income tax return
It is common to make mistakes in income tax filing. From missing out on small interest income to claiming more deductions than required or choosing the wrong Income Tax Return (ITR) form, mistakes can happen despite best efforts. Understanding this, the Income Tax Act has a provision for ‘revised return’ under section 139(5), which allows taxpayers to correct mistakes without any immediate penalty. Let us understand it in details.
Any taxpayer who has already filed IT return. Be it under section 139(1) or ‘billed return’, if any mistake or deficiency is found in it, then it can be revised. This provision contains many types of mistakes. These include omission of income, over or underreporting of income, omission of deduction, calculation errors, giving wrong information or choosing the wrong ITR form. In fact, it gives taxpayers an easy way to correct both small and large mistakes.
It is important to clarify that the newly filed return completely replaces the old return. Once submitted, the revised return becomes the final and legally valid version, and the old return becomes worthless. This feature makes it quite different from just a request for improvement. Revised return is not an extra thing. This is a return completely replacing the old return.
time is very important
Time is very important in the case of revised returns. Earlier, taxpayers could revise their returns by December 31 of the relevant assessment year or before the assessment was completed by the tax department. Recently, after changes in the policy, this deadline has been extended till March 31 in some cases, giving taxpayers more time to rectify the mistakes. However, once the tax authorities complete the assessment, the opportunity to revise the return ends. In that case, taxpayers may have to rely on limited options like ‘Updated Return’ (ITR-U), which also carries additional tax burden.
No penalty, but some conditions apply
A major advantage of filing revised return is that there is no penalty in it. The tax department does not impose any additional charges just to correct the mistakes, but there is a condition. The original return should be filed within the prescribed due date. If this does not happen, the return is considered a ‘late return’ and late fees may be charged under separate rules. In other words, while there is no penalty for amendment, late filing may attract a penalty.
Multiple revisions allowed
Another special thing is flexibility. There is no legal limit on the number of times a taxpayer can amend his return within the prescribed time limit. This means that corrections can be made frequently, which is a big relief for taxpayers who discover many shortcomings or mistakes over time. However, experts generally recommend that all changes be included in a single amendment to avoid confusion and simplify processing.
Can amendments be made after receiving the refund?
Yes. Even if the original return has been processed and refund has been issued, the taxpayer can still file a revised return within the prescribed deadline. This is especially useful in cases where errors are discovered after the refund has been processed. However, any change in tax liability may require repayment or adjustment.
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