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How To Rectify Errors In Filed ITR Using Revised Or Updated Returns?
If you submitted the original return or belated ITR on time, you can use the revised return. You can fix errors like missing deductions, inaccurate income information, or erroneous ITR forms by filing this. Budget 2025 has extended the deadline for filing an Updated Return to 48 months (4 years) from the conclusion of the relevant assessment year; nevertheless, Section 143(3) prohibits filing an updated return after the assessment is ended. If a taxpayer finds inaccuracies in their filed Income Tax Return (ITR), the Income Tax Department of India offers two ways to correct the return: the updated return and the revised return. Here's how to utilize them and how each functions, according to Shefali Mundra, Tax expert at Clear Tax.
What should I do if I realize there's a mistake in my already filed ITR?
If you've identified an error in your filed ITR, you have several options:
Revised Return (Section 139(5)): The revised return is applicable if the original return/ belated ITR was filed on time. By filing this, you can correct mistakes such as incorrect income details, missed deductions, or wrong ITR forms. You can file a revised return multiple times before three months prior to the end of the relevant assessment year(i.e. 31st December) or before the completion of the assessment, whichever is earlier.
Updated Return (Section 139(8A)): This was introduced to allow taxpayers to rectify omissions or errors by filing an updated return within 4 years from the end of the relevant assessment year. This is particularly useful if you missed the deadline for filing an original/ revised return.
Rectification Request: The rectification request can also be filed suo moto. If the error pertains to processing mistakes by the Income Tax Department, such as incorrect tax credit or mismatch in TDS, you can file a rectification request online through the e-filing portal.
What is the time limit for filing an Updated Return under Section 139(8A)?
As per Budget 2025, the time limit for filing an Updated Return has been extended to 48 months (4 years) from the end of the relevant assessment year. However, additional taxes apply based on the timing:
| ITR-U filed within | Additional Tax |
|---|---|
| 12 months from the end of the relevant AY | 25% of outstanding tax liability |
| 24 months from the end of the relevant AY | 50% of outstanding tax liability |
| 36 months from the end of the relevant AY | 60% of additional tax (tax + interest ) |
| 48 months from the end of the relevant AY | 70% of additional tax (tax + interest ) |
What is the difference between a Revised Return and an Updated Return?
| Feature | Revised Return | Updated Return |
|---|---|---|
| Eligibility | Taxpayer who has already filed an original/ belated ITR . | Any taxpayer, even if they haven't filed an original ITR. However, it cannot be filed in certain situations (refer to the notes below). |
| Purpose | To correct any errors or omissions in the originally filed ITR. | To report income that was previously missed or underreported in the original or revised ITR. |
| Time-Limit | Three months Before the end of the relevant assessment year OR before the completion of the assessment, whichever is earlier. | Within 48 months (4 years) from the end of the relevant assessment year. |
| Number of Filings | Can be revised multiple times within the stipulated time limit. | Can be filed only once for a given assessment year. |
| Additional Tax | No specific penalty for filing a revised return. However, interest may be applicable on any additional tax liability arising from the revision. | Additional tax is payable on the income reported in the updated return - refer table above |
| Nature of Errors | To rectify genuine mistakes, errors in calculations, or omissions of information. | To disclose previously unreported/under-reported income. |
| Initiation | Can be initiated by the taxpayer voluntarily. | Primarily initiated by the taxpayer to come clean about previously untaxed income. |
Are there any conditions under which I cannot file a Revised or updated ITR?
Revised Return: You cannot file a revised return after the assessment is completed under Section 143(3).
Updated Return: You cannot file an updated return if:
- It results in a refund or increases the refund amount.
- The updated return results in a lower tax liability than what was paid in the original return.
- A search or survey has been initiated against the taxpayer.
- An assessment, reassessment, recomputation or revision of income is pending or has been completed.
- The updated return has already been filed once for the relevant A.Y
What documents should I keep in case my return is picked for scrutiny after revision?
At the time of scrutiny assessment, it's essential to maintain:
Proof of Income: Form 16, 16A, Salary Slips, Bank Statements, Capital Gains Statement, etc.
Investment Proofs: Documents supporting deductions claimed under various sections (e.g., 80C, 80D)
Tax Payment Proof: Copies of advance tax & self-assessment payment challans, TDS certificates, etc.
Revised/Updated Return Related Proofs: Org and Revised Return Acknowledgements, Tax Computation, etc.
Correspondence with Tax Authority: Details of notices received, along with responses sent to the Tax Authority, and copies of any supporting documents submitted earlier.
Maintaining these documents ensures a smooth process in case of any queries or assessments by the tax authorities.
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