Filing Revised ITR Under Section 139(5) to Fix Errors in Reported Business Income

Section 139(5) of the Income Tax Act provides taxpayers with the opportunity to file a Revised Income Tax Return (ITR). This provision is critical when an error or omission is discovered in an original ITR that has already been filed. Filing a revised return allows taxpayers to correct mistakes or omissions and ensures that their return is accurate and complete. Whether due to misreported income, overlooked deductions, or discrepancies in TDS, filing a revised return ensures that taxpayers avoid penalties, reduce the risk of scrutiny, and maintain compliance with the Income Tax Department's requirements.

---

Table of Contents

• What Is Section 139(5) and Who Can Use It?

• When Should You File a Revised Return?

• Key Deadlines for FY 2024-25 (AY 2025-26)

• Step-by-Step Process to File a Revised ITR

• Why File a Revised Return?

• Recent Updates and News

• Conclusion

• Frequently Asked Questions (FAQs)

---

What Is Section 139(5) and Who Can Use It?

Section 139(5) of the Income Tax Act allows a taxpayer to file a revised return if they have made an error or omission in their original ITR. This section provides a safety net for taxpayers who wish to correct mistakes that might otherwise lead to penalties, increased tax liabilities, or a delay in refund processing.

Who can use it? Any taxpayer who has already filed their ITR and later discovers an error or omission can file a revised return under Section 139(5). This includes individuals, businesses, and professionals. Common reasons for filing a revised return include:

• Misreported income or deductions

• Overlooked TDS credits

• Errors in bank account or contact details

• Mismatched figures with Form 16 or Form 26AS

• Incorrect filing status (e.g., filing ITR 1 when ITR 2 is applicable)

The ability to file a revised return ensures that taxpayers can make necessary corrections before the final assessment, avoiding penalties or other consequences.

When Should You File a Revised Return?

A revised return under Section 139(5) should be filed when any of the following occurs after submitting the original return:

• Error in the Original Filing: If there is an error in the reported income, deductions, or other relevant financial information in your original ITR.

• Overlooked Deductions or Income: If you missed claiming any deductions or reported incorrect income in your initial return.

• Mismatch with TDS Credits: If TDS credits do not match the amount reflected in your Form 26AS or the TDS statements from your employer or other parties.

• Revised Forms or Documents: If you receive revised documents (such as a corrected Form 16 or Form 26AS) that alter your tax calculations.

It’s important to file the revised return before the completion of the assessment year (the deadline for filing the revised return). For FY 2024-25 (Assessment Year 2025-26), this means you need to file the revised return before the end of the relevant assessment year, or by December 31, 2025, for belated filings.

Key Deadlines for FY 2024-25 (AY 2025-26)

For the Financial Year 2024-25 (Assessment Year 2025-26), the following key deadlines apply for ITR filing:

• Original ITR Filing Deadline: The deadline for filing the original ITR for individuals and non-audit assessees has been extended to September 15, 2025.

• Revised ITR Filing Deadline: The revised return can be filed at any time before the end of the relevant assessment year, which is December 31, 2025, for FY 2024-25. If the revised return is filed after the original deadline, penalties may apply.

• Belated ITR Filing: If the original ITR is not filed by the extended deadline, it can still be filed as a belated return, but penalties will apply.

It’s essential to adhere to these deadlines to avoid penalties and interest on unpaid taxes, and to ensure timely processing of refunds.

Step-by-Step Process to File a Revised ITR

Filing a revised ITR under Section 139(5) is relatively straightforward. Here’s a step-by-step guide:

• Log in to the Income Tax Department Portal: Go to the officialIncome Tax E-filing Portal and log in using your PAN and password.
  

• Select the Correct ITR Form: If you need to file a revised return, select the same ITR form that you used for the original filing (e.g., ITR 1, ITR 2, etc.).
  

• Choose ‘Revised Return’ Option: When filling out the ITR form, select the option for filing a ‘Revised Return’ under the section where you are asked if this is your original or revised return. Enter the Acknowledgment Number of the original return (this can be found on the ITR-V or the filing receipt).
  

• Make the Necessary Corrections: Enter the correct information in the revised return form. This could include updated income, deductions, TDS credits, or any other adjustments. Ensure that all errors from the original return are corrected.
  

• Verify the Details: Double-check the accuracy of the details provided in the revised return. Ensure that there are no mistakes in the revised figures.
  

• Submit the Revised Return: After verifying the information, submit the revised return. If required, e-verify the return using methods such as Aadhaar OTP, net banking, or a digital signature certificate.
  

• Receive Acknowledgment: After submission, you will receive an acknowledgment receipt (ITR-V) from the Income Tax Department. This serves as proof of your filing.

Why File a Revised Return?

Filing a revised return is a crucial step in maintaining compliance with tax laws and ensuring that your income tax return is accurate. If you realize that there are mistakes or discrepancies in your original return, submitting a revised return provides multiple benefits. Here’s a detailed explanation of the key advantages of filing a revised return:

Avoiding Penalties

One of the primary benefits of filing a revised return is the avoidance of penalties. If, after submitting your original ITR, you notice mistakes—such as underreporting income, claiming incorrect deductions, or missing out on any TDS credits—you can correct these errors by filing a revised return. If these mistakes were left unaddressed, they could lead to penalties for incorrect filing. The Income Tax Department may also initiate scrutiny of your return, further complicating the process. By submitting a revised return, you rectify the error before it escalates into a bigger issue, thus ensuring you stay within the compliance framework and avoid potential penalties.

Correcting Mistakes

Tax filing errors are common, but they can have significant consequences. For example, reporting incorrect income or missing out on deductions you’re eligible for, such as tax-saving investments or deductions for medical expenses, can result in an inaccurate tax liability. Similarly, discrepancies in TDS credits—where the amount of TDS deducted by your employer or any other source of income has not been correctly reported—can lead to a mismatch between the taxes you’ve paid and the taxes you owe. A revised return allows you to make these corrections, ensuring your tax return reflects your true income and eligible deductions. This not only makes your return accurate but also prevents you from paying more tax than necessary or facing delays due to discrepancies.

Ensuring Accurate Refunds

An accurate tax return is crucial for ensuring that your refund amount is correct. Filing a revised return helps ensure that any legitimate claims, such as deductions or TDS credits, are fully accounted for. If you didn’t claim a deduction or missed reporting a TDS amount in your original return, the processing of your refund could be delayed or even incorrect. By submitting a revised return, you can ensure that the refund you receive is based on the correct calculations, which reflects the true amount of taxes paid or due for reimbursement. This ensures that you won’t face discrepancies in the refund amount and reduces the chances of further delays due to mismatches in your filing.

Reducing the Risk of Scrutiny

Another significant benefit of filing a revised return is that it reduces the likelihood of your return being flagged for scrutiny by the Income Tax Department. Tax returns that contain discrepancies, such as missed income, unreported deductions, or incorrect TDS credits, are more likely to attract attention from the department for review. If the errors are not rectified, they could lead to a detailed investigation, potentially resulting in fines, interest charges, or further penalties. A revised return demonstrates your commitment to accurate filing and compliance, signaling that you are proactive in correcting errors before they escalate into a bigger issue. By filing the revised return promptly, you ensure that your original submission is no longer subject to potential scrutiny, lowering the chances of additional tax audits or reviews.

Compliance with Tax Laws

At its core, filing a revised return ensures that you comply with tax laws. Tax laws require that all income is reported accurately and that legitimate deductions and credits are claimed. If an error is identified after the original return has been filed, it’s essential to correct it. By filing a revised return, you ensure that your tax filing is consistent with the rules set by the Income Tax Department. Complying with these regulations helps you avoid legal issues down the line and ensures that you are not in violation of tax laws.

Protection from Legal Issues

When mistakes in tax returns are not corrected, they can lead to more serious legal problems. For example, the Income Tax Department may issue a notice if they detect discrepancies in your return, and failure to resolve those issues may lead to tax evasion charges or legal action. By filing a revised return promptly, you take proactive steps to protect yourself from these potential legal complications. It is especially important if you have underreported income or failed to claim allowable deductions. In the case of more significant errors, such as omissions that lead to underreporting of taxes, filing a revised return ensures that you can address those mistakes before the matter is taken up legally.

Recent Updates and News

There have been significant updates related to Section 139(5) and the revised return filing process for FY 2024-25. These include changes to the ITR forms, additional fields for more detailed reporting, and the introduction of new validation rules to ensure the accuracy of submitted returns.

The Income Tax Department has also made updates to the e-filing portal to accommodate revised return filings more smoothly, allowing taxpayers to correct errors and submit updated returns without hassle.

These updates aim to make the filing process more transparent and efficient while reducing the occurrence of mistakes in tax filings. Taxpayers are advised to keep up to date with the latest instructions and guidelines issued by the Income Tax Department to avoid unnecessary delays in their return filings.

Conclusion

Section 139(5) offers an important provision for taxpayers to correct errors in their ITR filing and ensures compliance with tax laws. Filing a revised return is a useful tool for preventing penalties, ensuring accurate tax filings, and improving refund accuracy. It is essential for taxpayers to file their revised returns before the end of the assessment year to avoid delays or penalties. By following the steps outlined in this blog, you can easily rectify mistakes and ensure your returns are filed correctly. If you need assistance, platforms like TaxBuddy can provide guidance and support to ensure a smooth, accurate filing process.

Frequently Asked Questions (FAQs)

Q1: Can I file a revised return after the assessment year ends?

No, a revised return must be filed within the same assessment year. For FY 2024-25 (Assessment Year 2025-26), the last date to file a revised return is December 31, 2025. After this date, the opportunity to revise your return will be closed, and any necessary corrections must be made before the assessment year ends.

Q2: What documents do I need to file a revised return?

To file a revised return, you need the original ITR acknowledgment number, any updated income details, and supporting documents such as Form 16, Form 26AS, or any other tax deduction statements. If there were errors or omissions in your original filing, you must correct them in the revised return and submit the necessary supporting documentation.

Q3: Can I file a revised return if I missed a TDS deduction?

Yes, if you missed a TDS deduction or reported it incorrectly, you can file a revised return to correct the mistake. It’s important to ensure that the correct TDS details are reflected in your return to avoid issues with processing and refunds.

Q4: Do I need to e-verify the revised return?

Yes, just like the original return, a revised return must be e-verified. You can use Aadhaar OTP, net banking, or a digital signature certificate for the e-verification process. If the return is not e-verified, it will not be considered valid, and it may delay processing.

Q5: Will the revised return affect my refund?

Filing a revised return can affect your refund. If the revised return shows a higher tax refund, the Income Tax Department will process the refund accordingly. Conversely, if the revised return results in a lower refund or a tax liability, you may have to pay the additional amount.

Q6: What happens if I don’t file a revised return after noticing a mistake?

If you don't file a revised return after discovering a mistake, the Income Tax Department may penalize you for the error. Furthermore, any incorrect deductions or exemptions may be disallowed, leading to tax liabilities and potential interest charges. Not filing the revised return leaves the original, incorrect filing intact, which could lead to future scrutiny.

Q7: Is it possible to file a revised return for previous years?

Yes, you can file a revised return for previous years as long as it is within the assessment period for that specific year. However, the revised return must be filed before the end of the assessment year, and any corrections should be made promptly.

Q8: Can a revised return be filed multiple times?

Yes, a revised return can be filed multiple times, as long as corrections are made before the assessment year ends. If you discover further errors after submitting a revised return, you can file another revised return until the deadline is reached.

Q9: Is there a fee for filing a revised return?

No, there is no additional fee for filing a revised return. However, if you have outstanding taxes, penalties, or interest on the unpaid amount, you will need to pay those amounts along with the revised return. Filing a revised return does not incur extra fees, but failing to pay due taxes may lead to penalties.

Q10: How do I know if my revised return has been accepted?

Once you submit a revised return, you will receive an acknowledgment from the Income Tax Department. The status of your revised return can be checked through the e-filing portal. If the revised return is successfully processed, it will be marked as "Accepted" in the portal.

Q11: Can I file a revised return if my income tax return was accepted without error?

Yes, even if your original ITR was accepted without error, you can still file a revised return if you later discover any mistakes or omissions. You may have missed a deduction, reported income incorrectly, or realized that you need to claim additional exemptions, all of which can be corrected through a revised return.

Q12: Does TaxBuddy assist with filing a revised return?

Yes, TaxBuddy provides expert assistance with filing revised returns. If you’ve noticed an error in your ITR, TaxBuddy’s tax professionals can help you make the necessary corrections and file the revised return accurately. This ensures you remain compliant with tax regulations and avoid penalties or issues with your refund.