How to Claim Missed Deductions by Filing Revised ITR
- PRITI SIRDESHMUKH
- 2 hours ago
- 11 min read
Missed claiming deductions like 80C, 80D, or 80G in your income tax return? The Income Tax Act, 1961 allows taxpayers to correct such omissions by filing a revised return under Section 139(5). This ensures you can still claim eligible deductions, correct income details, or update bank information before the assessment year ends. Filing a revised ITR helps maintain accurate compliance, minimizes refund delays, and prevents avoidable penalties — making it essential for anyone who realizes an error after filing their original return.
Table of Contents
What Is Section 139(5) and Why It Matters
Section 139(5) of the Income Tax Act, 1961 provides taxpayers with an opportunity to correct errors or omissions made in their originally filed Income Tax Return (ITR). This section allows individuals to revise their return if they realize they have missed claiming eligible deductions, reported incorrect income details, or entered wrong bank information. The key advantage of this provision is that it enables accurate tax computation and compliance without attracting penalties, provided the revised return is filed before the end of the relevant assessment year or before the completion of assessment, whichever occurs earlier.
Filing a revised ITR under Section 139(5) ensures that taxpayers do not lose out on benefits such as deductions under sections like 80C, 80D, or 80G, or suffer delays in refund processing due to incorrect entries. It promotes transparency and gives every taxpayer a fair chance to correct genuine mistakes made in the original filing.
Common Mistakes That Lead to Missed Deductions
Many taxpayers overlook deductions and exemptions while filing their ITR due to lack of awareness or missing documentation. Some of the most common errors include:
Forgetting to claim deductions under Sections 80C, 80D, or 80G.
Not reporting income from all sources such as savings account interest, fixed deposits, or freelance income.
Failing to include investment proofs or premium receipts while declaring deductions.
Entering wrong or inactive bank account details, which delays refund processing.
Selecting the wrong ITR form or filing under an incorrect head of income.
Using outdated salary or TDS details from previous employers.
These mistakes can lead to inflated taxable income and missed opportunities for tax savings. Filing a revised ITR helps correct these errors before the assessment year closes.
When and How to File a Revised ITR for Missed Deductions
A revised ITR can be filed as soon as the taxpayer identifies any omission or error in their original return. The deadline for filing a revised return is the end of the relevant assessment year or before completion of assessment, whichever is earlier. For instance, for FY 2024–25 (AY 2025–26), the revised ITR can typically be filed up to 31 March 2026 unless the return is already assessed.
The process involves logging into the official Income Tax Department portal or using an authorized e-filing platform like TaxBuddy. While filing, the taxpayer must mention the acknowledgment number of the original return and ensure all corrections—such as missed deductions or updated income details—are properly reflected.
Revised returns filed after the due date are not eligible for additional deductions, but they still allow corrections to ensure compliance. For processing errors discovered post-assessment, a rectification request under Section 154 can be filed.
Step-by-Step Process to Claim Missed Deductions in Revised Return
Log in to the Income Tax e-filing portal (www.incometax.gov.in) or through TaxBuddy’s platform.
Choose the option to file a revised return under Section 139(5).
Select the correct financial year and enter the acknowledgment number of the original return.
Update details such as missed deductions under Sections 80C, 80D, 80G, or others.
Attach valid documentation such as investment receipts, insurance premium slips, or donation certificates.
Correct any errors in income details or bank information.
Recalculate tax liability automatically through the portal.
Submit the return and complete electronic verification using Aadhaar OTP, net banking, or EVC.
TaxBuddy’s mobile app automates most of these steps by detecting missed deductions, validating input, and reminding users before deadlines, ensuring a smooth and error-free process.
Key Points to Remember While Updating Bank Account Details
Accurate bank details are essential to ensure refunds are credited on time. Taxpayers can update bank account information while filing a revised ITR if the original return is still under processing.
If the return has already been processed and the refund failed due to incorrect details, a rectification request under Section 154 can be submitted after updating the bank details on the income tax portal. Always ensure that the account is active, linked with PAN, and verified through pre-validation. Correct IFSC codes and account numbers prevent refund rejections and delays.
Is Claiming Missed Deductions Allowed in the New Tax Regime?
The new tax regime under Section 115BAC offers lower slab rates but restricts most deductions and exemptions available under the old regime. Therefore, deductions such as 80C (investments in PPF, ELSS, or life insurance), 80D (medical insurance premiums), and 80G (donations) cannot be claimed if the taxpayer opts for the new regime.
However, if a taxpayer originally selected the new regime but realizes that the old regime provides better tax benefits due to available deductions, they can switch to the old regime while filing a revised return, provided the switch is allowed under applicable rules. This flexibility ensures that taxpayers can maximize their savings based on actual deductions available to them.
How Missed Deductions Work in the Old Tax Regime
Under the old tax regime, taxpayers can claim a wide range of deductions to reduce taxable income. Some commonly missed deductions include:
Section 80C: Contributions to PPF, ELSS, life insurance premiums, and principal repayment on home loans.
Section 80D: Premiums paid for health insurance policies for self, family, or parents.
Section 80G: Donations made to approved charitable institutions.
Section 80TTA/80TTB: Interest earned on savings accounts and fixed deposits.
Section 24(b): Interest paid on home loans for self-occupied or let-out properties.
When missed, these can be added in a revised ITR with valid proofs such as receipts, payment confirmations, and investment documents.
Documents Required to Support Missed Deduction Claims
To ensure the revised return is processed smoothly, taxpayers must maintain proper documentation for all deductions claimed. These include:
Receipts of PPF, ELSS, or LIC premium payments.
Medical insurance policy and premium payment proofs.
Donation receipts with PAN and registration details of the charitable organization.
Interest certificates from banks for savings or fixed deposits.
Rent receipts and landlord PAN for HRA claims (if applicable).
Home loan interest certificate from the financial institution.
Proper documentation prevents rejection of claims and strengthens the accuracy of the revised ITR.
Impact of Revised ITR on Refunds and Processing
Filing a revised return effectively replaces the original return. Once submitted, the processing of the revised ITR takes precedence, and the refund or tax liability is recalculated based on updated information.
In most cases, filing a revised ITR helps accelerate refund processing because it eliminates mismatches or incomplete information from the original return. However, if multiple revisions are made, processing may take longer as the system re-evaluates each submission.
Accurate entries and timely submission ensure faster processing and reduced chances of scrutiny.
How TaxBuddy Simplifies Revised ITR Filing
TaxBuddy simplifies the entire process of filing a revised return through its AI-driven automation and expert-assisted approach. The platform scans the original ITR, detects potential missed deductions, and helps users claim them accurately. It also ensures all bank details are validated and documents are properly attached before submission.
TaxBuddy’s mobile app allows users to file or revise their ITR in just a few minutes. It provides real-time error checks, instant verification, and professional guidance to ensure compliance with the latest tax rules. Its automated reminders help taxpayers avoid last-minute rushes and missed deadlines, making tax filing truly seamless.
Precautions to Avoid Future Missed Deductions
Maintain a checklist of all eligible deductions before filing.
Keep digital and physical copies of all investment proofs.
Verify TDS and AIS data on the portal to ensure all income sources are covered.
Use automated tools like TaxBuddy’s deduction detector before submission.
Review your return at least twice before final filing.
File within the original due date to allow room for revisions if required.
Proactive planning and regular financial tracking can significantly reduce the risk of missing deductions.
Conclusion
Filing a revised ITR under Section 139(5) allows taxpayers to correct genuine mistakes and claim missed deductions without penalty, provided it’s done within the deadline. By reviewing returns carefully and using expert-guided platforms like TaxBuddy, taxpayers can ensure accurate filings and timely refunds. For anyone looking for assistance in tax filing, it’s recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted ITR filing plans, catering to different types of taxpayers. The self-filing option is designed for individuals with straightforward income structures—such as salaried employees or pensioners—who want to file returns on their own using an automated system. TaxBuddy’s AI-driven platform auto-fills data from Form 16, PAN, and AIS to minimize manual errors. The expert-assisted plan, on the other hand, is ideal for individuals with complex tax situations such as capital gains, F&O trading, foreign income, or multiple income sources. In this plan, a TaxBuddy tax expert reviews and files the return after a detailed discussion with the taxpayer, ensuring accuracy and compliance with the latest tax laws.
Q2. Which is the best site to file ITR?
The official Income Tax Department e-filing portal (www.incometax.gov.in) remains the government’s primary platform for filing returns. However, many taxpayers prefer TaxBuddy because of its intuitive interface, automated features, and post-filing support. Unlike the government portal, TaxBuddy provides real-time validation, expert guidance, AI-driven deduction detection, and post-filing assistance for notice handling. These features make it a more convenient and reliable choice, especially for individuals who are not familiar with tax laws or prefer an error-free filing experience.
Q3. Where to file an income tax return?
An income tax return can be filed in two main ways: through the Income Tax Department’s e-filing portal or by using a trusted e-filing platform like TaxBuddy. While the government portal offers the basic structure for filing, platforms like TaxBuddy make the process easier by automatically importing your Form 16 data, verifying TDS credits, identifying missed deductions, and generating accurate computations. Moreover, TaxBuddy’s mobile app enables users to file or revise returns directly from their phone, track refunds, and receive real-time updates on filing status—all while ensuring complete data security.
Q4. Can missed deductions be claimed through a revised ITR?
Yes. If a taxpayer realizes that certain deductions were not claimed in the original ITR, a revised return under Section 139(5) can be filed to include them. Common examples include deductions under Sections 80C (investments), 80D (health insurance), 80G (donations), and 80TTA (interest on savings accounts). The revised return must be filed before the end of the relevant assessment year or before assessment completion, whichever occurs first. Once filed, the revised return replaces the original one and is processed by the Income Tax Department for updated tax computation and refund, if applicable.
Q5. What happens if the revised ITR deadline is missed?
If the deadline for filing a revised ITR is missed, the taxpayer cannot file it under Section 139(5). However, another option—filing an Updated Return (ITR-U) under Section 139(8A)—is available. The ITR-U allows taxpayers to declare additional income or correct errors, but it cannot be used to claim missed deductions. In some limited cases, a rectification request under Section 154 can be made if the issue is due to a processing error by the department rather than an omission by the taxpayer. Therefore, it is advisable to review your return early and file any revisions well before the deadline to avoid losing tax benefits.
Q6. How many times can an ITR be revised?
The Income Tax Act does not restrict the number of times a return can be revised. Taxpayers can revise their ITR multiple times until the end of the relevant assessment year or before assessment completion. For example, for FY 2024–25 (AY 2025–26), the revised return can be filed any number of times until 31 March 2026, provided the return has not yet been assessed. Each revised return supersedes the previous one, and only the most recent return is considered valid. However, frequent revisions should be avoided to prevent confusion during processing and to ensure timely refund disbursal.
Q7. Will revising an ITR delay refunds?
In most cases, revising an ITR does not delay refunds; instead, it can speed up refund processing by resolving discrepancies between the original return and the data available with the Income Tax Department. When an ITR is revised, it is reprocessed based on the corrected information, and refunds are credited to the updated bank account if applicable. However, if a taxpayer files multiple revised returns close to the deadline, it may slightly delay processing as each version requires separate verification by the department. Filing the revised return early and accurately ensures a faster refund without unnecessary follow-ups.
Q8. Can bank details be updated in a revised return?
Yes, taxpayers can update or correct their bank account details while filing a revised ITR, provided the original return has not yet been processed. Updated details ensure that refunds are credited to the correct account. The account must be pre-validated and linked with PAN on the income tax portal for successful credit. If the original return has already been processed and the refund has failed due to incorrect bank details, the taxpayer can update the account and submit a rectification request under Section 154. It’s always advisable to use an active, verified, and PAN-linked account to avoid refund failures.
Q9. Is there a penalty for filing a revised return?
There is no penalty for filing a revised ITR under Section 139(5) as long as it is done before the due date for revisions. However, if the original return was filed late, a late filing fee under Section 234F applies. The fee can be up to ₹5,000, depending on the filing date and total income. Interest under Sections 234A, 234B, and 234C may also apply if taxes were paid after the due date. Therefore, timely filing of the original return ensures flexibility to revise later without incurring additional charges or interest.
Q10. What documents are needed to support missed deductions?
To validate missed deductions in a revised return, taxpayers must attach or retain supporting documents such as:
Investment proofs for PPF, ELSS, or National Savings Certificates (for Section 80C).
Health insurance premium receipts (for Section 80D).
Donation receipts with PAN and registration number of the charitable organization (for Section 80G).
Interest certificates from banks or post offices (for Section 80TTA or 80TTB).
Home loan interest certificates from lenders (for Section 24(b)).
Rent receipts and landlord details for HRA claims. These proofs ensure that deductions are recognized by the tax department and minimize chances of discrepancies during scrutiny.
Q11. How does TaxBuddy help with revised ITR filing?
TaxBuddy simplifies the entire process of filing a revised ITR through its AI-powered platform and expert-assisted service. The system scans the taxpayer’s previously filed return, automatically detects missed deductions, and generates accurate suggestions for revision. It also validates data from Form 16, AIS, and bank statements to prevent duplication or errors. TaxBuddy’s mobile app enables easy document uploads, automated verification, and e-verification via Aadhaar OTP or net banking. The platform also sends timely alerts and reminders for due dates, ensuring no deadlines are missed. Its expert team reviews every return for accuracy, offering peace of mind to taxpayers.
Q12. Why is it important to review deductions before filing ITR?
Reviewing deductions before submitting an ITR is essential for maximizing tax savings and avoiding revisions later. Many taxpayers miss claiming eligible deductions due to oversight or incomplete documentation. A pre-filing review helps verify whether all investment proofs, donations, insurance premiums, and loan payments have been correctly entered. It also ensures that all income sources, such as bank interest or part-time earnings, are disclosed accurately. Using digital tools like TaxBuddy’s deduction checker makes this process easier by cross-verifying data with your Form 16, AIS, and TDS records. A thorough review reduces errors, ensures compliance, and enhances the chances of faster refunds.
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