Why and How to Revise Your Tax Return?

Revise Your Tax Returns - When & How?

Revise Your Tax Returns – When, Why & How?

September 7, 2015 was the last date of filing income tax return for AY 2015-16 (FY 2014-15). But what if you realize that you skipped some income or did not take the benefit of investments made or missed some disclosures? Worry not, if you had filed your tax returns within the stipulated time frame, you can revise your returns.

We discuss the when and how to file revised tax return in this post.

When to Revise Tax Return?

You should revise your returns if you want to change/add/delete any information in the original income tax return. For instance you forgot to declare the interest income in Savings bank Accounts or missed to claim benefit for any donation made to approved institutions u/s 80G.

Timelines to Revise ITR?

You can revise returns up to 1 year from the end of respective assessment year. So for the present tax return for AY 2015-16, you can revise your returns till March 31, 2017. However, you cannot revise your returns if your Assessing officer has already processed the returns. So in case you need to revise your returns do it at the earliest.

How to file Revised Tax Returns?

If the original tax return has been filed online, it can be revised online only and if the original return was filed in physical form the revised return too would have to be filed offline.

For revising the tax return online, you will need the 15 digit Acknowledgement number and date of filing of original return.

Download the relevant ITR Form from the Income Tax department Website.

We have shown the example by taking ITR 1 below:

In the “Return Filed under Section” choose “17-Revised u/s 139(5)”. This would automatically change the field for “Whether Original or Revised return” to “Revised”.

How to Revise Your Tax Returns?

How to Revise Your Tax Returns?

Also it will enable two more fields – “If Revised/Defective, then Enter Receipt Number of Original Return” where you need to enter Acknowledgement Number. In “Date of Filing Original Return” you need to enter the date of original return filing.

After completing this form, you need to upload the XML file to income tax department website as you did for original return. Next step is to verify this electronically or send the ITR V to CPC Bangalore.

Once revised return is filed the original return is considered to be withdrawn and replaced by most recent revised tax return.

If you are not comfortable with the Income tax Website, you can revise your returns through third party websites like cleartax, etc by selecting the relevant options about filing revised tax return.

Where to find Acknowledgement Number?

You can get the 15 digit Acknowledgement Number and date of original filing after logging on the income tax return website. Just click as shown in the picture below.

Tax Return Acknowladegement Number

Tax Return Acknowledgement Number

Can ITR Forms be changed for Revised Returns?

A common confusion is can the ITR form be different than the original return Form. For e.g. You filed original return using ITR 1 while you want to file revised return using Form ITR 2. Is it Possible?

Yes this is very much possible and the entire idea is to correct the original return. This could be possible that you had small short term capital gains from mutual Fund which you missed in original return and so filed through ITR 1. But to include the missed capital gains you have to use ITR 2 in the revised returns.

How many times can you revise your returns?

There is no limit to the number of times tax returns can be revised provided you filed the return within above timelines. Every time the return is revised, you need to quote the 15 digit Acknowledgement Number and date of original filing.

ITR Rectification Vs Revision:

Some tax payers are confused about Rectification Vs Revision of Tax Returns. What we discussed above was Revision of Tax Returns. This can be done before the assessment is completed by Income Tax Department.

Rectification of Tax Return can be done in response to notice received by tax payer after assessment of the tax returns by I-T Department.

Points to Note:

Below are some points to note while filing revised tax returns:

  1. If there is additional tax liability in case of revised return, you’ll need to pay that with relevant fines.
  2. The revised return is for omissions and rectification but if the assessing officer thinks that there was willful concealment of information, you may be fined. The fine may be 100% to 300% of the tax due.
  3. If the original return was not filed within the original deadline, you cannot revise your returns.
  4. As per experts, revised returns have higher chances of getting scrutiny letter from the I-T department especially if the revised returns has lower tax liability than the original return.

Have you revised your tax returns and how was your experience?

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