Filing Revised Returns Under Section 139(5) for Missed Deductions and Income

Filing an Income Tax Return (ITR) is a crucial task for taxpayers every year. However, there may be situations where, after submitting your ITR, you realize that certain deductions, exemptions, or income were missed. Fortunately, the Income Tax Act provides a remedy for such errors through Section 139(5). This section allows taxpayers to file a revised return to correct any mistakes or omissions, including missed deductions or income, within a specified time frame. Understanding Section 139(5) can help you avoid penalties, ensure compliance, and secure a more accurate tax return. Let’s explore how Section 139(5) works, when you should file a revised return, and the steps involved in doing so.

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Table of Contents

• What is Section 139(5) and How Does It Help with Missed Deductions?

• When Should You File a Revised Return for Missed Deductions or Income?

• Who is Eligible to File a Revised Return Under Section 139(5)?

• Time Limit for Filing a Revised Return for Missed Deductions or Income

• How to File a Revised Return Under Section 139(5)

• Key Points to Remember While Filing a Revised Return

• Conclusion

• Frequently Asked Questions (FAQs)

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What is Section 139(5) and How Does It Help with Missed Deductions?

Section 139(5) of the Income Tax Act provides a mechanism for taxpayers to rectify errors or omissions in their initially filed Income Tax Returns (ITR). This provision allows you to file a revised return if you have missed claiming deductions, exemptions, or have incorrectly reported income. This section helps in addressing any discrepancies that may have been inadvertently overlooked while filing your ITR, including:

• Missed deductions or exemptions: For example, if you failed to claim deductions under sections such as 80C, 80D, or 80G, or exemptions like HRA, you can rectify them through a revised return.
  

• Omissions or incorrect reporting: If you’ve missed declaring income or made mistakes in your reported income (such as from interest, capital gains, etc.), Section 139(5) provides an opportunity to correct this.
  

By filing a revised return under Section 139(5), you ensure that your tax return reflects all accurate information, thus preventing penalties for under-reporting income or missed deductions.

When Should You File a Revised Return for Missed Deductions or Income?

Filing a revised return under Section 139(5) is necessary when you realize that you’ve missed out on claiming deductions, exemptions, or incorrectly reported income in your original ITR. Some scenarios where a revised return may be needed include:

• Missed Tax-saving Deductions: For example, if you forgot to claim deductions under Section 80C (e.g., investments in PPF, EPF), Section 80D (health insurance premiums), or any other eligible deductions.
  

• Omitted or Incorrectly Reported Income: If you missed declaring any income, such as freelance earnings, interest income, or capital gains, which can lead to an underreporting of taxable income.
  

• Wrong Details Entered: Sometimes, incorrect details may have been entered, such as wrong bank account numbers for refunds, incorrect TDS information, or wrongly selected exemptions.
  

• Tax-saving Investments: If you made tax-saving investments but forgot to mention them while filing the original return, you should file a revised return to claim these benefits.

You should file a revised return as soon as possible after discovering the mistake to avoid penalties, interest, or scrutiny from the tax authorities.

Who is Eligible to File a Revised Return Under Section 139(5)?

Any taxpayer who has already filed an original ITR and later discovers errors or omissions in the return is eligible to file a revised return under Section 139(5). This applies to individuals, Hindu Undivided Families (HUFs), companies, and other entities, provided they meet the following conditions:

• Filed the Original Return: You must have filed the original return before the due date.
  

• Mistakes or Omissions: You must have realized that there are errors, such as missed deductions or incorrect income reporting, in your original return that need rectification.
  

• Revised Filing Timeframe: The revised return must be filed before the completion of the relevant assessment year. For instance, if you are filing for the financial year 2024-25, the return must be filed by December 31, 2025.

Taxpayers are encouraged to file the revised return as soon as they realize an error to avoid any penalties or the possibility of receiving notices from the tax authorities.

Time Limit for Filing a Revised Return for Missed Deductions or Income

Section 139(5) imposes a time limit for filing a revised return, and it must be done before the end of the relevant assessment year. For example:

• For the Financial Year 2024-25 (Assessment Year 2025-26), the revised return must be filed by December 31, 2025.
  

• The return cannot be revised beyond this date, and any attempt to file a revised return after the deadline will not be accepted by the tax authorities.

Therefore, it is essential to keep track of these deadlines and file any revised returns well within the time limit to ensure that you don’t miss out on correcting mistakes and avoiding penalties.

How to File a Revised Return Under Section 139(5)

Filing a revised return under Section 139(5) is a straightforward process, and it can be done either online or offline. Here’s a step-by-step guide:

• Log in to the Income Tax Portal: Visit the official Income Tax Department website (incometax.gov.in) and log in with your credentials (PAN, password, etc.).
  

• Select the ITR Form: Choose the ITR form you originally filed. For example, if you initially filed ITR-1, select the same form again.
  

• Click on ‘Revised Return’ Option: Once you’ve selected the correct ITR form, choose the “Revised Return” option. You will be prompted to enter the original acknowledgment number (from the original ITR filing).
  

• Fill in the Correct Information: Make the necessary corrections or additions to the return. This could include adding missed deductions, correcting income amounts, or fixing any mistakes in the originally filed return.
  

• Submit the Return: After completing the necessary changes, verify the information carefully and submit the revised return. You will receive a revised acknowledgment receipt after submission.
  

• E-Verification: Once the revised return is submitted, it must be e-verified using any of the available methods (e.g., Aadhaar OTP, Net Banking, EVC, etc.).

By following these steps, you can file a revised return and ensure that all information in your tax return is accurate and compliant.

Key Points to Remember While Filing a Revised Return

While filing a revised return, there are several crucial points to keep in mind:

• Only Correct Mistakes: A revised return should only be filed to correct errors or omissions. Do not file a revised return to make changes that are not relevant to missed deductions or incorrectly reported income.
  

• Acknowledgment Number: Ensure that you enter the acknowledgment number from the original return while filing the revised return. This helps the system link the revised return with the original one.
  

• File Before the Deadline: The revised return must be filed within the specified time frame (before the end of the assessment year) to ensure that it is accepted.
  

• Tax Calculation: Double-check your calculations, as submitting a revised return with incorrect calculations can lead to further issues.
  

• No Impact on Refunds: If you’re due a refund, the revised return process does not affect the refund unless the new return results in a lower refund or higher tax liability.
  

• Updated Acknowledgment: After submitting your revised return, make sure to download the new acknowledgment receipt, which confirms your filing.

Conclusion

Filing a revised return under Section 139(5) is essential for anyone who discovers missed deductions or unreported income after filing their original return. It provides an opportunity to correct mistakes and remain compliant. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.

Frequently Asked Questions (FAQs)

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

Yes, TaxBuddy offers both self-filing and expert-assisted plans for Income Tax Return (ITR) filing. The self-filing plan is designed for those who are comfortable with the tax filing process and prefer to file their returns independently using TaxBuddy’s user-friendly platform. For taxpayers who want additional support or have complex financial situations, TaxBuddy provides expert-assisted plans, where qualified tax professionals help ensure that your ITR is accurate, compliant, and optimized for tax savings.

Q2. Which is the best site to file ITR?

The best site for filing ITR depends on your requirements and preferences. The official Income Tax Department portal is one option, but it may not provide the same level of guidance or user support. TaxBuddy is an excellent alternative, offering a streamlined, easy-to-use platform for filing taxes. It provides both self-filing and expert-assisted options, helping taxpayers navigate complex filings and ensuring timely, accurate returns.

Q3. Where to file an income tax return?

You can file your ITR on the official Income Tax Department portal atincometax.gov.in. Alternatively, platforms like TaxBuddy offer a simplified filing experience with the added benefit of expert assistance and guidance for a more efficient filing process.

Q4. Can I revise my return if I filed it after the due date (belated return)?

Yes, if you file a belated return after the original due date, you can still revise it. As long as it is filed before the end of the relevant assessment year, you can make amendments to correct any mistakes or update information that may have been missed initially.

Q5. What types of errors can be corrected in a revised return?

A revised return can be filed to correct various types of errors, including incorrect income reporting, missed deductions, incorrect TDS (Tax Deducted at Source) credits, or mistakes in the calculation of taxable income. Additionally, if there was an omission or wrong reporting of other information, such as exemptions or credits, a revised return allows you to fix these issues and comply with tax regulations.

Q6. How many times can I revise my return?

You can revise your return any number of times as long as it is done within the assessment year. Each revision must be filed before the assessment year ends, which means you have the opportunity to correct any mistakes multiple times during this period, ensuring accurate filing.

Q7. What happens if I miss the deadline for filing a revised return?

If you miss the deadline for filing a revised return, you lose the opportunity to amend your original return. You will need to wait for the Income Tax Department to process the original return, and if they notice discrepancies, you may be subject to penalties, fines, or scrutiny. Therefore, it is crucial to file revised returns within the allowable time frame to ensure compliance and avoid complications.

Q8. Will revising my return increase my chances of getting a notice?

Revising your return does not automatically increase the chances of receiving a notice. However, if the revision results in significant changes, such as a drastic increase in taxable income or errors that may raise concerns, it could attract scrutiny from the tax authorities. Filing accurate, well-supported revised returns minimizes the chances of receiving a notice and ensures that you remain compliant with tax laws.

Q9. Is there any penalty for filing a revised return with missed deductions or income?

If you file a revised return that corrects missed deductions or income, you may be subject to penalties if there was a delay in filing or if the error was due to negligence. However, if the revision is filed on time and in good faith to correct an honest mistake, you can generally avoid penalties. Filing on time and keeping clear records will help mitigate any penalties.

Q10. Can I make corrections for wrong ITR forms in a revised return?

Yes, you can make corrections for wrong ITR forms in a revised return. If you filed an incorrect form (for example, using ITR-1 instead of ITR-2), you can correct it by filing a revised return with the correct form. This ensures that your return complies with the specific requirements based on your income sources and tax situation.

Q11. How do I know which income to include while filing a revised return?

When filing a revised return, you must include all income sources that were initially omitted or incorrectly reported. This includes income from salary, business, investments, and any other sources of income like capital gains, rental income, or interest. The revised return should accurately reflect all income, deductions, and exemptions as per your financial documents, including Form 16, TDS certificates, and other relevant statements.

Q12. How does TaxBuddy assist in the revised return filing process?

TaxBuddy offers comprehensive support throughout the revised return filing process. If you discover errors in your initial filing, TaxBuddy allows you to easily file a revised return, ensuring all necessary corrections are made. The platform helps you identify and amend discrepancies, whether related to income, deductions, or TDS credits. Additionally, TaxBuddy’s expert-assisted plan ensures that the revised return is accurate and filed on time, avoiding penalties and issues with the Income Tax Department.