Did You Make a Mistake in Your Income Tax Return? Here’s How to Fix It (Section 139(5))

What Exactly is a Revised Income Tax Return?

Simply put, a revised return is your opportunity to correct any errors or omissions in the original tax return you’ve already submitted. Think of it as submitting an updated version of your tax declaration to the Income Tax Department.

The power to revise comes from Section 139(5) of the Income Tax Act, 1961. A great piece of news is that even if you filed a belated return (one submitted after the initial deadline), you can still revise it! This flexibility ensures taxpayers have a fair chance to present accurate information.

Key Deadline Alert: For the financial year 2024-25 (which corresponds to Assessment Year 2025-26), the last date to file both belated and revised income tax returns is December 31, 2025, unless your assessment is completed earlier by the tax authorities.

When Should You Consider Filing a Revised Return?

There are several common scenarios where a revised return becomes your best friend:

• Spotting Calculation Errors: Did you miscalculate your taxable income, deductions, or even the final tax payable? A revised return allows you to fix these numerical slip-ups.
• Missing Out on Income or Deductions: Perhaps you forgot to declare income from a freelance project, or you realized you missed claiming a crucial tax-saving deduction (like Section 80C investments) after filing. A revised return lets you add these forgotten details.
• Incorrect Personal Information: Even seemingly minor errors like a wrong bank account number for a refund, or a typo in your address, can be corrected through a revised return.
• Changes in Tax Rules or Rates (Less Common, But Possible): While rare for an already filed return, if there were any retrospective changes in tax laws, rules, or rates that impact your liability, a revised return would allow you to adjust accordingly.
• Switching ITR Forms: Sometimes, after filing, you might realize you should have used a different ITR form due to your income sources or financial situation. A revised return lets you change the form type and re-file.

How to Go About Filing a Revised Return

The process for filing a revised return is quite straightforward, especially if you’re comfortable with online filing.

1. Identify the Error: Pinpoint exactly what needs correcting in your original return.
2. Gather Correct Information: Collect all necessary documents and information to accurately reflect the changes.
3. Access the Income Tax Portal: Log in to the official Income Tax e-Filing portal using your credentials.
4. Select ‘File Revised Return’: Navigate to the relevant section for filing income tax returns. You’ll typically find an option to “File Revised Return” or “Rectify Return”.
5. Reference Original ITR: You will need the Acknowledgement Number (ARN) of your original return and the date of filing.
6. Make Necessary Changes: The system will typically pre-fill much of your original data. Carefully make the required corrections or additions.
7. Re-Calculate Tax: The system will automatically recalculate your tax liability based on the updated information.
8. Verify and Submit: Review all details thoroughly before submitting the revised return. Ensure you complete the e-verification process within 30 days of filing. (You can find more information on e-verification methods here).

Key Points to Remember About Revised Returns

• It Replaces the Original: When you file a revised return, it completely overwrites and replaces your previous one. The revised return becomes your official and final tax submission for that assessment year.
• No Limit on Revisions: The good news is, there’s no cap on how many times you can revise your return! You can make corrections or updates as many times as needed, as long as you are within the deadline.
• Even After a Refund: If your original return was processed and you’ve already received a tax refund, you can still file a revised return if you discover errors, provided you are within the permissible time limit.
• Before Assessment Completion: The window for filing a revised return closes once the Income Tax Assessing Officer completes their assessment under Section 143(3) of the Income Tax Act. So, don’t wait until the last minute!
• No Penalty for Correction: The Income Tax Department encourages accurate filing. Therefore, there is no specific penalty or charge simply for filing a revised income tax return. This is a crucial benefit, it encourages honesty and correction without fear of financial repercussions for fixing a genuine mistake.
• Why Address Mistakes: Ignoring errors can lead to future complications. The Income Tax Department may issue a notice if they spot discrepancies in your original return. Furthermore, any legitimate tax refund you might be due might not be processed until a corrected return is filed.

What About Penalties if Your Original Return Was Late?

This is an important distinction. The “no penalty for revision” rule applies if your original return was filed on time.

If your original return was a belated return (filed after the original due date, typically July 31st for most individuals for the relevant assessment year, e.g., July 31, 2024, for AY 2024-25), then it would have already attracted a late filing fee under Section 234F of the Income Tax Act. While you can revise a belated return, the late filing fee associated with the original belated submission will still apply. The revised return itself won’t incur a new penalty unless it becomes belated due to further delays.

FAQs

Q1: Can I revise my ITR if I already received a refund?

Yes. Even if your original return was processed and you received a refund, you can still file a revised return to correct any errors, as long as you do so within the specified due date (December 31st of the assessment year).

Q2: Is there a limit to how many times I can revise my ITR?

No, there is no limit. You can revise your income tax return multiple times as long as you are within the permissible deadline. Each revised return replaces the previous one.

Q3: What is the last date to revise my ITR for FY 2024-25 (AY 2025-26)?

The last date to file a revised return for FY 2024-25 (AY 2025-26) is December 31, 2025, or before the completion of your assessment by the Income Tax Department, whichever is earlier.

Q4: Will I be penalized for filing a revised return?

No, there is no specific penalty for filing a revised income tax return. This provision exists to help taxpayers correct genuine mistakes without fear of additional charges. However, if your original return was filed late, the late filing fee under Section 234F would still apply to that original submission.

Q5: What happens if I don’t revise my return after finding an error?

If the Income Tax Department discovers discrepancies in your original return, they may issue a notice. Additionally, any tax refund you might be entitled to based on corrected information might not be processed until a revised return is filed. It’s always best to correct errors proactively.

Q6: Can I change my ITR form when filing a revised return?

Yes, if you realize you should have filed a different ITR form for the assessment year, you can do so when filing a revised return.

Conclusion

Filing an income tax return can sometimes feel daunting, and making a mistake is a common part of the process. Thankfully, Section 139(5) of the Income Tax Act provides a flexible and penalty-free mechanism to rectify those errors. By understanding the rules, adhering to deadlines, and proactively correcting any inaccuracies, you ensure your tax filings are accurate and avoid potential issues with the Income Tax Department.

Filingg.com offers expert services to ensure your business thrives. For more details, contact 7791910007 or info@filingg.com today!