Discovered some mistake after filing Income Tax return?- Understand the rectification process of Return to escape Penalties

Rectification of Income Tax Return in India is an option provided to taxpayers to rectify or modify errors in their original income tax return filing. If a taxpayer discovers any mistakes, omissions, or inaccuracies in their initial income tax return after it has been submitted, they can file a revised return to correct those errors.

Here are some key points about Revised Income Tax Return in India:

Rectification of Mistakes noticed after filing of Income Tax Return:

If a taxpayer realizes that they have made errors or omitted certain details in their original tax return filing, they can choose to file a revised return.

Some reasons for filing a revised return could include corrections in income, claiming deductions that were missed in the original filing, adding income sources that were initially overlooked, and making changes to other details like tax computation, omission to report losses to be carried forward, claiming credit for full TDS deducted and personal information.

Filing rectification return of Income Tax can help escape penal Income Tax:

In the event of any unreported income is discovered by Income Tax Department during assessment, an assessee is liable to Pay Income Tax on such unreported income, Interest on such income tax for late payment of taxes, and penalties which may extend upto 300% of the tax sought to be avoided.

While if such Income Tax return is revised in time, interest on such income tax that needs to be further deposited will still apply, one can escape penal provisions of Income Tax governing tax evasion.

If you’re unsure about whether you need to file a revised return or if you need assistance, please feel free to revert back to us for assistance in filing the rectified return of Income Tax.

Time Limit to file the Rectified Return of Income Tax:

The revised return can be filed within three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Conditions to file the Rectified return of Income Tax

 Original Return of Income Tax must be filed in time.

A revised return can only be filed if the original return had already been filed with In the time limit allowed by Income Tax Department.

Are Multiple Revisions to Income Tax Return Allowed:

Taxpayers can revise their return more than once if needed. However, each revision should be based on a previously filed return.

Which Income Tax return is considered Valid- Original or Revised?

The revised return supersedes the original return. This means that after filing a revised return, the original return is considered null and void.

In what circumstances an assessee is debarred from filing revised return of income tax?

Completion of Assessment:

If the income tax assessment for a particular year has been completed by the Income Tax Department, you may not be allowed to file a revised return for that year.

Furnishing Inaccurate Information:

If the case of the taxpayer has been selected for scrutiny and the taxpayer is found to have intentionally provided inaccurate or false information in their original return with the intention of evading taxes or misrepresenting their financial situation, and that the tax payer is now filing revised return only to escape provisions of the penalty and prosecution, the taxpayer might not be allowed to file a revised return.

Not Filing Original Return before due date to file the return of Income Tax:

If a taxpayer fails to file the original income tax return within the due date or doesn’t file it at all, they will not be eligible to file a revised return.

Initiation of Tax Proceedings:

If the tax authorities have initiated certain proceedings, such as search and seizure operations, against a taxpayer, there are restrictions on filing a revised return during the pendency of these proceedings.