revisions, while legal, can attract scrutiny, especially if the final revised return deviates significantly from the original.
Filing one’s income-tax return (ITR) is a
matter of utmost importance. Despite exercising diligence while filing return,
there’s always the possibility of making a mistake or inadvertently providing
incorrect information. Fortunately, the Income-Tax (I-T) Department offers
taxpayers a chance to rectify such errors by filing a revised return under
Section 139(5) of the I-T Act, 1961. “The revised return substitutes the
original return.”
Who can file?
Any individuals or entity that filed an
original ITR and subsequently discovers errors omission in the initial filing
is eligible to file a revised return. “A revised return can be filed within
three months before the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier.”
The deadline for filing the revised return for
the financial year 2022-23 (assessment year 2023-24) would be December 31,
2023, provided the assessment of the original return has not been completed
before the date. The Finance Act, 2021 amended the timeframe for filing a
revised return. “Earlier, taxpayer had the option to file the revised return
before the end of the assessment year or before the completion of the
assessment, whichever was earlier.” Narang points out that there is no cap on
the number of times that a taxpayer can file a revised return.
File it right away
If you’ve realised the need to revise your ITR,
take the initiative and do so right away. Don’t wait for the tax department to
send you a scrutiny assessment under Section 143(3). The recent news of the I-T
Department issuing 1 lakh tax notices to taxpayer serves as a reminder of the
importance of being proactive. The I-T Department levies no penalty or charges
if a taxpayer files a revised ITR. However, the taxpayer incurs a penalty id
she fails to adhere to the deadline for filing a revised return. “Missing the
deadline will invite a late filing penalty of Rs 5,000/- under Section 234F of
the I-T Act, 1961. However, if the income tax amount does not exceed Rs 5lakh,
only Rs 1,000/- is levied as penalty.”
Avoid multiple revisions
If a taxpayer becomes aware of additional information
after filing the return, it can be included in the revised return. “Revision of
the original ITR is only allowed if the omission was not intentional. It does
not apply to cases involving concealment or false statements.”
Be careful while filing a revised return to
avoid further mistakes. “Multiple revisions, though legal, can attract scrutiny
from tax officers. This is especially relevant in case where there are
significant revisions to returns.” Bajaj adds that any intentional omissions in
a revised return may lead to penalties or fines.
“When filing a revised return, provide a clear
explanation for why the changes were made. Keep supporting documents handy for
a smooth and compliant process.” Many think that they can file an updated
return instead of a revised return. An updated return can now he files under
Section 139 of the Finance Act 2022 under subsection (8A). Anyone can file an
updated return, regardless of whether they have already filed the original, belated,
or revised return (subject to certain conditions). However, there may be a
hefty penalty for filing an updated return.
Moreover, through a revised return, you can
make changes to your ITR and even end up paying a lower tax; you can’t do so
through an updated return. It can only be filed if the taxpayer has to disclose
additional income that was missed earlier, and which results in her paying
additional tax. Hence, file a revised ITR while you have the opportunity.
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