Quick Summary:

A revised or updated return is filed to correct errors in the original Income Tax Return (ITR). This guide explores the reasons for filing a revised return, the process to update ITR, and the deadlines to avoid penalties. It also covers common mistakes and how to rectify them efficiently.

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Revised/Updated ITR: How to File a Corrected Income Tax Return

Learn how to file a revised or updated ITR to correct mistakes in your original tax return. Understand the process, eligibility, and when you need to file an updated return to stay compliant with tax laws.

5 May 2024

Afinthrive Advisory

Revised/Updated ITR: How to File a Corrected Income Tax Return

Filing an Income Tax Return (ITR) is a crucial step for all taxpayers in India. However, it’s not uncommon for individuals and businesses to make errors in their initial ITR filing. Whether it’s a mistake in the income details, missing deductions, or incorrect bank details, these errors can result in penalties or delayed processing. To address this, the Income Tax Department allows taxpayers to file a Revised Return or Updated Return to correct any mistakes in the original filing.

While both terms are related, it’s important to understand the difference between a **Revised Return** and an **Updated Return**:

Revised Return: This is applicable when the taxpayer has made an error or missed information in their original return. It can be filed under Section 139(5) of the Income Tax Act, and typically, a revised return can be filed before the end of the relevant assessment year or before the completion of the assessment by the tax department, whichever comes first.
Updated Return: Under Section 139(8A) of the Income Tax Act, an updated return can be filed at any time within 24 months from the end of the relevant assessment year, even if there’s no error or omission. This facility allows taxpayers to update their returns voluntarily to avoid penalties or scrutiny from the tax department.

Filing either return helps to rectify mistakes and prevent unwanted consequences such as notices or penalties. It's important to act quickly and correctly, ensuring that the details in the return are updated accurately and the right documentation is in place.

Common Reasons for Filing a Revised or Updated ITR:

Omission or incorrect information in the original return
Failure to report some income
Incorrect deductions claimed
Incorrect details of bank accounts or capital gains
Failure to report foreign income or assets

The process of filing a Revised or Updated Return is straightforward, but it requires attention to detail. Taxpayers need to submit the corrected ITR through the Income Tax Portal, and in the case of a Revised Return, a new acknowledgment number is generated after the correction.

Steps to File a Revised or Updated Return:

Log in to the Income Tax Portal and navigate to the ‘e-File’ section.
Select the option for Revised or Updated Return based on your situation.
Choose the relevant assessment year and provide the acknowledgment number of the original return.
Correct the details that need modification and revalidate the information.
Upload the updated return and verify it via e-verification (using Aadhaar OTP, EVC, etc.).
Track the status of your revised/updated return through the portal.

Once filed, the tax authorities will process the revised or updated return, and the taxpayer will receive an updated acknowledgment. The process helps in avoiding any unnecessary scrutiny, and in some cases, it can even result in a tax refund.

How Afinthrive Advisory Assists:

Afinthrive Advisory specializes in helping clients with the filing of revised or updated returns. Our team ensures that all corrections are accurately made, minimizing the chances of errors. We take care of the paperwork, e-filing process, and ensure that the corrected return is submitted within the required timelines, so you can stay compliant with tax laws without hassle.

Affordable Pricing for everybody.

You won’t get the services at this unbeatable price range anywhere in India.

Essential

₹2500

(20%)

₹

2000

Plan inclusive of all charges

KEY FEATURES

Revised Income Tax Return for a single assessment year
Document review and error identification
Filing of the revised return with the Income Tax Department

Enhanced

₹6000

(25%)

₹

4500

Plan inclusive of all charges

KEY FEATURES

Revised ITR filing for multiple years or multiple corrections
Detailed review of original return and identification of all discrepancies
Assistance with notices from the Income Tax Department

Ultimate

₹12000

(21%)

₹

9500

Plan inclusive of all charges

KEY FEATURES

Comprehensive revision for high-income or complex cases
Tax planning consultation along with revised return filing
Full support for any follow-up action or disputes with the Income Tax Department
Legal support for handling Income Tax notices or scrutiny

Revised/Updated ITR: Key Insights

Correct mistakes in your ITR with this guide on filing a revised return

File a revised return if you discover errors like incorrect income, deductions, or wrong claims in your original ITR

When to File a Revised ITR?

You can file a revised return within one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

What’s the Deadline?

Log in to the income tax portal, select 'Revised Return' under the 'Income Tax Returns' section, and fill in accurate details. Ensure to mention the original return acknowledgment number.

Steps to File a Revised Return

Avoid mismatched income details, failing to mention previous return acknowledgment, or incorrect revision period

Common Mistakes to Avoid

If there’s additional tax due after correction, pay it along with interest (if applicable) to avoid penalties.

Tax Payable After Revision

The process usually takes 15-20 days. Once filed, you’ll receive an acknowledgment. Ensure the revised return is processed correctly and update Form 26AS.

Timeline and Acknowledgment

When You Need to File a Revised/Updated ITR

Errors in Original ITR (Income, Deductions, Tax Paid): If you realized that you missed reporting some income, deductions, or wrongly reported taxes, you need to file a revised ITR to correct those discrepancies.
Omitted TDS or TCS Credit: If you forgot to include TDS or TCS credits that were deducted or collected during the year, revising your ITR ensures you receive the full benefit.
Incorrect Bank Details for Refund: If you entered the wrong bank account number or IFSC code for a refund, the refund will not be processed—file a revised ITR with correct details.
Adjustment of Carry Forward Losses: In case you missed carrying forward losses from the current year (business, capital gains, etc.), revised ITR lets you adjust the losses and reduce future tax liabilities.
Claim of Unclaimed Refund: If your original ITR did not include all eligible refunds, revising it gives you a chance to claim what you missed earlier.

Steps for Filing a Revised/Updated ITR — Process Flow

Step 1: Identify the Mistake or Omission: Before filing a revised ITR, carefully analyze the original return and pinpoint what needs correction (income, deductions, TDS, etc.).
Step 2: Prepare Corrected Information: Collect the correct data—whether it’s an additional income source, missed deductions, or corrected TDS statements.
Step 3: Log into the e-Filing Portal: Access the Income Tax e-Filing portal, select 'Revised Return' under the ITR filing section, and enter the acknowledgment number of the original ITR.
Step 4: Choose 'Revised' in the ITR Form: While filling the form, ensure that you select the 'Revised' option, and input the relevant details (revised income, deductions, etc.).
Step 5: Verify and Validate the Information: Double-check all the corrected entries, validate the form using the 'validate' button, and review your taxes paid and any claims.
Step 6: Submit the Revised Return: Once satisfied with the changes, submit the revised return online. You will receive a confirmation, and the updated ITR will reflect the corrections.
Step 7: Track Status and Acknowledgment: After submission, track the status of your revised return via the e-Filing portal. Ensure that the status is 'Processed' and check for any refund status or notices.

Correcting Mistakes in Your ITR Before It’s Too Late

Revised or Updated ITR: Fixing Your Income Tax Return Like a Pro

What Is a Revised or Updated ITR?

A Revised or Updated ITR allows you to correct any mistakes in your original income tax return. It ensures that your tax records are accurate and compliant, and you avoid potential penalties or scrutiny from the tax department.

When Can You File a Revised ITR?

You can file a Revised ITR if you realize mistakes like incorrect income figures, unclaimed deductions, missed TDS entries, or incorrect personal details in your original filing. However, a Revised ITR can only be filed within 3 years from the end of the relevant assessment year.

The Key Difference: Revised vs. Updated ITR

• **Revised ITR**: This is filed to correct errors in the return already filed. • **Updated ITR**: This is filed if you missed filing your ITR altogether, and it's done within a year from the due date of filing the original return.

Steps to File a Revised ITR

1. Log into the Income Tax portal. 2. Go to the 'e-file' section and choose 'Revised Return'. 3. Select the Assessment Year and the ITR form used earlier. 4. Correct the errors—update income, deductions, TDS, etc. 5. Submit the revised return and wait for acknowledgment.

Important: What to Do Before Filing the Revised Return

• Double-check all details—ensure the errors from the original return are corrected. • Use the correct assessment year to avoid rejection. • Ensure that the tax liability or refund is calculated accurately, including updated deductions or credits.

Common Pitfalls in Revised ITR Filing

• Not using the correct version of the ITR form • Failing to file within the 3-year window • Overlooking verification of new data after revisions • Confusing original filing details with the new, revised figures

Key Things to Remember About Revised Returns

• A revised return doesn’t guarantee immediate acceptance. It’s reviewed by the IT department. • You may be required to pay additional tax or receive a refund depending on the changes. • Filing an updated return can help you avoid penalties or late fees.

After Filing: What’s Next?

Once your revised or updated ITR is submitted, track its status through the Income Tax portal. You’ll receive an acknowledgment, and the department will process your corrections. If additional taxes are owed, pay them to avoid interest and penalties.

Documents Required

Here is the check list of documents required.

Acknowledgment of original ITR filed
Revised return justification (explaining changes made)
Corrected ITR form (with updated details)
Form 16/16A (if applicable) with revised TDS information
Tax payment challans (if additional tax is due)
Revised computation sheet (showing the updated tax calculations)
Bank account statement (for revised income or deductions)
Proof of additional deductions or exemptions (e.g., medical bills, 80C investments)
Digital Signature Certificate (DSC) for online submission (if applicable)

FAQs

Get Answers to your most asked questions.

What is a Revised or Updated ITR?

A Revised or Updated Income Tax Return (ITR) is a corrected version of the original return filed by the taxpayer. It is submitted to the Income Tax Department to fix mistakes or omissions in the original return, such as incorrect income figures, wrong deductions, or missing income sources.

Who can file a Revised/Updated ITR?

Any taxpayer who has filed an original return but later identifies an error or omission can file a Revised or Updated ITR. This includes individuals, companies, and other entities who realize they made mistakes in their initial filing.

How do I file a Revised or Updated ITR?

You can file a Revised or Updated ITR online through the Income Tax e-filing portal. The steps are: 1. Log in to the e-filing portal. 2. Select 'Revised Return' or 'Updated Return' option in the ITR section. 3. Enter the details of the original ITR (acknowledgment number) you want to revise. 4. Correct the errors and submit the revised return. 5. Verify the return using OTP or digital signature.

Is there any penalty for filing a Revised or Updated ITR?

There is generally no penalty for filing a revised return, as long as it’s done before the Income Tax Department issues any notice or completes the assessment. However, if there is a tax underpayment or incorrect claim, penalties and interest may apply based on the tax shortfall.

How many times can I file a Revised/Updated ITR?

You can file multiple revisions, but each must be done before the assessment is completed or before the deadline for filing an updated return (1 year from the end of the assessment year). There’s no limit on the number of times a return can be revised as long as it’s within the prescribed timeline.