Income Tax: After filing the income tax return, if you feel that you have made a mistake in it or have given any data wrong, then you should revise your return. For this, you have to file the revised return within the stipulated time frame.
The deadline for filing income tax returns for the previous financial year is over. However, in some cases, taxpayers can still file their tax returns. For example, if you have filed a return, but you find any mistake in it, then you can file a revised return.
If you have not filed tax return for the financial year 2021-22, then you can file a belated return. If you want to update your old return, you can do that too. But, it has some limitations. Also penalty will have to be paid.
After filing the income tax return, if you feel that you have made a mistake in it or have given any data wrong, then you should revise your return. For this, you have to file the revised return within the stipulated time frame.
“This return has to be filed before three months from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier,” said Deepak Jain, chief executive, taxmanager.in. This means that for the assessment year 2022-23, you can file the revised return till December 31, 2022.
If needed, you can also modify the ITR form while revising the tax return. Yashu Sehgal, Head of Tax Markets, AKM Global, said, “There may be no penalty on the part of the department to rectify a genuine mistake. Interest will be charged every time a revised return is filed under sections 234B and 234C. There will be re-calculation. Before filing the revised return, the taxpayer has to ensure that the original return has been verified.”
You can revise the return more than once. But, remember that if you have filed the return in paper format, then you cannot revise it online.
A valid return filed within the time limit is called an original return under section 139(1). Under the assessment year 2022-23, its last date was July 31, 2022. Sehgal said, “If a taxpayer does not file the return within the deadline, but files the return after that, it is called a belated return under section 139(4).”
The belated return can be filed within three months from the end of the relevant assessment year. Therefore, returns filed after July 31, 2022 and up to December 31, 2022 will be called belated returns.
Taxpayer will have to pay penalty for filing belated return. If the taxpayer’s annual income is less than Rs 5 lakh, he will be liable to a penalty of Rs 1000. If the annual income is more than Rs 5 lakh, the penalty will be Rs 5 thousand.
Subsection (8A) was added to section 139 through the Finance Act 2022. This was done to file updated returns. This section provides that whether a person has filed an original, belated or revised return, he can file an updated return. There are some conditions for this.
“For updated return filing, the government has introduced a new facility of income tax return filing, which is called ‘Updated Return’,” Sehgal said.
For filing the updated return, the taxpayer has to pay a heavy penalty. Sehgal said, “The taxpayer has to pay an additional 50 per cent of this tax and interest along with the outstanding tax and interest. Taxpayers who want to file tax returns for the financial year 2020-21 will have to pay 25 per cent of the outstanding tax and interest. Additional amount will have to be paid.”
It is important to note that it is not permissible to file an updated return to show a lower income or loss. Sehgal pointed out that the updated return cannot be filed to set-off the earlier gains from the loss.
There is a separate ITR form for filing updated return, which is called ITR Form U. You have to provide the reason for filing the updated return.