How to Withdraw an ITR Filed Under Section 139(5)
- Rajesh Kumar Kar
- 1 day ago
- 9 min read
With the Income Tax Department introducing the “Discard Return” feature for AY 2023–24 onwards, taxpayers can now withdraw an unverified ITR filed under Section 139(5). This option applies only to revised, original, or belated returns that remain unverified and need correction before submission. Once discarded, the return is permanently removed, allowing a fresh filing within the permitted timelines. This update aims to reduce filing errors and simplify the process of correcting mistakes without unnecessary complications. Digital platforms like TaxBuddy help streamline the process with alerts, guided steps, and automated checks.
Table of Contents
Understanding Section 139(5) and the Purpose of Revised Returns
Revised returns exist to fix mistakes without disrupting the overall compliance process. Section 139(5) allows a taxpayer to update an earlier filing if something was missed, misreported, or incorrectly entered. This may include a missed deduction, an overlooked income source, a TDS mismatch, or even a wrong bank account. The provision ensures errors do not lead to unnecessary notices or penalties, provided the revisions happen within the permitted timeline. With increased reliance on pre-filled data and automated systems, revised returns help restore accuracy when something goes off track during the initial filing.
Eligibility to Withdraw an ITR Filed Under Section 139(5)
Withdrawal is permitted only for revised returns that remain unverified. The “Discard Return” feature applies to ITRs filed under Sections 139(1), 139(4), and 139(5), but only from AY 2023–24 onwards. The moment an ITR is verified through Aadhaar OTP, EVC, bank confirmation, or DSC, it becomes locked. At this point, withdrawal stops being an option. Instead, any correction must follow the revised-return route again if timelines allow. The eligibility rule is simple: unverified returns can be discarded, verified ones cannot.
How to Withdraw an Unverified Revised ITR Under Section 139(5)
Withdrawal is quite straightforward when the return has not been verified. The taxpayer can choose to discard the revised ITR, which permanently removes it from the system. Once this is done, the portal reflects the return as non-existent, and a fresh filing becomes possible. The withdrawal mechanism helps prevent incorrect data from being finalized and ensures that only the corrected version reaches the verification stage.
Step-by-Step Guide to Using the “Discard Return” Feature
The process to discard an unverified revised ITR requires only a few steps:
Log in to the Income Tax e-Filing portal.
Go to the “View Filed Returns” section.
Choose the assessment year and locate the revised ITR filed under Section 139(5).
Select the “Discard” button to permanently delete the unverified filing.
Proceed to file a fresh ITR if required, ensuring it is completed within the applicable deadline. This system eliminates the need for backend requests or manual corrections, speeding up the entire cycle.
When the Discard Option Cannot Be Used
Once an ITR is verified, the discard feature becomes unavailable. The portal treats the filing as officially submitted, and any correction must follow the revision process. Returns that are processed, under assessment, or outside the revision timeline also cannot be withdrawn. In all such cases, the only path available is filing a revised return if the window is still open. If the revision window has closed, corrections can be made only through responses to notices like Section 139(9) or Section 143(1).
Deadlines and Penalty Implications for Discarding a Revised Return
The discard option remains available only until the return is verified and the filing window for that assessment year remains open. If a return is discarded after the original due date has passed, any newly filed ITR is treated as a belated return. Belated returns may attract consequences such as late fees under Section 234F and possible interest under Sections 234A and 234B. This makes it important to discard and re-file early rather than waiting closer to deadline dates.
What Happens After an ITR Is Discarded?
The return is removed from the system immediately and cannot be restored. It will no longer appear under “Filed Returns,” and the platform will treat it as if the return was never filed. A new return can then be filed under the applicable section, depending on the current date and the status of available filing windows. The action is irreversible, which is why taxpayers must double-check before confirming the discard instruction.
Correcting Errors in Verified or Processed Revised Returns
If a revised return is already verified, the withdrawal option does not apply. The only way to fix issues in such cases is by filing another revised return within the revision deadline. Processing status does not prevent revision, as long as the time limit has not expired. If the window for revision has passed, corrections can only happen through departmental communication, such as responding to error notifications or filing rectification requests under Section 154.
Impact of the Discard Feature from AY 2023–24 Onwards
The introduction of the discard option led to fewer incorrect filings moving forward to verification. It reduces the risk of downstream notices and makes error correction quicker. Most importantly, it provides a safety net while taxpayers prepare revised returns. With more individuals filing digitally and relying on automated data imports, the discard feature serves as a practical checkpoint to avoid locking in mistakes that could have long-term consequences.
Practical Scenarios When Discarding a Revised ITR Is Useful
Situations where the discard option proves helpful include instances where incorrect income values were uploaded, deductions were miscalculated, bank details were wrong, TDS entries were mismatched, or AIS inconsistencies were overlooked. Another common case is when a taxpayer accidentally submits a revised return with incomplete data. Discarding prevents such flawed filings from reaching verification and allows a corrected version to replace them.
Common Mistakes to Avoid When Withdrawing a Revised Return
Some frequent errors include discarding the return too close to the deadline, misunderstanding that discarded returns cannot be restored, failing to verify the freshly filed return in time, or assuming that processed returns can also be discarded. Another mistake is forgetting that discarding an ITR after the due date results in a belated filing designation. Reviewing all details carefully before discarding helps avoid unnecessary complications.
How Digital Platforms Like TaxBuddy Help in Managing Revised Returns
Digital tax platforms simplify the filing and revision processes by identifying errors proactively. Tools like TaxBuddy highlight mismatches, suggest corrections, and notify users when timelines are approaching. The platform assists with managing revised returns, ensuring that filings are accurate, verified on time, and fully compliant. This reduces the chances of future notices and provides clarity throughout the correction cycle.
Conclusion
The discard feature introduced for AY 2023–24 onwards has made it easier to withdraw unverified ITRs filed under Section 139(5). It ensures taxpayers can correct mistakes early, file fresh returns smoothly, and avoid unnecessary inaccuracies. Managing revised returns becomes even simpler with the help of guided platforms that reduce the risk of errors. For anyone looking for assistance in tax filing, it is highly 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 provides flexibility through two modes of filing. The self-filing plan is designed for taxpayers who prefer to handle their returns independently, supported by AI-driven validation and automatic data checks. It guides users through uploading Form 16, fetching pre-filled information, and identifying possible mismatches. The expert-assisted plan offers a more personalised experience, where trained tax professionals handle review, correction, and submission of the return. This model is preferred by individuals dealing with capital gains, business income, rental complexities, or past-year discrepancies. Both approaches ensure compliance and reduce the chances of filing errors.
Q2. Which is the best site to file ITR? The Income Tax Department’s e-filing portal is the official platform for filing returns in India. It is comprehensive and suitable for taxpayers who already understand filing requirements. However, many individuals choose platforms like TaxBuddy for a smoother experience, particularly when they want automated assistance or help decoding entries from AIS/TIS. These platforms highlight potential discrepancies, suggest corrections, and provide clarity during the filing process. For most taxpayers, the best site depends on whether they prefer a straightforward government interface or a guided, assistance-driven platform such as TaxBuddy.
Q3. Where to file an income tax return? Income tax returns can be filed directly on the official portal of the Income Tax Department or through reliable third-party platforms that simplify tax preparation. Those who want automation, error checks, and form guidance often use digital tools like TaxBuddy for a more structured experience. The platform integrates data from the portal, offers step-wise filing support, and ensures the return is submitted accurately. Both methods are valid, and taxpayers can choose the one that aligns best with their comfort level.
Q4. Can a verified revised return be withdrawn under Section 139(5)? A verified revised return cannot be withdrawn. Once the return is validated using Aadhaar OTP, EVC, bank confirmation, or DSC, it becomes part of the system and cannot be removed. Any further corrections must be made by filing another revised return, provided the statutory deadline for revision has not passed. If the filing window is closed, the only way to address inaccuracies is through rectification requests or departmental communication after an intimation is issued.
Q5. Is the discard option available for all assessment years? The discard feature is available only from Assessment Year 2023–24 onward. This means returns relating to earlier years cannot be withdrawn, regardless of whether they remain unverified. The feature was introduced in alignment with the new portal interface to help taxpayers correct early-stage filing errors more efficiently. For older years, the only corrective path continues to be revision within deadlines or rectification after processing.
Q6. What happens if an ITR is discarded after the due date? If an ITR is discarded after the due date for filing original returns, any subsequent filing is categorised as a belated return. Belated returns may attract late fees under Section 234F and interest for delayed payment of tax dues. Additionally, belated returns do not allow certain benefits such as carrying forward some types of losses. Discarding the return early helps avoid these disadvantages and ensures the replacement return is treated as a regular filing rather than a belated one.
Q7. How many times can an ITR be discarded under Section 139(5)? There is no specific numerical limit mentioned for discarding an ITR, as long as the return remains unverified and the filing window for the relevant assessment year is still open. However, excessive discarding may lead to mistakes or rushed filings nearing deadlines. It is advisable to review the return carefully and proceed with discarding only when completely certain that corrections are necessary.
Q8. Can a discarded return be restored? No. Once a return is discarded, it cannot be retrieved or reinstated under any circumstances. The discard action permanently deletes the filing from the system, treating it as though it were never submitted. This is why the feature includes confirmation prompts to prevent accidental withdrawal. Any new return filed after this action becomes the only valid return for that assessment year.
Q9. Does discarding a revised return remove all submitted data? Yes. Discarding an unverified return completely removes it from the portal. Details such as income entries, deductions, bank account information, and TDS records reported in that specific filing disappear. The system does not retain a copy for reference. However, pre-filled data from AIS, TIS, or Form 26AS remains available when preparing a new return because it originates from external data sources.
Q10. What if someone discards the ITR by mistake? An accidental discard cannot be reversed, as the feature does not include a restore or undo option. In such situations, the only solution is to prepare and file a fresh return immediately. Filing early helps avoid belated return treatment, late fees, or missed deductions. Taxpayers should verify all details before confirming the discard option to prevent errors.
Q11. How to correct errors in a verified revised return if it cannot be withdrawn? Errors in a verified revised return can only be fixed by filing another revised return, provided the revision window is still open. Section 139(5) allows multiple revisions within the permitted deadline. If the window has closed, corrections can be made through a rectification request under Section 154 after the ITR is processed. Major discrepancies, such as mismatched income or incorrect TDS claims, may be addressed during scrutiny or reassessment, depending on the department’s findings.
Q12. How does TaxBuddy help with revised returns and the discard process? TaxBuddy helps identify errors early by comparing user inputs with AIS/TIS data, pre-filled information, and tax computation rules. The platform alerts users when deductions are missing, TDS is mismatched, or incomes are incorrectly reported. It also guides users on whether discarding or revising the return is the correct approach. Expert-assisted users receive personalised support from tax professionals who advise on compliance timelines, penalties, and the best corrective method. This streamlined experience reduces the risk of filing mistakes and ensures accurate submission.
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