How to Correct a Wrongly Filed ITR

We file our income tax returns with the utmost care and seriousness to ensure that we don’t make any mistakes. However, amidst all the hassle and confusion of the documentation, calculation and verification of our income tax returns, we tend to miss out a few things while filing the application, which we only remember after we have submitted our income tax returns.

Now, we are left in a tizzy. How to correct wrongly filed ITR? This is the first question that rings in our mind. And we scramble to the e-filing portal to find the answers. At the end of this entire drama, we are left anguished by the thought of going through the process of refiling our income tax return again.

A commonly observed mistake on tax returns includes claiming the wrong deduction amount, forgetting to mention the interest income or wrong bank account number for the refund. You don’t need to worry if there is such a mistake on tax return already filed by you. As per the laws enacted by the Income Tax Act, you will be able to correct and refile your income tax returns application. According to tax experts, Section 139(5) of the Indian Income Tax Act, 1961, allows the individual to rectify the mistake by allowing to file a revised income tax return. So, if you discover the error only after you have applied the ITR form, you can still rectify it as per the law.

The law asserts that if an individual discovers any wrong statement or any omission, then can file a revised income tax return before the particular assessment year ends or prior to the conclusion of the relevant assessment, the earliest will be considered as the end date. The year that immediately follows the financial year is called the assessment year. So, let us understand what is revised return and how to correct wrongly filed ITR.

What does revised return mean?

Section 139(5) of the Income Tax Act, 1961, allows an individual to file for revised income tax returns if they discover that they have committed errors or omissions of facts and figures while filing their income tax returns application for the given financial year. Filing revised income tax returns simply means that the individual has to file the income tax returns again, but with all the correct and relevant information. Further, while filing the revised income tax returns, the individual has to mention the details of their first income tax returns application.

Who is eligible to file revised income tax returns?

As per Section 139(5) for the Indian Income Tax Act, 1961, every taxpayer who has filed their income tax returns for the given financial year is eligible to revise their income tax returns form and furnish the right data to the income tax department. Until recently, this benefit was only applicable to those individuals who have filed their income tax returns before the final date of filing income tax returns. Anyone who filed belated income tax returns didn’t get the benefit. However, as per the latest amendment, individuals who have filed belated income tax returns (individuals who have filed their income tax return after expiry of the final date) are also allowed to file the revised income tax returns.

What is the final date for filing revised income tax returns?

Earlier, a taxpayer was given the time limit of one year post the completion of the assessment year to file their revised income tax returns. This means that a taxpayer was given a time of two years to file their revised income tax returns after the completion of the particular financial year for which the original income tax return was filed. However, this time limit for filing revised income tax returns has been reduced since last year.

As per the new laws of the Income Tax Act, a taxpayer has the time limit only till the end of the applicable assessment year to amend their mistakes. Thus, for instance, if an individual files his or her income tax returns for the FY 2018-19, then they will get the time limit till March 31st 2020 to rectify their mistakes and file a revised income tax returns application.

What is the procedure to file revised income tax returns?

The general procedure of filing the revised income tax returns is identical to that of the original. However, the individual gets the benefits of filing the revised returns as per Section 139(5) of the Income Tax Act. According to this act, the individual needs to select the option “17 – Revised u/s 139(5)” from the column “Return filed under”. This revised income tax returns form will ask additional details about the original income tax returns form, i.e. the date of filing the original income tax returns form and the receipt number.

Can you file the revised income tax returns more than once?

As per the Income Tax Act, currently, there does not exist any limitation on the number of times an individual can file the revised income tax returns. However, every time the individual files for a revised income tax returns form, they need to furnish the details of the original income tax return application. Remember, revised ITR is an opportunity to rectify the errors made in the original income tax returns, and this benefit should not be misused. Thus, every individual should practice utmost care, sincerity and seriousness while filing their original income tax returns form, to avoid any hassles later.

Tips to remember

After filing the revised income tax returns, the individual should make sure that they completed the process of verification of the revised form. If the form is not verified, then the Income Tax Department will reject the revised income tax returns. There are two methods an individual can use to verify their revised income tax returns form:

• The individual can perform e-verification with the help of electronic methods like OTP, Aadhaar, EVC via online banking. 
• Alternatively, they can mail a copy of the acknowledgement receipt (ITR-V) with their signature to CPC, Bengaluru as physical verification.

However, if the assessing officer has completed the scrutiny assessment of the income tax returns, then, as per Section 143(3) of the Indian Income Tax Act, 1961, the taxpayer will not be able to file their revised income tax returns.

Finally, every taxpayer should keep in mind that the final date to file their revised income tax returns and the final date to file belated income tax returns is the same, which is March 31st of the given assessment year. Thus, if the taxpayer files a belated income tax returns form for FY 2018-19 (AY 2019-20) on March 31st 2020, then they will not be able to file a revised income tax returns application if they made any mistake in filing the original form, as the final date for filing revised income tax returns form for the FY 2018-19 would have already expired.

With the details given above, you should have no doubts on how to correct wrongly filed ITR. However, if you need any further clarifications on the process, watch out for this space as we update about other tax-related matters.