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Last Updated : Jan 12, 2017 06:31 PM IST | Source: Moneycontrol.com

Be careful while revising your income tax returns

There is a specific procedure that needs to be followed when a revised return is being filed and this includes several steps along with meeting the required conditions.

Arnav Pandya

Revised returns for the last financial year 2015-16 has now come under the attention of the tax authorities to see if people are trying to show their undisclosed income through this route. There is a specific procedure that needs to be followed when a revised return is being filed and this includes several steps along with meeting the required conditions. This is the reason why anyone looking to revise their returns needs to be careful especially at the current stage otherwise this will invite close scrutiny from the tax officials. Here is a detailed look at the revision of returns.


There are times when an individual has filed their tax return but they discover that there is some problem in the details that they have mentioned in the return. This could be missing out of some income details or it can even be not having claimed some benefits that they should have actually done so. In these cases the case of a revised return comes into play and in simple words it is nothing but changing the tax return to ensure that there is the reflection of the correct details. The details mentioned will be different from the one mentioned in the original return and one of the main conditions that has to be present for the revised return is that the original return should have been filed within the time allotted for it. This is also one of the reasons why there is such a large emphasis on filing the original return by the due date.

Time period

The time period for the filing of the revised return is one year from the end of the relevant assessment year or before the completion of the assessment by the tax authorities. So for the financial year 2015-16 there is still time till 31 March 2018 to file the revised return. The assessment year is always one year ahead of the financial year so this is 2016-17 and the period of one year from the end of the assessment year would be the end of March 2018. However this is just one of the conditions because if the tax authorities have completed the assessment then the facility is not present for the individual. Either of the conditions listed needs to have happened for the revised return time to be over. This is the reason why one must not wait but quickly go and file the revised return if there is a situation where this has to be done.

Huge variation

Small changes or if some figures are missed out at the time of the filing of the original return and then shown in the revised return are fine and this is acceptable in the sense that this can have happened by mistake. The tax authorities would not take a critical view of this but following demonetisation there have been efforts by several people to show a large income in the previous year and this is nothing but their undisclosed income. Since they have already filed their previous years return the route that is being taken is to revise these returns. The end result is that there is a big difference in the income that was shown earlier and the new income that has been disclosed in the return. This has brought the matter to the notice of the tax officials who are keeping a close watch on the entire situation. It is clear that if there is any indication of trying to show off old income then this would be investigated and the tax officials will start asking questions. Similar would be the situation if there is an attempt to raise the cash level in the books.
First Published on Jan 12, 2017 04:31 pm