Filing income tax returns (ITRs) can be a complex and often confusing activity for many taxpayers. In fact, it is not uncommon to make mistakes when filing ITRs. Fortunately, the Income Tax Act of 1961 has a specific provision – section 139(5) – to rectify errors in income tax returns.
If there has been any oversight, omissions or errors in income tax returns, taxpayers revise their tax returns as per section 139(5) of the Income Tax Act. In this article, we will explore what section 139(5) is, the concept of a revised return and who should file one. Additionally, we will delve into the process taxpayers must follow to file a revised return.
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What Is Section 139(5) of the Income Tax Act, 1961?
Section 139(5) of the Income Tax Act of 1961 is a special provision that enables taxpayers to file a revised return if they identify discrepancies, such as unreported income, incorrect deductions or computational errors in their original income tax return.
A revised return is essentially a rectified version of the original income tax return. The option to file a revised return is available to individuals, companies, businesses, and other entities. A revised return as per section 139(5) of the Income Tax Act must be filed on or before December 31 of the relevant assessment year or before the assessment is complete, whichever is earlier.
For instance, assume you notice an error or omission in the income tax return you filed for the financial year 2024 – 2025 (assessment year: 2025 – 2026). In this case, you must file a revised return rectifying the discrepancy on or before December 31, 2025, or before the assessment is complete, whichever is earlier.
The primary objective of section 139(5) was to help taxpayers avoid penalties for unintentional mistakes and to ensure proper compliance with tax regulations.
When Should You File a Revised Return?
Before we explore how to revise your tax return, let us look at some instances in which you should file a revised return.
- If you missed reporting any income, such as rental income or interest from fixed deposits, in your original tax return.
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- If you claimed any exemptions or deductions incorrectly or missed including them due to oversight.
- If the bank account details mentioned in the original income tax return are wrong or if you simply wish to update it to ensure timely refund processing.
- If you identify any errors in the computation of total income that resulted in an incorrect tax liability.
How to Revise Your Income Tax Return As Per Section 139(5) of the Income Tax Act?
Filing a revised return as per section 139(5) of the Income Tax Act of 1961 is a relatively straightforward process when it is done online. Here is a quick overview of the steps you must follow.
- Step 1: Visit the e-filing website of the Income Tax Department and log in using your PAN and password.
- Step 2: Once you are logged in, click on the ‘e-File’ tab and select ‘File Income Tax Return’ under the ‘Income Tax Return’ option.
- Step 3: Select the relevant assessment year for which you wish to revise the return.
- Step 4: Under the ‘Select Filing Type’, choose Section 139(5) – Revised Return.
- Step 5: Enter the acknowledgement number and filing date of your original income tax return.
- Step 5: Rectify the errors, omissions or discrepancies in the form to ensure that all income, deductions, and tax details are accurately updated.
- Step 6: Preview and submit the revised income tax return after verifying the accuracy of all of the details once again.
- Step 7: Verify the filed revised return using either of the following methods: Aadhaar OTP, digital signature or electronic verification code (EVC).
Once your revised return is verified, it will be taken up for processing by the Income Tax Department. You can monitor the status of your revised return by logging into your income tax e-filing account.
Conclusion
As a taxpayer, you must know how to revise your income tax return. By understanding and being familiar with the provisions of section 139(5), you can avoid unnecessary penalties by correcting genuine mistakes before they become serious consequences. That said, it is important to note that the time for filing revised returns is limited. Therefore, if you notice errors or omissions, make sure to file a revised return immediately.
FAQs
Can I revise my income tax return after the assessment year ends?
No. You can only file a revised income tax return as per section 139(5) on or before the 31st of December of the relevant assessment year or before the return assessment is complete (whichever is earlier). However, if you notice any mistakes or omissions in your original return after the assessment year ends, you can file an updated return on or before the end of two years from the relevant assessment year to which the original return pertains.
Is there a limit to the number of times I can revise my return?
No. There is no limit to the number of times you can file a revised return as per section 139(5) of the Income Tax Act.
Should I pay additional tax when filing a revised return?
If the computation in the revised return as per section 139(5) of the Income Tax Act of 1961 increases your liability, an additional tax along with interest (if applicable) must be paid at the time of filing.
Can I revise a return even if I filed the original return belatedly under section 139(4) of the Income Tax Act, 1961?
Yes. You can file a revised return as per section 139(5) even for a belated return if you notice any errors or discrepancies.
Can I revise my income tax return after the Income Tax Department has processed the original return?
Yes. You can file a revised return as per section 139(5) of the Income Tax Act of 1961 even after your original return is processed. However, remember to ensure you file the revised return within the stipulated due date.
