Received Income Tax Refund or intimation? TAXCONCEPT

The deadline to fill out original income tax returns (ITR) concluded on July 31. While it is crucial to submit your ITR on time, it is also vital that you strive to be meticulous and try to avoid errors. However, sometimes there is a chance that we might rush to file the ITR at the last minute. As a result, it is quite natural to make mistakes when the deadline approaches.

When taxpayers file their returns within the deadline in a hurry, it is only later that they realise they have either missed some information or they did not disclose it. While there can be several things that could go wrong in a process, the Income Tax Department of India allows you to rectify these errors by filing a revised ITR.

Exploring the revised return

Previously, taxpayers who filed the ITR within the deadline were allowed to file a revised return. However, under the current legislation, every taxpayer (including belated ITR) is allowed to file the revised ITR under Section 139(5) if they made a mistake while filing their returns. Under this particular section, if taxpayers discover any wrong statement or an omission, they can furnish a revised return. Nevertheless, this adjustment may be submitted three months before the assessment year ends or, if that occurs earlier, before the completion of the assessment.

Under Section 139(5) of the Income Tax Act and verdict from Kolkata Tribunal, revised return can be filed even after receiving Intimation or refund from IT Department. Therefore, the deadline assigned to file revised returns for FY 23 (assessment year 2023-2024) is December 31, 2023.

There would be no penalty if you filed a revised return if there were just small modifications, such as a change in your bank account information or other personal information. However, the tax department can notice the change and scrutinise the tax filed in the earlier return if undeclared income or another significant correction is made on the new form.

No limit for revisions: The number of times you can submit a revised ITR is unrestricted. However, it is important to understand that while filing the return, the details of the original returns are crucial to include as a mandatory requirement. A revised return can be filed to address any mistakes or omissions that were included in the initial submission. However, it is crucial to employ caution and refrain from abusing this facility. To reduce the need for further changes, it is advisable to file the initial tax return with the utmost care.

Filing a revised return

Filing a revised ITR is similar to filing the original return on the income-tax e-filing portal. However, during this time of submission, it is mandatory to file under Section 139(5) of the Income-tax Act. You must go to the ‘return filed under’ column and select the option of “Revised u/s 139(5)”. After selecting the option, the ITR form prompts you to provide the details of the original ITR, which include the ‘Acknowledgement Number’ and the ‘Date of Filing Original Return’. These specifics are necessary to demonstrate that the current submission is a rectified return that is free of any mistakes or omissions.

Verification is essential. It is essential to make sure you validate your amended ITR once you file it. Your amended tax return will not be accepted by the income tax division unless it has been confirmed. You have a number of alternatives for verifying your updated ITR, including e-verification techniques using Aadhaar, an OTP, or an EVC (Electronic Verification Code) via Net Banking. A signed copy of the ITR-V (Acknowledgement Receipt) can also be sent to the Centralised Processing Centre (CPC) in Bangalore if you want physical verification.

All things considered

If you file an amended income tax return, there are no fees or penalties assessed by the Income Tax Department. Therefore, do not be concerned if you make mistakes when preparing your ITR considering the intricacies involved. If there are any errors on your return and you fail to submit a revised return, the income tax division will send you a notification outlining the errors. If you qualify for an income tax refund, it will not be given until a new return is submitted. Hence, as a good practice, it is recommended to update your income tax returns and submit a valid return.

Owing to the complexities, it can be daunting for some professionals and small businesses to file the correct ITR. However, thanks to cutting-edge technologies and new-age businesses that are providing smart income tax return software that simplifies ITR filing and reduces the hassle, it enables taxpayers to file the ITR quickly, easily, and accurately in an automated manner. As a result, the simple process ensures the returns are filed on time and does not attract any unwanted penalties.

This article has been written by Kapil Rana, Founder of HostBooks.

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