How to File Revised ITR Under Section 139(5) for Missing Deductions and Avoid Penalties
- Bhavika Rajput
- 5 days ago
- 10 min read
Filing your Income Tax Return (ITR) is a crucial responsibility for all taxpayers in India. However, sometimes errors or omissions occur during the filing process, and you may find that your return does not accurately reflect all your income or deductions. In such cases, you can file a Revised Return under Section 139(5) of the Income Tax Act. This provision allows taxpayers to correct mistakes or omissions made in their original return before the assessment is completed. In this guide, we will explain what a revised return is, who can file one, and how you can do so to rectify any errors in your filed return.
Table of Contents
What is a Revised Return Under Section 139(5)?
A Revised Return under Section 139(5) is a return that a taxpayer can file to correct any mistakes or omissions made in the original Income Tax Return (ITR) filed under Section 139(1) (the regular filing section). The revised return can be filed when the original ITR is incorrect, whether due to missed income, incorrect deductions, wrong reporting, or any other mistake. Filing a revised return ensures that the taxpayer’s tax filing is accurate, and it avoids any potential penalties or issues during assessments.
The revised return is considered as a fresh filing, which means any previous discrepancies will be rectified, and the correct tax liabilities will be reflected in the updated filing.
Who Can File a Revised Return?
Any taxpayer who has already filed an original ITR can file a Revised Return under Section 139(5). The return can be revised to correct errors such as:
Missed Income: If income that was supposed to be included in the original return was omitted, you can file a revised return to include it.
Incorrect Deductions: If you missed claiming deductions (such as Section 80C deductions or HRA exemptions), you can correct this in the revised return.
Incorrect TDS or Other Credits: If TDS or other credits were reported inaccurately, you can file a revised return to reflect the correct values.
Data Entry Errors: Simple mistakes, such as incorrect data entry or wrong selection of tax regimes, can be corrected through a revised return.
In short, a revised return can be filed by anyone who realizes an error or omission in their initial return before the tax department has completed the assessment for that particular assessment year.
Deadline for Filing a Revised Return
The deadline for filing a revised return is before the completion of the assessment for the relevant assessment year. The assessment is usually completed when the Income Tax Department issues a final notice or when the assessment is done through a faceless assessment under Section 143(3).
In practice, a revised return must be filed:
Before the end of the relevant assessment year, which typically lasts one year after the financial year ends.
If the ITR is for the financial year 2024-25 (Assessment Year 2025-26), the last date for filing a revised return would generally be March 31, 2026.
If you have missed the deadline, you may not be able to file a revised return, and any errors or omissions in your return may require you to approach the tax authorities for clarification or correction.
Step-by-Step Guide: Filing a Revised ITR for Missing Deductions
Filing a revised return for missing deductions is a straightforward process. Here is a step-by-step guide:
Log into the Income Tax e-filing portal:
Go to the official Income Tax e-filing portal.
Use your credentials (PAN and password) to log in.
Select 'Revised Return':
After logging in, click on the 'e-file' tab and select 'Income Tax Return'.
Choose the Assessment Year (e.g., 2024-25) and select ITR Form based on your income type (e.g., ITR-1, ITR-2).
Fill in the Revised Return Details:
Select Section 139(5) as the reason for filing the revised return.
Enter the details from your original return, and then correct the missed deductions (e.g., Section 80C, HRA, etc.).
Recheck Your Data:
Carefully verify that all the information is accurate, including deductions and any missing income.
Cross-check the entries and make sure the TDS, income, and deductions are properly reflected.
Submit the Revised Return:
After reviewing the revised details, submit the form online.
Ensure that the revised return is successfully filed, and obtain the acknowledgment receipt.
Verification:
You can verify your revised return through e-verification methods, such as Aadhaar OTP, EVC, or net banking.
Common Mistakes and How to Avoid Them
When filing a revised return, there are several common mistakes that taxpayers should be cautious of. These mistakes can complicate the filing process and potentially delay refunds or result in penalties. Below are the key errors to avoid when filing a revised ITR:
1. Filing After the Deadline
One of the most critical mistakes to avoid when filing a revised return is missing the deadline. According to Section 139(5) of the Income Tax Act, a revised return must be filed before the end of the assessment year, which typically ends on March 31 of the following financial year. If you fail to meet this deadline, the revised return will not be accepted, and it could be deemed invalid. This means the original return stands as the final return for the assessment year, and no changes can be made afterward.
To ensure that you don’t miss this deadline, it’s important to keep track of important dates and file the revised return promptly. If you are unsure about the process or need guidance, it’s advisable to use a tax filing platform like TaxBuddy that can help you stay informed about deadlines and streamline the filing process.
2. Incorrect Form
Choosing the wrong ITR form can lead to significant delays in processing your revised return. The Income Tax Department has several ITR forms based on different types of income and taxpayer categories (e.g., ITR-1 for salaried individuals, ITR-3 for professionals, and ITR-5 for firms). If you file the wrong form, the return will be processed incorrectly, and you may have to file a new return or face penalties.
To avoid this mistake, always ensure that you are selecting the correct ITR form for your specific income and tax situation. If you’re unsure which form to use, seek guidance from a tax professional or utilize tax filing platforms like TaxBuddy, which provide clear instructions on selecting the right form for your circumstances.
3. Inaccurate Income Details
Another common mistake when filing a revised return is the misreporting of income details. This can include discrepancies in the reported salary, interest income, capital gains, or income from other sources. Inaccurate reporting of income can lead to a mismatch between the figures provided in the return and the data available with the tax authorities. This could trigger scrutiny, delays in processing, or, worse, penalties for underreporting income.
To avoid this mistake, carefully verify all the income details reported in your revised return. Cross-check your salary slips, Form 16, bank statements, and other financial records to ensure accuracy. Double-check the tax deductions and exemptions you are claiming as well, as errors here can further complicate the filing.
It’s also important to ensure that you are not missing any income, such as income from side businesses, freelance work, or other sources. Using a platform like TaxBuddy ensures that all your income sources are captured and correctly reflected in the revised return.
4. Missed TDS Credits
TDS (Tax Deducted at Source) credits are one of the most common sources of errors when filing or revising ITR. TDS is deducted by your employer or other entities before you receive your income, and it’s crucial that these credits are accurately reflected in your ITR. If you fail to ensure that all TDS credits are included or updated in your revised return, it can result in discrepancies and a delayed refund.
For instance, if your employer has deducted TDS but the details of the deduction are not updated in the tax records, your revised return will not reflect the correct TDS amount, which could delay processing or cause the return to be rejected.
Before filing your revised return, check your Form 26AS (TDS statement) to ensure all TDS credits are accurately reported. If there are any discrepancies or missing details, reach out to your employer or relevant entity to update the information. Additionally, ensure that the TDS credits are included in your revised return to avoid any issues with the tax department. TaxBuddy helps automate this process and provides error-checking tools to ensure that your TDS credits are correctly captured.
How to Avoid These Mistakes
To avoid the common mistakes listed above, it’s always best to take a meticulous approach when filing or revising your ITR. Tax filing platforms like TaxBuddy can significantly reduce the risk of errors, as they provide automated checks and guidance to ensure that all information is correct. These platforms help you:
Select the correct ITR form based on your income and filing category
Automatically import data from your Form 16, bank statements, and other financial documents to reduce manual entry
Verify and cross-check income details to ensure all sources are accurately reported
Keep track of all TDS credits and ensure they are reflected in your return
By using a comprehensive platform like TaxBuddy, you can significantly reduce the likelihood of filing errors, ensure that your revised return is accurate, and avoid any delays or penalties.
Consequences of Not Filing a Revised Return
Failing to file a revised return can result in several consequences:
Tax Audit or Scrutiny: If the mistake is significant, such as unreported income or missed deductions, the Income Tax Department may initiate a tax audit or scrutiny, which could delay the assessment process and lead to penalties.
Penalty and Interest: If the errors in the original return lead to additional tax liability, you may face penalties and interest charges for underreporting income or incorrectly claiming deductions.
Refund Delays: Filing a revised return can speed up refund processing. If you miss the opportunity to file a revised return, your refund may be delayed, and in some cases, not processed at all.
Penalties and Interest
If the revised return reveals that you owe more taxes than originally reported, the Income Tax Department may levy penalties and charge interest.
Penalty: Section 271(1)(c) provides for a penalty of 100% to 300% of the tax amount sought to be evaded if the incorrect return was filed with the intent to evade tax.
Interest: Under Section 234A, 234B, and 234C, interest is charged on unpaid taxes, which will increase if the errors are corrected after the original due date.
Conclusion
Filing a revised return under Section 139(5) is an essential tool for taxpayers to rectify mistakes made in their original tax return. This provision provides an opportunity to correct errors, avoid penalties, and ensure compliance with tax laws. Filing the revised return before the deadline ensures that you are not penalized for any discrepancies in your original filing, allowing for smoother and more accurate tax reporting. To make this process simpler and more accurate, using platforms like TaxBuddy can help taxpayers ensure their revised return is filed correctly, with fewer chances of error.
FAQs
Q1: Can I file a revised return after the assessment year?
No, a revised return must be filed before the end of the relevant assessment year. Once the assessment year concludes, the opportunity to file a revised return expires. If you miss the deadline, you can no longer make changes, and you may have to deal with the consequences of inaccurate reporting.
Q2: How many times can I file a revised return?
You can file a revised return as many times as necessary, as long as it is done before the end of the assessment year. Each revised return is used to correct errors or omissions in the original filing, such as missing deductions or wrong income reporting. However, frequent revisions should be avoided as they may raise concerns during tax assessments.
Q3: Can I file a revised return if I missed a deduction?
Yes, if you missed claiming a deduction in your original ITR, you can file a revised return to claim it. This is one of the most common reasons for revising an ITR, as many taxpayers often forget to include deductions such as under Section 80C, 80D, or 80G. A revised return allows you to correct this and possibly increase your refund.
Q4: Will filing a revised return automatically correct my refund status?
Yes, if your revised return shows that you are eligible for a higher refund, the tax department will process the new refund amount after reviewing the revised filing. However, if the revised return results in a higher tax liability, you will need to make the necessary payments, and your refund may be adjusted accordingly.
Q5: What if I realize an error after the deadline?
If you realize an error after the deadline for filing a revised return has passed, you cannot make any changes through the normal revision process. In this case, you would need to reach out to the Income Tax Department with a request for rectification. Depending on the nature of the error, you may face penalties or additional scrutiny from the department.
Q6: Can I revise my ITR if I filed it under a different regime (old vs. new)?
Yes, you can revise your ITR to switch between the old and new tax regimes, provided the revised return is filed before the end of the assessment year. If you initially chose the old tax regime but later realized that the new regime would offer greater benefits (or vice versa), you can file a revised return to make the switch.
Q7: How do I know if I’ve filed my revised return correctly?
Ensure that you have thoroughly checked all the corrections in your revised return and followed the correct procedure for filing. To avoid errors, it is recommended to use automated tax filing platforms like TaxBuddy, which guide you step-by-step through the process and help you avoid common mistakes.
Q8: Is there a penalty for filing a revised return?
Generally, there is no penalty for filing a revised return unless the original return was filed with deliberate incorrect information or fraudulent intent. If the tax department determines that your original filing was done intentionally wrong to evade taxes, you may be subject to penalties, including fines or even prosecution.
Q9: How do I avoid mistakes when filing a revised return?
To avoid mistakes when filing a revised return, carefully review your income, deductions, TDS credits, and other details before submitting it. Platforms like TaxBuddy provide error-checking tools that automatically identify discrepancies and offer corrections, helping you file accurately the first time.
Q10: How long does it take for a revised return to be processed?
Typically, it takes around 2-3 weeks for the Income Tax Department to process a revised return, although the exact time can vary based on the complexity of the return and the workload of the department. It’s important to keep track of your revised return and monitor any updates on the status of your refund or tax assessment.
Q11: Can I claim missed deductions through a revised return?
Yes, if you missed out on claiming any deductions in your original ITR filing, you can claim them by filing a revised return. This is a common reason for taxpayers to file a revised return and ensure they maximize their tax benefits. Make sure to include any missing documentation when submitting the revised return.
Q12: Will my refund be delayed if I file a revised return?
If your revised return increases the amount of refund due to you, the refund process may be delayed. This happens because the revised return needs to be processed, reviewed, and verified before the refund can be issued. However, if the revised return shows that you owe additional taxes, you will need to pay the balance amount, and the processing of your return may also be delayed.
Related Posts
See AllTaxpayers in India have the opportunity to reduce their taxable income through various deductions available under the Income Tax Act....
For taxpayers who do not receive House Rent Allowance (HRA) , Section 80GG of the Income Tax Act offers a valuable opportunity to claim...
When it comes to filing taxes, understanding the various tax deductions available can significantly reduce your overall tax liability....
תגובות