Made a mistake while filing tax returns? Here’s how to file a revised ITR

• Revised return may be filed in multiple cases like overlooked income as well as marital, residential status update etc.
  
• One may also file revised returns to correct discrepancies between tax paid and TDS details as shown in Form 26AS.
  
• In case there is enhancement of tax liability in the revised return, there may be interest consequences.
  

The process of revising a tax return involves making necessary updates and corrections to a previously submitted tax return. This is done to ensure that the financial information provided is accurate and complies with the relevant tax regulations. Whether it's correcting errors or including omitted details, a revised tax return allows taxpayers to rectify any inaccuracies and provide a more precise representation of their financial situation to the tax authorities.

Reasons to file revised tax returns

One may file a revised return to rectify mistakes in reporting income, deductions, or other details in the original return or if one is eligible for deductions or exemptions that were inadvertently not claimed in the original return. A revised return may also be filed if additional sources of income were overlooked in the initial filing or to update tax details due to changes in marital status, residential status, or other relevant factors.

“Further, if you receive income after filing the original return that needs to be reported, you would need to file a revised tax return. One may also file revised returns to correct discrepancies between tax paid and tax deducted at source (TDS) details as shown in Form 26AS or to address errors identified by the tax department during assessment,” says Archit Gupta, founder and CEO, Clear, a fintech company.

Other reasons to file a revised return is to carry forward or set off losses that were missed in the initial return or to ensure accurate and complete reporting to avoid legal and financial implications.

How to know whether you need to file revised tax returns

There are a few ways to know when you need to file revised tax reuters. “If you discover errors or omissions in your original return, missed claiming eligible deductions/exemptions, got extra income after filing, need to correct mismatches with Form 26AS, or the IT department seeks rectifications, you might consider filing a revised tax return,” says Gupta.

By when can you file revised tax returns

Revised tax returns can generally be filed within a specific timeframe.

“In accordance with section 139(5) of the IT Act, taxpayers can furnish a revised return at any time before, three months prior to the end of the relevant assessment year (for instance, 31st December 2023, with respect to AY 2023-24) or before the completion of the assessment, whichever is earlier,” says Suresh Surana, Founder, RSM India, an audit, tax and consulting firm.

How to file a revised tax return

A taxpayer filing revised return should follow the below mentioned procedure:

1. Login in on the Income Tax portal (https://www.incometax.gov.in/iec/foportal/) using the login credentials (PAN and password)
   
2. Click on the ‘E-file’ menu and subsequently select ‘File Income tax returns’
   
3. Further, the taxpayer would be required to select the relevant assessment year to which the revised pertains and mode of filing the return as online or offline
   
4. Furthermore, the taxpayer would be required to select the status as Individual, HUF or others and the applicable ITR Form.
   
5. In the Personal Information details, specify that the return is filed u/s 139(5) i.e. Revised- Return revised after filing original return
   
6. Lastly, after filing the revised return, the taxpayer would be required to e-verify such income tax return.
   

Source: RSM India

Things to keep in mind

The updated return will substitute the original one, with the exception of the filing date, and will be utilised to assess the taxpayer's income. “There is no limit on the number of times a return of income can be revised and as such a taxpayer can file revised return multiple times, provided it is filed on or before the specified due date,” says Surana. Also, in case there is enhancement of tax liability in the revised return, there may be interest consequences.