The due date for filing Income Tax Returns (ITR) passed over a week ago on July 31. In case there is any discrepancy in the ITR, one can file a revised return to ensure that the Income Tax Department gets their updated financial records. People can rectify their ITR and submit a revised return on the department’s web portal. One thing many taxpayers will be thinking about is whether they have to pay a penalty for filing a revised return. This space will explore revised ITR filing and penalties around it.  

What happens if one makes an error during ITR filing?

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An error-free ITR is a must. Taxpayers often make a few common mistakes including not disclosing details of all incomes, not computing tax liabilities, forgetting to claim deductions or selecting the wrong ITR form. Such mistakes can lead to an inquiry from the tax department and a notice can be sent to the individual. If there is an error in the ITR, there is no need to worry. Taxpayers have the option to rectify their errors and submit a revised ITR.

Are there any penalties for revised ITR filing?

The window to file the revised ITR for FY 2022-23 will remain open for all taxpayers till December 31, 2023.

Taxpayers need to note that they can file the revised ITR till December 31, 2023, without any penalty after remitting any taxes due after such revision. While the income tax department imposes no charges or penalties for a revised ITR, certain interests will be levied in case of a revision in income or a change in tax liability.

It is suggested that taxpayers file their revised returns at the earliest to avoid receiving any inquiry notice from the tax department for the original ITR.

Can you file a revised ITR after receiving a refund?

One can also file a revised ITR if their return has already been processed. The Income Tax Department permits you to file a revised return even in a scenario where you have received a refund.

On the other hand, those who have missed the deadline to file their income tax return can file a belated ITR with a late fine of Rs 1,000 (for those earning between Rs 2.5 lakh and Rs 5 lakh) and Rs 5,000 (for those earning above Rs 5 lakh).