Filing ITR Errors Can Be Fixed – Guide on Filing a Revised Return Without Penalties

The procedure of filing your Income Tax Return (ITR) is sometimes straightforward, but others it can be more intricate. You may find, in the course of trying to submit your ITR, that you have licensed a mistake. This can stem from forgetting to report a source of income, stating details incorrectly, or even a simple typographical error. The good news is the Income Tax Department of your country allows you to submit a revised ITR which helps you in correcting these mistakes. If you file the revised ITR within specific timelines, you can avoid a penalty quite often.The Income Tax Act allows issuance of a revised return to correct the mistake in ITR, therefore a return can be revised. This is possible under Section 139(5) of the Income Tax Act. You can revise your return any time within a year from the end of the relevant AY (Assessment Year) unless the assessment is completed, whichever is earlier. For example, if you filed your ITR for FY 2024-25 (AY 2025-26), you can revise your return until March 31 2027, or earlier if the assessment initiated is already in progress.Essential aspects to consider when submitting a revised ITR: Original Return Must Be Filed First: For any specific Assessment Year, you may only file a revised return after you have first filed the original return, even if it was filed late. Identify the Error Clearly: Be specific when describing what information needs to be corrected, this can include a range of updated bank account details, an updated address, reported salary income, or even capital gains and deductions. No Penalty for Timely Revision: If revisions are made within the time limits set forth, there are no additional penalties for the revisions themselves. It may be important to note, however, that if you incur additional tax liability as a result of the revisions, you will have to pay additional tax, as well as interest, according to the rule of 234A, 234B, 234C. Reason for Revision: You are usually required to provide reasons for revising the return, including details of the error made during the original filing. Use the Correct ITR Form: You should ensure to use the same ITR form that was filed originally.Revised Return Supersedes Original: After submission, the revised return will be the only return you have legally for that particular Assessment Year.Reasons for Filing a Revised ReturnFrom a compliance perspective, even if the error does not increase your tax burden, fixing inaccuracies is important. It safeguards your tax records, which is important, especially when the Income Tax Department uses the AIS and data analytics to cross-reference information. Moreover, not fixing a significant error could invite scrutiny or notices from the department.