Filing tax returns is a tedious process for many.
And it could be particularly taxing if you have postponed the exercise to the last minute – closer to July 31 - the due date for filing ITR. Chances of committing errors are particularly high while filing returns in a hurry.
Revised returns to correct mistakes in ITR forms
These are some of the common errors that tax-payer end up committing that may trigger the need to revise the original return:
- Errors in personal information
- Wrong bank account details
- Wrong selection of ITR form
- Not declaring all incomes
- Not claiming deductions you were eligible for
If you spot errors, especially if you have missed reporting any income – for example, foreign bank or pension account, ESOPs from multinational companies etc – you must file a revised return to avoid income tax notices. Not declaring foreign income or assets will invite penalties under the Black Money Act, though Budget 2024 has now decided to not penalise such non-disclosure in case of movable foreign assets worth less than Rs 20 lakh.
In such cases, you can file a revised return under section 139(5) to rectify the errors. While revising your return, ensure that you mention the acknowledgement number of the original return.
If you have filed your returns offline, in a paper format – which super senior citizens are allowed to do – the revision cannot be made online. They will have to use the paper mode to revise their returns.
Also read: Revised, belated and updated income tax returns: Do you know the difference between them?
When to file revised returns
But be aware of the timelines. As per income tax (I-T) rules, your return needs to be revised three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. So, for assessment year 2024-25 (financial year 2023-24), the due date for filing revised return is December 31, 2024.
This is also the last date for filing belated returns – that is, returns filed after July 31 – for the assessment year. You can revise belated returns, too. There is no bar in the maximum number of times you can revise your returns. And you do not have to pay any additional charges or penalties for revising returns. Also, you can revise returns even if the tax refund due to you is processed.
Like the original return, ensure that you verify the revised returns, too, within 30 days of having submitted them online.
Also read: ITR refund: Can you file a revised return after getting a refund?
How to file updated return
If you happened to miss even the December 31 deadline to file revised return, you can choose to ‘update’ your return. You can use this option if you have missed filing returns, have furnished wrong information, missed declaring any income and so on.
Introduced in Budget 2023, this option was enabled under section 139(8A) – tax-payers have to furnish the details in Form ITR-U for the purpose. This section allows tax-payers to file updated returns, irrespective of the fact whether or not such a person has already filed the original, belated or revised return for the relevant assessment year (subject to certain conditions).
You have to complete this exercise within 24 months from the end of the relevant assessment year. So, you can file an 'Updated return' for the financial year 2023-24 (return of assessment year 2022-23), by March 31, 2027. The condition here is that you should have tax liability; that is, if you owe the income tax department some tax dues.
Unlike in the case of revised returns, you will have to shell out penalties in the case of updated returns. It will be 25 percent of aggregate tax and interest payable if the updated return is filed within 12 months from the end of the relevant assessment year. If it is filed within 24 months from the end of the assessment year, the penal rate is much higher at 50 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
