How to Correct Mistakes After ITR Has Been Processed
- PRITI SIRDESHMUKH
- Dec 1, 2025
- 9 min read
Mistakes in an Income Tax Return (ITR) are more common than most taxpayers realise — whether it’s an omitted income, a missed deduction, or an incorrect bank detail. Once the return is processed, many assume nothing can be done, but Indian tax laws provide specific remedies. Under Sections 139(5) and 154 of the Income Tax Act, errors can be corrected through a revised return or a rectification request, depending on the type of mistake. These legal provisions ensure fair compliance and accuracy without penalties, provided corrections are made within the prescribed timelines.
Table of Contents
Understanding Errors in a Processed ITR
After filing an Income Tax Return (ITR), the department processes it under Section 143(1) of the Income Tax Act. During this process, the system checks for errors such as incorrect income reporting, mismatched TDS, wrong deductions, or missing bank details. Sometimes, these errors occur due to minor discrepancies between Form 16, Form 26AS, AIS, or TIS data. The Centralized Processing Centre (CPC) issues an intimation showing whether your return has been accepted as filed or if any adjustments have been made. Understanding the nature of these errors is crucial before taking corrective steps like filing a revised return or rectification.
Filing a Revised Return under Section 139(5)
A revised return is filed when you discover mistakes or omissions in your originally filed ITR. Section 139(5) allows taxpayers to correct such errors by submitting an updated return before the due date for filing a revised return—typically by December 31 of the relevant assessment year. This can be used to fix missing income details, incorrect deductions, or changes in bank information. It’s important to use the same acknowledgment number from the original ITR while revising. Once the revised return is processed, it replaces the earlier one and becomes the valid version on record.
Filing a Rectification Request under Section 154
A rectification request under Section 154 is filed when an error is identified in the processing of the return by the Income Tax Department—not by the taxpayer. These errors are usually apparent mistakes like miscalculated TDS credit, unaccounted refunds, or mismatch in tax computation. Taxpayers can submit a rectification request online through the Income Tax Portal by selecting the “Rectification” option under their filed return. The CPC then reprocesses the return and issues a corrected intimation, either confirming or adjusting the refund or tax due.
Using ITR-U for Additional Corrections
ITR-U, or the Updated Return, was introduced under Section 139(8A) to allow taxpayers to correct or disclose previously missed income even after the deadline for revised returns has passed. It can be filed within 24 months from the end of the relevant assessment year. ITR-U helps taxpayers voluntarily correct underreported income, pay due taxes with applicable interest, and avoid penalties or notices. However, it cannot be used to claim additional refunds or reduce existing liabilities.
Common Mistakes Corrected After ITR Processing
Some of the most frequent post-processing corrections include wrong income categorization, missed interest income, incorrect TDS claims, and deductions under the wrong section. Other common errors include not verifying the return on time, leading to invalidation, or providing mismatched bank details that delay refunds. In many cases, taxpayers also miss reconciling Form 26AS and AIS before filing, leading to differences between reported and actual income. Identifying and fixing these early helps prevent scrutiny notices and penalties.
Revised Return vs Rectification: Key Differences
While both revised returns and rectifications serve to correct errors, their purpose and use differ. A revised return (Section 139(5)) is filed by the taxpayer to fix self-identified errors before assessment. In contrast, a rectification request (Section 154) is filed when there’s a computational or factual mistake made by the department in processing the return. A revised return replaces the original return entirely, while rectification simply modifies specific details without creating a new filing record.
Timelines and Deadlines for ITR Corrections
The due date for filing a revised return under Section 139(5) is December 31 of the assessment year, provided the original ITR was filed on time. For rectification requests under Section 154, the timeline is four years from the end of the financial year in which the order was passed. Updated returns under Section 139(8A) can be filed within 24 months from the end of the relevant assessment year. Missing these deadlines may restrict correction options, leading to the need for departmental intervention or penalty proceedings.
How to File Revised Return or Rectification Online
To file a revised return, log in to the Income Tax e-filing portal, select the assessment year, and choose “Revised Return (139(5))” as the filing type. Upload the corrected data in the appropriate ITR form and submit using the original acknowledgment number. For rectification, select the “Rectification” option under “Services” on the portal, choose the type of error (e.g., reprocess return or correct data), upload the necessary details, and submit the request. Always verify your submission via Aadhaar OTP, net banking, or DSC for it to be valid.
Practical Tips to Ensure Error-Free Filing
Ensuring an error-free income tax return filing requires attention to detail, accurate documentation, and timely action. Before submitting the return, it is essential to cross-check all the information provided in Form 16, Form 26AS, and the Annual Information Statement (AIS). These documents collectively capture your income details, TDS deductions, and high-value financial transactions. Any mismatch among these can lead to processing delays or even a notice from the Income Tax Department. Comparing the data line by line ensures that the income reported in the return exactly matches what is available in the department’s records.
Many taxpayers make the mistake of claiming deductions under the wrong section or repeating deductions already covered elsewhere. For example, claiming the same investment under both Section 80C and 80CCD(1B) or reporting health insurance premiums incorrectly under Section 80D. Such errors may reduce refund eligibility or cause discrepancies during scrutiny. Therefore, it is advisable to refer to the specific sections of the Income Tax Act applicable to your investments or expenses and claim only those deductions supported by valid documentation.
Another critical aspect of error-free filing is ensuring that your bank account details are updated and pre-validated on the e-filing portal. Incorrect or inactive account details can delay the crediting of refunds. Similarly, taxpayers must verify their income tax return within 30 days of submission using Aadhaar OTP, net banking, or an electronic verification code (EVC). Failing to verify within this time frame can result in the return being treated as invalid, requiring the entire process to be repeated.
Using an AI-assisted tax platform such as TaxBuddy can make this process significantly easier. The platform automatically cross-verifies data from multiple sources, detects potential mismatches in income or deduction entries, and provides real-time validation before submission. It also helps in computing eligible deductions, ensuring accuracy in tax calculations, and minimizing post-processing issues such as delayed refunds or compliance notices.
By combining accurate documentation, timely verification, and the efficiency of AI-powered tools like TaxBuddy, taxpayers can ensure that their filing is precise, compliant, and stress-free each financial year.
How TaxBuddy Simplifies ITR Corrections
TaxBuddy offers a complete digital solution for identifying and correcting ITR errors. The platform automatically scans your filed return for mismatches, missing income, or incorrect deductions. It helps you choose whether a revised return, rectification, or ITR-U is needed. With expert-assisted support, TaxBuddy professionals handle the end-to-end correction process and re-filing, ensuring compliance and faster refunds with minimal manual effort.
Conclusion
Correcting errors in a processed ITR is an essential part of maintaining accurate tax records and ensuring compliance. Whether it involves revising, rectifying, or updating a return, each method serves a specific purpose and must be applied correctly. Timely corrections prevent penalties, delays in refunds, and unnecessary scrutiny. For smooth, error-free ITR correction and filing, it’s best to rely on professional assistance.
For anyone looking for assistance in tax filing or ITR corrections, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. What should be done if an error is found after filing the ITR? If a taxpayer discovers any error or omission after submitting the return, they can file a revised ITR under Section 139(5) before December 31 of the relevant assessment year. This option allows correction of details such as income, deductions, or bank information without penalty. However, if the return was originally filed after the due date, it cannot be revised. In that case, an updated return (ITR-U) may be filed later with additional tax liability.
Q2. What happens if I ignore an error in a processed ITR? If an error or mismatch in a processed return is ignored, it can lead to notices from the Income Tax Department under Sections 143(1)(a) or 139(9). The CPC (Centralised Processing Centre) may adjust your refund, raise a demand, or even delay processing. Addressing discrepancies quickly ensures compliance, avoids penalties, and helps receive refunds faster.
Q3. Can both revised return and rectification be filed for the same year? Yes, but not for the same mistake. A revised return is filed by the taxpayer to correct self-made errors like incorrect income declaration or missing deductions. A rectification request under Section 154, on the other hand, is used to correct errors made by the Income Tax Department during processing—such as incorrect tax credit adjustments or arithmetic mistakes. Both can coexist for different issues.
Q4. What is the deadline for filing a revised ITR? A revised ITR must be filed by December 31 of the relevant assessment year. For example, for the financial year 2024–25 (assessment year 2025–26), the last date for filing a revised return is December 31, 2025. However, it is advisable to revise as early as possible to ensure timely processing and avoid confusion with refund calculations.
Q5. Can I file a rectification request more than once? Yes, a taxpayer can file multiple rectification requests, provided new discrepancies or updates arise. However, each request must be filed within four years from the end of the financial year in which the original intimation order was passed. Each submission should address specific issues or corrections, and proper documentation should be attached for validation.
Q6. What is the difference between a revised return and an updated return (ITR-U)? A revised return allows corrections before assessment when the taxpayer notices an error. An updated return (ITR-U), introduced under Section 139(8A), enables taxpayers to declare omitted income or correct major errors after the revision window closes. However, filing an ITR-U involves paying additional tax, interest, and a penalty ranging between 25% and 50% of the tax due, depending on the filing time.
Q7. How long does it take for a rectification request to be processed? The processing time for a rectification request generally ranges from a few weeks to a few months, depending on the issue and the CPC’s workload. Once processed, taxpayers receive an intimation under Section 154, confirming acceptance or rejection of the rectification. Status updates can be tracked on the income tax e-filing portal using the acknowledgement number.
Q8. Can I claim additional deductions while filing a rectification request? No. Rectification requests are meant only for correcting apparent errors, such as mismatched tax credits, incorrect refund calculations, or wrong data entry by the department. To claim additional deductions or disclose new income, a taxpayer must file a revised ITR before the deadline or an updated return (ITR-U) after it. Rectification cannot introduce new claims.
Q9. Will the refund change after I file a revised or rectified return? Yes, if your revised or rectified return changes your total income or deduction claims, it will impact the final tax computation. The CPC will recalculate the tax liability or refund accordingly. If excess tax was paid, the revised computation will result in a higher refund; if underpaid, a demand notice may be issued.
Q10. What happens if my rectification request is rejected? If the CPC rejects your rectification request, the order will mention the reason—such as lack of valid grounds or incomplete documentation. Review the details carefully; if an error persists, file a revised return (if within the timeline) or consult a tax expert for alternative resolution. Using platforms like TaxBuddy ensures such rejections are minimized through professional verification.
Q11. How can I avoid mistakes in future ITR filings? Always cross-check all documents—Form 16, Form 26AS, AIS, and TIS—before filing. Ensure all income sources, deductions, and TDS credits are reported accurately. Avoid manual entries where possible by using automated tax-filing platforms such as TaxBuddy, which pre-fills data and validates it against official records to eliminate errors.
Q12. How does TaxBuddy help with revised or rectified ITRs? TaxBuddy simplifies the entire correction process. It automatically detects mismatches between filed returns and department data, determines whether a revision or rectification is needed, and guides users step-by-step. The expert team ensures accurate data entry, document validation, and compliance with deadlines. This reduces the chances of rejection and ensures quicker refunds or resolution of pending issues.
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