ITR filing 2024–25: Used the wrong ITR form? Revise your returns to ensure refund credit

File returns on time using the right ITR form to avoid delay in processing, refund of excess tax paid

The income tax (I-T) department has, over the years, ramped up vigilance and scrutiny of income tax returns.

Not only entrepreneurs and professionals but salaried taxpayers also have been at the receiving end of the notices from the I-T department, particularly due to fraudulent deduction claims.

While deliberately concealing income sources, foreign bank accounts, or other assets and claiming non-existent deductions can invite notices, even inadvertent errors can affect your ITR processing and refund claims.

For instance, selecting the wrong ITR form. If you pick the wrong form for filing returns—for instance, ITR-1 when ITR-2 was the form relevant for you—you will be seen as having concealed income and transactions that you ought to have disclosed in ITR-2. For example, if you earned foreign income or owned any foreign assets in 2024–25, you have to use ITR-2.

If you use ITR-1, you cannot make these disclosures. You could end up with a notice for non-disclosure from the I-T department. Also, selecting the wrong form can render your return ‘defective’, which means that your returns will not be taken up for processing, holding up any refund due on excess tax paid during financial year 2024–25 (assessment year 2025–26).

Also read: ITR filing 2025 | ITR-1or 2: Which income-tax return form should salaried persons choose?

Inadvertent or deliberate, errors can lead to I-T queries

Until last year (assessment year 2024–25), ordinarily resident Indian taxpayers could use ITR-1 (Sahaj) only when their income sources were limited to salary/pension, one house property, interest from savings/fixed deposits, dividends, and agricultural income of less than Rs 5,000. You cannot use this form if your total income exceeds Rs 50 lakh.

This year, even taxpayers with long-term capital gains (LTCG) on the sale of listed equity shares or equity mutual fund units can use this form, provided these do not exceed Rs 1.25 lakh in FY25.

Salaried taxpayers who are not eligible to use ITR-1 have to use ITR-2. To be sure, this is applicable to salaried taxpayers without any business income. Salaried taxpayers who may have dabbled in intra-day trading and futures & options will have to use ITR-3.

Also read: ITR filing: 10 common mistakes you must avoid while filing returns at the last minute

Revise returns by December 31

If you have already filed returns using the wrong form and notice your mistake later, you can still revise your returns by December 31, 2025.

To revise your returns, log on to the e-filing portal (incometax.gov.in). Go to 'E-file', click on 'File income tax return’, choose the relevant assessment year, and click on 'Revised return under Section 139(5)'.

While revising the return, ensure that you mention the acknowledgement number of the original return. There is no cap on the number of times you can revise your returns. And you do not have to pay any additional charges or penalties for revising returns. Moreover, you can even revise returns after the refund is processed.

Make sure that you e-verify the revised returns, too, within 30 days of submitting them online.