Correcting any mistakes or omissions in your initial Income Tax Return (ITR) is the aim of filing a revised ITR. This can involve incomplete tax returns, erroneous income data, or overlooked deductions.
An essential provision of the Income Tax Act of 1961 is Section 139(5), which permits you to file a revised ITR in case you discover mistakes or omissions in your initial return. It acts as a safety net, enabling you to make corrections and guarantee accurate tax filing. However, know that July 31, 2024, is the deadline for filing your ITR without incurring late fees for the Financial Year 2023–24 (Assessment Year 2024–25).
Also Read: Income Tax Return filing: 60 days to go! A lowdown on the tax forms you can opt for
Why should you file a revised ITR?
Correctly filing your ITR form is essential for several reasons. Below is a summary of the principal advantages:
- Precise tax burden: Ensuring that your tax burden is computed accurately is ensured by accurately filing an ITR. By doing this, you can avoid underpaying taxes and the corresponding penalties levied by the Income Tax Department.
- Tax refunds: By filing an appropriate ITR, you can request a refund if you have paid more tax than you owe because of deductions or credits. This could result in a significant increase in income.
- Financial credibility: Your income and financial status are verified by an accurate ITR. This is particularly crucial if you’re applying for government contracts, loans, or visas that demand financial stability.
- Quicker loan processing: Many financial institutions ask for income tax returns when a borrower applies for a loan. The process of approving a loan can be expedited with an accurate and timely ITR file.
- Lowers the possibility of scrutiny: The possibility that the Income Tax Department will choose to review your return is reduced when you file an accurate and complete ITR. Time and maybe trouble are saved this way.
Accurate ITR filing ensures that you fulfill your tax obligations, receive any benefits to which you are eligible, and maintain excellent financial standing for many reasons.
Also Read: ITR Filing FY24: 6 key points taxpayers must know as July 31 deadline looms large
You are required to file a revised ITR form if you find any errors or omissions on your initial return. An outline of the key ideas is provided below:
How many times can you file a revised ITR?
As long as you meet the deadline, you can amend your ITR as many times as you like in India. With this flexibility, you can make any corrections to your initial return that were missed or incomplete. This is what you must do:
Moreover, filing an amended ITR carries no penalty, unlike late returns, which can be subject to fines. Your original file has been replaced with the updated return, which is the last submission that the Income Tax Department has reviewed. Although updates are allowed, it is usually better to aim for accuracy in your initial ITR file. This ensures a smooth processing of your tax return and saves time.
You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
Download The Mint News App to get Daily Market Updates.
Published: 03 Jun 2024, 01:49 PM IST
