ITR refund: Can you file a revised return after getting a refund?

Did you forget to mention any earnings during the financial year 2022-23 in the income tax return filed? Have you made any mistake in the tax return that you want to correct? You can use the facility of revision of income tax return.

The income tax return is nothing but a form that helps you tell the government about the money you earned during a financial year and the tax that you have paid during or at the end of the year towards your income. You can file your return through the income-tax website

As per income tax laws, returns can be revised within three months before the end of the assessment year. This assessment year 2023-24 ends on March 31, 2024. Hence, you can revise the returns filed now up to December 31, 2023.

Can I revise returns after processing?

The good news is that a revised return can be filed even if your return has been processed. Revised return can be filed online under Section 139(5).

Also read: The Complete Income-Tax Filing Guide by Moneycontrol

There could be a scenario where the I-T department issues you a refund too. Even if you have received a refund, you are permitted to file a revised return.

“With 'Jhatpat processing' (accelerated return processing) being adopted, the returns are being processed within two days after filing the returns in some cases. So, even if your return and refund have been processed, you still have the right of revision,” says Ahmedabad-based chartered accountant Raju Shah.

Can I revise the return if I didn’t file it by the due date?

Yes, even if you forget to file a tax return by the due date of July 31, 2023, you are still permitted to file a belated return. Belated returns can be filed by December 31, 2023 too by paying a penalty of Rs 1,000 (for income between Rs 2.5 lakh and Rs 5 lakh) and Rs 5,000 (income above Rs 5 lakh).

This belated return can be revised as well.

What if I made a mistake in the revised return?

If you made a mistake in the revised return, then you can amend it too, provided it is within the time limit of December 31, 2023. You can revise the return as many times as you need to.

With the changes being made to the Annual Information Statement constantly, some chartered accountants say that there could be a need to revise many returns this year.

What if I forgot to revise the return by assessment year-end?If you couldn’t revise the return by the end of the last assessment year, you have the option to update your return. This can be done until the end of 24 months after the assessment year. So, by March 31, 2024, you can file an 'Updated return' for the money earned in the financial year 2020-21 (return of assessment year 2021-22).

“You can file an updated return, but a major condition is that you should have tax payable. If there is no additional tax liability, then filing an updated return is not permitted,” says Shah.

But if you file an updated return, you need to pay a higher tax penalty. The tax payable increases by 25 percent if the updated return is filed one year after the end of the assessment year. It is a steeper 50 percent if the updated return is filed two years after the end of the assessment year.

Unless e-verified, your revised return is useless

While the I-T department allows you to correct mistakes at many stages, there are some precautions that you need to take.

Since the revised return replaces the original one, it is necessary to e-verify the revised return too, as was the case with the original return. Income tax returns need to be verified within 30 days of filing.

Apart from the interest on non-paid advance tax and self-assessment tax, there is no other penalty levied for revising a return.

To be sure, if the original return has been filed in the paper format (permitted for 80 years old and above), then the revised return too will have to be filed in the same format and cannot be revised online.