The deadline to file an income tax return is approaching fast on July 31. While a large number of individual tax payers are yet to file tax returns, there are a number of persons who have filed their returns already but have, unknowingly, filed the incorrect details.
Such persons can avail the option of filing a revised return under section 139(5) of the Income Tax Act.
Income tax payers can file revised returns if they want to make changes in their returns. The tax payers who, by mistake, entered the wrong information at the time of filing their income tax returns, are allowed to file a revised income tax return.
In other words, filing a fresh return makes way for the previous return. There could be a number of reasons for the mistakes that may have come up in the income tax return filing process.
“It’s advisable to file a revised return if you missed out certain things while filing your return. In case you don’t file a revised return, and there still are mistakes, the tax department may point out mistakes via a notice sent to you. Importantly, if you are eligible for income tax refund, it would not be allowed until a revised return has been filed,” said Deepak Aggarwal, a Delhi-based chartered accountant.
These are some of the reasons that can lead to such mistakes:
1. There could be an instance where tax payer entered wrong bank account details.
2. There could be a difference between the income shown in the tax return and Form 26AS.
3. If a tax payer has an income abroad, there could be an omission of recording income accrued abroad.
4. One might have filed factually incorrect personal information that needs to be corrected in the revised return.
Updating return within two years
It is worth mentioning here that Finance Minister Nirmala Sitharaman during the Budget announcement of 2022-23 made a new provision permitting tax payers to file their updated income tax return within two years in case they made a mistake in estimating their income for tax payment.
“Some taxpayers may realize that they have committed omissions or mistakes in correctly estimating their income for tax payment. To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year,” said Nirmala Sitharaman during the Budget speech on February 1, 2022.