Section 139(5) – Revised Return

Even the most diligent taxpayers can make mistakes or overlook certain details while filing their Income Tax Return (ITR). Recognizing this, the Income Tax Act, 1961, provides a crucial relief mechanism: the Revised Return under Section 139(5). This provision allows taxpayers to correct errors or omissions in a previously filed return, ensuring accuracy and compliance with tax laws.

What is a Revised Return?

A "Revised Return" is a fresh Income Tax Return filed by a taxpayer to rectify any errors, omissions, or wrong statements made in an original or belated ITR. It effectively replaces the previously filed return, ensuring that the Income Tax Department has the most accurate financial information.

For a return to be revised under Section 139(5), the original return must have been filed either:

• Under Section 139(1) (Original Return filed by due date); or
• Under Section 139(4) (Belated Return).

When can a Revised Return be Filed? (Time Limit)

A taxpayer can file a revised return at any time:

• On or before the 31st day of December of the assessment year; OR
• Before the completion of the assessment,
• Whichever is earlier.

Example: For the Financial Year (FY) 2024-25, the Assessment Year (AY) is 2025-26. If you filed your original return on July 20th, 2025, and later discovered an error, you can file a revised return anytime until December 31st, 2025, provided your assessment has not been completed by the Income Tax Department before that date.

Reasons for Filing a Revised Return

Taxpayers might need to revise their ITR for various reasons, including but not limited to:

• Clerical Errors: Simple typos in personal details, bank account numbers, or address.
• Incorrect Income Figures: Under-reporting or over-reporting income from any head (salaries, house property, business/profession, capital gains, other sources).
• Missing Income Sources: Forgetting to include income from a particular source, like interest from a fixed deposit or capital gains from a sale of property/shares.
• Wrong Deductions/Exemptions Claimed: Incorrectly claiming a deduction or missing out on an eligible deduction (e.g., 80C, 80D).
• Incorrect TDS/TCS Details: Mismatch between Form 26AS/AIS/TIS and the ITR, or incorrect entry of TDS/TCS amounts.
• Change in Tax Regime Choice: For eligible individuals, opting for the old or new tax regime can be changed while filing a revised return if the original choice was incorrect or needs to be altered within the permissible time frame.
• Discovery of New Information: Receiving updated income statements or tax documents after filing the original return.

How to File a Revised Return

The process of filing a revised return is straightforward and largely similar to filing an original return. It is done through the Income Tax Department's e-filing portal:

1. Log in: Access your account on the e-filing portal.
2. Select 'File Income Tax Return': Choose the relevant assessment year.
3. Original Details: Crucially, while filing a revised return, you must provide the Acknowledgement Number and the date of filing of the original (or belated) return.
4. Correct Errors: Make all necessary corrections to the income, deductions, tax payable, etc.
5. Submit: Complete the filing and verification process.

It's important to note that the latest revised return completely replaces all previously filed returns for that assessment year. You should generally use the same ITR form that was applicable to your original filing, unless the nature of the correction itself necessitates a change in the form (e.g., if you omitted an income source that requires a different ITR form).

Benefits of Filing a Revised Return

• Rectification of Errors: The primary benefit is correcting any mistakes, ensuring accurate declaration of income and tax liability.
• Avoids Penalties: Timely revision can save you from severe penalties, particularly those for misreporting or concealment of income under Section 270A, which can be 50% to 200% of the tax sought to be evaded.
• Prevents Scrutiny: By proactively correcting discrepancies, you reduce the chances of receiving a scrutiny assessment notice under Section 143(2) from the Income Tax Department.
• Maintain Compliance: It demonstrates your commitment to tax compliance and honesty, which is viewed favorably by the tax authorities.
• Correct Refund Claims: Ensures that if you were due a refund, or if the refund amount was incorrect, it can be corrected and processed accurately.

Consequences of NOT Filing a Revised Return (When Needed)

If you discover an error in your filed return but fail to revise it within the stipulated time, you could face:

• Heavy Penalties: For under-reported or misreported income (Section 270A).
• Increased Scrutiny: Higher likelihood of your return being selected for a detailed scrutiny assessment, leading to prolonged proceedings.
• Interest on Short Payment: If the error resulted in a lower tax payment, interest will be charged on the deficit.
• Prosecution: In cases of deliberate concealment or gross misrepresentation, prosecution proceedings may be initiated.

Important Points to Remember

• No Revision for Updated Returns: A return filed under Section 139(8A) (Updated Return) cannot be revised.
• Multiple Revisions Allowed: There is no limit to the number of times you can revise your return within the permissible time frame. Each subsequent revised return will replace the previous one.
• Revised Return vs. Defective Return (Section 139(9)): A revised return is filed voluntarily by the taxpayer, whereas a defective return notice is issued by the department for specific errors, and the taxpayer is asked to rectify it. For more details, refer to Rectification vs. Revision.