Revised Income Tax Return under Section 139(5) – Time Limit, Procedure, Provisions
Revised Return: At the time of filing our income tax return (ITR), we make sure not to make mistakes. However, sometimes we make a mistake while filing our ITR. These can include mentioning the wrong bank account number, forgetting to declare income, or claiming the wrong deduction etc. If you have made a mistake, the current income tax laws allow you to correct it.
One can rectify their mistake as allowed under Section 139(5) of the Income-Tax Act which allows taxpayers to rectify their mistake by filing a revised income tax return.
What is Revised Return?
When an assessee successfully files his return but subsequently realises he has either missed some information or has not disclosed the information completely or any other reason for which he file his return again, that return is known as a revised return. Also, if the income tax department issues a notice for any errors made in the ITR, you need to file a Revise income tax Return. It is important to e-verify the Revised ITR within 120 days of filing.
Due Date of Revised Return
The due date for filing the revised return is before –
- The end of the relevant assessment year, or
- Completion of assessment by the assessing officers.
Examples- BabaTax has successfully filed his return of income on 25th June 2019.
On 21st July 2019, he realised he has not disclosed his bank account details correctly. He files his return on 21st July 2019 after rectification. His revised return will override his original return. For all purposes, his revise return acknowledgement will be considered.
Again on 11th January 2020, he realised that he has not disclosed his bank account details correctly again. He files his return on 11th January 2020 after rectification. His revised return will override his original return and earlier revised ITR. For all purposes, his newly revised return acknowledgement will be considered.
For FY 2019-20, BabaTax can file a revised return anytime on or before 31st March 2021 if an assessment is not completed.
Interest and Late Fee
No need to pay interest u/s 234A (delay in filing the return of income) if any tax due, but you have to pay 234B (incomplete tax payments), 234C (Payment of Advance tax installment) interest if due. Income Tax Returns under Section 139(5) of Income Tax Act, 1961 can be revised when filed pursuant to notice under Section 148 as it is provided u/s 148 that for such return all the provisions of section 139 shall apply.
The penalty shall be 50 percent of tax payable on under-reported income and 200 percent of the tax payable in case of mis-reported income. If the Income Tax returns are revised before the notice under Section 148 is issued, then there is no penalty. However, if income was hidden in the original return and is revised and disclosed after the assessing officer pursued it, then a penalty is levied. If the revise tax return shows a higher income than originally declared, a penalty may or may not be levied.
Read Also: 10 common mistakes to avoid while filing ITR
Revision of Income Tax Return under Section 139(5) of Income Tax Act, 1961 is allowed only if the omission was unintentional. The benefit cannot be claimed by a person who has filed fraudulent returns. Section 139(5) will apply only to cases of ‘omission or wrong statements’ and not to cases of ‘concealment or false statements’.
However, if a person deliberately files a false return he will be liable to be penalty under section 270A and Assessee may be imprisoned under section 277 and the offence will not be condoned by filing a revised ITR.
How many times we can file a revised return?
There is no limit for the number of times you can file a revised return. Remember, every time you file a revised ITR, you are required to provide details of your original ITR.
Can Belated Return be revised?
When an assessee does not file his return within the time prescribed in the income tax act but files it after the due date, it is referred to as a belated return. The due date for filing a belated return is on or before the end of the relevant assessment year. Both Original return and Belated return can be revised.
Can I file revised return after my ITR has been Processed?
The time limit for filing revised return is end of the relevant assessment year or completion of assessment which ever is earlier. Processing of Income Tax Return (ITR) is not assessment. Therefore, you can revise your return.
The author of the above article is Aditya Kishore.
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