Section 139(5): A Guide to Revised Income Tax Returns
Updated: Jan 19
Submitting income tax returns is a financial responsibility for both individuals and businesses. Nevertheless, situations may arise that necessitate corrections or amendments to the initially filed returns. In such instances, Section 139(5) of the Income Tax Act, 1961 becomes relevant, providing a provision for taxpayers to submit a revised income tax return. This blog endeavors to provide insights into Section 139(5), its consequences, and the procedure involved in filing a revised return.
Table of Content
What is a revised return under section 139(5) of the Income Tax Act
A Revised Income Tax Return under Section 139(5) refers to the opportunity provided to taxpayers to correct errors, omissions, or any inaccuracies in their originally filed income tax returns by filing a revised return. Section 139(5) of the Income Tax Act 1961 grants taxpayers the right to file a revised return in case they discover any mistakes or need to update information that was not included in the original filing.
Here are key aspects and features of a Revised Income Tax Return under Section 139(5):
Correction of Errors: The primary purpose of filing a revised return is to rectify any errors or omissions present in the originally filed return. This could include inaccuracies in reporting income, claiming deductions, or providing other financial details.
Timeframe for Filing: Taxpayers can file a revised return within a specified timeframe; the revised return must be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Voluntary and Involuntary Revision: Taxpayers can file a revised return voluntarily if they discover mistakes on their own. Additionally, the income tax department may request a taxpayer to file a revised return if discrepancies are identified during the assessment process.
Replacing the Original Return: The revised return replaces the original return filed for a particular assessment year. Once the revised return is submitted, it is considered the final return for that year.
Reasons for Filing a Revised Return
There are several reasons why individuals or businesses might find it necessary to file a revised income tax return. Some common reasons include:
Error Correction: Rectifying mistakes or inaccuracies in the original return, such as errors in reporting income, deductions, or other financial details.
Missed Deductions or Credits: Discovering overlooked deductions, credits, or exemptions that were not claimed in the initial filing which can result in potential tax savings.
Additional Income: Reporting income that was unintentionally omitted in the original return, ensuring all sources of income are accurately accounted for.
Amendments to Financial Transactions: Addressing changes in financial transactions or investments that were not reflected accurately in the original return.
Reassessment of Eligibility for Tax Benefits: Reassessing eligibility for certain tax benefits, exemptions, or deductions based on new information or changes in personal or business circumstances.
Rectifying Mathematical Errors: Correcting mathematical errors or computational mistakes that may have led to discrepancies in the original return.
Responding to Tax Authority Requests: Filing a revised return in response to requests or notices from the tax authorities indicating discrepancies or the need for additional information.
Compliance with Tax Laws: Ensuring compliance with changes in tax laws or regulations that may impact the accuracy of the original return.
Audit Findings: Addressing issues identified during a tax audit, where discrepancies or errors are identified by tax authorities.
Financial Changes: Adapting the tax return to reflect significant financial changes, such as the sale or acquisition of assets, changes in business structure, or other financial events.
Who can file a revised income tax return under Section 139(5)?
Any individual or entity that has filed an original income tax return under Section 139(1) of the Income Tax Act, 1961, can file a revised income tax return under Section 139(5).
When Can I file a Revised Return?
A Revised Return can be filed before the last date of filing the return(31st December) or before the completion of the assessment, whichever is earlier.
Consequences of Filing Revised Return under section 139(5)
Filing a revised income tax return can have various consequences, and understanding them is crucial for taxpayers. Here are the primary consequences associated with filing a revised return:
Administrative Adjustments: For changes such as updates to bank account details or personal information, filing a revised return typically incurs no significant consequences.
Additional Tax Liability: Correcting errors or omissions may lead to an increase in tax liability. The taxpayer may owe additional taxes if the revised return results in a higher taxable income.
Refund or Reduced Tax Liability: Conversely, filing a revised return may decrease tax liability, resulting in a refund for the taxpayer. This occurs when additional deductions or exemptions are claimed in the revised return.
Interest and Penalties:
If the revised return results in additional tax liability, the taxpayer may be liable to pay interest on the overdue tax amount.
Scrutiny: Filing a revised return may attract the attention of tax authorities, potentially leading to a scrutiny of the taxpayer's financial records. This scrutiny ensures compliance with tax laws.
Verification and Validation: The tax authorities will scrutinize the revised return to ensure that corrections are accurate and comply with tax laws. Inconsistencies or discrepancies may lead to further inquiries.
Frequent revisions or corrections may impact the taxpayer's credibility with tax authorities. Consistent accuracy in filings enhances trust, while repeated revisions may raise questions.
Time and Effort: Filing a revised return requires time and effort to ensure accurate corrections. Taxpayers should be prepared for the administrative tasks involved in the revision process.
Can a Belated Return revised?
A taxpayer who has previously submitted their income tax returns retains the option to revise and refile their return. This applies even if the return was filed after the due date, commonly referred to as a belated income tax return.
How to File Revised Return under section 139(5)
Here's a step-by-step guide on how to file a revised Income Tax Return (ITR):
Step 1: Log in to the Income Tax e-Filing Portal:
Visit the official Income Tax e-Filing portal ) and log in using your credentials.
Step 2: Select the Appropriate Assessment Year:
On the dashboard, select the relevant assessment year for which you want to file a revised return.
Step 3: Locate and Click on the 'Revised Return' Option:
Under the 'e-File' tab, choose the 'Income Tax Return' option. Select the option for filing a revised return.
Step 4: Provide Original Return Details:
Enter details of the original return, including the acknowledgment number and the date of filing. This information is crucial for linking the revised return to the original one.
Step 5: Choose the Appropriate ITR Form:
Select the same ITR form that was used for filing the original return. Ensure that you choose the correct form based on your income sources and nature of income.
Step 6: Make Corrections:
In the revised return form, make the necessary corrections or updates. Address any errors, omissions, or changes in income, deductions, or other relevant details.
Step 7: Update Supporting Documents:
If any changes involve supporting documents, make sure to upload or submit them along with the revised return.
Step 8: Verify and Submit:
Double-check all the information provided in the revised return form for accuracy. Once satisfied, submit the revised return.
Step 9: Acknowledgment of Revised Return:
After successful submission, a new acknowledgment number for the revised return will be generated. Keep this acknowledgment number for future reference.
Step 10: Verification of Revised Return:
After submission, it is essential to e-verify the revised return. This can be done electronically using methods such as Aadhaar OTP and EVC (Electronic Verification Code) or by sending a signed physical copy of the ITR-V to the Centralized Processing Center (CPC) within the stipulated timeframe.
Step 11: Monitor Processing Status:
Keep an eye on the processing status of the revised return on the e-filing portal. The status will change from 'Submitted' to 'Processed' once the revision is complete.
All you need to know before filling Revised Return
A revised income tax return completely replaces the original one, making it the final submission for the relevant assessment year.
The income tax department imposes no penalties or charges for filing a revised income tax return. This provides a safety net for correcting any errors or oversights in the initial filing.
You have the flexibility to file a revised tax return as many times as necessary; there is no restriction on the number of revisions.
Once the assessment of your income tax return is completed by the assessing officer under Section 143-(3) of the Income Tax Act, filing a revised return is no longer an option.
FAQ
Q1. What is Section 139(5) of the Income Tax Act?
Section 139(5) allows taxpayers to file a revised income tax return to correct errors or omissions in the originally filed return.
Q2. Can I file a revised return after the due date under Section 139(5)?
Yes, a revised return under Section 139(5) can be filed even if the original return was filed after the due date.
Q3. Are there any limitations on the number of times I can file a revised return under Section 139(5)?
No, there is no specific limit on the number of times a taxpayer can file a revised return under Section 139(5).
Q4. What are the common reasons for filing a revised return under Section 139(5)?
Common reasons include correcting errors in income details, claiming overlooked deductions, or updating information that affects the tax liability.
Q5. Is it mandatory to file a revised return if I discover mistakes in my original return?
It is not mandatory but advisable. Filing a revised return is a way to ensure accurate reporting and compliance with tax laws.
Q6. Can I revise my return if the assessment is completed under Section 143(3)?
No, once the assessing officer completes the assessment under Section 143(3), a revised return cannot be filed.
Q7. Are any penalties for filing a revised return under Section 139(5)?
No, the income tax department does not impose penalties for filing a revised return under Section 139(5).
Q8. Can I make changes to personal details in a revised return?
Yes, a revised return can be used to update personal details such as contact information or bank account details.
Q9. What is the time limit for filing a revised return under Section 139(5)?
The revised return must be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Q10. How do I file a revised return under Section 139(5)?
Log in to the income tax e-filing portal, select the 'Revised Return' option, provide details of the original return, make necessary corrections, and submit the revised return.
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