Filing your income tax return is essential, but mistakes can happen even with the best efforts. Whether it’s missing out on crucial income details, reporting crypto transactions or failing to claim an eligible deduction, errors in tax filings are common.
Fortunately, Section 139(5) of the Income Tax Act allows taxpayers to correct these mistakes by submitting a revised return. Suppose you’ve noticed an error after filing. In that case, you can amend it quickly within the permissible time frame, i.e., 31st December every year or before the completion of the assessment, whichever is earlier.
This article will guide you step-by-step on how to file a revised return under Section 139(5), ensuring your tax records are accurate and compliant with the law. Understanding this process can help you rectify mistakes and optimise your tax filings effectively.
What Does a Revised Return Mean Under Section 139(5) of the Income Tax Act?
Before we jump into the steps of filing a revised return, let’s understand the concept of revised returns under Section 139(5) of the Income Tax Act.
A revised return under Section 139(5) allows taxpayers to correct errors or update their initially filed tax return. If you realise that you’ve missed specific details or made a mistake in your original filing, this section allows you to rectify those issues by submitting a revised return.
It ensures your tax information is accurate and complete, avoiding potential penalties. This provision benefits individuals or businesses who may have forgotten to report some/partial income or claim incorrect deductions.
How To File Revised Return Online?
If you’ve omitted income, reported incorrect deductions, or entered wrong details, you can correct them by filing a revised return within the permissible time frame. Below is a step-by-step guide to help you file a revised return.
Step 1: Log in to the Income Tax e-Filing Portal
First, visit the Income Tax e-Filing Portal and log in with your credentials. You must register using your PAN if you don’t already have an account. Once logged in, you’ll find the dashboard with various options related to tax filing.
Step 2: Locate the 'Revised Return' Option
Navigate to the ‘e-File’ section and select ‘Income Tax Return’. From the options available, choose ‘File Income Tax Return‘. This option will allow you to make the necessary corrections to your previously filed return.
Step 3: Select the Assessment Year and Filing Mode
On the dashboard, choose the appropriate assessment year for which you want to revise the return. Choose ‘2024-25 (Current A.Y.)’ and the filing mode as ‘Online.’ Once done, click ’Continue.’
Step 4: Start New Filing
Click the “Start New Filing” option on the next page to file your revised ITR.
Step 5: Select Your Status
Once you file your revised ITR process, you will see that all the processes are identical to filing an original ITR. Once you click the “Start New Filing” option on the next page, you must choose your applicable status., i.e., Individual, HUF (Hindu Undivided Family) or Others. Once done, hit ‘Continue.’
Step 6: Choose the Correct ITR Form
Selecting the same ITR form used for the original return is important. For instance, if you filed ITR-2 initially, you should also select ITR-2 for the revised return. The form depends on your income sources, so ensure accuracy when choosing the form.
Note: If you initially filed the wrong ITR form, you can correct it here according to your applicable source of income.
Step 7: Verify The ITR Form Details
On the next page, please verify if the ITR form that you have selected matches your source of income or not; if yes, then click on “Let’s Get Started.”
Step 8: Choose The Reason To File The ITR
On the next page, you must choose why to file your ITR. Please choose the applicable reason from the list and then hit ‘Continue.’
Step 9: Select All The Applicable Schedules
Now, you must select all the schedules that apply to your source of income. Mandatory schedules are pre-selected for you. You need to select any additional schedules that apply to you.
Step 10: Acknowledge The Pop-Up
A pop-up will appear before you, stating the number of schedules you have selected. It will also ask you to answer a few questions about your chosen schedules to help you file your ITR properly. If you know what to fill under which schedule, you can “Skip These Questions.” However, it is recommended that you go on to answer the questions by clicking on ‘Continue.’
Step 11: Answer The Questions Related To General Information
Once you hit continue, you will be presented with several questions related to the general information. Keep on answering them as per your choice and opinion.
Step 12: Answer Related To Salary Exemption
Once you have answered the questions related to general information, you will be asked a few questions related to salary exemptions. Read each question thoroughly and answer it very carefully.
Step 13: Answer Queries Related To Deductions
On the next page, you must answer a few queries related to deductions under various sections of the Income Tax Act.
Step 14: Enter Original Return Details
You’ll need to check the details of your original return, including the acknowledgement number and the date of filing, which comes pre-filled. These details are required to link your revised return with the original one. Ensure that you cross-verify them correctly to avoid any discrepancies.
Step 15: Make Corrections
In this step, make the necessary corrections to your return. Whether it’s an omission of income, an incorrect deduction, or other errors, this is your opportunity to rectify them. Double-check the information for accuracy.
Step 16: Attach Supporting Documents
If your revised return involves new deductions or changes that require supporting documentation, ensure that you upload the relevant documents. For example, if you add a new deduction, you must submit proof to substantiate the claim.
Step 17: Verify and Submit
After making all the necessary corrections, review the entire return to ensure accuracy. Once you are satisfied, proceed to submit the revised return electronically. Keep in mind that mistakes in this step could lead to future complications.
Step 18: Acknowledgment
The portal will generate a new acknowledgement number for the revised return upon submission. This is separate from the original acknowledgement, so save it for future reference.
Step 19: E-Verify the Return
After submission, you must e-verify your revised return. This can be done via Aadhaar OTP, Net Banking, or by sending a signed physical copy to the Centralised Processing Center (CPC). E-verification ensures the revised return is processed quickly.
Step 20: Monitor the Status
Once submitted, you should monitor the processing status on the e-filing portal. The status will change from ‘Submitted’ to ‘Processed’ once the Income Tax Department has reviewed your return.
Important Points About Filing a Revised Return
Understanding the key aspects of filing a revised return is essential to ensure you comply with tax regulations effectively.
Correcting Errors and Omissions
You can file a revised return if you made any mistakes, such as misreporting income, deductions, or exemptions in your original ITR. This step ensures you correct any inaccurate or incomplete details, helping you avoid future tax discrepancies.
Adding Missed Income or Deductions
Sometimes, taxpayers overlook income sources or forget to claim certain deductions. Filing a revised return under Section 139(5) allows you to report these missed details and ensure your ITR reflects all income and eligible deductions.
Adapting to Changes in Tax Laws
If there are changes in tax laws or calculations after you’ve filed your ITR, you can use a revised return to update your tax details. This allows you to align your tax liability with the latest rules and regulations, ensuring full compliance.
When Should You File A Revised Return?
Filing a revised return can become necessary for several reasons. Whether you are an individual or a business, ensuring that your tax return is accurate and complete is crucial. Here are some critical scenarios when you should consider filing a revised return.
Error Correction
Mistakes happen. You should file a revised return if you notice an error on your original return, such as incorrect income details or wrong deductions. Correcting these inaccuracies ensures that your return reflects the correct financial information and prevents future penalties.
Missed Deductions or Credits
Did you overlook a deduction or credit in your original filing? This can happen, especially if you file in a rush. Filing a revised return allows you to claim these missed opportunities, lowering your tax liability and potentially increasing your refund.
Additional Income Reporting
If you missed reporting some income, filing a revised return is important. Leaving out income can lead to tax discrepancies, and correcting this through a revised return ensures compliance with tax regulations.
Changes in Financial Transactions
Significant financial transactions, such as investments or sales, might have yet to be fully reported in your original return. If you realise this later, a revised return will help you update the information, ensuring your return reflects your financial situation.
Underreported or Misreported a Crypto Transaction
If you’ve engaged in cryptocurrency transactions that were either underreported or misreported in your original return, it’s essential to revise your filing. Crypto transactions are taxable, including swapping, selling, or trading digital assets. Failing to report these can lead to penalties. Filing a revised return helps ensure compliance with crypto-related tax obligations.
Responding to Tax Authority Requests
Sometimes, the tax authorities might request more information or notify you of discrepancies in your return. In such cases, filing a revised return can help you address their concerns and avoid further complications.
When Can I File A Revised Return?
You can file a revised return until 31st December of the assessment year or before the completion of the assessment, whichever is earlier. This rule allows you to correct any mistakes in your original tax filing.
For example, if you filed your return for FY 2023-2024 (AY 2024-2025), you have until 31st December 2024 to revise it, provided the assessment still needs to be completed. Always ensure you act promptly to avoid missing the deadline.
Consequences of Filing a Revised Return under Section 139(5)
Filing a revised income tax return under Section 139(5) of the Income Tax Act can have significant implications. Taxpayers should be aware of the potential outcomes before making any amendments. Below are the critical consequences of filing a revised return.
Changes in Tax Liability
When a revised return is filed, it may result in changes to the taxpayer’s liability. The revised version could increase the tax liability if the original return contained errors or missed income. In such cases, the taxpayer must pay the additional taxes and any applicable interest.
Refund Adjustments
On the other hand, a revised return may reduce the overall tax liability. For instance, if the taxpayer adds more deductions or exemptions that were overlooked earlier, it could lead to a refund. This adjustment benefits the taxpayer, provided the details are accurate and substantiated.
Interest and Penalties
Filing a revised return can sometimes trigger penalties and interest, especially if additional tax is due. Taxpayers must pay interest on the overdue amount from the original filing date until the revised return is processed.
Increased Scrutiny
Filing a revised return may attract attention from tax authorities. This scrutiny could lead to a thorough examination of the taxpayer’s financial documents, especially if substantial changes are made in the revised return.
How Can KoinX Help In Filing Revised Return?
We understand that manual crypto tax calculation can be hectic and often miscalculated and misreported. Under such circumstances, you must file a revised return to rectify your mistake. To avoid such errors in the future, we will bring you an automated crypto tax calculating software, KoinX. Our platform allows you to integrate accounts from over 270 exchanges, wallets and blockchains. Here’s how you can profit from using KoinX:
Automated Crypto Tax Calculation
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Accurate Generation of Schedule VDA
It generates a precise Schedule VDA report, which is crucial for reporting your crypto transactions correctly. This helps ensure every transaction is accurately recorded, minimising errors and omissions in your tax filings.
Easy Integration with Major Exchanges
KoinX integrates seamlessly with over 300+ cryptocurrency exchanges and wallets allowing you to import transaction data effortlessly without manual input. This ensures your data remains accurate and up to date.
Comprehensive Reports for Filing Returns
The platform provides detailed reports specifically designed to assist in filing your tax returns. These reports cover all the necessary details and meet compliance standards, making the submission process simpler and more reliable.
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Conclusion
Filing a revised income tax return under Section 139(5) of the Income Tax Act is crucial to ensure accurate tax records. By carefully following the process, you can correct errors in your original filing, preventing future complications or penalties. Remember, timely revision not only safeguards you from legal consequences but can also improve your tax situation by allowing you to claim missed deductions or rectify income details. If you want to avoid any errors in crypto tax filing, join KoinX today and let it calculate your taxes.
Frequently Asked Questions
Can I File a Revised Return After the ITR Is Processed?
You can file a revised ITR under Section 139(5) even after receiving an intimation under Section 143(1), provided it is within the specified deadline of 31st December every year.
Can A Belated Return Be Revised?
Yes, a belated return can be revised. If you’ve already submitted your income tax return, you still have the option to revise and refile it. This applies even if you filed your return after the due date, known as a belated income tax return.
Can I Make Changes To Personal Details In A Revised Return?
You can use a revised return to update personal details like your contact or bank account details.
