Section 139(5) of the Income Tax Act - Revised Income Tax Return

Filing an Income Tax Return (ITR) is a legal obligation for many individuals and businesses in India. However, mistakes are natural. A taxpayer may unintentionally leave out income, claim excess deductions, or enter wrong details while filing the return. To address such issues, the Income Tax Act, 1961, under Section 139(5), allows taxpayers to correct the errors by submitting a Revised Income Tax Return. This article explains the concept, eligibility, deadline, steps, and implications of filing a revised ITR in a simple and detailed manner.

What is a Revised Income Tax Return under Section 139(5) of the Income Tax Act?

A Revised Income Tax Return is a return filed again to correct any omission or mistake in the original return submitted under Section 139(1). Section 139(5) of the Income Tax Act provides the legal provision for this. It is especially helpful for those who realize after filing their return that they have missed declaring income, made calculation errors, or failed to claim a deduction.

This revised return replaces the original return and is treated as the final return of the taxpayer. It ensures that the income declared is correct, deductions claimed are accurate, and any refund or liability is properly reflected.

Possible Reasons for Filing a Revised Income Tax Return

There can be many genuine reasons for revising an ITR. The most common ones include:

Correction of Errors: A taxpayer might have reported incorrect income figures or claimed deductions under the wrong section. These can be fixed by revising the return.

Missed Reporting of Income: Sometimes, taxpayers forget to mention certain sources of income like interest from fixed deposits or rental income. A revised return helps in including these incomes.

Omission of Deductions or Exemptions: Taxpayers might forget to claim deductions under Section 80C, 80D, or exemptions like HRA. These can be claimed through a revised return.

Change in Residential Status: If a person’s residential status changes from resident to non-resident or vice versa after filing the return, it needs to be corrected.

Response to Assessment Notice: If the Income Tax Department points out discrepancies during processing or assessment, a taxpayer can revise the return to correct them.

Claiming Refund: If you missed claiming a deduction and later realized that it would have reduced your tax or resulted in a refund, you can revise your return and claim the refund.

Deadline for Filing a Revised Return under Section 139(5) of the Income Tax Act

As per Section 139(5) of the Income Tax Act, a revised return must be filed on or before 31st December of the relevant assessment year or before the completion of assessment, whichever is earlier.

For example, for the Financial Year 2023-24 (Assessment Year 2024-25), the revised return can be filed up to 31st December 2024. If the Assessing Officer completes your assessment before this date, then you cannot file a revised return.

Another important point to note is that there is no restriction on the number of times a return can be revised, as long as it is done within the allowed time.

Who Can File a Revised Income Tax Return?

Any individual or entity who has filed an original return under Section 139(1) or a belated return under Section 139(4) can file a revised return under Section 139(5) of the Income Tax Act.

This includes individuals, salaried employees, self-employed persons, companies, Hindu Undivided Families (HUFs), and firms. Whether your original return was filed on time or late, you are still eligible to revise it if the assessment is not complete and the deadline has not passed.

Procedure to File a Revised Income Tax Return

Filing a revised return can be done online using the Income Tax e-Filing portal or through third-party services like Tax2win. Below are the steps involved in filing a revised return:

Step 1: Log in to the Income Tax e-Filing Portal Use your PAN and password to log in to the official website of the Income Tax Department.

Step 2: Select Filing Type Choose the relevant assessment year for which you want to file the revised return. Select "Revised Return" as the return filing type.

Step 3: Provide Acknowledgement Number You need to enter the acknowledgement number and date of filing of your original return.

Step 4: Fill in the Correct Information Update the details that were omitted or wrongly entered in the original return. Make sure to include all incomes, deductions, and bank details accurately.

Step 5: Verify the Return Once you’ve completed all the details, submit the revised return and e-verify it using Aadhaar OTP, EVC, or Digital Signature.

Is There Any Penalty for Filing a Revised Income Tax Return?

There is no penalty for filing a revised return under Section 139(5) of the Income Tax Act if the original return was filed on or before the due date.

However, if the original return itself was a belated return filed after the due date, then late filing fees under Section 234F would have already applied to the original return. Revising a belated return does not attract any new penalty, but it does not remove the penalty already imposed on the original filing.

Consequences of Filing a Revised Return

Filing a revised return does not usually attract any penalty or scrutiny if the changes are minor, like correcting personal details or bank account information.

However, if the revised return reports a significantly higher income or additional sources of income, it may catch the attention of the Income Tax Department. This may result in a scrutiny notice.

Also, if your revised return leads to a higher tax liability, you must pay the additional tax along with interest under Section 234A/B/C, if applicable.

Important Points to Remember When Filing a Revised ITR

Revised Return Replaces Original Return: Once a revised return is filed, it overwrites the original return. The revised ITR becomes the final return for that assessment year.

Processed Returns Can Be Revised: Even if your ITR has been processed under Section 143(1) and a refund has been issued, you can still file a revised return before the deadline.

Unlimited Revisions Allowed: The taxpayer can file revised returns multiple times as long as it is done within the permitted time.

No Revision After Assessment: If the Income Tax Department has completed your return assessment under Section 143(3), then you cannot file a revised return for that year.

Switching Tax Regimes: If your original ITR was filed under the old regime, you can revise it and switch to the new regime before assessment completion. But if the original ITR was under the new regime, you cannot switch to the old one in a revised return.

Budget 2025 Update: Higher Rebate and Extended Time to Update Returns

Starting from 1 April 2025, some new provisions come into effect. The Section 87A rebate has been increased from Rs. 7 lakh to Rs. 12 lakh. Additionally, a standard deduction of Rs. 75,000 makes income up to Rs. 12.75 lakh tax-free under the new regime.

New tax slabs under the new regime:

1. ?0 to ?4 lakh: 0%

2. ?4 lakh to ?8 lakh: 5%

3. ?8 lakh to ?12 lakh: 10%

4. ?12 lakh to ?16 lakh: 15%

5. ?16 lakh to ?20 lakh: 20%

6. ?20 lakh to ?24 lakh: 25%

7. ?24 lakh and above: 30%

The time for updating returns using Form ITR-U has also been extended from 2 years to 4 years.

Filing a Revised Income Tax Return under Section 139(5) of the Income Tax Act ensures that you remain tax-compliant and avoid unnecessary notices and penalties. Always cross-verify your tax information before final submission and revise your return within the prescribed timelines if necessary. If you are unsure about the process, consult with Compliance Calendar LLP experts to file the revised return accurately.

Email: info@ccoffice.in

Call/Whatsapp: +91 9988424211

Frequently Asked Questions (FAQs) on Revised Income Tax Return

1. Can I file a revised return if my original return is already processed?

Yes, if the assessment under Section 143(3) is not complete, you can file a revised return even if the original ITR has been processed.

2. How many times can I revise my return?

There is no limit. You can revise your ITR multiple times under Section 139(5) before the deadline.

3. What if I discover an error after filing a revised return?

You can file another revised return to correct the error, as long as you are within the time limit.

4. Is e-verification required for a revised return?

Yes, every revised return must be e-verified within 30 days to complete the filing process.

5. What is the last date to file a revised return for AY 2024-25?

The last date is 31st December 2024 or the date before the assessment is completed, whichever is earlier.

6. Can I file a revised return if I have received a notice under Section 143(2)?

Yes, receiving a notice under Section 143(2) does not complete the assessment. You can still file a revised return.

7. Can I revise a belated return?

Yes, a belated return filed under Section 139(4) can also be revised under Section 139(5).

8. Can I revise ITR to switch between tax regimes?

Yes, you can switch from the old to the new regime before the assessment is completed. But switching from new to old is not allowed.

9. Will revised returns delay my refund?

In some cases, it may lead to a reassessment of refund eligibility, causing a slight delay.

10. What happens if I file a revised return and do not e-verify it?

If you do not e-verify within 30 days, your revised return will not be considered valid.